1. Financial Services Presentation February 2012

2. 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

3. Agenda Introduction Mandate & Organization Structure Service Summary Budgets Purchasing Endowment Funds Payments Travel Research & Special Purpose Funds Questions

4. 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

5. Financial Services Mandate (con’t) Reporting to Senior Officers, Committees of the Board, and various other Committees (e.g., BAC, collective bargaining teams)

6. Organization Chart

7. Budget Responsibilities at Dalhousie President responsible to Board of Governors for Budget Budget 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

8. Typical Budget Timeline at Dalhousie Early Winter BAC prepares discussion paper - Highlights issues specific to coming year - Environmental Scan - Includes financial scenarios - Input received from campus Mid Winter BAC prepares budget plan - Includes recommendations to President

9. Spring April 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

10. Budget Management Budget development with sound assumptions and estimates Monitor activity Online reporting tools Delegation of access via Web for Admin Supported by Administrative staff Awareness of Budget Policies University Faculty level Reporting Requirements Midyear & third quarter reviews

11. 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

12. Purchasing Overview Centralized Procurement Services Public Procurement Legislation Purchasing Policies & Procedures Procurement Card Other  Printing Services  Disposal of Surplus Assets

13. How Can Purchasing Help Procurement Services Available 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

14. Goods and services funded through all accounts administered by Dalhousie including research grants and contracts Major activities making up the purchasing process Developing specifications or list of requirements Hosting vendors to discuss requirements for potential purchases Requesting proposals and clarifications for pricing and other service features Conducting trials of products Awarding contracts or purchase commitments Importing and exporting material Scope of Purchasing Activities

15. Purchasing Methods Order Initiation P-Card ( below $1,500) Purchase Requisition Vendor Selection P-Card Holder (below $1,500) Quotations (Requisitions below tender threshold) Tender & RFP - Goods > $25k - Services > $50k - Construction > $100k

16. Purchasing Methods Commitment to Purchase P-Card transaction PO from quote or tender Contract Vendor Payment Statement Reconciliation – P-Card Invoice for PO

17. Public Procurement Legislation Public Tendering Thresholds Goods $25,000 Services $50,000 Construction $100,000

18. Other Services Disposal of used assets Movement of goods across international borders Print and document production services Convenience Copiers

19. 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

20. Endowment Funds Spending Guidelines Balance 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

21. 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

22. Pension Investments Assets $761 Million Investment Policy Fund Management Investment structure Investment mandates Compliance Records Performance Risk management

23. Payments Spending Authority Delegation Receipt of Goods Receiving copy of a purchase order is used as authorization for the payment of goods by Accounts Payable Partial Shipments Cheque Requisitions Approval Services Rendered Employee vs. Independent Contractor

24. Travel Approval & Responsibility Eligible Expenditures Claim for Reimbursement Travel Advances University Travel Card Per Diem Allowance

25. 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

26. Claim for Reimbursement Travel Expense Claim Original Receipts Airline Tickets Electronic Reimbursement Boarding Passes

27. Travel Advances Traveler cannot authorize his/her own accountable advance Clearing of Advances Seat Sales

28. Per Diem (Maximum Rates) Private Vehicles $0.42/km Accommodation Commercial – reasonable rate Private - $25/ day Meals Domestic - $47/ day International – Treasury Board rates Faculties may establish lower rates http://as01.ucis.dal.ca/fs/pdf/TRAVRATEAppendixA08.pdf

29. Research & Special Purpose Funds Principal investigator responsible for expenditure of funds Each Grant or Contract separate account Must comply with granting agency/sponsor regulations

30. Current Initiatives Spending Approval Extend current policy to all accounts Expand electronic approvals Purchase requisitions Employment requisitions Expand financial information available through online tools Interested in feed back in this area

31. Financial Services Website Contacts Policies Additional information www.dwww.dal.ca/finserv