PDD Administrative Review - Terms of Reference

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Purpose of Review

• To identify efficiencies and savings in PDD program administration (both internal and service provider administration) to address program cost pressures, so funds can be redirected to front line service delivery. The intended outcome is to ensure that available program funding is targeted to supporting individuals to be included in community life and to be as independent as possible.
• To identify longer-term strategies that will increase the PDD program's administrative effectiveness and efficiency. The intended outcome is to ensure the program is sustainable into the future.

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Scope of Review

The review will examine the internal administrative operations of the PDD program (including the six Community Boards and the PDD Program Branch), and the administration costs of PDD-funded agencies contracted to provide services to PDD clients.

To provide a financial context, the PDD program budget for 2010-2011 is $597 million. Of this amount, approximately $127 million (or 21%) is spent on administration, as follows:

PDD Internal Administration costs are approximately $35 million, as follows:
•  PDD Community Board Administration (excluding directly operated facilities)	$21.6 million
•  PDD Direct Operations Administration (e.g. Michener Services, Erik Cormack Centre etc)	$7.0 million
•  PDD Program Support (department)	$6.3 million
Service Provider Administration costs are approximately $92 million.

The review of Internal Administration costs will include:

• a detailed understanding of what constitutes “administration” costs and what should be defined as administration in the future;
• administration costs associated with each of the six PDD Community Boards;
• administrative models/approaches that will increase effectiveness and efficiency, including how the PDD Community Boards select service provider agencies and the current contracting approach that is used;
• opportunities for cross-Community Board efficiencies (e.g., opportunities for shared administration, consolidation and/or centralization of some functions);
• appropriate roles, relationships and structure of the PDD program, including the Community Boards, the PDD Program Branch and executive reporting structures. This review will be done within the context of maintaining a community governance model, but should include consideration of the number and structure of Community Boards to maximize effectiveness and efficiency and optimize relationships among the Community Boards and the department; and,
• administration cost associated with all facilities/operations directly operated by PDD Community Boards (i.e., Michener Services/Youngstown in the Central region; Residential and Support Services in Edmonton; and Graduated Support Services in Calgary).

The review of Service Provider Agency Administration costs will include:

• a detailed understanding of what constitutes “administration” costs, what should be defined and funded as “administration” in the future, and appropriate reporting and accountability for administration spending;
• efficiencies related to the number and size of service providers contracted to deliver services for the PDD program;
• potential models of service delivery that may lead to improved effectiveness and efficiency; and,
• the relationship between the service provider agencies and PDD Community Boards.

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Deliverable

A report that contains findings and recommendations to improve effectiveness and efficiency and achieve cost savings related to administration both internally in the PDD program and in PDD-funded service provider agencies. The report will include:

• An overview of methodology used to conduct the review;
• A summary of findings;
• Recommendations for short-term strategies, with an action plan and proposed next steps to achieve efficiencies and savings in the upcoming 1-2 years.
• Observations and advice on longer-term system changes to increase effectiveness and efficiency, including recommendations on the structure of the PDD program and how services are administered and delivered across the province.

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Reporting and Activity Guidelines

The consultant will report to the Deputy Minister of Alberta Seniors and Community Supports, who will oversee the review process and report the findings to the Minister.

The review will include individual interviews and small focus group meetings. Activities will include:

• meeting with PDD Community Board and department staff to discuss their administrative costs, spending, processes and opportunities for increased effectiveness and efficiency;
• meeting with a representative sample of service provider agencies from across the province regarding their administrative structures, costs and opportunities for increased effectiveness and efficiency;
• examination of budget and financial reporting documents (of the PDD program, including the Community Boards and the contracted service providers);
• meeting with a representative sample of families to obtain their perspective on administrative efficiencies that could be achieved in the PDD system; and,
• meeting with representatives from the two major provincial stakeholder organizations representing families and PDD-funded service providers.

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Timeframe

The review will be announced by the Ministry of Alberta Seniors and Community Supports in mid-June. Timelines for the consultant's work are as follows:

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