The province is reviewing administration costs within the Persons with Developmental Disabilities (PDD) sector to determine whether it’s getting the best value for money.
Seniors and Community Supports Minister Mary Anne Jablonski said she ordered the review to ensure that administrative spending is “as efficient and effective as possible.”
The province has hired consulting firm KPMG to conduct the review and provide a report to the minister this fall.
The PDD sector spends about 20 per cent of its $597-million budget on administration, Jablonski said.
“As a small business person, we considered anything over 10 per cent to be needing review,” she said. “I’m not sure what the numbers should be for this kind of organization. I want KPMG to tell me.”
The review will look at the government’s own administration and also that of service organizations under contract to the province, she said. It won’t be feasible for KPMG to scrutinize every service provider so it’s likely the firm will select a sampling of organizations, she said.
The government might be disappointed if it thinks reviewing administration among contract organizations is going to free up money for programming, said Paul Fujishige, executive director of Transitions in St. Albert.
“I can only go by our own situation. I don’t think that’s going to be the result. I think we’re pretty efficient,” he said. “There’s certainly no excess of administrative positions lying around.”
Marie Renaud of the Lo-Se-Ca Foundation also thought it unlikely the province will find efficiencies within service organizations but she thinks it’s always a good idea to review operations. She’s especially glad the government is looking at its own operations.
“They have a lot of management staff,” she said. “They are quite top heavy.”
The PDD sector has been challenged by the government’s recent fiscal woes, with providers dealing with a 1.5 per cent cut in the spring budget.
The review will include a look at whether or not six regional boards are the most effective way to govern the system. Jablonski said she believes that the regional boards are important but “everything is on the table.”
“I really feel that having an organization close to the people is important but it is open for review,” she said.
Along with the administrative review, Jablonski will assemble a committee to advise on the policies and directions that would improve the sector. The committee will be made up of families, service providers, senior PDD program staff as well as representatives from the Alberta Association for Community Living and the Alberta Council of Disability Services.
