As you know the new Employment vs. Contracted Services guidelines and related forms and questionnaires were approved by the Board of Governors in December 2009. The policy was effective January 1, 2010.
Financial Services, including Purchasing Services and Payment Services, have now being working with the new guideline and providing assistance and answering your questions, for three months, as you modify your procedures to comply with the new guidelines.
During that time period, a few concerns were brought to our attention which, after further consideration, have resulted in some modifications being made to the guidelines, questionnaire, recurring engagement form, agreement for up to $5,000 template and related instructions, and the forms. The modifications, as described below, have already been made and posted to the FSD website.
Concerns have been expressed about the requirement of having the potential Service Provider sign the Questionnaire certification page, before Purchasing Services has reviewed and approved it. To address this concern, the procedures in section 4 of the guidelines have been clarified as follows:
“After the first two pages of the questionnaire have been completed and the department has signed the “By, or on behalf of, the department head:” section of the Certification Page, before proceeding any further with a proposed arrangement(s), the questionnaire is to be forwarded to Purchasing Services to review the department’s determination.
If Purchasing Services agrees with the department’s determination, the questionnaire will be returned to the department who will then complete the Certification Page and obtain the service provider’s signature. (Note: If more than one service provider is contracted with, for the approved work as described on the Questionnaire, then a Recurring Engagement/Approved Contract Template – Certification Page would be completed for subsequent service providers.)”
The following wording has been deleted: “The University Seal, available in room 212 College Building (212COLLG), should be affixed over the signatures of the Signing Authority delegates.” from both the template and the help document, thus eliminating the requirement for you to have the seal affixed to these agreements.
The dollar value of these agreements/contracts are not seen as “… having the potential to significantly impair the financial status of the University … [or] … the potential of material risk or onerous consequences ...” so affixing the seal is not required.
As well, because of the amount of work that is required to set up agreements for contracted services that of smaller dollar value, it has been concluded that an “Agreement for Services Valued Up To $5,000” is not required for contracted services of $1,000 or less … provided the activity does not pose a potential physical hazard to an individual or a university facility (e.g. use of chemicals, power tools/machinery, etc.) or involve professional services where the advice could impact the liability or reputation of the university.
The certification on the Service Income Requisition has been changed from:
“I also certify, that for contracted services up to $5,000, a standard University of Saskatchewan “Agreement for Services Valued Up To $5,000” has been completed and signed by the contractor and the university and is on file in our department.”
“You also certify that, when required, a contract or approved template has been properly executed, in accordance with the university's Signing Authority policy, and is on file in your department or in Purchasing Services.”
This change was made to clarify that a contract or approved template is not required for guest lecturer/speaker and academic reviewer services, or for contracts up of $1,000 or less (see “provided” above), and to recognize that a contract or approved template, other than the “Agreement for Services Valued Up To $5,000”, could be used to secure contracted services.
Important note regarding supporting documentation that must be attached to a Service Income Requisition: “Whenever a payment is being requisitioned, to pay an individual or a non-incorporated business, departments must attach a copy of the Certification Page of the Questionnaire or a copy of the Recurring Engagement/ Approved Contract Template – Certification Page” [revised name for the “Contracted Services - Recurring Engagement Form’’].
One importance related to these documents is the information being collected related to GST, PST and Workers Compensation (WCB) numbers. Having this information enables the university to comply with statutory regulations and legislation. The university needs to know whether there is a need to self-assess given taxes and whether the contractor is covered by WCB in the case of an injury. If the contractor does not have a WCB number, the university must self-assess and remit premiums to WCB. These premiums will be charged to the department who hired the contractor.
Wording in the guideline, and on the Honorarium Requisition form, has been changed from: “up to $1,000.00” to “no more than $1,000.00” to deal with special situations where a $1,000 honorarium is appropriate. Remember, an honorarium:
Please remember to use the new Honorarium Requisition and the new Service Income Requisition forms, as applicable. They can be found online at http://www.usask.ca/fsd/resources/forms/index.php.