1. University of Toronto :: School of Continuing Studies SCS 1952 – 080 :: Leading Projects in Organizations Nov 20, 2012 Procurement Management Project Team: Jazz Dudial, Ali Elchanti, Gina Hermida, Shahzad Kamran, Alan Leong, Agata Trzcinska-Daneluti

2. The main purpose of this project was to research and apply lessons learned to Procurement Management knowledge area in order to present the Sponsor and stakeholders with the recommendation on things that could be improved and emerging opportunities. INTRODUCTION 2

3.  An interview questionnaire of 32 questions on Procurement Management to explore and better understand how procurement is planned, conducted, administered and closed in the participating organizations:  conducted in person  minimum 5 professionals with a knowledge in the procurement per organization  leadership and lessons learned  Data analysis in relation to:  variations between industries (sectors)  variations between the public, private and non-profit sectors  excluded from analysis: internal vs. external projects perspectives in different departments or at different management levels  “Sociocultural” development of the team METHODOLOGY: TOOLS & PROCESSES 3

4. Virtual team:  Web-based tools e.g. Google Docs Team performance tools:  GRPI survey – a short questionnaire to baseline the experience of the group (performed at the beginning, mid-way through and at the end of the project)  Plus Delta – positives and suggestions (during each group meeting)  recorded in a group journal  Problems recorded in the issues log METHODOLOGY: TEAM DYNAMICS 4

5.  Better understanding of procurement practices in the private, public and non-for-profit sectors was required in order to find common grounds for comparison  Broader Public Sector (BPS) Accountability Act in case of publicly funded BPS organizations:  Enacted December 2010. New BPS Procurement Directive developed by Ministry of Finance was effective April 1/2011  Contained a number of new transparency and accountability mechanisms for publicly funded BPS organizations: Bans the practice of hiring lobbyists using public funds Increases accountability for hospitals and LHINs (Local Health Integration Networks) Establishes new procurement and expense rules for certain large BPS organizations Adds accountability measures related to compliance and expenses rules Brings hospitals under the Freedom of Information and Protection of Privacy Act (FIPPA)  Emphasis on Consulting Procurement  Source: Bill 122, Broader Public Sector Accountability Act, 2010 (Legislative Assembly of Ontario, www.ontla.on.ca)www.ontla.on.ca Procurement Guideline for Publicly Funded Organizations in Ontario (www.fin.gov.on.ca)www.fin.gov.on.ca METHODOLOGY: BACKGROUND RESEARCH 5

6.  Background research for team dynamics METHODOLOGY: BACKGROUND RESEARCH 6

7. University of Toronto :: School of Continuing Studies SCS 1952 – 080 :: Leading Projects in Organizations Nov 20, 2012 Appendix Project Team: Jazz Dudial, Ali Elchanti, Gina Hermida, Shahzad Kamran, Alan Leong, Agata Trzcinska-Daneluti 7

8. APPENDIX: BROADER PUBLIC SECTOR ACCOUNTABILITY ACT 8 To whom does the BPS Procurement Directive, BPS Perquisites Directive and BPS Expenses Directive apply? www.fin.gov.on.ca

9. BPS organizations, as users of public funds, must focus on: APPENDIX: BPS PROCUREMENT DIRECTIVE - KEY REQUIREMENTS AND PRINCIPLES 9 www.fin.gov.on.ca

10.  Procurement Directive:  Supply Chain Code of Conduct required  All procurements commencing after April 1 st, 2011 must comply with requirements laid out by the Procurement Directive  Procurements pre-existing April 1st, 2011 do not need to be replaced; “grandfathering” will occur for these procurements  Emphasis on Consulting Procurement Annual reports on use of Consultants are to be approved by Board  Compliance with BPS Accountability Act:  CEO attestation, approved by Board re: lobbyists, reporting of consultants & compliance with Procurement & Expenses Directives Internal Management certification to support CEO attestation APPENDIX: BROADER PUBLIC SECTOR ACCOUNTABILITY ACT 10 www.health.gov.on.ca

11. Lobbyists:  The ban on lobbyists in the Broader Public Sector Accountability Act, 2010 (BPSAA) prohibits certain broader public sector organizations from using public funds to hire lobbyists. Organizations subject to this prohibition include:  classified agencies like Cancer Care Ontario and eHealth Ontario  hydro entities  LHINs  large BPS organizations like CCACs, universities and hospitals  every other publicly funded organization that received more than $10 million in government funding in the previous fiscal year APPENDIX: BROADER PUBLIC SECTOR ACCOUNTABILITY ACT 11 www.health.gov.on.ca

12. Accountability:  Public Reporting of Expense Claim Information  The Broader Public Sector Accountability Act, 2010 (BPSAA) increases transparency and accountability by requiring LHINs and hospitals to post information on their websites about expense claims of individuals such as board members and senior managers.  Reporting on Use of Consultants  LHINs and hospitals are also required to prepare reports, approved by their boards, concerning their use of consultants. APPENDIX: BROADER PUBLIC SECTOR ACCOUNTABILITY ACT 12 www.health.gov.on.ca

13. Expenses and Procurement:  The Broader Public Sector Accountability Act, 2010 (BPSAA) authorizes Management Board of Cabinet to establish requirements related to expenses and procurement.  Expenses standards: The directive requires designated BPS organizations to post their expense rules on their websites. The directive requires the following to be addressed in the rules: An accountability framework Prohibition on reimbursement of meal and hospitality expenses for consultants and other contractors Rules specific to serving alcohol Rules for hospitality events Good record keeping practices Rules for individuals making claims (e.g. all appropriate approvals should be obtained before incurring the expense, original itemized receipts are required) Rules for individuals approving claims (e.g. cannot approve their own claims, provide approval only for expenses incurred in the performance of organization business)  Procurement Standards The government has issued a directive governing the procurement of goods and services by designated broader public sector organizations (listed in the act). APPENDIX: BROADER PUBLIC SECTOR ACCOUNTABILITY ACT 13 www.health.gov.on.ca

14. Compliance Reports:  The Broader Public Sector Accountability Act, 2010 (BPSAA) requires the Chief Executive Officer of every Local Health Integration Network (LHIN), and public and private hospital, to prepare attestations with respect to compliance with the requirements of the BPSAA.  The attestations will confirm the organization’s:  completion and accuracy of reports on the use of consultants  compliance with the prohibition on engaging lobbyists using public funds  compliance with the expense directives issued by the government  compliance with procurement directives issued by the government APPENDIX: BROADER PUBLIC SECTOR ACCOUNTABILITY ACT 14 www.health.gov.on.ca

15. Amendments to the Freedom of Information and Protection of Privacy Act (FIPPA):  As of January, 2012, certain types of hospital records are excluded from the application of the act. For example:  records that relate to the operations of a hospital foundation  the administrative records of a health professional in relation to their personal practice  records that relate to charitable donations made to a hospital APPENDIX: BROADER PUBLIC SECTOR ACCOUNTABILITY ACT 15 www.health.gov.on.ca