Payroll & Procurement Services

June 14, 2013

Overview of Presentation 1. Payroll

• Debbie McAllister – Payroll Analyst, Human Resources 2. Procurement Services

• François Pouliot – Director, Procurement Services

Human Resources - Payroll Debbie McAllister – Payroll Analyst, Human Resources

Topics for discussion • POPs payments

• Audit requirements

• FOAPAL Changes

• MINERVA appointment process vs HR payroll FOAPAL Journal Request Form

• FAQs

Roles and Responsibilities • We are accountable for every POPS

requisition or Minerva form transmitted. • We must ensure that the roles and

responsibilities of everyone involved are respected.

• Administrative Responsibility:

• https://www.mcgill.ca/hr/sites/mcgill.ca.hr/files/hr_procedures_for_pops_new_website_links_-_june_18_2012.pdf

POPS Payment Types

POPS Payment Types

POPS Payment Types

Processing Award Payments • Payments through BSAC:

• What is Financial Aid & Award Administration? • http://www.mcgill.ca/studentfunding/faa-admin-toolkit

• Merit-based awards, research stipends, research bursaries and external agency awards (fellowships, scholarships, and studentships) for undergraduate and graduate students

• Payments through POPS & Minerva Appointment Forms: • Employment income (pay for work performed)

• Ex. Teaching Assistantships, Research Assistantships, Work Study, etc.

• Postdoctoral stipends • Subject to Federal income tax deducted at source, therefore processed by

HR/Payroll.

Things to keep in mind… • Titles:

• Use the academic and administrative titles already in place. Do not make up titles. • Ensure the title field is populated and the spelling of the title is correct.

• RAU13 – Research Assistants • Invigilators

• Students: • Verify the students status (i.e. registered as a full-time student in 4 courses and they are in good

academic standing).

• Salary Account Codes • Account Code Definitions:

http://kb.mcgill.ca/?cid=6&c=12&cpc=wGvPdnLN3UIKIjwIoQmG7eceSLRCy05A1hex47tu

• Mapping of Account Codes by Form and Payment Types: https://www.mcgill.ca/hr/sites/mcgill.ca.hr/files/mapping_of_account_codes_by_form_and_payment_type_june_2012.pdf

• POPS Collector Table: • Verify the POPS Collector Table (PYAPOPS) in Banner to ensure that your POPS

payments were correctly transmitted.

Audit Requirements • Supporting documents are required for every

payment that is processed. • Copy of offer letter outlining the terms of the contract • Signed timesheets duly authorized before transmission

by the supervisor, the employee, and the fund financial manager.

• Emails are not acceptable

Reminders • All overtime must be pre-approved • POPS requisitions should not be transmitted before

work is performed

FOAPAL Changes/Corrections

• The MINERVA FOAPAL maintenance form should be used

for any changes/corrections for forms that have been processed in MINERVA.

• The only time you should use the HR Payroll FOAPAL journal request form for changes/corrections to a MINERVA form is if you encounter an error in MINERVA when processing the changes/corrections. You will need to print the error and attach it to the form.

• For POPs payments, the HR Payroll journal request form should be used. Backup is required, please attach either a copy of POPs req from Banner collector table or a crystal report.

FAQ’s Q. Where can I find the POPs documentation? a. On our HR website, log into the ‘HR Administrators’ section, HR POPs

procedures. Here you will find POPs user guides, Payroll timesheets and the Mapping of the account codes to payment types.

Q. Where can I find the HR Payroll FOAPAL journal request form? a. On our HR website, log into the ‘HR Administrators’ section, forms,

Payroll.

Q. Who should I be contacting if I have any Payroll questions? a. Any inquiries should be directed to the Human Resources Shared

Services Unit at (514) 398-4747, or sent by email to hr.hr@mcgill.ca or pops.hr@mcgill.ca

Procurement at McGill University

Procurement at McGill University

Agenda

1. Introduction 2. Who we are 3. Did you know?... 4. Public Procurement 5. Strategic Plan 6. Procurement Framework 7. In your day to day… 8. VALU services platform 9. Q&A

Procurement at McGill University

1. Introduction

• François Pouliot, Director of Procurement Services unit

• Joined McGill in June 2011

• Surrounded by teachers

• Career procurement professional

• At McGill to build something and make a difference

Procurement at McGill University

1. Introduction (cont’d)

• Evolution of Procurement Services

Purchasing

Procurement Services (Ancillary Services)

Procurement Services (Financial Services)

Procurement and Financial Services (?)

Procurement at McGill University

2. Who we are

• Procurement Services • Located at 3465 Durocher, first floor (both sides of the hall!) • Service unit Attain procurement excellence through customer-focused services and value-added strategies, while optimizing resources in support of the University’s Mission

Procurement at McGill University 2. Who we are (cont’d)

• Procurement Helpdesk • System Administrator • Vendor Records Administrator • Certified Project Manager • Strategic Sourcing Analyst • 4-Buyers Core Team • 4 Satellite Buyers • Sustainable Procurement Officer • Program Manager • Dedicated Legal Counsel • Associate Director • Director & CRCM

Procurement at McGill University 2. Who we are (cont’d)

• chapter C-65.1 AN ACT RESPECTING CONTRACTING BY PUBLIC BODIES

• • CHAPTER V.0.1

CONTRACT RULES COMPLIANCE MONITOR • 2012, c. 25, s. 8. • • 21.0.1. The chief executive officer of a public body must designate a contract rules compliance monitor. • • 21.0.2. The functions of the contract rules compliance monitor include • • (1) seeing that the contract rules prescribed by this Act and the regulations, policies and directives under this Act are

complied with; • • (2) advising, and making recommendations or providing advisory opinions to, the chief executive officer on compliance

with contract rules; • • (3) seeing that measures are put in place within the public body to ensure the integrity of internal processes; • • (4) seeing to the professional fitness of the personnel involved in contractual activities; and • • (5) exercising any other function the chief executive officer may require to ensure that contract rules are complied with.

Procurement at McGill University

3. Did you know? • 58,000 purchase orders per year Each a legally binding purchase agreement

• $100,000+ orders/300 contracts

• 113,000 invoices

• 185 millions in MMP

• 285+ millions in Purchase Orders (17 millions in Pcard)

• 400+ millions all external transactions

Procurement at McGill University

3. Did you know? (cont’d)

• 80-90 new contracts per year

• $50 million dollars in contracts

• 88 days to execute a contract

• 3-4% procurement savings ($1.55 millions in FY 2013)

Procurement at McGill University 4. Public Procurement

• An Act respecting contracting by public bodies

• Adopted in October 2008

• Applies to all public contracts passed with… (…) « legal person established for a private interest, a general, limited or undeclared partnership or a natural person who operates a sole proprietorship » (…)

• Concept of contamination

• Expanded upon by regulations

Procurement at McGill University 4. Public Procurement (cont’d)

• public confidence in the public procurement process

• transparency in contracting processes;

• the honest and fair treatment of tenderers;

• the opportunity for qualified tenderers to compete

• the use of effective and efficient contracting procedures, including careful, thorough

evaluation of procurement requirements that reflect sustainable development and environmental policies;

• the implementation of quality assurance systems for the goods, services or construction work

• accountability by the chief executive officers of public bodies and proper use of public funds

Procurement at McGill University 4. Public Procurement (cont’d)

• Mandates contracts of ≥ $100,000 to be publicly tendered (and

respected!) Few exceptions permitted by law One of 4 predetermined methods of vendor selection

• Mandates publication of contract awards of ≥ $25,000 on

government website

• Mandates involvement of chief executive officer in several instances

• Mandates continuous reporting to Treasury Board Secretariat

Procurement at McGill University 5. Strategic Plan

• Rebranding of Procurement Services Modify and increase footprint of procurement services

• Evolution of Procurement process Maximize efficiency, controls and returns of McGill’s Procurement

Process

• Monitor Effectiveness Establish procurement measurements for, and effectively contribute to,

the VP’s « Customer satisfaction » KPI

• Overhaul of supplier relationship management Apportion procurement responsibilities between suppliers, users and

procurement services

Procurement at McGill University 5. Strategic Plan (cont’d)

• Supported by:

Integrated Individual PD objectives

Full IT Roadmap

Auto-Financing schemes

Internal Audit Report

Law and Regulations

Procurement at McGill University 6. Procurement Framework

• Act respecting contracting by Public Bodies and its regulations,

policies and directives • Other laws and intergovernmental agreements • Granting Agencies Guidelines • McGill University Procurement Policy http://www.mcgill.ca/procurement/regulation/policies/purchasingpolicy • Procurement Regulations, Procurement Plans, Procurement

Procedures, Procurement Guidelines • McGill Signing Authority Regulations

Procurement at McGill University 7. In your day to day…

When to process a payment request vs. purchase order on MMP?

• Primary procurement channel at McGill University is

• Payment Request: http://www.mcgill.ca/financialservices/sites/mcgill.ca.financialservices/fi

les/payment_requests_20130326.pdf When no other mean of payment is appropriate Payments to hospitals, universities or research agencies for lab fees Institutional advance relating to a joint project or grant Government offices and life insurance companies relating to withholding

taxes, benefits, pension and insurance premiums Remittance of society fees to student societies Subject fees and living allowances Payments made from trust funds

Procurement at McGill University 7. In your day to day… (cont’d)

Consultant payments – vendors versus payroll (understanding employee versus self-employed University policy)

• At Law: Right of control and direction of work Ownership of tools and equipment Chance of profit or loss Integration of the individual into the payer’s business

• University policy: Does not apply to out of Canada situations Individuals’ status determined jointly by HR and Financial Services Question of fact Terms and conditions analyzed If in doubt, will be treated as employees

Procurement at McGill University 7. In your day to day… (cont’d)

Approvals/supporting documents requirements on the above • A questionnaire has been developed to assist in the determination

of “employee” vs. “self-employed/independent contractor” http://www.mcgill.ca/procurement/sites/mcgill.ca.procurement/files/employe

e_or_selfemployed_en.pdf • Integral part of the payment process: completed and signed prior to

the due date of the first payment • Must be submitted every 12 months following the first submission • Attestation from signing officer required when supplier is an

incorporated business for personal and/or professional services and employs regular McGill employee Exact nature of services to be performed must be provided, along with

incorporation documents

Procurement at McGill University

7. In your day to day… (cont’d) Pcard purchases – segregation of duties • Segregation of duties typically requires:

the individual creating the “request” (i.e. that is going to make use of the

purchase)…

should not be the same individual that places the order...

should not be the same individual that reconciles the expense...

should not be the same individual that processes the payment

Procurement at McGill University

7. In your day to day… (cont’d) Pcard purchases – segregation of duties (cont’d) • Pcard bypasses almost all of these criteria

individual making use of the purchase most often the same that places

the order and reconciles it (and payment is already transacted)

Some best practices have been put in place in many areas: departmental Pcard (“power Pcard user”) and separate Pcard administrator from Pcard holder

Seen as contradictory to some of the Pcard Holder Agreement provisions

Procurement at McGill University 7. In your day to day… (cont’d)

Pcard supporting documents

• All available backup: Supplier quotes Eligibility of purchase Agreement (email or other) Sales receipt Invoice (paid)

• Due to insufficient level of detail currently being provided by

suppliers into Pcard system

Procurement at McGill University 7. In your day to day… (cont’d)

Why does MMP encumber more taxes than what will be charged to the fund? As a result, this lowers the PIs spending power. • Banner currently cannot encumber taxes less rebates

• Future feature upgrade presented on the Financial Services

Roadmap (Banner customization) Banner is a US product and most Universities are tax exempt.. Tax

rebates are a Canadian concept… Procurement System Administrator can process change order

Procurement at McGill University 7. In your day to day… (cont’d)

Which taxes are charged to the fund? How are these taxes assessed?

• Both GST and QST are encumbered to the fund (PO sent to the supplier will show amount based on supplier code)

• Taxes will be assessed and remitted to governments, so encumbrance is necessary Purchase in Quebec for goods and services = GST and QST will usually

be charged (not for services of small traders) Purchase outside Quebec but in Canada for goods and services= GST

and QST (registration determines who assessed and remits QST, but it is always assessed)

Purchases outside of Canada for goods= if needs custom clearance, typically charged GST by supplier. QST generally assessed by McGill at the time of payment and remitted to government

Purchases outside of Canada for services= not declared through customs, so GST and QST are assessed by McGill

Procurement at McGill University 7. In your day to day… (cont’d)

For tax rebates: To what type of purchases are tax rebates applied? Are there purchases for which they are not applied? Are there different tax rebate rates? • All purchases on which taxes were remitted are eligible for tax

rebates • McGill applies for rebates for all its purchases, but results are

increasingly erratic from MMP to Pcard to Expense reimbursement • A few purchases are tax exempt (rebate is then 100% of remitted

taxes) Best Practice: researchers should always include taxes in the budget

requested to avoid issues in the future.

Procurement at McGill University

7. In your day to day… (cont’d) For sub-contracts, when is it appropriate to go through Procurement vs. Office of Sponsored Research (OSR)? • Procurement Services for goods and equipment and for most

services

• Facilities Project Management (“FOD”) for construction and renovation projects

• Grey area subsists Good news is the proverbial puck is not dropped

Procurement at McGill University

7. In your day to day… (cont’d) Payments related to sub agreements – payment requests versus PO’s • See above question regarding payment requests

Procurement at McGill University 8. Procurement VALU services platform

• Upcoming services offering platform

Verify Compliance

Accentuate Quality

Leverage Efficiency

Undertake Cost Reductions

Procurement at McGill University

9. Q&A