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OTTAWA POLICE SERVICES BOARD COMMISSION DE SERVICES POLICIERS D’OTTAWA
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The Trusted Leader in Policing Le chef de file de confiance dans la police |
REPORT RAPPORT |
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DATE 28 July 2014
TO/DEST. Chair and Members, Ottawa Police Services Board
FROM/EXP. Policy and Governance Committee, Ottawa Police Services Board
SUBJECT/OBJET UPDATED FINANCIAL ACCOUNTABILITY PROCEDURES MANUAL: AMENDMENT OF BY-LAW #1 OF 2008
RECOMMENDATION
That the Ottawa Police Services Board approve a new, updated Financial Accountability Procedures Manual, as described in this Report and in Annex A, by means of enacting the amending by-law attached at Annex B.
BACKGROUND
The Ottawa Police Services Board’s Financial Accountability Procedures (FAP) Manual was first approved in June 1996 under the name Finance and Administration Procedures Manual. It has undergone several amendments since then, including the adoption of a revised Manual with the current name under By-law No. 1 of 2008. It was due for a routine review this year as part of the Board’s regular policy review schedule. The FAP Manual constitutes the Police Services Board’s governance over delegated authorities for the Ottawa Police Service (OPS) for contract awards, consultant hirings, payment processes, and other financial administrative matters.
DISCUSSION
There are several proposed amendments to the FAP Manual as a result of the review. Some are of a housekeeping nature and consist of correcting typographical errors and updating the names of positions or work units where they are referenced in the document. The more significant amendments are described below.
1) Procurement Procedures – Material, Goods or Services (Section 3.2.3.3)
Amount exceeding $10,000 – less than $50,000
· Change the authority from OPS Financial Staff to employees of the Ottawa Police Service
· Specify that a minimum of three (3) Requests for Quotations must be issued if the search of the standing offer list does not provide a vendor.
· Change the requirement for Departmental Purchase Orders to allow City issued purchase orders or payment without reference for this level of purchase. Payment without reference means that no purchase order is issued but the invoice must be approved for payment by the requester prior to processing.
Rationale: These amendments clean up the wording and reflect the changes that have occurred in the procurement process. Departmental Purchase orders are no longer used at the OPS; instead purchase orders issued by the City or “payment without reference” are the current practices for this level of transaction.
Revised Section 3.2.3.3:
Amount exceeding $10,000 - less than $50,000
Where a requirement is estimated to cost more than $10,000 and less than $50,000, employees of the Ottawa Police Service shall:
(a) Review with Supply Branch the approved Standing Offer listing;
(b) If necessary subject to part (a), issue a minimum of three (3) Requests for Quotations on such terms and conditions as are deemed fit;
(c) Issue a Purchase Order or make a payment without reference, which means that no purchase order is issued but the invoice must be approved for payment by the requester prior to processing.
2) Delegated Spending and Contract Authority (section 3.2.4.2)
For competitive procurement
· Increase authority limit for Sergeants and Civilian Supervisors from $1,000 to $10,000.
· Increase authority limit for Staff Sergeants and Civilian Managers from $10,000 to $25,000.
· Increase authority limit for Inspectors and Civilian Directors from $25,000 to $50,000.
· Increase authority limits specifically for Inspector Material Management, Director of Finance, Director of Facilities, and Director of Business Information to $75,000.
· Increase authority limit for General Counsel and Board Executive Director from $50,000 and $25,000 respectively to $75,000.
· Increase authority limit for Deputy Chief and Director General from $100,000 to $200,000
Rationale: These proposed amendments are necessary to align the ranks and spending authority throughout the chain of command as well as to recognize the overall higher cost of material and services. The amendments also address several of the current requests for exceptions that must be administered by Finance staff each year.
Revised Section 3.2.4.2:
Delegated authority for competitive procurement as defined in Section 3.2.3 shall be in accordance with the maximum limits set out below:
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Rank/Position |
Authority Limit |
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Constable |
Not to exceed $1,000 |
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Sergeant / Civilian Supervisor |
Not to exceed $10,000 |
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Staff Sergeant/ Civilian Manager |
Not to exceed $25,000 |
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Inspector (if not specified) / Civilian Director (if not specified) |
Not to exceed $50,000 |
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Inspector Material Management/Director of Finance/Director of Facilities/Director of Business Information Systems |
Not to exceed $75,000 |
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Superintendent / General Counsel/ Board Executive Director |
Not to exceed $75,000 |
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Deputy Chief / Director General |
Not to exceed $200,000 |
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Chief of Police / Board Chair |
Not to exceed $500,000 |
3) Vehicle Expense (section 3.3.3)
For Mileage Reimbursement
· Members will continue to be reimbursed for business mileage beyond their round trip commute to assigned place of work.
· Assigned place of work is now defined to be the place that they are assigned for “that day” not their “permanently assigned” place of work.
· Members are expected to request reimbursement within a reasonable timeframe and all requests must be submitted before January 15th of the following year.
Rationale: These proposed amendments further clarify and provide guidance on the eligibility of mileage reimbursement claims. When sub-section 3.3.3.1 was added in April 2010 it still left room for interpretation as to what the meaning was of “assigned” place of work. The proposed change now makes it clear.
Revised Section 3.3.3:
The Chief of Police has authority to permit Police Service staff to use their own vehicles on Police Service business. Unless the collective agreement specifies a different rate, reimbursement for the use of personally owned vehicles will be made in accordance with the rates outlined in Annex 2.
.1 Mileage Reimbursement Guidelines
Mileage reimbursement is based on the principle that a member, while on duty, should be reimbursed for all official business mileage accumulated in a privately owned vehicle that is beyond the normal round trip mileage incurred from the employee’s home to the assigned location for that day (the “Assigned Office”).
.2 Request for Reimbursement
Members are expected to submit their request for reimbursement on the form provided by the OPS, within a reasonable time from the occurrence. In order to be considered for reimbursement, all requests must be submitted to Finance on or before the 15th of January of the following year.
4) Insurance – Report to the Board (section 3.3.5.2)
· Replace City Treasurer with Board Solicitor as the person responsible for submitting reports to the Board on expenses related to insurance claims.
Rationale: The Board Solicitor now includes this information in his quarterly legal update reports to the Board.
Revised Section 3.3.5.2:
The Board Solicitor shall report to the Board, not less frequently than on an annual basis, all expenses related to insurance claims paid in the current year and any known outstanding insurance claims.
5) Petty Cash, Imprest and Change Funds (Annex 1, section 9)
Limits
· Change authority required for a Petty Cash expenditure greater than $1,000 from Chief of Police to Director of Finance.
· Include Director of Finance as level of authority for Imprest Account expenditures greater than $10,000.
Rationale: These proposed amendments put the authority at the appropriate level and serve to further clarify the limits.
Revised Annex 1, section 9:
Limits
No individual expenditure from a petty cash fund shall exceed $1,000.00 unless the Director of Finance has authorized a greater limit.
No individual expenditure from the Imprest Account shall exceed $10,000.00 unless the Director of Finance has authorized a greater limit.
No disbursement shall be made out of any fund for any purpose unless the purpose is one for which funds have been appropriated in the current operating budget
6) General Travel Expenses (Annex 2)
Transportation
· Members should travel using the most economical and practical mode of transportation.
· Alternative modes of transportation will be permitted provided travel cost, length of travel time and additional cost of accommodations are considered.
· If it is deemed that a member did not travel using the most economical mode of transportation, the lesser amount will be reimbursed.
Rationale: These proposed amendments serve to clean up the wording in the policy. The previous version considered economy airfare as the comparable and rail as the alternative mode of transportation. The new wording provides a more general directive to travel using the most economical and practical mode of transportation.
Revised Annex 2 – Transportation:
.1 Mode of Transportation
The mode of transportation will be at the discretion of the Senior Officer of the Section and this method of travel should be the most economical and practical and in the best interest of the Service. The use of personal vehicles is to be allowed only when it is the most economical means of transportation.
.2 Alternatives
Subject to scheduling and time or operational constraints, alternative modes of transportation for travel between Ottawa and Montreal or Toronto will be considered. When reviewing the alternatives, the following factors should be considered: mode of travel cost, travel time (i.e. travel days) and cost of accommodation.
.3 Reimbursement
Reimbursement for transportation will only be made on the basis of actual expenditures. Receipts must support all expenditures. If it is deemed a member did not travel in the most economical means possible per Annex 2.1.1, then the lesser amount will be reimbursed.
.4 Reimbursement for Vehicle Usage
Unless the relevant collective agreement specifies a different rate, reimbursement for the use of personal vehicles will be in accordance with Treasury Board of Canada rates effective January 1 of the calendar year in which the vehicle is used.
Outstanding Travel Advance and Claims
· Members are required to submit travel expense claim within 10 days of their return to work.
· Members are required to submit this claim on the proper OPS forms and before January 15th of the following year.
Rationale: These proposed amendments serve to clean up the wording in the policy. The previous wording suggested that only members who used a travel advance had to submit their travel claim within 10 days, but the intention is to have all claims submitted in 10 days in order to maintain accurate records and costing.
Revised Annex 2, section 9:
.1 Travel Expense Claim Mandatory
Within 10 days after the planned return to Ottawa, a Board member or employee of the Ottawa Police Service is required to submit a travel expense claim and remit any outstanding advance.
Members are expected to submit their travel expense claim on the form provided by the OPS. In order to be considered for reimbursement, all requests must be submitted to Finance on or before the 15th of January of the following year.
CONSULTATION
The OPS Executive and Finance staff, as well as members of the Board, were invited to submit amendments to the By-law. The majority of the proposed amendments were submitted by the OPS. Once the amendments were compiled, the Board’s Policy & Governance Committee reviewed them. Board Solicitor D. White also reviewed the amendments and provided his input.
FINANCIAL STATEMENT
There are no financial implications arising from the approval of this report.
CONCLUSION
The Board’s Financial Accountability Procedure Manual was last fully reviewed in 2010. The revisions described in this report and contained in the FAP Manual attached as Annex A are recommended for adoption.
Due to the number of changes to the By-law as described above, and because there have been four amending by-laws already to By-law #1 of 2008 to effect various modifications to the Manual, it is recommended that for ease of reference an entirely new, updated FAP Manual that consolidates both past modifications and those recommended in this Report be adopted, and that the previous FAP Manual be repealed. An amending By-law is attached as Annex B to make this substitution, and is also recommended for approval and enactment. Subject to Board approval of the updated manual together with the associated by-law, the new authorities and procedures will be implemented immediately.
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Submitted by the Policy & Governance Committee:
Carl Nicholson, Chair
Jim Durrell
Eli El-Chantiry (ex-officio)