Financial Services
Presentation
February 2012
Presenters
Ian Nason
Assistant Vice-President
Financial Services
Colin Spinney
Treasurer
Susan Robertson
Director of Budgets and Financial
Darrell Cochrane
Controller
Mike Drane
Director of Purchasing
Agenda
Introduction
Mandate & Organization Structure
Service Summary
Budgets
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
Assistant Vice-President
Financial Services
(Ian Nason)
Administrative
Assistant
(Sharleen Nielsen)
Controller
(Darrell Cochrane)
Director of Purchasing
(Mike Drane)
Treasurer
(Colin Spinney)
Director, Budgets and Financial Analysis
(Susan Robertson)
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
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
Typical Budget Timeline at Dalhousie
Spring
April 1 beginning of the fiscal year
Budget Allocations developed for Faculties
- Faculties submit detailed budgets
Detailed Budget goes to Board
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
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 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
Scope of Purchasing Activities
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
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
Purchasing Methods
Commitment to Purchase
P-Card transaction
PO from quote or tender
Contract
Vendor Payment
Statement Reconciliation – P-Card
Invoice for PO
Public Procurement Legislation
Public Tendering Thresholds
Goods $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 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
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 Management
Investment structure
Investment mandates
Compliance
Records
Performance
Risk management
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
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
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
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 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
Financial Services Website
Contacts
Policies
Additional information
www.dal.ca/finserv