With respect to travel, meal and hospitality expenses:  Provide an overview of Bill 122  Discuss the importance of compliance

 Province of Ontario passed Bill 122, known as the Broader Public Sector Accountability (BPS) Act, in December 2010  The legislation includes directives related to: ◦ Procurement of goods and services ◦ Provision of perquisites (Perks) ◦ Authorizing and paying travel, meal and hospitality expenses (Expense Directives)  The purpose of the legislation is to: ◦ Protect taxpayers ◦ Strengthen accountability for organizations receiving public funds  Align the broader public sector with the standards expected of Ministries & Agencies of the Government of Ontario

 Accountability ◦ Ensure public funds support business objectives  Transparency ◦ Rules are clear, easily understood & available to the public  Fairness ◦ Legitimate, authorized business expenses are paid  Value for Money ◦ Taxpayer dollars are used prudently & responsibly ◦ Expenses are necessary & economical

June 2010 University Policy 31, Travel Approved December 2010 Bill 122 PassedApril 1, 2011 Bill 122 Implementation Date January 1, 2012 University requires detailed, original receipts for meals To date University permits reasonable hospitality expenses

 From the perspective of the claimant and many administrators, per diems are: ◦ Efficient ◦ Time saving ◦ Cost effective  Why are per diems disallowed? ◦ BPS requires original, detailed receipt for expenses such as meal and hospitality. ◦ By virtue of the above requirement, per diems are disallowed.

 Why do certain Ontario Universities allow per diems? ◦ Some institutions approved a travel policy that permits per diem for meals when the expense is not funded by the Government of Ontario (e.g. research and other funds). ◦ Some institutions have collective agreements which permit per diems. The BPS Expense Directives do not supersede collective agreements.  Why does uWaterloo not permit per diems? ◦ uWaterloo applies policies and practices consistently to all funds. Exceptions exist where written agreements specifically state a different standard. ◦ Many activities (i.e. research projects) receive funds from multiple sources where one or more of the funding agencies may be governed by BPS. An example is travel for a research project funded by federal and provincial funds.

Claimant provides information on the declaration that is normally provided on an detailed, original receipt. Declaration is to be used in extenuating circumstances. Use of the declaration increases the university’s risk of non- compliance.

 Bill 122 is law.  The Government of Ontario expects compliance with Bill 122 as part of the funding agreement with the university. The university is required to certify compliance.  University departments are responsible for reviewing and approving eligible, business transactions.  Expenses may be audited to ensure compliance. Audit findings are reported to management.

 Ann Williams-Gorrie, Manager, Accounts Payable ◦ ◦ Extension  Faculty Financial Officer  Broader Public Sector Expense Directive website: