C103: Revenue Contract Management

• To establish principles related to the process of seeking new revenue opportunities,
• To apply consistent practices, with established roles and responsibilities, that strengthen internal controls and provide more effective management oversight, and
• To ensure that such arrangements are documented in a contract that captures the intent of the agreement and protects the interests of the College and the funder.

2. POLICY

The Policy Sponsor develops, maintains and implements standards and guidelines that achieve the purposes of this policy and that reflect best current financial management. They also align with the College mission, vision and strategic goals and reflect College values.

3. REFERENCES

• College policy C106: Purchasing

4. ADDENDA

• Standard 1: REVENUE CONTRACT FUNDAMENTALS
• Guideline A: CONTRACT SPONSORSHIP AND APPROVAL
• Guideline B: CONTRACT COORDINATION
• Form 1: STANDARD COSTING WORKSHEET
• Form 2: CONTRACT MANAGEMENT TRANSMITTAL FORM

Addendum: Standard 1: REVENUE CONTRACT FUNDAMENTALS

Issued by: Vice-President, Finance and Administration

Effective: 2015-07-14

1. PURPOSE

The purpose of this document is to establish the standards that apply to the management of College revenue contracts, including:

• Principles related to the process of seeking new revenue opportunities,
• Consistent practices, with established roles and responsibilities, that strengthen internal controls and provide more effective management oversight, and
• Provisions to ensure that such arrangements and the intent of the agreement are documented in a contract that protects the interests of the College and the funder.

2. DEFINITIONS

Contract: An executed agreement that binds the College and a third party or third parties.

Contract value: Gross proceeds for the term of the contract or the proposal.

Funder: A third party that provides the financing for a project described in a proposal. The funder is often a government Ministry or agency, but may also include a private business or other organization.

Proposal: An authorized plan for a project that may lead to the development of a contract, if approved by the funder.

Proposal sponsor: The administrator responsible for developing a proposal and executing the terms of the contract.

Standard costing: A worksheet developed by Financial Services, based on the prior year's financial statements, and used in the development of proposals.

3. SCOPE

This policy applies only to opportunities that generate revenue. Proposals leading to the development of a contract are included within the scope of this policy, because both the proposal and the contract represent a commitment by the College.

This policy is aimed at business development activity. It does not apply to contracts related to expenditures; such contracts are covered by policy C106: Purchasing and are managed and co-ordinated by the Purchasing and Payment Services department. In addition, it does not apply to annual educational and training activity based on enrolment activity funded by existing Ministry grants.

4. PRINCIPLES AND STANDARDS

4.1. Any staff member may identify new revenue opportunities at any time, but proposals and contracts must be coordinated and authorized in accordance with Guideline A: CONTRACT SPONSORSHIP AND APPROVAL and Guideline B: CONTRACT COORDINATION.

4.2. Proposals approved by a funder require a contract that binds the parties to the agreement and protects the interests of the parties.

4.3. Proposals that require any of the following:

• New space demands,
• Financial reports or audits,
• New staffing arrangements,
• Services from the Registrar's office, or
• New resource allocations,

require an assessment by the contract co-ordinator (Guideline B: CONTRACT COORDINATION). Such assessment involves at least the following areas, where applicable:

• Facilities Management and Community Safety,
• Financial Services,
• Human Resources,
• Office of the Registrar, or
• Resource Planning.

4.4. Estimating the costs of proposals follows the College's Standard Costing worksheet as illustrated in Form 1: STANDARD COSTING WORKSHEET.

4.5. To facilitate the approval process, contracts submitted for authorization include:

• A completed Standard Costing Worksheet as illustrated in Form 1: STANDARD COSTING WORKSHEET, and
• A completed contract Management Transmittal Form as illustrated in Form 2: CONTRACT MANAGEMENT TRANSMITTAL FORM.

4.6. The proposal sponsor is responsible for:

• Preparing and submitting a decision package to reflect the activity to ensure budgets are recorded properly, and
• For audit purposes, storing the proposal and contract for seven years following the expiry of the contract.

Addendum: Guideline A: CONTRACT SPONSORSHIP AND APPROVAL

Issued by: Vice-President, Finance and Administration

Effective: 2015-07-14

1. PURPOSE

The purpose of this document is to establish the management level required for sponsorship and approval of revenue contracts according to the contract value.

¹ Proposals or Contracts that require the College's Seal require approval by the Vice-President, Finance and Administration.

Addendum: Guideline B: CONTRACT COORDINATION

Issued by: Vice-President, Finance and Administration

Effective: 2015-07-14

1. PURPOSE

The purpose of this document is to establish which College area may coordinate a revenue contract according to the contract type.

Addendum: Form 1: STANDARD COSTING WORKSHEET

Issued by: Vice-President, Finance and Administration

Effective: 2015-07-14

1. PURPOSE

The purpose of this document is to establish A STANDARD worksheet for costing proposed revenue contracts.

[Standard Costing Worksheet template attached in the policy PDF]

Addendum: Form 2: CONTRACT MANAGEMENT TRANSMITTAL FORM

Issued by: Vice-President, Finance and Administration

Effective: 2015-07-14

1. PURPOSE

The purpose of this document is to establish a form for revenue contract sponsors to use when submitting a proposal for approval.

[Form template attached in the policy PDF]