Reporting

Procurement and contract reporting consists of reports generated by the service provider to support a specific contract and ministry staff to:

  • Understand ministry programs, services, and clients;
  • Understand ministry procurement, financial, and contract management practices; and
  • Meet government wide requirements. 

Procurement and contract may be used to support payment for work provided, provide quality assurance or the opportunity to identify areas for continuous quality improvements.

The BC government is also committed to providing access to public information and data to allow the public to collaborate with the government on improving policy and service delivery.

Open Information provides access to the routinely released public information that is most commonly requested (i.e. travel expenses for Ministers and Deputy Ministers). Additionally, individual requests for specific government information that are processed may also be released for general public viewing on this site.

Another form of data sharing occurs when the information reported by service providers is consolidated by the ministry into cross-ministry reporting which reflects local service delivery areas, client populations, and/or ministry trends. This information may be shared with service providers to enable them to consider areas for continuous improvements. 

To use data reported, the data itself must meet three conditions. It must be:

  1. Consistent – It is repeatable;
  2. Accurate – The service provider is able to create the results free from errors; and
  3. Valid – It is a fair and reasonable representation of the work completed.

Ministry staff must be careful to distinguish when data collection is appropriately objective (e.g., cost/person served) and subjective (e.g., cultural safety). The ministry must ensure data is used for the purpose it was collected. Reporting requirements are stated in the contract. The effort to collect performance data should not be too costly or time consuming for the service provider, as this may:

  • Jeopardize compliance with data collection requirements;
  • Impact client service hours; and
  • Increase administrative costs. 

Contracts must clearly state the outputs and outcomes as well as the qualitative and quantitative measurements. It is against these measures that the performance of the service provider is monitored throughout the duration of the contract. Ministry Service Agreements, outputs are listed in the Catalogue of Services.

Ministry Actions to Reporting

  • Ensure the service provider understands the reporting requirements by clearly defining them in the procurement document and the contract, and by discussing them with the service provider;
  • Share the purpose of the reporting with service provider;
  • Review all reports from the service provider and share your comments about them with the service provider. Contract Reviews are a natural time to share this information;
  • Where appropriate, share with the service provider consolidated cross ministry reporting, such as reports reflecting local service delivery areas, client populations, or ministry trends; and
  • If reports are not submitted by the service provider at the reporting time: 
    • Follow up to ensure the service provider understands the requirement to provide the reports as well as the importance and purpose of the reporting; and
    • Determine if there is an issue with the outlined reporting requirements through collaborative discussions with the service provider and ensure that the reporting requirements meet Data Collection standards. 

The ministry has established seven dimensions of quality as the foundation of reporting. The indicators are used as a basis for determining service quality and value, but are not reporting requirements.

The ministry reports on contracts based on the Catalogue of Services and not the dimensions of quality. The dimensions of quality inform how we establish reporting frameworks. The dimensions are divided into client-based or financial-based indicators.

Client-Based Indicators

Effective

  • Programs and services address the child, youth or family needs.
  • Client’s physical health needs, physical dwelling, financial circumstances, social and emotional well-being and developmental needs are reviewed and client is actively supported in taking effective action to address these needs.
  • Programs and services part of a geographic system or continuum of services working together in addressing the needs of the children, youth and families served.
  • Program and service provider expertise is identified, developed and maintained.

Accessible

  • Programs and services are delivered in a timely manner.
  • Barriers (physical, geographic, linguistic, time of day/week) to access are addressed.

Client Centered

  • Views of children, youth and families are heard and fully considered.
  • Programs and services are provided in the context of a meaningful helping relationship.

Safe

  • Program and services are delivered in a safe manner with respect to physical, emotional, cultural, and other aspects of safety.

Appropriate

  • Based on evidence, programs and services are neither over nor under supplied related to addressing child, youth and family needs.
 

Financial-based Indicators

Efficient

  • Programs and services are provided optimally using available human, information management and technology, and financial resources.

Accountable

  • Financial accountability
  • Services contracted for are delivered

 

A common type of reporting reflects the financial aspects of the contract. These types of reviews may include Financial Statements, Contract Financial Reports, and Contract Audits.

Financial Statements

Financial statements are prepared by organizations or agencies at the end of an accounting period. These statements are typically prepared, reviewed and/or audited by an accountant. Under Generally Accepted Accounting Principles, the key statements are:

  • Balance Sheet – a statement of financial position at a given point in time;
  • Income Statement – identifying revenues minus expenses for a given time period;
  • Statement of Retained Earnings – explaining the changes in retained earnings; and
  • Statement of Cash Flow – summarizing sources and uses of cash.

These statements provide information about an:

  • Organization’s financial condition; and
  • Financial performance.

This information is used in internal decision making and is also a means of accountability to an organization’s stakeholders.

The ministry is accountable to the citizens of BC regarding the resources entrusted to it. A large proportion of the budget allocated to the ministry is paid to organizations that provide services to the children, youth and families of BC on behalf of the ministry. All service providers who receive funding from the ministry are required, by contract, to provide financial information regarding their organization.

Financial statements form the basis of financial reporting for all service providers. Any variations from these reporting requirements will require a waiver from the ministry.

Key financial statement reporting requirements, included in the Service Contract language, are as follows:

  • You must maintain records and books of account, invoices, receipts, and vouchers of all expenses incurred in relation to the Agreement, in a form and with content that enables us to verify expenditures, and must provide these records upon request by the Province or as outlined in Schedule I. Refer to the MCFD Contracting Financial Reporting and Management Requirements for details on Audit and Evaluation policy.
  • Your annual financial statements must be completed in accordance with generally accepted accounting principles on a fund accounting basis.
  • Financial statement reporting requirements are based on the total revenue within a fiscal year. 

 The following criteria determine the level of review or audit statements required based on the total revenue you receive from us within a fiscal year. In all cases, organizational financial statements are required for service providers to whom the ministry provides funding.

For more information on MCFD Financial management requirements, please see the: 

Threshold by Service Provider

Requirements

Exemptions

Under $50,000

Financial statements signed by an authorized representative may be required at the ministry’s discretion (no requirement for external audit or review of the statements).

N/A

$50,000 through $99,999

Contracted organizations are required to submit annual financial statements signed by an authorized representative (no requirement for external audit or review of the statements).

N/A

$100,000 through $999,999

Contracted organizations are required to submit annual financial statements reviewed in accordance with Standards for Review Engagements as described in the Canadian Institute of Chartered Accountants Handbook.

Over $500,000 - audited financial statement may be required for organizations that are new to contracting with the ministry or those that are not in good standing.

$1,000,000
And above

Contracted organizations are required to submit annual financial statements audited in accordance with Canadian generally accepted auditing standards as described in the Canadian Institute of Chartered Accountants Handbook.

N/A

 

The ministry may request or embark on occasional spot audits or reviews of financial statements in accordance with the ministry’s Audit and Evaluation protocol, referenced in contracts.

Service providers receiving funding for the first time, for a new purpose or those service providers experiencing financial difficulties may be asked to provide more frequent or more detailed reports at the request of the ministry.

Contract Financial Reports

In addition to Financial Statements, referred to above, contract financial reports are required. Contract financial reports refer to the reporting requirements specific to each contract.

Financial reporting within each contract is defined by contract or program; depending on how programs are aggregated within a contract. Financial reporting should be aligned with the programs identified within the Catalogue of Services and the deliverables stated in the contract. Financial reporting should, at a minimum, relate costs to service outputs. Service provider ‘revenue and expense budget and forecast’ reporting is to be provided at least annually. There is no requirement of external accountant review or audit of these statements. These statements are used to support contract/program budget negotiations, and evaluation of service outputs delivered within funding provided.

Audits are performed by different reviewers with varying focuses. Audits are used to:

  • Improve efficiency and effectiveness of processes;
  • Ensure compliance with policy and legislation; and
  • Evaluate controls over how funds are allocated and tracked.

Contract managers and procurement staff perform financial reviews of contracts to ensure funds have been applied for the intended purposes within the timelines established in the contract. Service providers may be asked to provide supporting documentation, such as reports and financial statements. Requirements for reviews are specified in a contract’s schedules or terms and conditions.

Procurement and Contract Management Branch performs audits of ministry contracts to understand current ministry contracting practices. These audits are used to direct ministry policy, training, projects, and priorities to support contracting in the ministry.