Rapport annuel 2009 Annual Report

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1 uottawa Programme de gestion des risques / Enterprise Risk Management Program 14 decembre 2009 Bureau des gouverneurs 14 December 2009 Board of Governors

2 Executive Summary The identification, assessment and control of enterprise risks are an integral part of good governance and sound management. Although these activities have traditionally been part of operational and strategic decisionmaking at the University of Ottawa, the University s senior management initiated the development of a formal Enterprise Risk Management Program to enhance the communication of these activities. In 2004, key enterprise risks were identified and assessed in terms of their probability of occurrence and the severity of their impact. Risk controls were documented, reviewed and assessed. Risk owners were assigned and action items were developed for each key enterprise risk. These individual action items in turn were rolled into the University s Enterprise Risk Management report. Since 2006, an Annual Report has been prepared and submitted to the Audit Committee of the Board and to the Board of Governors, for review and approval. A quarterly update was also provided in This annual report presents the summary of the Enterprise Risk Management activities that have been undertaken in fiscal year 2008/2009. It has been subsequently updated for material issues occurring prior to August 31, This report contains detailed information regarding each enterprise risk which was prepared by the the risk owners and submitted to the Office of Risk Management s Associate Director and Risk Analyst during the summer months. An executive summary of the process and the risks was then prepared and submitted to the Enterprise Risk Management Committee and to the Administration Committee, for review. The report has been presented to and approved by the Audit Committee and is now submitted to the Board. To complement this process, a bottom up approach was also undertaken with faculties and services to ensure that enterprise risks have resonance across the University. These processes are consistent with the approach recommended by Standard and Poors for enterprise risk management and ISO A graphical summary of management s assessment of internal controls and risk severity is presented in Annex 1. Student Satisfaction Effectiveness of Controls: Acceptable The University s future is shaped by the quality of the student experience. Over the past five years, student surveys indicate ratings that are be the average of peer universities. A new task force on the Quality of the Student Experience was established and action plans are currently being developed to address areas requiring improvement. These would include student-faculty interaction and food services. A number of other initiatives were implemented, as presented in the Budget Emergency Preparedness Effectiveness of Controls: Acceptable The University must have effective plans to respond to emergencies such as natural disasters, terrorist acts, chemical spills, fires etc. These are evolving over time, based on best practices in the university environment. Clear objectives and priorities were given to the Emergency Management and Reco Program Steering Committee in order to accelerate emergency and business continuity planning as well as systems testing.

3 The University established a task force on the H1N1 pandemic last May, to prepare a plan for a potential second wave this fall. Specific protocols to protect the health of students and employees and to minimize the impact on the University s teaching and research missions have been developed. Reduction in Government Funding Effectiveness of Controls: Acceptable Government funding of academic and research activity is the University s most significant source of capital and operating funds. There were budget reductions at the research granting councils and the University, through the AUCC and the COU continued to actively lobby both the federal and provincial levels of government to renew their commitment to research and innovation. Internally, the University focused on reviewing its current controls of research grants, to ensure compliance with increasingly complex regulatory requirements. The University and the COU also impressed on the provincial government the importance of continuing to invest heavily in post-secondary education. Notwithstanding these efforts, provincial grants for PSE are the est per capita in Canada and these may be further reduced in the years ahead, as the province s fiscal capacity is limited by the current economic downturn. Reputation The University s reputation is arguably the most important asset needed to achieve our mission and our goals as Canada s University. The annual Ipsos-Reid Reputational Survey indicates progress in increasing the University s reputation and visibility in our region. Marketing strategies focused on enhancing the University s visibility in Montreal, Quebec, Toronto and other major centres in Western Canada. Physical Infrastructure Adequate facilities are required to fulfill our mission as a research-intensive university. Deferred maintenance, reflected through the Facility Condition Index (FCI) remains a source of concern. The FCI rating was slightly be the Ontario university average. Given last year s continued progress related to the 5 Year Capital Plan and the Space Optimization and Deferred Maintenance Program, the FCI rating is now approximately at the Ontario university average and we expect to surpass this mark with the opening of the Social Sciences Building, the renovation of the Lamoureux Building and multiple initiatives included in the Space Optimization and Deferred Maintenance Program. The University s Sustainable Development Program continues to expand through the efforts or the Sustainable Development Committee, the SD Coordinator and the application of Leadership in Energy and Environmental Design (LEED) principles in the design of new buildings and the renovation of legacy facilities. Financial Sound investment strategies and effective financial controls are pre-requisites to meet the University s capital and operating requirements. The University s credit rating (AA1) now matches the est rated university debt in Canada, a good measure of our recent financial performance and improved control framework. The 2008/2009 audited financial statements confirmed the modest operating deficit financed through operating reserves. The Resource Optimization Program introduced last spring will provide strategies for balancing the 2010/2011 Budget. Student Enrolment Undergraduate Undergraduate student enrolment continues to be strong and will likely exceed overall targets. Through a formal strategy, the student recruitment program was extended to reach out to students in Montreal, Quebec, Greater Toronto and the largest urban centres in Canada with significant 2 nd language immersion programs.

4 Student survey results indicate that the most important factor in the prospective student s decision making is a dynamic academic experience. This finding will shape next year s recruitment drive. The level of integration with graduate student recruitment continues to increase. Student Enrolment Graduate Graduate enrolment is critical to our mission as a research-intensive university. uottawa s scholarship, bursary and financial aid programs continue to be ly competitive. The University reached its graduate student enrolment targets last year and the same is expected in The challenges associated with the limited physical space to house increased numbers of graduate students remain. Human Resources The University s ability to attract and retain quality faculty and staff remains relatively strong. The University received the Hire Immigrants Ottawa Organization award for best practices in the recruitment of skilled immigrants. The faculties and services continue to refer to the last Work Climate Survey to introduce measures that enhance the quality of the University s work life and the next work climate survey should be administered during the winter of Leadership The University Scorecard indicates significant progress related to Vision 2010 and the University is now engaged in the development of its next strategic plan. Executive positions are now filled and 360 o performance evaluations for executive officers, deans and senior directors are conducted on a regular basis. Information Technology The reliance on information technology to fulfill our mission and operate the University is well established. The Social Sciences Building project will include a new data centre to improve power and air conditioning facilities, access control and seismic mitigation measures. The University s IT customer service centre continues to compare favourably against peer G13 universities. While the University s IT security systems are focused on maintaining data and network protection, the implementation of security policies in faculties and services is variable. A more rigorous policy framework is indicated and this will be the object of further effort during the coming year.

5 Labour Relations Collective agreements have been ratified with the APUO, the APTPUO, the IUOE and CUPE. A first collective agreement should also be ratified by both the OSSTF and the University this fall. Negotiations are on-going with PIPSC. Competition uottawa offers one of the most generous scholarship programs in Canada. The academic programs that are offered are reviewed on an on-going basis to ensure they meet student needs. The focus on a dynamic bilingual academic experience is seen as a differentiator for uottawa. While available research funding remains tight, an increasing number of University professors are eligible for Tri-Council funding. This should increase our share of available grants and research ranking amongst peer research intensive universities. Partnering -Very Good The University s focus on expanding its international outreach leads to a review of current practices and the need to expand partnerships globally with international universities. Partnerships with private sector continue primarily through employer initiatives (coop programs) and research projects while the successful Relationship Building program is being continued.

6 Summary of Enterprise Risks 5 Reputation Reduction in Gov't Funding Student Satisfaction Physical Infrastructure Financial 4 Student Enrollment - UG Student Enrollment - Graduate Human Resources Leadership Information Technology Emergency-Preparedness Labour Relations medium Impact 3 Partnering Competition good 1 good2 acceptable 3 marginal 4 needs significant 5 improvement 6 Effectiveness of Controls - Management's Assessment 2 December 2009

7 6 Comparison of 2009 and 2008 Enterprise Risks 5 Reputation (-,-) Physical Infrastructure (0.5,-) Financial (-,-) Reduction in Gov't Funding (-1,-) Student Satisfaction (-,-) 4 Student Enrollment - UG (-0.5,-) Student Enrollment - Graduate (0.5,-) Human Resources (0.5,-) Leadership (-,-) Information Technology (-,-) Emergency-Preparedness (-,-) medium 3 Impact Partnering (-,-) Labour Relations (0.5,0.5) Competition (-,-) good good 2 acceptable 3 marginal 4 needs significant 5 improvement 6 Effectiveness of Controls - Management's Assessment 2 December 2009

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