Report on Achievements

Strategic objectives	Key performance indicators	Targets	2009-2010 results
Be an efficient and innovative administrator	Special Examination Report by the Office of the Auditor General of Canada (OAG)	No significant deficiencies reported	The OAG provided a clean opinion: there is reasonable assurance that during the period covered by the examination there were no significant deficiencies in Telefilm’s systems and practices.
	Strategic Review	No reallocation	No reallocations were necessary as programs delivered by Telefilm are aligned with the priorities of Canadians.
	Management Expense Ratio (MER)	Maintain a low management expense percentage	MER across all programs (including CTF programs under Telefilm management) is down 15% year-over-year, to 6.1% The CFFF ratio rose from 8.2% to 9.7% The CNMF ratio dropped from 16.6% to 11.9% The CTF ratio fell to 2.4% from 2.7%
Be transparent and accountable	Refine established performance indicators	Optimize operational efficiency by monitoring financial and operational indicators	Most of the operational and financial indicators have been met.
Better serve clients	Client satisfaction	Maintain or increase client satisfaction level in comparison with 2005-2006 survey	Telefilm’s national client survey reports a slight increase in clients’ overall satisfaction scores – 7.2 out of 10 in 2009-2010 compared to 6.97 out of 10 in 2005-2006.

Telefilm has embraced modern management approaches and techniques such as risk management to improve organizational effectiveness. The findings of ongoing risk assessments have generated several important initiatives in the areas of: governance, human resources management, compliance with policies and procedures, organizational performance, program delivery, ethics and communications. Risk assessments and actions taken are always aligned with Telefilm’s strategic objectives.

For fiscal year 2009-2010, Telefilm assessed its objective “to be an efficient and innovative administrator” through three items: a special examination from the Office of the Auditor General (OAG), a strategic review directed by the Treasury Board of Canada Secretariat, and an analysis of the management expense ratio (MER) for programs managed by Telefilm.

1. Special Examination Report

The OAG did not identify any significant deficiencies in Telefilm’s systems and practices, and noted good management practices, but did identify some areas for improvement. Telefilm is proud of the results of its first special examination and intends to move ahead with responses to the OAG recommendations.

Key systems and practices examined	Findings and recommendations
Corporate governance	Telefilm had a governance structure and systems that enable it to discharge its responsibilities. Telefilm has sound governance practices through the Board, its committees, their assigned responsibilities and relations with senior management.
	To improve its values and ethics practices, the OAG recommends that Telefilm should implement a mechanism to inform the Board of Directors of internal and external complaints, including those having to do with the disclosure of wrongdoing.
Strategic planning, performance measurement and reporting	Telefilm has an appropriate strategic planning process. OAG suggested that the new corporate plan include information about the allocation of financial, human and material resources, and make a link between the strategies and the resources allocated for the planning period.
	OAG noted that management is aware of major risks, but recommended that Telefilm implement a more integrated risk review, evaluation and monitoring process and report on it to Board members.
	Telefilm has processes for measuring performance and reporting on it; key performance indicators that were measured were defined in the strategic plan, and management reported periodically on these.
Funding of audiovisual productions	Telefilm deals with funding projects consistently and objectively through guidelines, policies and procedures. Improvements could be made to documentation in the management information system and to the quality assurance process.
	All applications had been evaluated in a manner consistent with current guidelines, policies and procedures. Telefilm analysts and managers were very knowledgeable about their market. For feature film and new media projects, the Sineweb management information system could be used more efficiently.
	OAG recommended that Telefilm strictly follow procedures for the Sineweb system to improve operating efficiency, and complete the development and implementation of the quality assurance framework.
Information technology	OAG noted that strategic planning for information technology and the operational plan for IT reflect Telefilm’s needs and strategic orientation. Activities related to the management of information provide a high quality service.
Human resource management	Telefilm has a stringent staffing policy, but should ensure that letters of offer clearly set out the conditions of employment and reflect the provisions of policies in force.
	Telefilm provided learning and training opportunities related to strategic objectives, and made an effort to integrate human resources planning into operational planning.
	The performance evaluation process should be applied consistently within Telefilm and the results documented. Performance bonuses awarded should be justified and documented properly.

Source: Special Examination Report-2010, Office of the Auditor General of Canada

2. Strategic review

The strategic review found that programs delivered by Telefilm are aligned with the priorities of Canadians. The Government of Canada confirmed in its 2010 Budget that spending reallocations were not necessary.

3. Management expense ratio (MER) for programs managed by Telefilm

a) All programs

• MER reflects the percentage of administrative expenses required to deliver programs that Telefilm is responsible for managing. This ratio measures the operating and administrative expenses (Schedule D of the Financial Statements) net of amortization, against Telefilm’s total assistance expenses, including the funding programs managed on behalf of the Canadian Television Fund (CTF).
• The current all-program MER stands at 6.1% and the year-over-year decrease (15%) is explained by both a decrease in Telefilm’s operating and administrative expenses and an increase in its program assistance expenses (including the CTF funding programs).

b) By program

• The Canada Feature Film Fund (CFFF) MER went up from 8.2% to 9.7%. This increase is mainly due to additional work required by Telefilm’s shared services areas—departments such as Communications, Strategic planning and project development, Legal, Information performance and risk, Compliance and collection.
• The MER for the Canada New Media Fund (CNMF) in its final year of operation decreased to 11.9%. The drop was mostly related to lower labour inputs to deliver the fund, such as project financing and business relations, as it was being phased out. No MER will be presented for the CNMF in the next annual report.
• The MER for the Canadian Television Fund (CTF) fell to 2.4% from 2.7%. This favourable performance was achieved by controlling administrative costs (which applies to all funds) combined with an assistance expenses increase of $41M year-over-year. CTF MER is expected to rise to 2.9% for the next fiscal year, because new digital media programs will be delivered for 2010-2011 in addition to former CTF programs.

Management expense ratio

• 2009-2010
• 2008-2009

Source: Telefilm database

Using resources, process and technology to be an efficient administrator

Telefilm is enhancing organizational efficiency by combining three key elements in its initiatives and projects as follow:

• Committed and skilled employees;
• Defined processes; and
• Communications technology.

Telefilm’s human resources plan

This fiscal year, a new leadership model was implemented that integrates values, behaviours and competencies. The performance evaluation framework was also updated to reflect these new leadership competencies. These initiatives are important, because they help employees understand the nature and degree of change at Telefilm.

Electronic process management

Core management processes at Telefilm include program decision-making and contracting due diligence. This fiscal year, Telefilm took important steps to standardize and automate these processes. By breaking down core processes into well-defined major steps and applying IT tools, major improvements have been made to efficiency, productivity, compliance, traceability and security. The new system also enhances financial controls. All contracts are now signed through an electronic process that strengthens security over signatories.

Intranet

Telefilm is making better use of its Intranet to improve efficiency in internal communications, and to explore new capabilities as a management and sharing tool. A collaboration software has been deployed to improve the way information is organized and shared across the organization. This software not only shares information in real time, it also provides secure and accessible archiving in a user-friendly fashion.

Buisiness continuity management plan

Telefilm’s buisiness continuity management plan aims to protect three core processes: contracting, payments and budget follow-up. As a result of continual testing and updating, the plan’s communications strategy has been substantially improved this fiscal year. It has been used by Telefilm to manage potential issues such as the Vancouver office during the Olympic Winter Games, and to help manage the H1N1 flu virus situation at all offices.

Telefilm’s performance can be assessed by its operational and financial indicators which are monitored throughout the year. These indicators have an important impact on both client services and the level of industry investments.

Operational indicators

For purposes of benchmarking, the operational indicators are the same as they were last year. Telefilm monitors its services as follows:

Operational indicators	Targets	Results	Findings
Response times for production funding decisions
CFFF: Decision issued	Decision date planned 10 weeks	100% of the time 71% of the time	Target met Target not met
CNMF: Decision issued	10 weeks	100% of the time	Target met
CTF service levels: Response time indicators (in days)	14 targets to meet	10 targets met	71% of targets met
Project payment triggered	≤ 3 days	2 days	Target met
Supplier payment triggered	≤ 20 days	17 days	Target met
Critical IT system hours available	≥ 97.5%	99.6%	Target met
Critical IT systems incident-free days	≥ 90%	93%	Target met

Source: Telefilm database

Financial indicators

Financial indicators are an important way to measure compliance with established levels of funding from sources such as parliamentary appropriation and the CNMF Contribution Agreement. Telefilm uses the financial indicators below to ensure there are no lapsing funds or overages in the utilization of funding.

Financial indicators ($M)	Targets	Results	Findings
CFFF assistance expenses	85.3	99.2	Target met
CNMF assistance expenses	12.7	13.2	Target met
Administrative budget: maximum threshold	29.0	28.4	Target met

Source: Telefilm database

CFFF internal audit report

During the course of the year, the Board approved an internal audit mandate on the management processes of CFFF’s main programs. This audit demonstrated a strong improvement in terms of process compliance and documenting decision trails since last year. The reorganization of program management activities, and separating the tasks of content analysis and contract management, in addition to progress in the quality control program, strongly contributed to the improvement of management processes as a whole.

Nationwide client survey

In 2009-2010 Telefilm conducted a comprehensive client survey research project. This project was built on the nationwide client surveys of 2005 and 2001; its scope was adapted, modernized and aligned with the new realities of the organization. One-on-one interviews with major clients and stakeholders were conducted and an in-depth online questionnaire was distributed to all of Telefilm’s clients.

According to Telefilm’s clients, the organization has appeared to improve steadily over the last decade or so. In 2001, clients rated Telefilm’s performance as an organization at 6.95 out of 10 ⁶ , in 2005 this edged up to 6.97 ⁷ , and in 2009, overall performance rose to 7.2 ⁸ .

New to the most recent survey project is a section on client perception of Telefilm. The results indicate that positive views of Telefilm have grown over time and include such descriptions as “friendly”, “competent” and “knowledgeable”.

Telefilm’s regional offices were also an important component of this latest client assessment. The results were encouraging, with two-thirds of regional clients reporting satisfaction. Regional offices scored 7.6 out of a possible 10. Regional service elements also drew the highest satisfaction scores, such as:

• Responding to queries on programs and services (7.4 out 10)
• Client service (7.3 out of 10)
• Professional expertise in business due diligence requirements (7.0 out of 10)

Findings from the 2009-2010 client satisfaction survey will help Telefilm, a forward-thinking organization, to develop its new corporate plan.

eTelefilm

eTelefilm is a Web-based online service that lets clients submit applications online, follow up on application status, and keep track of project progress. Clients can also perform several functions related to project funding. eTelefilm: fast, secure and user friendly, eTelefilm is available anywhere.

Utilization of eTelefilm is growing rapidly. Almost 650 applications were submitted electronically in 2009-2010—an increase of about 50% over last year. This year, a fast-track process was implemented to accelerate adoption. The following chart demonstrates the adoption trend since inception in fiscal 2001-2002.

This fiscal year, eTelefilm has been revamped to make it simpler, and easier to navigate. Telefilm will make eTelefilm mandatory for some of its programs in the next fiscal year in order to standardize processes and improve efficiency.

eTelefilm subscriptions

Source: Telefilm database