June 16, 2014 Board Meeting - Attachment 7.1 c

Transcription

1 REPORT TO THE BOARD OF DIRECTORS Topic: EXPENSE APPROVAL AND SIGNING AUTHORITY POLICY EL II-20 Date Submitted: June 5, 2014 Submitted to: Submitted by: The Board of Directors Gary O Connor CEO This report is being reviewed by the Finance and Audit Committee at their meeting on June 16, 2014 and, assuming the committee approves the proposed changes, will be presented to the Board during the Finance and Audit Committee Report for further consideration at the June 16 meeting. When we updated the Expense and Policy to enable online payments I believe we inadvertently tightened up the approval process. Before the February 18, 2014 revisions, the Expense and Policy chart had five columns. In February we collapsed it to four columns by combining the approvals column with the signing authority column. We hoped that by collapsing the two columns we would empower staff to pay invoices online to avoid the cost of couriering invoices and cheques to Board members for approvals. In practice by collapsing the two columns we have tightened up the approval authority. Where the CEO has the authority to approve contracts up to $20,000 in the body of the policy, the combined instructions in the chart indicate that all agreements, no matter what value of the contact, need to be signed by the CEO and the. Also by collapsing the two columns we have inadvertently lost the role of the board in approving contacts valued at over $25,000 and multi-year agreements. I suggest: That we allow the CTO and staff members to sign off on cheques valued at less than $4,000 for expense reports submitted by Board Members, the, and the Treasurer All expense claims and credit card statements for Board members and the go to the Treasurer for approval before a cheque is cut or an online payment is made. Any claims coming from the Treasurer are reviewed and signed off by the before any cheque is cut or an online payment is made. We gain no added security by having smaller value cheques also signed by the Treasurer / in addition to the CEO. Staff with signing authority are already the second signor for other cheques valued at below $4,000 and it costs us over $40 per transition to courier cheques back and forth for signatures. Any cheques valued at more than $4,000 would be signed off by the Treasurer / Board Chair in the same manner we do for any other cheque valued at over $4,000. 1

2 Karen Danis and I have reviewed the signing authority chart for each type of contract agreement or expense to make sure that there is a clear statement about who approves the item; who has the authority to sign cheques; and when it is possible to pay online, who has the authority to approve online payments. We have not red lined the changes in the attached policy because the changes are so extensive to Appendix 1 that you would not be able to read it. The differences are highlighted in a comparison chart starting on page 7. Please review the proposed revisions that I am asking the Committee to approve at the June 16, 2014 committee meeting and recommend them to the Board for further review and approval at the June 16, 2014 Board Meeting. Respectfully submitted by: Gary O Connor, CEO 2

3 POLICY TITLE: EXPENSE APPROVAL AND SIGNING AUTHORITY APPROVED BY: Board of Directors DATE APPROVED: March 5, 2010 DATE REVIEWED / REVISED: June 17, 2010 December 2, 2010 Revised August 11, 2011 Revised October 13, 2011 Revised December 17, 2013 Revised February 18, 2014 Revised June 16, 2014 Revised POLICY SECTION: Executive Limitations Policy BOARD REVIEW FREQUENCY: Every three years CEO MONITORING FREQUENCY: Every Quarter CHAIR SIGNATURE: POLICY NO: II-20 The CEO will not fail to have a policy in place which controls expense approval and signing authority at the Ontario Problem Gambling Research Centre (OPGRC). The CEO will not fail to: Officers 1. Identify the corporate s of OPGRC, as the, the Treasurer, and the Vice Chair. 2. Identify the staff s as the CEO, the Manger Research Knowledge Translation and Exchange, and the Administrative Coordinator. Expense and Contract 3. Ensure that the administrative authority policy that outlines approval of expenditures and commitments made by OPGRC staff is consistent with Appendix 1 to this policy. 4. Ensure that major contracts (over $20,000 for operating / capital contracts) are signed by both the (or official delegate i.e., other corporate ) and the CEO (or official delegate i.e., the Manager, Research, KT&E). 5. Ensure that all leases which run over multiple years are signed by the (or official delegate) and the CEO (or official delegate). 6. Ensure the administrative signing authority policy reflects the signing authority limits outlined in Appendix 1 of this policy. Electronic Payments 7. Ensure that when invoices are paid electronically, there is a clearly worded statement on the invoice that the two staff / and or corporate s are authorizing an electronic payment. 8. For payments such as rent that do not have invoices, ensure that an Electronic Payment Authorization Form is created and used to record that two staff / and or corporate signing s have approved the electronic payment. 9. Ensure that the Administrative Coordinator and / or the Book Keeper only pay invoices or other financial claims electronically after the appropriate s have authorized the payment. 3

4 10. Ensure that when an electronic payment is made, the online payment receipt is printed and attached to the invoice or Electronic Payment Authorization Form and confirm the payment amount during the monthly bank reconciliation. Cheque 11. Ensure two signatures are placed on all cheques according to Appendix 1 of this policy. Bank Master Client and Bank Signature Card 12. Ensure that the Bank Master Client is updated as soon as possible each time there are changes to the designated Board and bank s. 13. Ensure that at minimum, any special instructions on the Bank Signature Card Forms stipulate Any two to sign to signify that all cheques, agreements and credit applications with the bank must be signed by two registered s. Further the CEO will internally manage who actually signs the cheques based on the limitations set out in Appendix 1. Authorization of CEO Expenses The CEO will not fail to keep CEO expenses related to conducting the business of the OPGRC to modest, prudent levels and within the budget. Further, and under the direction of the above policy the CEO will not fail to: 1. Have in place and follow an OPGRC Expenses Administrative Policy and Procedure. 2. Report all expenses using an Expense Reporting Form with allocation to specific cost codes and with all original itemized receipts of expenses attached. 3. Submit expenses incurred for approval for reimbursement within 30 days on a normal basis and at a maximum of 45 days (except where appropriately extended by the Board Chair). 4. Submit the claim forms and receipts to secure the approval signature of the the Treasurer or Vice Chair for all CEO expense amounts including event and travel expenses. Note 1: This includes sign-off on all company credit card expenses which must be documented on an expense form with credit card receipts attached. Note 2: signatures normally by. 5. Ensure all CEO expenses are included in the records reviewed by the external auditor during the annual financial audit. 6. Report any amounts paid to the CEO or OPGRC by other organizations. 7. Acquire prior approval from the Board (or Board s delegate) for international travel costs and where applicable in-country travel in excess of a limit set by the Board each year. See Appendix 1 Summary of Limitations 4

5 APPENDIX 1 SUMMARY OF SIGNING AUTHORITY LIMITATIONS Type of Contract/ (Cheque / Electronic Payment, Contracts) 1. Purchases Purchased Services Consulting Contracts Third Party Research Management Contracts 2. Multi-Year s Multi-year Leases Memorandum of Understanding s <$4,000 CEO CEO and 1 staff signing <$20,000 CEO CEO and 1 (authorization acceptable via for electronic >$20,000 CEO and CEO and 1 (authorization acceptable via for electronic >$25,000 Full Board CEO and Board Chair to sign CEO and 1 (authorization acceptable via for electronic n/a Board CEO and 3. MOHLTC TPA MOHLTC TPA n/a Board CEO and 4. Employment Contracts / Other Employment Related Staff Employment Contract n/a CEO CEO CEO Employment Contract n/a Full Board Online Payroll Payments (RBC) Notification of any payroll or benefits change to CEO position Receiver General Payments Monthly Source Deductions n/a CEO or Manager, Research, KT&E in CEO absence, or Administrative Coordinator in absence of both. CEO or Manager, Research, KT&E in CEO absence, or Administrative Coordinator in absence of both. n/a Full Board or Vice Chair to notify Bookkeeper and/or Administrative Coordinator Varied & may exceed CEO signing limit CEO and Treasurer (scan monthly deductions for Treasurer approval via CEO and 1 Staff signing 5

6 Type of Contract/ (Cheque / Electronic Payment, Contracts) 5. Expense Reports (including company credit card expenses) Staff <$4,000 CEO CEO and 1 staff signing >$4,000 CEO CEO and 1 (authorization acceptable via for electronic CEO Any (scan expense report / credit card statement Board Chair approval via and Board Members (except Treasurer) and Board Members (except Treasurer) <$4,000 Treasurer (scan expense report Treasurer approval via >$4,000 Treasurer (scan expense report / credit card statement Treasurer approval via Treasurer <$4,000 (scan expense report / credit card statement Chair approval via Treasurer >$4,000 (scan expense report / credit card statement Chair approval via and 1 (authorization acceptable via for electronic CEO and 1 staff signing CEO and Treasurer or other signing in either absence CEO and 1 staff signing CEO and or other signing (not Treasurer) in either absence 6

7 SIGNING AUTHORITY LIMITATIONS - COMPARISON OF THE PROPOSED NEW APPENDIX 1 TO THE CURRENT APPROVED APPENDIX 1 Type of Contract/ (Cheque / Electronic Payment, Contracts) of Electronic/ Cheque Payment Reason for Proposed Change Appendix 1 - Proposed New Chart Appendix 1 - Old Approved Chart 1. Purchases 1. Purchases Purchased <$4,000 CEO CEO and 1 <$4,000 CEO and one When we collapsed the Services staff signing staff signing and Columns Consulting in an attempt to support Contracts electronic payments, we in Third Party practice reduced the CEO Research Management approval authority to $0.00. Contracts The policy allows the CEO to commit the organization up to $20,000 <$20,000 CEO CEO and 1 (authorization acceptable via for electronic >$20,000 CEO and CEO and 1 (authorization acceptable via for <$20,000 CEO and one >$20,000 CEO and one signing Officer As above New presentation in double column chart - No actual change. 7

8 Type of Contract/ >$25,000 Full Board CEO and Board Chair to sign (Cheque / Electronic Payment, Contracts) electronic CEO and 1 (authorization acceptable via for electronic of Electronic/ Cheque Payment >$25,000 Full Board approval and payment made with authorization of the CEO and one Reason for Proposed Change New presentation in double column chart - No actual change. 2. Multi-Year s 2. Multi-Year s Multi-year Leases n/a Board CEO and CEO and Memorandum of Understanding s By collapsing the and the we lost track of the need for Board approval 3. MOHLTC TPA 3. MOHLTC TPA MOHLTC TPA n/a Board CEO and CEO and As above 4. Employment Contracts / Other Employment Related 4. Employment Contracts / Other Employment Related Staff Employment n/a CEO CEO CEO Effectively no change Contract CEO Employment Contract n/a Full Board Full Board By collapsing the two columns we lost track of the need for the to sign the CEO contract Online Payroll n/a CEO or CEO or CEO, and No change 8

9 Type of Contract/ Payments (RBC) Manager, Research, KT&E in CEO absence, or Administrative Coordinator in absence of both. (Cheque / Electronic Payment, Contracts) Manager, Research, KT&E in CEO absence, or Administrative Coordinator in absence of both. of Electronic/ Cheque Payment Manager, Research, KTE or Manager KTE and Administrative Coordinator in CEO s absence Reason for Proposed Change Notification of any payroll or benefits change to CEO position Receiver General Payments Monthly Source Deductions n/a Full Board or Vice Chair to notify Bookkeeper and/or Administrative Coordinator Varied & may exceed CEO signing limit CEO and Treasurer (scan monthly deductions for Treasurer approval via CEO and 1 Staff signing May Exceed CEO limit Full Board CEO and Treasurer (Scan monthly deductions document and sent to Treasurer for approval) By collapsing the columns we lost track of the direction about who can notify the Bookkeeper No change 5. Expense Reports (including company credit card expenses) 5. Expense Reports (including company credit card expenses) 9

10 Type of Contract/ (Cheque / Electronic Payment, Contracts) Staff $4,000 CEO CEO and 1 staff signing $4,000 of Electronic/ Cheque Payment CEO and one staff signing Reason for Proposed Change No change >$4,000 CEO CEO and 1 (authorization acceptable via for electronic CEO Any (scan expense report / credit card statement approval via and 1 (authorization acceptable via for electronic >$4,000 CEO and one corporate All expenses The Board Chair and Treasurer or another corporate in the Treasurer s absence (Scan documents and to signing s for approval) No change No change 10

11 Type of Contract/ and Board Members (except Treasurer) <$4,000 Treasurer (scan expense report / credit Card statement Treasurer approval via (Cheque / Electronic Payment, Contracts) CEO and 1 staff signing of Electronic/ Cheque Payment Reason for Proposed Change I am proposing a tiered signing authority to avoid instances such as our having a $100 expense claim from a Board Member and having to send the cheque to the Treasurer to sign when in other instances a cheque of that value would be signed by staff. The Treasurer will have already approved the payment by signing off on the expense claim / credit card bill so there is no added security to have the treasurer also sign the cheque and it costs us over $40 in courier charges to send cheques back and forth. and Board Members (except Treasurer) >$4,000 Treasurer (scan expense report / credit card statement Treasurer approval via CEO and Treasurer or other in either absence All expenses Treasurer and the CEO or 2 Officers (Scan documents and to signing No change 11

12 Type of Contract/ (Cheque / Electronic Payment, Contracts) of Electronic/ Cheque Payment s for approval) Reason for Proposed Change Treasurer <$4,000 (scan expense report / credit card statement Chair approval via CEO and 1 staff signing As above the will have signed off on the expense claim / credit card bill so there is no added security gained and it cost the Centre over $40 per event to have the cheque signed. Treasurer >$4,000 (scan expense report / credit card statement Chair approval via CEO and or other (not Treasurer) in either absence All expenses and the CEO or 2 corporate s (not including Treasurer) (Scan documents and to signing s for approval) No change 12