7130-4 Ancillary Services Policy

1. Policy objective

The College’s Board of Directors is responsible for overseeing the efficient financial management of the College’s resources, in compliance with all applicable laws and approved policies, strategic plans and budgets, in order to ensure the fulfilment of the College’s mission and values.

Whereas self-funded services (“Ancillary Services”) are an increasingly important source of revenue for the College, the Board seeks to clarify expectations and processes relating to the financial management of these services.

The purpose and objectives of this Policy include:

To ensure that Ancillary Services support the main mission of the College;
To ensure that the College is not negatively impacted by the delivery of Ancillary Services and that the cost of ancillary services delivery are reported to enable evaluation of the services;
To ensure that the Board receives reliable and sufficient management information to enable the Board to fulfill its strategic decision-making role and oversee the effectiveness of controls regarding the financial situation of Ancillary Services;
To outline requirements for reliable and sufficient management information, in order to support its decision-making function relating to the assessment of results regarding Ancillary Services;
To clarify agreements with Ancillary Services’ partners in order to decrease financial risks for the College.

2. Context

This Policy addresses certain governance improvements introduced by the Ministry, and supported by the report of the Auditor General of Quebec, which requires the College to implement a policy regarding its Ancillary Services. In this context, Ancillary Services are services whose financial expenses are financed from their own revenues, rather than from Ministry allocations.

Ancillary Services include, but are not limited to, the following:

the service of non-credit Continuing Education;
the international ACS’s;
the Language School;
the Corporate Training & Community Services;
the aquatics classes;
the operations of the sports fields;
the short-term international projects;
the cafeteria.

But do not include services offered by the College Foundation, SuperCamp at Vanier College and Jake’s COOP, who are separate legal entities and therefore not reported by the College in its financial statements. Ancillary services do not include revenue-generating activities supporting academic programs.

Ancillary Services may be conducted directly or by the College or through operating partnership arrangements with other entities, including cities and non-profit organisations.

3. Definitions

In this Policy:

Act: means the General and Vocational Colleges Act (CQLR, chapter C-29) and its regulations, as amended;
Ancillary Services: mean services offered to students and to external clientele and that provide the College with operating revenues and incur expenses;
Board of Directors: means the Board of Directors of the College, composed pursuant to Section 8 of the Act, or any Board Committee to which oversight of Ancillary Services is delegated;
Budget: refers to a planning document, which includes both anticipated revenues and expenses, as approved by the Board of Directors annually, which consist of an operational budget and a capital budget;
College: means Vanier College of General and Vocational Education, which may be abbreviated to Vanier College;
Executive Management: means any person who is a member of the Management Executive Committee of the College by virtue of being a Director of Services;
Management: means any person designated by the College to oversee Ancillary Services;
Ministry: the Quebec Ministry of Higher Education;
Policy: means this Ancillary Services policy;
Surplus Fund: means a fund created from the operational accumulated surplus and is appropriated by the College for specific purposes.

4. Scope

This Policy applies to all Ancillary Services of the College, unless otherwise expressly excluded.

5. Guiding principles

An Ancillary Service must generate revenue or other positive attributes that will benefit the College (e.g. enhance community relations), and aim to be at least cost recovery. The management and oversight of Ancillary Services must observe sound management practices applicable to the management of public funds, and comply with prescribed rules in order to ensure the proper management of such funds and avoid abuse.

6. Responsibilities & accountability

A. The Board of Directors

The Board of Directors shall be responsible for:

considering Ancillary Services revenues as a key element of any strategic institutional development plan, and paired with a financial plan;
providing clear guidance on its operating revenue expectations;
setting targets;
analyzing financial performance and results of Ancillary Services;
reviewing and approving the financial position of Ancillary Services each year during the College’s annual budget and audited financial statements processes;
reviewing contracts, policies, budgeting and accounting rules and processes related to Ancillary Services.

B. The College’s Executive Management

The Director General is responsible for ensuring that financial information on commercial activities (to which the College is a party) is maintained and kept up-to-date, to review contracts and policies relating to Ancillary Services, and to inform the Board of Directors on the progress of these activities, any changes, budget monitoring and, if relevant, repercussions (deviations and risks) to the College's financial situation or reputation.

The Director of Financial Services shall be responsible for:

to maintain and keep up-to-date the financial information on commercial activities to which the College is a party; manage cost recovery for services rendered to third parties including certain equipment (e.g. photocopy machine), management and administration of central services, building security, janitorial service, parking services, and so on;
review budgets;
prepare annual operating and financial statements for Ancillary Services and present to the Board;
comply with applicable accounting rules and processes related to Ancillary Services;
inform the Director General on any significant financial repercussions (deviations and risks) to the College’s financial situation which may come the his/her attention.

C. Management

Management shall be responsible for authorizing all expenditures for the purposes of:

Ensuring the availability of funds in the Budget;
Validating the purpose of the expenditure and its justification;
Validating the supporting documents; and
Confirming that the expenditure complies with the provisions of this policy as well as with all College policies and by-laws, specifically By-Law 4 on the Financial Management of the College, By-Law 9 Concerning Procurement Contracts for Goods, Services and Construction, the Expense reports Policy and the Policy on managing corruption and collusion risks in contract management processes.

Management shall be responsible to inform his/her direct line manager and the Director of Financial Services on any significant financial repercussions (deviations and risks) to the College’s financial situation or reputation, which may come the his/her attention.

7. Financing of the ancillary service

Ancillary Services must finance their expenses from their own revenues. Revenues and expenses from Ancillary Services shall form part of the College’s ancillary budget, and be reported in the College’s annual audited financial statements. No revenue may be generated from Ancillary Services where the underlying activity contravenes an applicable law, or any policies, rules or guidelines of the College.

The pricing of the Ancillary services shall be approved annually by the Board of Directors.

8. Hiring

The College shall observe all guidelines and procedures on Human Resources when hiring personnel for Ancillary Services.

9. Partnership agreements

In the event that the College establishes partnerships or has agreements with related entities (Vanier College Foundation, Supercamp at Vanier College, Jake’s COOP, etc.) in the context of the ancillary services activities, memorandums of understanding must be signed to specify the roles and responsibilities of each of the stakeholders, the financial terms and conditions, and the procedures for managing significant financial risks.

Where the partnership agreement is commercial in nature, it should include a profit-sharing provision, require a regular review of the business relationship and include a termination clause, if deemed relevant.

The College must recover its costs for the Ancillary Services rendered to third parties. Notwithstanding the foregoing, the Board of Directors can adjust the applicable service fees charged for social and community purposes. In this case, it enters the value of these free or discounted services as a gift in kind or in service to community organisations.

The College shall conduct a periodic review of partnership arrangements with third parties, if there are major changes to the initial context. Otherwise, they will be reviewed at renewal.

10. Surplus

Any surplus or deficit incurred during the College’s fiscal year shall be consolidated in the College’s surplus fund. Ancillary Services may not have recurring deficits.

11. New ancillary services

No new Ancillary Service shall be commenced without the express approval of the Director General, and where necessary the Board of Directors, based on justified business case presented by a Manager. All decision taken by the Director General shall be communicated to the Director of Financial Services.

12. Waiver

The Director General may authorize a waiver to this policy, if authorized by the Board, in which case he/she shall provide a written justification for the waiver.

13. Application and review of this policy

The Director of Financial Services, in collaboration with Management, shall be responsible for ensuring the application and review of this Policy and report to the Director General.

14. Effective date

This Policy shall come into force upon its adoption.