Financial ServicesPresentation

February 2012

Presenters

Ian Nason

Assistant Vice-President

Financial Services

Susan Robertson

Director of Budgets and Financial

Mike Drane

Director of Purchasing

Colin Spinney

Treasurer

Darrell Cochrane

Controller

Agenda

Introduction

Mandate & Organization Structure

Service SummaryBudgets

Purchasing

Endowment Funds

Payments

Travel

Research & Special Purpose Funds

Questions

Financial Services Mandate

Responsible to conduct/co-ordinate all matters pertaining to University finances including:

Financial planning/budgeting

Maintaining appropriate internal controls and processes

Financial Reporting

Management of University endowments

Investment program for endowment, pension and University cash

Procurement of goods and services – all University accounts

Facilitating audits

Insurance program

Financial Services Mandate (con’t)

Reporting to Senior Officers, Committees of the Board, and various other Committees (e.g., BAC, collective bargaining teams)

Organization Chart

Adm inistrativ eAssistant

(Sharleen N ielsen )

Cont rolle r(Darre ll Coc hrane )

D irector of Purchasin g(M ike Drane )

T reasure r(Colin S pinney )

D irector, Bud gets and F ina ncial Analysis(Susan R obertson )

Assistant V ic e-P residen tF inancial Service s

(Ian Nason )

Budget Responsibilities at Dalhousie

President responsible to Board of Governors for BudgetBudget Advisory Committee (BAC) advises the president

Deans responsible for the management and control of the Faculty budget

Chairs/Heads accountable to the Dean for departmental budgets

Typical Budget Timeline at Dalhousie

Early WinterBAC prepares discussion paper

- Highlights issues specific to coming year- Environmental Scan- Includes financial scenarios- Input received from campus

Mid WinterBAC prepares budget plan

- Includes recommendations to President

SpringApril 1 beginning of the fiscal year

Budget Allocations developed for Faculties- Faculties submit detailed budgets

Detailed Budget goes to Board

Typical Budget Timeline at Dalhousie

Budget Management

Budget development with sound assumptions and estimates

Monitor activityOnline reporting tools Delegation of access via Web for Admin Supported by Administrative staff

Awareness of Budget PoliciesUniversityFaculty level

Reporting RequirementsMidyear & third quarter reviews

Budget Policies

Operating budget carry forward

Negotiated terminations

Faculty deficit budgets

Enrolment Related Budget Allocations (ERBA)

Employment requisitions (non-academic appointments)

Each faculty may also have its own policies

Purchasing Overview

Centralized Procurement Services

Public Procurement Legislation

Purchasing Policies & Procedures

Procurement Card

Other Printing Services Disposal of Surplus Assets

How Can Purchasing Help

Procurement ServicesAvailable Resources, trained in purchasing

Experience with similar purchase to supplement your knowledge

Utilize supply and service agreements

Compliance with policy and legislated requirements – minimize risk

Select the optimum acquisition process

Address product or service problems

Goods and services funded through all accounts administered by Dalhousie including research grants and contracts

Major activities making up the purchasing processDeveloping specifications or list of requirementsHosting vendors to discuss requirements for potential purchasesRequesting proposals and clarifications for pricing and other service featuresConducting trials of productsAwarding contracts or purchase commitmentsImporting and exporting material

Scope of Purchasing Activities

Purchasing Methods

Order InitiationP-Card ( below $1,500)

Purchase Requisition

Vendor SelectionP-Card Holder (below $1,500)

Quotations (Requisitions below tender threshold)

Tender & RFP- Goods > $25k- Services > $50k- Construction > $100k

Purchasing Methods

Commitment to PurchaseP-Card transaction

PO from quote or tender

Contract

Vendor PaymentStatement Reconciliation – P-Card

Invoice for PO

Public Procurement Legislation

Public Tendering ThresholdsGoods $25,000

Services $50,000

Construction $100,000

Other Services

Disposal of used assets

Movement of goods across international borders

Print and document production services

Convenience Copiers

Investment Office

Endowment Investment & Administration$374 million in assets

$17 million annual program spending

1,100 endowments

Restricted uses

Budget support- Faculty- Department- Purpose (e.g.. Scholarships/bursaries, chairs, salaries, research, library)- Summary of terms- Annual distribution – late autumn/early winter

Expenditure review – compliance with terms.

Investment Policy, Fund Management

Endowment Funds

Spending GuidelinesBalance present spending needs with expected future requirements

Protect the purchasing power of the capital base of endowments while achieving stability in year-to-year spending

Attain real increases in spending through capital appreciation from new gifts, capital investment gains, and the capitalization of investment earnings

Endowment Spending Policy

Banded inflation

Initial spend rate 4.75% (years 1 & 2)

Increase @ CPI thereafter as long as resulting spend rate between 3.75% and 5.75% of MV

Each endowment must retain real economic value – i.e. capital must grow at the rate of inflation

Each endowment is indexed annually

“Underwater” - MV < Indexed Value

“Capital Impaired” – MV < Gift Value

Pension Investments

Assets $761 Million

Investment Policy

Fund ManagementInvestment structure

Investment mandates

Compliance

Records

Performance

Risk management

Payments

Spending AuthorityDelegation

Receipt of GoodsReceiving copy of a purchase order is used as authorization for the payment of goods by Accounts Payable

Partial Shipments

Cheque RequisitionsApproval

Services RenderedEmployee vs. Independent Contractor

Travel

Approval & Responsibility

Eligible Expenditures

Claim for Reimbursement

Travel Advances

University Travel Card

Per Diem Allowance

Approval & Responsibility

Approval by individual at a reporting or management level above that of a claimant (e.g. Department Chair and/or Dean)

Delegation of responsibility

Signature stamp not acceptable

Claim for Reimbursement

Travel Expense Claim

Original Receipts

Airline Tickets

Electronic Reimbursement

Boarding Passes

Travel Advances

Traveler cannot authorize his/her own accountable advance

Clearing of Advances

Seat Sales

Per Diem(Maximum Rates)

Private Vehicles $0.42/km

AccommodationCommercial – reasonable rate

Private - $25/ day

Meals Domestic - $47/ day

International – Treasury Board rates

Faculties may establish lower rateshttp://as01.ucis.dal.ca/fs/pdf/TRAVRATEAppendixA08.pdf

Research & Special Purpose Funds

Principal investigator responsible for expenditure of funds

Each Grant or Contract separate account

Must comply with granting agency/sponsor regulations

Current Initiatives

Spending ApprovalExtend current policy to all accounts

Expand electronic approvalsPurchase requisitions

Employment requisitions

Expand financial information available through online toolsInterested in feed back in this area

Financial Services Website

Contacts

Policies

Additional information

www.dal.ca/finserv