financial services presentation february 2012. presenters ian nason assistant vice-president...
TRANSCRIPT
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