1. Click to edit Master title new thinking June 10, 20161 Overview Procurement Financial Reports –Accuracy –Recording transactions - costs/revenues must be recorded on timely basis –Year-end accruals –Manual transfers Returning Funds Completing Expense Reports

2. Click to edit Master title new thinking June 10, 20162 Government of Ontario is introducing a series of procurement policies and procedures All broader public sector (BPS) companies that receive more than $10 million in funding must implement and comply with the policies and procedures by March 2010 Compliance is necessary to: Ensure government funding Increase public confidence Create auditable and consistent purchasing process Improve negotiation power with suppliers BPS Guidelines

3. Click to edit Master title new thinking June 10, 20163 Introduction BPS Mandatory Requirements Hospital Procurement Policy Plexxus Procurement Policy Code of Ethics Compliance Related Laws and Guidelines

4. Click to edit Master title new thinking June 10, 20164 Principle #1: Code of Ethics B asic principles of conduct for BPS organizations, their suppliers, advisors and other stakeholders. Organizations may have a different code of ethics as long as it includes the following elements: –Personal Integrity and Professionalism –Accountability and Transparency –Compliance and Continuous Improvement

5. Click to edit Master title new thinking June 10, 20165 Principle #1: Code of Ethics Personal Integrity and Professionalism All individuals involved with purchasing or other supply chain-related 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. All 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.

6. Click to edit Master title new thinking June 10, 20166 Principle #1: Code of Ethics 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.

7. Click to edit Master title new thinking June 10, 20167 Principle #1: Code of Ethics Compliance and Continuous Improvement All individuals involved in purchasing or other supply chain-related activities must comply with this Code of Ethics and the laws of Canada and Ontario. All 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.

8. Click to edit Master title new thinking June 10, 20168 What Women’s College Research Institute needs to do: Align to the new procurement policies and procedures Enforce the policies and procedures with increased rigor Support an arms-length purchasing process between end users and suppliers Adequately plan its requirements for products and services Audit and report and take action on non-compliance Mandatory Requirements

9. Click to edit Master title new thinking June 10, 20169 Principle #2 Procurement Policies and Procedures Hospital Procurement Policy Plexxus Procurement Policy – rolled out in April 2008 Code of Ethics Compliance Related Laws and Guidelines Background Provide a common set of rules for managing the procurement of goods and services across the BPS. Create a standardized purchasing approach that ensures efficiency, financial control, quality and value for money. Application and Scope Will be incorporated into the funding agreements of organizations receiving more than $10 million per fiscal year from the Ministries of Health and Long- Term Care, Education or Training, Colleges and Universities as of April 1, 2009. Context  To set out key rules and expectations to support the efficient management of a BPS organization’s procurement processes.  Incorporates 25 mandatory requirements that must be followed by the BPS recipients identified in the scope.

10. Click to edit Master title new thinking June 10, 201610 1.Need to ensure compliance to the competitive procurement process and threshold requirements 2.Evaluation 1.Need to disclose evaluation criteria including scoring methodology in choosing a supplier 2.Need to pre-define how the business will be awarded – or what score will place a supplier on a short list 3.Each member of the bid team must complete and submit an evaluation 4.Pricing is shared following the evaluation of the clinical and business criteria 3.Award 1.Need to conduct vendor debriefing 2.Need to define a dispute resolution process What’s New

11. Click to edit Master title new thinking June 10, 201611 Supply Chain Guidelines – Scenarios You want to purchase a product valued between $5,000 and $99,999 Now what?? 1.Call John Quinlan @7534. End goal is a a properly approved purchase requisition to Plexxus (with potential recommend suppliers, Plexxus may suggest additional suppliers) and written specs if needed : 2.Based on the dollar value, Plexxus will request quotes for the product using Plexxus templates. Dollar ValueQuote Requirement $0 - $5,000A verbal quote $5,001 – 25,0002 written quotes $25,001 - $99,9993 written quotes

12. Click to edit Master title new thinking June 10, 201612 Supply Chain Guidelines – Scenarios A product or service of significant value is only available from one supplier (Sole Source) Or Although there is more than one Supplier capable of providing the product or service there is a requirement to purchase from a specific Supplier (Single Source) Now what?? 1.Call John Quinlan @ 7534. 2.End goal is the submission of a properly approved purchase requisition to Plexxus with identified single/ sole source Supplier and written specs if needed. 3.A properly approved Sole or Single Source Certification Form, signed by the CFO, must accompany the requisition submission, including the necessary written justification.

13. Click to edit Master title new thinking June 10, 201613 1Segregation of Duties14Selection Process – Tie Score Resolution 2Approval Authorities15Non-Discrimination 3Competitive Process Requirements16Executing the Contract 4Information Gathering – RFI & RFEI17Executing the Contract – Form of Agreement 5Information Gathering – RFSQ18Executing the Contract – Cancellation/ Termination Clauses 6Advertising & Posting Competitive Bids to Market19Executing the Contract - Term of the Agreement 7Timelines for Posting Competitive Procurements20Award Notification 8Bid Receipt21Vendor Debriefing 9Evaluation Criteria22Non-competitive Procurement Documentation 10Evaluation Process23Procurement Documents and Records Retention 11Evaluation Team24Conflicts of Interest 12Selection Process - Evaluation Matrix25Bid Protest Procedures 13Selection Process – Highest Ranked Submission There are 25 Mandatory Requirements* * please see Appendix A for a complete overview

14. Click to edit Master title new thinking June 10, 201614 Financial Reports GAAP Generally Accepted Accounting Principles Importantance for WCRI –Completeness –Consistency –Matching

15. Click to edit Master title new thinking June 10, 201615 Financial Reports Need for Accuracy – Inaccurate Transactions show up in Multiple places Research Grant Granting Agency Women’s College Hospital Financial Statements U of T WCRI

16. Click to edit Master title new thinking June 10, 201616 Financial Reports Need to ensure costs/revenues recorded on timely basis preferably monthly Research Grant Women’s College Hospital Financial Statements Completeness & Matching Principles

17. Click to edit Master title new thinking June 10, 201617 Accruals Accruals at year end Case in Point –Radiology Charges Appears that service was provided over at least a 12- month time frame –SHSC Pharmacy Packaging Services Goods delivered between October 1, 2008 to March 25, 2010

18. Click to edit Master title new thinking June 10, 201618 Manual Transfers Requesting a transfer of costs from one research cost centre into another ~ need to ensure the originating research cost centre incurred said charges, otherwise –Audit difficulties – lack of real documentation –Reports are inaccurate and possibly misleading Payroll changes must be done through timesheets as the costs are incurred –Timekeeper training / update required Researchers / admin staff continue to be clear about their intentions to ensure the right accounting entries / codes are applied –Why are you doing this? –What are you hoping to accomplish? –What should have happened that didn’t?

19. Click to edit Master title new thinking June 10, 201619 Returning Funds How to avoid this? –Discussion with Helen, Janet/Emma before the grant ends

20. Click to edit Master title new thinking June 10, 201620 Expense Reimbursement Reimbursement to employees who have paid, personally, for items associated with the research cost centre WCRI Form NO. 005 –Receipts, boarding passes, etc –No alcohol –$60 /day maximum reimbursed allowed for meals (therfore receipts MUST be provided)

21. Click to edit Master title new thinking June 10, 201621 Appendix: POLICIES Title:Policy No: Travels and MealsTRAV Signing AuthoritySIGN OverheadPending