1. Lea
Department Chair, Centre Director, and Library Head Orientation – Finance & Budgeting
- August 22, 2017-

2. Agenda Introductions Financial reporting and budgeting
Purchasing and P-Cards

3. Financial reporting & Budgeting

4. About Brock Not-for-profit Registered Charity
provide products or services without making profit
Any profit earned is used towards the organization’s objectives and to keep it running
Registered Charity
Issue tax receipts
Charitable purpose is advancement of education
May generate revenue but it goes back into the organization it doesn’t get paid out to shareholders, have to follow different accounting standards, don’t pay taxes, charitable purpose is the advancement of education

5. Transactions processed in 2016-17
5,214
1,878
21,796
15,255
6,720

6. External Reporting Why do we report financial information?
Required by the province
To communicate plans/results to the general public
Help us make informed University decisions
Compare against other Universities
Annual audit by the province, annual charity return by CRA

7. Types of Reporting Type of Reporting Timing Content
Trimester Reporting
1st and 2nd trimester
Year to date actual and forecasted information by department
Financial Statements
End of fiscal year (April 30th)
Balance sheet, statement of operations, statement of changes in net assets, cash flow, notes
Annual Report
A comprehensive report on an organization’s activities throughout the preceding year
Budget Book
May (for the upcoming year)
A comprehensive report on the upcoming fiscal year plan
Grant Reporting
End of grant (varies)
Period to date reporting of eligible grant expenditures
COFO Reporting
October (based on previous fiscal year)
More detailed version of financial statements, series of financial information schedules
COFO report used for MACLEAN’s ranking
Scholarship reporting example

8. Annual Report

9. Importance of budgeting
The budget is a plan to allocate resources in advance for the maximum benefits of stakeholders. It is a method to authorize spending authority and establish revenue targets of units within Brock University.
Brock’s budget is over $300 million – both operating expenses and revenue and this needs to be deployed throughout the University

10. Budget process
All units receive their budget input workbooks in November
Non-academic budget administrators submit budgets by end of December
Academic budget administrators submit budgets by the end of January
CAD Finance and Senior Administrative Council
Planning Priorities Advisory Committee (PPBAC)
Financial Planning Investment Committee (FPIC)
Senate
Board of Trustees for final approval
Budget Report released to the University

11. Budget Report

12. What is your role in this process?
Accurate budgeting/forecasting
Forecasted surpluses/deficits are looked at across the organization when basing certain financial decisions
Your forecasts can directly affect other departments
Under/over estimating forecasts make financial reporting less useful
Lead to maximum flexibility with our limited resources

13. What is your role in this process?
Reviewing Workday cost centre reports regularly
Approving transactions on a timely basis
Understanding and applying University policies
Planning and utilizing limited resources efficiently
Assists Brock in meeting its Strategic Priorities
Ensures timely reporting to assist decision making and allow for timely internal & external reporting

14. Purchasing and P-Cards

15. Purchasing and Expense policies
Policies can be found on the Finance Website under the Procurement Services and Reimbursements links.
The Policy establishes the authority of employees to make purchases or incurred expenses on behalf of the University. It is designed to ensure current legislative requirements are met and an appropriate level of control and accountability are maintained.
Broader Public Sector members are required to follow the BPS Procurement Directive which ensures the appropriate use of public funding.

16. Scope
The policy governs the purchases of all goods and services acquired by the University regardless of the of funding source (including research funding).
The policy outlines the roles and responsibilities of all employees and the approval hierarchies for expenditures, all of which have been integrated into the electronic approval process in Workday.

17. Regulations and Policies
Broader Public Sector Accountability (BPS) Act - Bill 122
Accountability
Ensure public funds support business objectives
Transparency
Rules are clear, easily understood & available to the public
Fairness
Legitimate, authorized business expenses are paid
Value for Money
Taxpayer dollars are used prudently & responsibly
Expenses are necessary & economical

18. General Expense Requirements
The Brock Expense Policy applies to all travel, meal and hospitality which will be paid for by Brock for employees, students, and others. Any funds used must meet following general requirements: Note: Policy exceptions May be approved by the University President and/or Vice-Presidents. Policy exception form found on the Financial Services website must be completed before any expenditures requiring an exemption is incurred
Expenses must directly benefit University
Valid business purpose
A report submitted within 9 months that documents amount, time, use, and business purpose
Includes original itemized expense receipts unless out of pocket Per Diem is claimed
Adequate substantiation

19. Competitive bid requirements for goods and services
Orders less than $15K
Only 1 quote is required but it is recommended that multiple quotes are obtained when feasible in order to ensure good value.
Orders between $15K – 100K
Minimum of 3 quotes are required and are generally obtained by invitation. Procurement Services is able to assist you with this process and the development of a formal RFP if necessary.
Orders over $100K
BPS Directive requires that bid opportunities over this threshold must be publicly advertised on a public website in order to provide open opportunity to all potential bidders. (Merx) Procurement Services will assist with the RFP development and the competitive sourcing and bid evaluation process.
Costs for goods and/or services that require Purchase Orders (> $15,000) may not be artificially partitioned into components costing less than $15,000 to circumvent the competitive bidding requirement. Requisitions for the same goods/services from the same unit and/or same supplier within a short time period may be considered an artificial division of the purchase.
*Dollar thresholds are based on price before applicable taxes.

20. Competitive bid requirements for goods and services
Collaborative Agreements
Thresholds listed above may not be applicable if the University is participating in a Collaborative Procurement Agreement;
OUPMA
OECM
MGS
NPPC

21. Purchasing methods
P-Cards / Expense Report
Purchases under $15K
All Bookstore purchases regardless of value
Create Expense Report in Workday
Cheque Requisitions
Use the Form on Finance website and to Accounts Payable
Invoices less than $5K
Purchase Requisitions (Purchase Orders)
Workday
Must be used for all purchases over $5K (unless on Pcard)
*Job Aids and Forms are available on the Finance Website

22. Benefits of P-cards
Purchasing Card transactions automatically load to your Workday Expenses module on a daily basis
Purchasing Card automatically converts foreign currency expenses to Canadian Dollars
No longer need to use personal funds for travel
Researchers funded from external grants may purchase travel accommodations in advance, using University funds, and save the transactions as pending in their Workday expenses until travel has occurred to assist with external granting agency policies
​Cash advance functionality available upon request
Travel insurance: Rental collision/loss damage insurance, flight delay, common carrier travel accident insurance 

23. Exceptions to the policy
Certain purchases are exempt from the Procurement Policy (eg. Library Acquisitions, Utilities, Professional Development & Training) A complete list of policy exceptions can be found in Procurement Policy Appendix A.
On occasion, it may not be possible to obtain multiple quotations for the purchase of a good or service, (eg. Emergency Purchase, Compatibility with existing equipment)
In these cases, justifications must be in accordance with section 35 of the policy and must be documented on an Exception Certificate form which will be attached to the Purchase Requisition.

24. Questions/Comments