September 22, 1999

To:Community Services Committee

From:Commissioner, Community and Neighbourhood Services

Subject:Departmental Response to the Final Report Re: the Provincial Operational Review of the City of Toronto's Implementation of Ontario Works and Child Care Fee Subsidy Programs

Purpose:

The purpose of this report is to update City Council on the Provincial Operational Review of Toronto's implementation of Ontario Works (OW) and Child Care Fee Subsidy Programs. The findings and recommendations contained in "Ontario Works in Toronto: An Operational Review", the Final Report prepared by the consulting firm KPMG on behalf of the Ministry of Community and Social Services, are briefly reviewed. Subsequently, the implementation process outlined in the Final Report is discussed.

Financial Implications:

At this time, there are no immediate direct financial implications. Future reports to Council proposing changes in structure or policy resulting from the Operational Review will include a full discussion of potential financial implications.

Recommendations:

"It is recommended that:

(1)City Council support in principle the recommendations contained in the consultant's Final Report that will contribute to the improvement of the Ontario Works program, and the child care required to support it, in Toronto;

(2)based on Provincial endorsement of the directions contained in the Operational Review, and Provincial cost-sharing commitments, the Commissioner of Community and Neighbourhood Services provide City Council, in future reports:

i)with further details about those recommendations that have funding or service delivery implications for the City; and

ii)with an implementation plan, developed in conjunction with Provincial officials, outlining steps that will be taken to implement those recommendations requiring joint City and Provincial action;

(3)with respect to Social Services, the Department evaluate and report back on the recommendations from the Operational Review which may be implemented immediately by the City within the current provincial legislation and the existing Council policies;

(4)with respect to child care, the Department evaluate and report back on the recommendations from the Operational Review which may be implemented immediately by the City within the current provincial legislation and the existing Council policies; and

(5)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto."

Background:

In a previous report dated September 29, 1999, the Commissioner of Community and Neighbourhood Services informed City Council that the Ministry of Community and Social Services (MCSS) intended to undertake a review of the Ontario Works and Child Care programs in the City of Toronto. In a letter to the Mayor of Toronto dated September 18, 1998, the Minister of MCSS stated: "The review is required because the city has told us it is having difficulty implementing Ontario Works." The letter further indicated the review would also encompass "the city's Child Care program because it is an important support to employment".

At that time, a final terms of reference had been developed, and a time frame established for completion of the review. KPMG was retained to perform the review, which was to begin immediately, with the collection of information and data in the field commencing in late September 1998.

The Final Report prepared for MCSS by KPMG, entitled "Ontario Works in Toronto: An Operational Review" was forwarded to the City on September 18, 1999. Appendix 1 contains the Report's table of contents, introduction and summary (chapter I) and recommendations (chapter X). A copy of the full Report has been filed with City Clerks.

Review Mandate:

In the initial terms of reference for the Operational Review, the Ministry expressed serious concerns about the City's ability to implement OW, and to effectively manage the delivery of the OW and Child Care programs. This was reflected in the Review's basic mandate which was aimed at assuring the Province that the City was in compliance with Provincial OW and child care directives, and was competently administering the respective delivery systems.

As stated in the terms of reference, with regard to the City's OW program: "The review will identify and resolve issues that are preventing the orderly implementation of Ontario Works." Regarding the City's delivery of child care: "The review will analyze the City of Toronto's current use of child care subsidies and recommend how to maximize their use. The review will assure that the City of Toronto has appropriate child care policies, practices and structures to manage child care effectively and efficiently prior to realignment." Overall, the scope of the Review was seen to include "all aspects of the City of Toronto's implementation of the Ontario Works program and Toronto's child care fee subsidy program (regular and Ontario Works)".

However, early on there was consensus among the senior City and Provincial staff, as well as the consultant, that the Review represented an opportunity to look at the OW program as a whole, and to concentrate on improving future program performance. The Review thus progressed with the agreement that a forward looking perspective should be adopted, and that the primary emphasis should be to work cooperatively to identify changes to the City's delivery system which would better meet the needs of Toronto's residents, as well as to seek improvements or refinements to the OW program as a whole, which could apply across the province. As a result, actions recommended by the consultant in the Final Report have implications not only for Toronto's OW delivery system, but also for key Provincial policies governing the OW program, as well as for the program's technological supports.

With respect to the City's Child Care program, while the Review focused on child care as a support to the OW program, this was done in the context of the overall fee subsidy system administered by the City. Therefore, issues of access to regular as well as OW funded child care are addressed in the Final Report's recommendations.

Findings from the Review and an action plan were initially slated to be delivered to the Ministry on December 1, 1998. In recognition of the complexity and breadth of the issues under review, and in conjunction with the change in mandate, the time frames were extended.

Review Process:

A number of committees and working groups were established both to oversee and to undertake the Review. The Senior Advisory Committee, whose role was to oversee the project, was composed of representatives from the Provincial Ministry, the Toronto Area Office branch of the Ministry, and the City of Toronto, as well as representatives from KPMG. The City representatives included the Commissioner and senior managers from the Community and Neighbourhood Services Department.

A Steering Committee was established composed of senior operational staff from the Province and the City, and included KPMG representatives. It met regularly to monitor the Review's progress, and tackle operational issues related to conducting the Review. The Steering Committee was chaired by a project management consultant appointed by the Province. Appendix 2 lists the members of both the Advisory and Steering Committees.

Fieldwork for the Review was conducted by KPMG consultants, supported by City of Toronto and MCSS staff. Completion of the Review required the dedication of substantial time and resources by Departmental staff.

In the Final Report, KPMG expressed its appreciation for the cooperation and assistance that was demonstrated by City staff throughout the review process. The Review process itself contributed to a better mutual understanding by City and Provincial staff of their respective issues concerning implementation of OW. City staff used the opportunity to obtain greater clarity about Provincial policy objectives and approaches, and to convey to Provincial officials the distinctive features of the City's delivery system and of client needs in Toronto.

Summary of Findings:

The Report's key finding, in relation to OW, is that the City is in compliance with the policy and program guidelines established by the Province for the program. However, reflecting the Review's extended mandate, the Report proposes a range of ways in which the OW program as a whole, as well as the City's delivery system, can be improved. Regarding child care, access issues were the main problem brought to light in the Review. There is an insufficient stock of service options to meet the needs and preferences of OW families in Toronto who are studying, working or contributing to their communities. Again, the Report found that the child care system is currently managed in a way that is consistent with relevant Provincial legislation and regulations.

Discussion:

Operational Review Final Report: Key Findings and Recommendations:

The results of the consultant's analyses form the substance of the Final Report. The findings are discussed in the body of the Report and consolidated in the Report's 60 recommendations, organized under 4 separate headings: Ontario Works, Child Care, Recommendations for the Province, and General Recommendations. This section briefly summarizes the key findings and recommendations related to the OW program and child care.

From the Department's perspective, the Final Report's recommendations fall into three groups:

1)changes aimed at improvements in the delivery systems for OW and child care which the City can implement independently;

2)changes to Provincial programs and policies, funding arrangements or technological supports; and

3)changes that require joint action on behalf of the Province and the City.

The implications surrounding the need for changes at the Provincial level, as well as the requirement for joint action to implement many of the Report's recommendations, are discussed below and in Section III.

I. OW Program: Findings and Recommendations:

Regarding the delivery of OW in Toronto, the Final Report found that the City is in compliance with the policy and program directives established by the Province. According to the consultant:

"We found that, as of the end of 1998, the City had not failed in any broad or obvious way to comply with the policy or program guidelines established by the Province for Ontario Works. Toronto Social Services (TSS)....is now providing a reasonably balanced program. Financial support appears to be available in a timely manner to eligible recipients. City management and staff consistently demonstrate a full and informed commitment to the objectives of Ontario Works."

As the Report noted, City performance has accelerated dramatically in 1998, and full program implementation has been achieved. By year end, over 99,000 clients were actively participating in the OW program in Toronto.

Given that the Review's mandate was extended early on to concentrate on future program performance versus City compliance and competence, the Report's findings and recommendations seek improvements in the overall OW program and the City's delivery system. To this end, changes affecting the program's design, notably the establishment of program targets, funding structures, delivery, and technology are proposed. These are summarized below.

A.Program Design:

The Report found that how program targets are set is particularly important. Currently, the OW program is structured in a manner that relies on process or activity targets (number of clients participating in the three program components - ES, CP, and EP). As a result, in the consultant's view, there may be insufficient emphasis placed on employment output targets. A greater emphasis on outputs, namely the number of clients finding employment and achieving financial independence from social assistance, is therefore proposed. Subsequently, the Report delineates a number of ways in which funding and budget structures could be realigned to support this change.

By refining targets in this manner, it is expected that a better program balance will be achieved in the delivery system for staff and clients in terms of the importance of participation activities compared to employment outcomes. In addition, the consultant notes that these changes will allow the City to gain greater recognition and credit for its substantial success in placing people in employment.

In principle, the Department supports the Report's directions in this area. Ultimately, Provincial endorsement of these directions would represent an important signal to the City in relation to its efforts to implement modifications to the OW delivery system envisioned by the consultant, and discussed in sub-section C below.

B.Program Funding:

Three key issues are addressed related to program funding. First, the Report indicates that increased funding flexibility, in terms of the ability to move unused funding between separate program streams (e.g. ES, CP and EP), would enable delivery agents to better achieve intended program goals and outcomes. Increasing flexibility in this area had previously been urged by municipalities, including Toronto.

The rules governing the way agencies are funded were found to be complex and highly detailed, and in need of streamlining. It was also noted that the Provincial funding formulas may not adequately recognize the real costs of delivering services faced by some agencies in Toronto. The Report thus calls on the Province to formally modify the payment procedures for agencies, as well as to increase the level of payment to appropriate agencies as a means of supporting their ability to achieve increased employment outcomes. The Department supports these changes.

Finally, the consultant notes that there have been consistent delays in the approval of the City's OW budget by the Province related to a number of issues, including extensive Provincial oversight of budget submissions and the use of different fiscal years. This has presented additional difficulties in the smooth operation of the OW program in Toronto. Suggestions for developing an improved protocol for the budget approval process, and for establishing generally better communications between TSS and the Provincial Area Office, were put forward during the Review, with the aim of ensuring timely and consistent decisions in this area.

C.Program Delivery:

The Report's principal findings in relation to the City focus on the need for changes to the OW delivery system to further improve its capacity to achieve agreed upon program outcomes. Indicative of the steps taken to date, according to the consultant, are the City's efforts to link clients with employment opportunities and employment related resources in the community, through "the excellent network of Employment Resource Centres" that have been set up, and through the City's ongoing collaboration with Human Resources and Development Canada (HRDC).

In the consultant's view, rigorous assessment of client employability is essential to realize improvements in the delivery system. To this end, the consultant stresses that TSS must employ more effective screening and assessment tools at the point of first contact with the client. The consultant also proposes that specific groups of clients undergo a comprehensive in-depth assessment at intake.

Based on this initial assessment, the consultant subsequently recommends that all OW clients be streamed, at point of entry, into one of at least three major categories based on their degree of employment readiness: employment ready clients; those who can become employment ready in a short time; and those who face serious barriers that will require a range of interventions over an extended period. A number of other changes which support this direction are also recommended.

The Department agrees with the general thrust of the Report's findings, and supports changes to the OW delivery system which will assist clients to find employment as rapidly as possible. Better screening and assessment are clearly pivotal. However, depending on client characteristics and barriers, and on service needs, different types and levels of screening and assessment are appropriate. Distinguishing the role for screening versus in-depth assessment at intake and other points in the client's service path will be crucial to successful implementation of the consultant's recommendations. At this point, an initial review of assessment and screening tools and processes used in employment oriented programs is underway. A further evaluation of assessment processes in particular will be undertaken as part of the Department's analysis of the consultant's proposals.

Improvements required at the local office level to expedite certain changes in the delivery system sought by the consultant are already being addressed by TSS. As an initial step, for example, program targets are being established for each local office, based on caseload composition. In addition, specific targets for key client groups are also being implemented at the office level.

Finally, TSS is currently examining the way the Division is organized centrally and at the local office level to deliver services. This process will provide the Division with a solid basis for responding to the consultant's recommendations, and position it to readily make changes that are needed to support the OW program as a whole, including income support and quality assurance responsibilities.

D.Purchase of Service Relationships:

The Report observes that the City relies to a substantial extent on third party agencies to provide direct services to OW clients, and concludes that the way these agencies function is essential to the success of the program. However, a number of key issues are identified related to the need for greater simplification in Provincial guidelines covering agency relationships with delivery agents, as well as the need for more stringent accountability related to agency performance and for more sophisticated evaluation of agency outcomes and effectiveness. Recognizing the complexity and scale of the City's management responsibilities in relation to purchase of service agencies, the consultant concludes that improvements can be made to the way services are provided by agencies, and contracts administered by the City.

The Department is already taking steps to improve the way it works with agencies, including simplifying certain components of the service agreements TSS has negotiated with agencies. TSS has committed to performing evaluations of contracted agencies, as noted in the Report, and will annually assess the performance of all agencies under contract against existing service contracts and program standards. Targeted in-depth reviews will enable the Division to work with agencies to make necessary improvements, as well as provide a means to share "best practices."

As noted elsewhere, joint City and Provincial action is again required to proceed with certain key changes recommended by the Review.

E.Technology:

The Report confirms that there are ongoing problems with the Provincial technology systems that the City uses to support the delivery of OW. These include the lack of integration between Ontario Works Technology (OWT) and Caseworker Technology (CWT); the fact that OWT is not user friendly; the lack of reliable reports generated by OWT; and OWT's inability to serve as a case management tool. The Report notes these issues have been raised by a wide range of delivery agents, and that the City has previously documented its concerns with MCSS.

Ongoing interim improvements in OWT are noted and commended. However, with regard to the implementation of the Report's core recommendations, the consultant stresses: "If new technology cannot be obtained, the success of the new system is in doubt and its implementation should be delayed until this is resolved." The Department endorses this position, but recognizes that incremental changes can be made with modifications to existing technology.

Summary:

Overall, the Department supports, in principle, the directions for change that are recommended in the Final Report. Through their recommendations, KPMG provides a viable argument for altering key facets of both the OW program and the City's delivery system.

However, it is also clear that without Provincial endorsement of the Report's overall direction, plus a commitment to make changes in certain aspects of Provincial policy and funding arrangements, the City's ability to act on key recommendations related to the OW delivery system is restricted. The Report specifically indicates that successful implementation depends on the following:

a)development of necessary technological supports; and

b)changes to key aspects of overall OW program funding arrangements, payment procedures involving contracted agencies, as well as necessary Provincial approvals required in other critical areas.

II.Child Care Findings and Recommendations:

A. General Findings and Recommendations:

With regards to child care, the Report confirms that child care is a critical support to the success of the Ontario Works Program. The Report goes on to say that "access issues are the main child care problem brought to light" and asserts that "the cost of care, the types of options available, their uneven distribution across the City and the availability of subsidies to assist families requiring financial support pose challenges for the child care system in general and the OW program in particular". While the Report also confirms the City's claim that the current supply of child care is insufficient to meet the current service demand and that service demand will only increase with the continuing successful implementation of Ontario Works, it stops short of acknowledging the validity of the City's estimate of child care required to support a mature OW program. The Report suggests that more comprehensive analysis of both supply and demand is first required.

The Report's findings also identify a need for more part-time care and a broader range of service options including non-licensed care but acknowledge that revisions in provincial legislation and policy are needed to support some of the changes proposed by the review. Finally, the Report acknowledges that the City is currently administering the child care strategy for Ontario Works in accordance with the Business Plan originally approved by both the City and the Province. Any changes in child care service strategy in support of the Ontario Works Program will require amendments to that Business Plan.

The recommendations pertaining to child care which flow from these findings propose the following:

a)an independent joint review to undertake a more complete and comprehensive analysis of both child care supply and demand;

b)modification of the level of child care entitlement of Ontario Works clients to more closely reflect the level of their current OW participation requirements; and

c)more unrestricted access by Ontario Works clients to non-licensed care options should that be their first service choice.

In addition to these recommended directions which are intended to enhance the effectiveness with which available child care resources are used to support OW clients, the Report also makes recommendations related more specifically to the transfer of system management responsibility for a broader range of child care programs to the City. The Report recommends that the City avoid a perceived conflict of interest between its role as a direct service provider and a service system manager.

As with the OW recommendations discussed above, many of the key recommendations pertaining to child care require enabling action by the Province before recommended action by the City can even be considered.

III.Next Steps:

The Department's overall assessment of the Final Report of the Operational Review is that the City's ability to implement core recommendations related to the delivery of Ontario Works and child care depends to a great degree on Provincial decisions in key areas. In this light, and given the interdependencies among the recommendations contained in the Report, the Department strongly endorses the consultant's position that the Province and the City of Toronto work closely to implement the recommendations contained in the Final Report. Similarly, the Department concurs with the consultant that it is crucial for "the Province and the City to develop a joint work plan, spelling out their common objectives".

Pending Provincial endorsement of the Report's overall direction, the Department will, with Provincial officials, establish a joint work plan which identifies mutually agreed upon priorities for implementation, and which organizes the two jurisdiction's efforts to accomplish these. It should be noted that while certain recommendations could be implemented in the near term, other changes will require a longer implementation time frame. A report will be provided to City Council describing the key features of this work plan.

In the course of developing the work plan, the Department will assess the major implications of the Report's recommendations for the funding and delivery of OW and Child Care in Toronto, as well as determine the impacts on staff resources within TSS and Children's Services Division. The Department will subsequently bring forward further reports detailing the critical issues in these areas.

The Department will begin to carefully examine those recommendations that the City can implement independently and proceed to make changes that will improve program performance.

Conclusion:

The Operational Review process, and the consultant's Final Report, highlight and give added recognition to the complexity of administering the OW program in Toronto. Extension of the Review's mandate to focus on ways in which overall program performance, as well as delivery of OW and child care in Toronto, could be improved was a positive decision. The Department believes the process itself, which involved close cooperation between City and Provincial staff throughout, has provided both parties with a better understanding and appreciation of key program, policy and service delivery issues. It is anticipated that this will provide a solid basis from which to move forward to meet common program objectives.

The Department supports in principle the proposals for improvements to the OW program recommended in the Operational Review. However, it is evident that Provincial endorsement of these directions is necessary prior to proceeding with implementation. Similarly, it is imperative, as noted in the Final Report, that an action plan for implementing the proposed changes be developed jointly by City and Provincial officials.

As a delivery agent, the Department is committed to making changes to the City's child care and OW delivery systems which will both strengthen their capacity to achieve key program objectives, and increase effectiveness and efficiency. To this end, the Department will build on the work currently underway in TSS and Children's Services to address key issues raised, and recommendations made, by the consultant. In the longer term, the Department will continue to work with the Province to achieve maximum results within the existing policy and funding framework.

Contact Names:

Heather MacVicar, General ManagerMarna Ramsden, General Manager

Social Services DivisionChildren's Services Division

392-8952392-8128

General Manager, Social Services DivisionGeneral Manager, Children's Services Division

Commissioner, Community and Neighbourhood Services

Appendix 2

Senior Advisory Committee Members

- Kevin Costante, ADM, Program Management - Chair

- Bonnie Ewart, ADM, Social Assistance and Employment Strategies

- Marilyn Renwick, Area Manager, Toronto Area Office

- Ann Masson, Director, Child Care Branch

- Dan Lafranier, Area Manager, Northern Area Office

- Shirley Hoy, Commissioner, Community and Neighbourhood Services, City of Toronto

- Marna Ramsden, General Manager, Children's Services Division, City of Toronto

- Eric Gam, Executive Director, Social Development Division, City of Toronto

- Heather MacVicar, General Manager, Social Services Division, City of Toronto

- Bob Glass, Project Director

Steering Committee Members

- Bob Glass, Project Director, Chair

- John Wilson, Senior Policy Analyst

- Ron Hikel, Partner, KPMG

- Cliodhna McMullin, Director, Employment Programs Branch

- Andre Lafantaisie, Manager, Financial and Information Systems

- Karen Meehan, Program Supervisor, Toronto Area Office

- Marilyn Renwick, Area Manager, Toronto Area Office (ex officio)

- Jack Ray, Manager, Children's Services Unit, Toronto Area Office

- Eric Gam, Social Development and Administration, City of Toronto

- Bill Mairs, Social Services Division, City of Toronto

- Petr Varmuza, Children's Services, City of Toronto