Broader Public Sector (BPS) Procurement and Expense Directive Training Session for Faculty and Staff Wilfrid Laurier Uni

1. Broader Public Sector (BPS)Procurement and Expense Directive • Training Session for Faculty and Staff • Wilfrid Laurier University

2. Outline • Introduction • Supply Chain Code of Ethics • BPS Expense Directive • Expense Claim and Approval Protocol • Hospitality Expenses • Filing Claims • Non-compliance • BPS Procurement Directive • Purchasing Card • Non-compliance • Procurement Directive • Consultants and Contractors • Procurement and Tendering Policy

3. Introduction • In 2008, Ontario’s Treasury Board of Cabinet directed as part of their Supply Chain Guideline that all Institutions receiving more than 10M in funding must adhere to their new policy regarding Supply Chain Initiatives. • Phase One included the mandate to have a Supply Chain Code of Ethics approved in every institution and that it must be provided to every person who is involved in any way in the acquisition of goods and services. This came into effect April 1, 2009.

4. Supply Chain Code of Ethics • Wilfrid Laurier’s Supply Chain Code of Ethics is found in Policy 5.10: • The Supply Chain Code of Ethics is relative to all supply chain related activities including but not limited to procurement, contracting, inventory management, planning, logistics/distribution, and accounts payables. • I. Personal Integrity and Professionalism • All individuals involved with purchasing or other supply chain-related activities must and be seen to act, with integrity and professionalism. Honesty, care and due diligence must be integral to the supply chain activities within and between, Wilfrid Laurier University, other BPS organizations, suppliers and other stakeholders. Respect must be demonstrated for each other and for the environment. Confidential information must be safeguarded. All participants must not engage in any activity that may create, or appear to create, a conflict of interest, such as accepting gifts or favours, providing preferential treatment, or publicly endorsing suppliers or products.

5. Supply Chain Code of Ethics • II. Accountability and Transparency • Supply chain activities must be open and accountable. In particular, contracting and purchasing activities must be fair, transparent and conducted with a view to obtaining the best value for public money. All participants must ensure that public sector resources are used in a responsible, efficient and effective manner. • III. Compliance and Continuous Improvement • All individuals involved in purchasing or other supply chain-related activities must comply with this Code of Ethics and the laws of Canada and Ontario. All individuals should continuously work to improve supply chain policies and procedures, to improve their supply chain knowledge and skill levels, and to share leading practices.

6. Expense Reimbursement Handbook Approved by President’sGroup June 15, 2011 WilfridLaurier University

7. BPS Expense Directive • The Expense Directive applies to any person in the organization making an expense claim (Appointees, Board Members, Elected Officials, Employees, Consultants, and Contractors) • Requires good record-keeping practices be maintained for verification and are subject to an audit

8. Expense Claim Protocol (Out of Pocket Expenses) • Preapproval: • All expense reimbursement claims must be pre-approved by an individual’s immediate supervisor. • Can range from a discussion regarding a specific event, or to the development of a budget. Line by line approval is not necessary. • Must specifically give approval for travel outside of the province and circumstances in which alcohol can be claimed. • Claimants: • Must submit original, itemized receipts, not just a receipt of payment, with all claims to the Approver and Accounts Payable • Must submit claims in a timely manner , within 30 days of the expenditure (for travel expenses, that is 30 days from the date of return) • Repay any overpayments – it is considered a debt owing to the University

9. Expense Claim Protocol • Approvers (cont’d): • By approving an expense the approver is taking responsibility for that expense, therefore: • Provide approval only for expenses that were necessarily incurred in the performance of University business. • Provide approval only for claims that include all appropriate documentation. • All expense reimbursement claims must be approved by an individual’s immediate supervisor (One up Approval or one over one), cannot approve his/her own expense claim. • When claiming expenses for a group event, One Up approval applies to the most senior person in the group and cannot be approved by an individual that partially incurred the expense (i.e. If your administrative assistant books catering, your one up needs to approve that expense). • Meeting and Laurier Catering Forms now ask for most senior participant

10. Meeting, Hospitality, & Entertainment • Hospitality Expenses: • Events solely for the entertainment of employees within Laurier and the Broader Public Sector(BPS) are not allowed if paid for with University funds. This includes appointees, board members, elected officials, faculty, staff employees, consultants/contractors, and members of other BPS organizations. • Events such as student recognition and achievement events are acceptable only if non-WLU and BPS affiliated individuals, such as members of local community, are in attendance. It also must further Laurier’s mandate. • Pre-approval for these special events is required from the hosting department’s Vice President. • The most senior person at the event must seek one-over-one approval for the expense, and must be named on the claim.

11. Meeting, Hospitality, & Entertainment • Hospitality Expenses (cont’d): • Hospitality costs should be clearly identified with sufficient detail to identify the person or group being entertained, including university or organizational affiliation, and the purpose of the event. • Business Meals: • Events such as business meals are allowable expenses, as they are not considered hospitality. Business meals are at the discretion of the manager and occur when meetings/work continues over a traditional meal time period. • Travel Meals: • While on travel the use of the per diem is still acceptable ($10 Breakfast, $15 lunch, $30 Dinner, $15 Incidentals, Total Daily Max of $70)

12. Hospitality, Business/Working Meal, or Social Event?

13. Hospitality Event Generally, 50% of the participants being external would be considered reasonable for a hospitality event, but can vary by event.

14. Expense Claims • All expense claim forms can be found on the WLU Financial Resources, Accounts Payable website, under the link Forms (http://www.wlu.ca/forms.php?grp_id=1583): • Advance Request (travel) • Travel Expense Reimbursement • Meeting Expense • P-Card Meeting Expense Report • P-Card Travel Expense Report • Research Participant Advance • Research Advance Reconciliation • Cheque Requisition • Please use the most up to date forms.

15. Filing Claims • Expense claims can be filed to Accounts Payable either by inter-office mail or drop-off at 202 Regina Street, 2nd Floor. • Need original, detailed and itemized, receipts. Credit card payment receipt or statement not enough. • Do not send receipts without forms, or forms without receipts. Forms should be filed with corresponding receipts. • Appropriate One Up or One over One approval. • Clear and detailed description of the expense and purpose. For research expenses, need to explain how the expense relates to the research project being funded. • Remember to properly account for advances received. • Hospitality Expenses should be clearly identified with sufficient detail to identify the person or group being entertained, including university or organization affiliation, and the purpose of the event

16. Non Compliance • Expense claims must be correct/approved and returned to Accounts Payable in a timely manner. Failure to comply with these regulations and guidelines may result in the following action(s): • Telephone or email reminder will be sent to the claimant requesting the documents be sent within one week. • If documents are not received and statements are missing receipts, an in-person visit will occur to train and discuss the proper record keeping procedures and how best to ensure this occurs. • If proper documentation is not provided, the transaction will be billed back to the employee as an outstanding debt owed to the University as per the Broader Public Sector Expense Directive. • If compliance does not improve, expense reimbursement privileges will be terminated. • Privileges will be reinstated if the employee agrees to abide by the rules of WLU Expense Reimbursement Handbook.

17. Purchasing Cards Wilfrid Laurier University

18. Purchasing Cards (P-Card) • Purchasing Cards are a recognized best practice of making small dollar purchases. • Laurier's per transaction limit is $5,000 Canadian per transaction with a monthly maximum of $7,500. Should volumes warrant an increase to the monthly maximum, an e-mail from the cardholders supervisor with a suggested monthly limit must be sent to the p-card administrator. • Travel and Meals as governed by the BPS Directive and Laurier’s Expense Handbook are allowed using the card.

19. P-Card – Record Keeping • All receipts for goods and services for all faculty and staff, including Research purchases must be retained for all purchases • Bank Statements must have one up approval and be remitted to Procurement Services by the 10th day of the month succeeding the statement. For example, the April 4 to May 3 statement must be sent to Procurement with the approvals by June 10th. • All original itemized receipts and applicable Meeting and Travel Report forms should be submitted with the corresponding P-Card Bank Statement • If your boarding pass for flights is not available by the submission deadline, the statement and forms should be filed on time with a note indicating when the flight is taking place. • Send the boarding pass to Procurement Services once received

20. P-Card – Non Compliance • Failure to comply with the regulations will result in the following: • If statements are not received, Procurement Services will follow-up on where the statement is. Repeatedly submitting statements late will result in a one-on-one session to discuss the requirements of the program. • If proper documentation surrounding travel and entertainment expenses is not provided, the transaction will be billed back to the employee as an outstanding debt owed to the University as per the Expense Directive • If record keeping does not improve within 3 cycles, the Card may be terminated. No personal credit Card receipts will be reimbursed by Financial Resources for Faculty/Staff who have had their university card suspended. • Cards can be reinstated if the card holder agrees to abide by the rules of Laurier’s Purchasing Card Program and the Expense Reimbursement Handbook.

21. BPS Procurement Directive Wilfrid Laurier University

22. BPS Procurement Directive • Effective April 1, 2011, the Supply Chain Guideline was superseded by the Broader Public Sector Procurement Directive and became law under the Broader Public Sector Accountability Act 2010. • All individuals within an organization from Requisitioner to Accounts Payable are affected by this directive, not just the Procurement Department. • The following slides provide a summary of the changes and how it will affect your department.

23. Procurement - Consultants • The Directive has added regulations to the procurement of Consulting Services (7.2.2.2) and this will have a impact on all departments. • The Directive now states that ALL consulting services must be sourced through invitational or open competitive process. • $0 up to but not including $100,000 must be sourced through invitational or open competitive process • $100,000+ must be sourced using Open Competitive Process

24. Procurement - Consultants • So, what constitutes a consultant? • Per the BPS Supply Chain Secretariat, a consultant means “a person or entity that under an agreement, other than an employment agreement, provides expert or strategic advice and related services for consideration and decision-making • Professional Services • 1) An architect engaged to develop a 10 year strategy? YES • 2) An architect is engaged to design a specific building? NO • IT • 1) An organization is engaged to develop an IT strategy? YES • 2) An organization is engaged to create a data base that will support an IT implementation? NO

25. Procurement - Consultants • Informal Procurement cannot be used with consultants. Competitive Procurement must be used regardless of value • Informal Procurement can be used with Non-consultants. • There one exception to the above: • Procurement of Services that in Ontario may, by legislation or regulation be provided only by any of the following licensed professionals: medical doctors, dentists, nurses, pharmacists, veterinarians, engineers, land surveyors, architects, accountants, lawyers and notaries does not constitute consulting services subject to the type of service they are providing. If they are working within their license, they are not a consultant. If they are providing strategic advice, they are consulting. • These exemptions must be approved by WLU President for $0-1,000,000 and by the Board of Governors for 1,000,000+ prior to commencement. • If in doubt, please contact Procurement Services for clarification.

26. Procurement - Consultants • Please note, a minimum of 3 invitations must be sent. There is not a requirement of 3 responses. • As of April 1, 2011, BPS Organizations can no longer pay for meals, incidentals, beverages or snacks for consultants or contractors. We can still pay for economy airfare, mileage and accommodation expenses as long as they are accounted for in the contract document. Itemized receipts will need to be submitted by the consultant and we will not pay them a flat per diem. In the case of mileage expenses, direct route from their place of employment to Laurier will be reimbursed at Laurier’s standard rates only. If no provision is made within the contract for these expenses, they CANNOT be reimbursed per the Directive. • https://www.wlu.ca/news_detail.php?grp_id=1165&nws_id=9620 • (Found on right side of the Financial Resources page under Headlines titled- BPS Contractors and Consultants)

27. Procurement and Tendering • Under $10,000: • Obtain one (1) verbal or written quote. • The Purchasing Card should be used to procure goods and services less than $5,000 per transaction • A purchase order is not required for goods and services under $5,000. • Consulting Services require a minimum of 3 invitations to bid • $10,000 to $25,000: • Obtain 2 or 3 written quotes • A purchase order is required • Consulting Services require a minimum of 3 invitations to bid • This applies to research acquisitions as granting agencies audit to ensure compliance with Laurier policy

28. Procurement and Tendering • $25,000 to $100,000: • Minimum of 3 suppliers required to be invited to bid • This applies to research acquisitions as granting agencies audit to ensure compliance with Laurier policy • $100,000+: • Where there may have been some discretion in the past regarding sole sourcing for acquiring goods and services over $100,000 in the past, that option no longer exists except for specific cases of compatibility such as software licenses. • All purchases over $100,000 must be publically tendered except for some very specific cases such as unforeseen situations. Not planning ahead is not an unforeseen situation. • In the case where only one supplier exists, again that has become somewhat irrelevant. In cases like this, an open bid will be posted and in most cases, only one vendor will bid. Procurement services will work with you one on one to ensure we write the Request for Proposal so you get bids only from qualified suppliers.

29. Procurement and Tendering • $100,000+ (cont’d): • It is important to take into consideration the total cost of the undertaking. Procurement Services will work with you to make sure that all aspects of the directive is understood and will assist you in the acquisition of consultants either by invitation of at least 3 suppliers or by public bid. • Bids are posted publically on www.merx.com for a minimum 15 calendar days. • All construction tendering is run through the Physical Resources department, including minor renovations to existing structures so please refer to their website, https://www.wlu.ca/forms_detail.php?grp_id=95&frm_id=2339 , for more information if any changes to a building may be required. • All acquisitions, including research grant goods MUST be publically tendered. Granting agencies look to ensure policy and their procedures are followed and all research grants are subject to audit. Procurement Services can assist researchers in ensuring they follow the granting agency rules as well as Laurier Policy and still acquire the goods needed to perform the necessary research.

30. Contact List • Procurement – General • Tracey Ens ext. 6455 • General Expenses, Training & Other • Nicole Gerry ext. 6348 • Expense - General • Ed Linder ext. 6451 • Expense - Reimbursement • Nancy Doerr ext. 6344 • Expense - P-Card • Indera Singh ext. 3471