Purchasing & Procurement
All employees who have the authority to enter into contracts and authorize expenses (hereafter referred to as Party).
To provide guidelines for entering into contracts and to establish internal controls over the authorization of expenses.
Geneva Centre for Autism (GCA) shall endeavour to receive value for money when procuring goods, services and consulting services.
An open and transparent competitive process seeks to achieve the best value for the funds expended to meet specific needs and promotes fair dealings and equitable relationships with vendors.
GCA is committed to ensuring compliance with the 25 mandatory requirements set forth in the Broader Public Sector Procurement Directive, including contract law, the laws of competitive processes, privacy legislation, accessibility legislation and any other legislation as may be applicable.
Broader Public Sector Procurement Directive
- The Board of Directors authorizes the annual expenses of the agency by approving the annual budget. For any purchases not incorporated into the fiscal budget, the Board of Directors delegate’s authorization responsibility to the Chief Executive Officer (CEO). However, the Board of Directors shall be informed of major purchases that have the potential to affect the direction or financial results of the agency. The Board requires the CEO to obtain Board authorization for purchase commitments (individual purchase orders or supplier contracts) longer than 2 years or greater than $25,000.
- It is the responsibility of the Party involved in the purchase and reimbursement of goods and services to ensure compliance with this policy and procedure. Finance Department is responsible for verifying that the amount requested is supported by the attached documents and that the signature is the appropriate signing authority.
- The Supervisor/Manager/Director of the department the expense is related to approves the requisition. Special authorization is required if the amount of the requisition is over a certain limit or an unbudgeted expense. Only individuals with the appropriate level of authority are able to approve the cheque requisition.
- Any purchase in excess of budget - refer to Policy – Unbudgeted Expenses.
The following dollar thresholds and purchasing authority levels are required for the procurement of goods, services and non-consulting services:
Dollar Threshold Authority Level Up to $500 Supervisor $500 up to and including $5,000 Manager/Director Greater than $5,000 but less than $25,000 Chief Financial Officer $25,000 or greater and approved in budget CEO Greater than $25,000 and not approved in budget Board of Directors
Goods, Non-consulting services
|Total Procurement Value||Means of Procurement|
|$0 up to but not including $100||Petty Cash|
|$100 up to but not including $5,000||One telephone quote|
|$5,000 up to but not including $25,000||Three telephone quotes|
|$25,000 up to but not including $100,000||Invitational competitive procurement (minimum of 3 suppliers are invited to submit a bid)|
|$100,000 or more||Open competitive process (sealed quotes and receipt by a specific deadline – selection by Executive Leadership Team – minimum of 3 members)|
GCA will conduct an open competitive procurement process where the estimated value of procurement of goods or services is $100,000 or more.
|Total Procurement Value||Means of Procurement||Authority Level|
|$0 up to but not including $100,000||Invitational or open competitive process||CEO and Board of Directors|
|$100,000 or more||Open competitive process||Board of Directors|
|$0 up to but not including $1,000,000||Non-competitive||CEO or equivalent|
|$1,000,000 or more||Non-competitive||Board of Directors|
For open tender invitations, requirements must be defined properly and clearly so that potential vendors can submit valid and responsive submissions, bids and proposals and the procurement documents must include proposed contract terms and conditions.
Documentation must be maintained which indicates any evaluation process and rationale related to quotation / tender selection.
SEGREGATION OF DUTIES:
GCA has segregated at least three of the five functional procurement roles listed below with different departments or with different individuals:
Prior to the commencement of any contract, the agency ensures:
- Contracts are entered into when there is an advantage to the agency by doing so.
- A full range of potential arrangements is investigated before entering into an exclusive contract.
- Legal assistance or advice is obtained if necessary for any non-standard clauses.
- All contracts entered into by the agency are reviewed and approved by the CEO or designate. Special authorization is required if the amount of the contract is over a certain limit or an unbudgeted expense. Only individuals with the appropriate level of authority can approve and sign a contract.
- As best practice, contractor must provide proof of liability insurance and WSIB coverage where appropriate.
- Each contract is witnessed, dated and embossed with the agency’s corporate seal if required.
- The agency also ensures that a completed copy of the final contract is made available to all other signatories.
- The original signed contract is kept in a secure place at the agency’s finance department.
- All Purchase of Service contracts must meet the agency conflict of interest guidelines.
- At least 3 months prior to the completion of the contract, the CEO or designate reviews and plans for the renewal or tendering of the contract following the above procedure.
- At the minimum, each Purchase of Service contract entered into by the agency, shall provide the following information:
- the nature of the service
- the financial obligations agreed to
- the period of time that the contract covers
- the invoicing procedure or a payment schedule
- a termination clause
- a table of contents regarding the negotiated work plan
- authorization by CEO or Chief Financial Officer on behalf of agency
INFORMATION REQUIRED FOR PROPER PAYMENT AUTHORIZATION:
- All invoices are approved prior to payment
- Authorization is to include:
- Date - Date of request
- Completed by - Name of the person completing the form (if a cheque requisition)
- Payable to - The name and complete address of the payee
- Description - Reason for payment cross-referenced to supporting details or documents and attached to the requisition
- Coding section - The account code or codes to be debited and the corresponding amounts with taxes (PST and GST) identified separately
- Coding section – The account code, portion of GST to be refunded (e.g. 50%)
- Amount – Total amount of the cheque to be issued
- Approved by - Requires authorized signature
- Special delivery instructions - If the cheque is not to be directly routed to the payee then the appropriate routing instructions need to be reported in this space
- Date required – Record date cheque is required if different from regular cheque run
SUPPLY CHAIN CODE OF ETHICS:
GCA has formally adopted the Ontario Broader Public Sector Supply Chain Code of Ethics.
Goal – To ensure an ethical, professional and accountable BPS supply chain.
Personal Integrity and Professionalism
Individuals involved with Supply Chain Activities must act, and be seen to act, with integrity and professionalism. Honesty, care and due diligence must be integral to all Supply Chain Activities within and between BPS organizations, suppliers and other stakeholders. Respect must be demonstrated for each other and for the environment. Confidential information must be safeguarded. 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.
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.
Compliance and Continuous Improvement
Individuals involved with purchasing or other Supply Chain Activities must comply with this Code of Ethics and the laws of Canada and Ontario. 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.
Payment Processing, Unbudgeted Expenses, Commitment for Disclosure of Obligations
Effective Date: May 28, 2008
Revised Date(s): April 21, 2010/May 24, 2012/March 24, 2014
Approved By: Finance/Audit Committee