Minister’s Binding Policy Directives and Operating Procedures 101

1. Minister’s Binding Policy Directives and Operating Procedures 101 Postsecondary Accountability Branch October 2013

2. Purpose The purpose for this presentation is to provide an overview of: • The role of the Ministry of Training, Colleges, and Universities in overseeing postsecondary institutions; • The legislative framework that defines colleges’ roles and responsibilities; and, • The Minister’s Binding Policy Directives and Operating Procedures that set out the roles and responsibilities of colleges in more detail than in the Act and regulation.

3. Role of the Ministry of Training, Colleges and Universities The Ministry of Training, Colleges and Universities’ role in postsecondary education is to: • Oversee the overall structure of the postsecondary system, including the number and types of educational providers, their degree granting authority and the governance structures under which they operate; • Establish provincial objectives for the use of public funds and design frameworks by which the objectives can be achieved and measured; • Ensure high quality postsecondary education is accessible to all qualified candidates, via tuition regulation, student assistance, targeted funding and accountability mechanisms; • Establish policy framework to guide the operations of the college system; and, • Provide operating and capital funding to publicly assisted colleges and universities.

4. Colleges of Applied Arts and Technology – Legislative Framework • Colleges of Applied Arts and Technology are Crown Agencies reporting to the Minister and are governed by the Ontario Colleges of Applied Arts and Technology Act, 2002 (OCAATA). • The OCAATA defines each college as a corporation without share capital and with a board of governors; the Corporations Act governs the operation of the college except where limited by the OCAATA, its regulations and the Minister’s binding policy directives. • Ontario Regulation 34/03, made under the authority of theOCAATA: • lists the colleges; • requires that a Board of Governors be established at each college and outlines the Boards’ responsibilities; • outlines the general admission criteria colleges are to use when considering applicants for entrance to all college programs; and • defines circumstances for the Minister’s intervention.

5. Colleges of Applied Arts and Technology – Legislative Framework • The colleges’ mandate, as set out in legislation, is to offer a comprehensive program of career-oriented postsecondary education and training to assist individuals in finding and keeping employment, to meet the needs of employers and the changing work environment and to support the economic and social needs of their local diverse communities. • In carrying out its mandate, a college may undertake a range of educational and training related activities including, but not limited to: • Entering into partnerships with business, industry and other educational institutions; • Offering courses in the French language where the college is authorized to do so by regulation; • Adult vocational education and training; • Basic skills and literacy training; • Apprenticeship in-school training; and, • Applied research.

6. Colleges of Applied Arts and Technology – Legislative Framework Colleges are also bound by other legislation applicable to public sector bodies, including: • Broader Public Service Accountability Act • Establishes rules and accountability standards for designated broader public sector (BPS) organizations, including colleges, around the use of external lobbyists, consultants and expenses. The Act includes sections that provide authority to the Management Board of Cabinet to issue directives to designated BPS organizations in the areas of procurement and expenses. • The BPS Procurement Directive sets out procurement rules to ensure that publicly funded goods and services are acquired by BPS organizations through a process that is open, fair and transparent and that such processes are managed consistently throughout the BPS. • The BPS Expenses Directive requires designated BPS organizations to establish expense rules, and sets out requirements that must be included in each organization’s expense rules. • The Perquisites Directive sets out requirements for designated BPS organizations to establish rules on perquisites where these are provided through public funds. • Financial Administration Act • Section 28 of the Financial Administration Act requires colleges to obtain Minister of Finance approval before entering into any arrangement that would increase the indebtedness or contingent liability of the province. • Freedom of Information and Protection of Privacy Act

7. Minister's Binding Policy Directives and Operating Procedures • In support of the OCAATA and Regulation 34/03, the Ministry of Training, Colleges and Universities has issued a set of policy framework documents that consist of the following: • 10 Minister's Binding Policy Directivesthat define the ministry's expectations for the college system to comply with the Act and regulation. • 13 Operating procedures that set out specific requirements and procedures to comply with the Act, regulation and/or Minister's Binding Policy Directives. • These policy framework documents are focused on three areas: • governance and accountability • finance and administration • programs

8. Minister's Binding Policy Directives and Operating Procedures – Governance & Accountability Governance and Accountability Framework Minister's Binding Policy Directive • This binding policy directive defines minimum expectations for governance and accountability in colleges. The critical elements of the role of a college board of governors are outlined along with a planning cycle and accountability framework. • The Directive establishes the minimum responsibilities of a college board of governors as: • Establishing governance structures to enable the achievement of expected institutional outcomes with clear lines of communication and internal accountability; • Setting the college vision, strategic directions, and overall goals and outcomes within the context of the appropriate laws, government policy, and local need. • Hiring the CEO (i.e., president), delegating to the CEO accountability for the operation of the college and evaluating the CEO’s performance. • Approving the college’s annual business plan, budget, and annual report. • Assessing regularly the attainment by the CEO of corporate goals and outcomes, and the effectiveness of the board with respect to governance. • Taking appropriate corrective action, as necessary, where expected outcomes or quality of performance are not achieved. • Related Operating Procedures include the Strategic Plan Operating Procedure, Business Plan Operating Procedure, Annual Report Operating Procedure and the Audited Financial Statements Operating Procedure. These set out the minimum requirements for the preparation of these documents.

9. Minister's Binding Policy Directives and Operating Procedures – Governance & Accountability Conflict of Interest Minister's Binding Policy Directive • This binding policy directive is intended to protect the integrity and ethical standards of college boards and, as importantly, protect the integrity of a board member who may face a conflict of interest. • The Directive sets out a process to be followed by boards for the disclosure of actual, potential, or perceived conflicts of interest. • The Directive also sets out what the board is to do if there has been a failure on the part of a board member to comply with this binding policy directive. Protocol for Board Nominations and Appointments • This document sets out principles to guide board nominations and appointments as well as the process for submitting nominees for Lieutenant Governor in Council appointments to college boards. • The Protocol establishes that the overriding principle for nominations and appointments is that all board appointments are to be merit based and only qualified and experienced individuals with the necessary skills and knowledge will be considered for nomination. With merit as a precondition, other criteria such as diversity, probity, and transparency then come into play.

10. Minister's Binding Policy Directives and Operating Procedures – Governance & Accountability Key Performance Indicators Operating Procedures • The Ministry and the colleges have defined five Key Performance Indicators (KPIs) to measure, in a consistent manner across the college system, college performance against ministry stated goals and objectives. • The Graduate and Employer KPI Surveys Operating Procedure, the Student Satisfaction KPI Survey Operating Procedure and the Graduation Rate KPI Calculation and Reporting Operating Procedure set out the requirements for the administration of the surveys used to collect the KPI data and the requirements for the publication of the KPI data

11. Minister's Binding Policy Directives and Operating Procedures – Finance & Administration Banking, Investments and Borrowing Minister's Binding Policy Directive • This binding policy directive establishes banking, investment and borrowing requirements for all colleges. Requirements under this Directive include: • Every college is to safeguard the funds it receives by exercising due diligence to satisfy itself of the financial soundness of the institutions it utilizes for banking and investment purposes. • Colleges are to establish a competitive process to acquire banking services. • The board of governors is to approve an investment policy to guide its investment activities. • A college may only invest college funds not immediately required to operate the college, in a manner which complies with specific requirements set out in the Directive. • A college making a loan request is to request an Ontario Financing Authority (OFA) loan unless it is able to demonstrate to the satisfaction of the OFA that a loan from another financial institution would provide a lower cost of borrowing. • A college is solely responsible for the financial obligations created by taking out a loan, mortgage or other debt or entering into any investments and financial agreements. • A college is to provide the Ministry with an annual borrowing plan. • The Banking, Investments and Borrowing Operating Procedure sets out the specific details on the restrictions and conditions on college banking, investments and borrowing, including the process for colleges requesting approvals under Section 28 of the Financial Administration Act and for requesting long-term financing from the OFA.

12. Minister's Binding Policy Directives and Operating Procedures – Finance & Administration Entrepreneurial Activities Minister's Binding Policy Directive • This binding policy directive outlines the types of entrepreneurial and commercial activities that colleges may undertake and establishes the conditions under which the activities may occur.Requirements under this Directive include: • Colleges undertaking entrepreneurial activities are to do so in a manner consistent with their education and training mandate. • In pursuing entrepreneurial activities, the core businesses and assets of the college are to be protected and public funds utilized only to support grant-eligible activities. • Colleges will charge a minimum of fair market value when providing commercial services to the general public. • Processes associated with entrepreneurial and commercial activities such as tendering and purchasing are to be open and transparent. • The college’s status as a tax-exempt and not-for-profit corporation must be maintained and protected. • Funds earned from entrepreneurial activities are to be returned to the college to support its core businesses within the education and training mandate. • Colleges may operate outside the province of Ontario consistent with the education and training mandate of the Ontario college system. • It is the responsibility of the board of governors to obtain appropriate legal or other professional advice. • The Directive also sets out parameters around the incorporation of a subsidiary corporation. • The Ministry is currently undertaking a review of this Directive.

13. Minister's Binding Policy Directives and Operating Procedures – Finance & Administration Funding of Part-time Activity Minister's Binding Policy Directive • This binding policy directive establishes the eligibility criteria for funding of part-time activity through the general purpose operating grant. • Part-time activity eligible for funding through the general purpose operating grant is to be vocational in intent and content (i.e., improve knowledge and skills related to the employability of the student), and students must meet the admission requirements set out for colleges in O. Reg. 34/03. • The Directive also lists part-time activities which are not eligible for funding through the general purpose operating grant, such as general interest, basic, or personal interest courses, apprenticeship courses, practicum or field placement courses that are not part of a postsecondary program of instruction eligible for funding through the general purpose operating grant, and courses funded by a third party. Enrolment and Graduate Reporting Operating Procedure • This operating procedure sets out the requirements for preparing and reporting enrolment and graduate data to the Ministry, and for conducting an audit of the data.

14. Minister's Binding Policy Directives and Operating Procedures – Finance & Administration Proceeds from Sale or Encumbrance of College Property Minister's Binding Policy Directive • This binding policy directive sets out the need for Minister’s approval for the use of proceeds from the sale, encumbrance, or lease of college property acquired with provincial support. Tuition and Ancillary Fees Minister's Binding Policy Directive • This binding policy directive sets out parameters for establishing tuition fees for activity eligible and reported for funding through the college general purpose operating grant. • In addition, the Directive addresses ancillary fees, tuition fee refunds, accountability and reporting requirements, and the allocation of revenue from tuition fee increases to quality improvements and student assistance. • Non-compliance with this binding policy directive by a college could result in a deduction from a college’s allocation from the general purpose operating grant. • The Tuition and Ancillary Fees Operating Procedure provides details for implementing policy regarding tuition, ancillary fees, tuition fee refunds, accountability and reporting requirements, and the allocation of tuition fee revenue increases towards quality improvements and student assistance.

15. Minister's Binding Policy Directives and Operating Procedures – Programs Framework for Programs of Instruction Minister's Binding Policy Directive • This binding policy directive defines expectations for all programs of instruction offered by colleges regardless of the funding source, except for ministry-funded apprenticeship training. The Directive includes the Credentials Framework, which sets out the minimum provincial requirement for credentials to be awarded. • Requirements under this Directive include: • The college is to ensure that an advisory committee for each program or cluster of related programs offered at the college be established. • Programs of instruction are to include, along with vocational outcomes, applicable outcomes for generic employability skills and general education. • Programs must meet the requirements of a program standard, where a standard exists. • Colleges are to have protocols in place for students regarding grading, advancement, and dispute resolution. • Colleges are to establish mechanisms for the review of their programs of instruction to ensure ongoing quality, relevancy, and currency. • Prior learning assessment and recognition is to be made available for as many credit courses as possible in programs in which enrolment is eligible for funding. • If there is a requirement for graduates in a program to be certified or granted some other form of official recognition by a regulatory authority, the college shall not offer the program, unless the program has been accredited by the relevant regulatory authority. • The Directive also sets out advertising and marketing requirements to be followed in marketing college programs.

16. Minister's Binding Policy Directives and Operating Procedures – Programs Funding Approval of Programs of Instruction Minister's Binding Policy Directive • This binding policy directive defines the framework within which the ministry will approve programs of instruction for funding from the general purpose operating grant. • The Funding Approval of Programs of Instruction Operating Procedure sets out the process for colleges to request approval of postsecondary programs of instruction for funding from the general purpose operating grant. • The Program Suspension and Cancellation Operating Procedure describes the process for colleges to inform the Ministry of changes to offerings of programs of instruction. Admissions Criteria Minister's Binding Policy Directive • The general admissions criteria that all colleges are to use when considering applicants for entrance to all college programs of instruction are outlined in O. Reg. 34/03. • This binding policy directive sets out the requirements to establish specific admission criteria and procedures for all full-time or part-time postsecondary programs of instruction. • The Directive sets out the steps the admission process is to follow, details around residency-based priority and program-specific selection criteria. • The Directive also requires that each college have a written admission review process that is to specify both the means by which applicants who are refused admission can obtain the specific reason for such refusal, and the means by which to request a review of the admissions decision.

17. For More Information • The OCAATA, Ontario Regulation 34/03, the Binding Policy Directives, Operating Procedures, and other college system information on a variety of topics (such as funding, reporting data, college financial consolidation etc.) are available at the following website: http://caat.edu.gov.on.ca/ User name: caatsite Password: 900Mowat • Contact information for Ministry staff who can answer questions and provide further information about each of the documents is also listed on this website.