On June 14, 2017, the Board of Governors approved the amendment of Policy #126 – Selection And Appointment Of Prime Consultants For Major Projects.
Previously, Policy #126 was focused on the selection of architects and engineers for major construction projects. The scope of the policy has been expanded considerably to establish approval processes for Capital Projects (which include Construction Projects and IT Projects), Capital Purchases, and Internal Loans. To reflect this expanded scope, the policy has been renamed: Capital Projects, Capital Purchases and Internal Loans.
The proposed amendment of Policy #126 was brought to the Board for information in February 2017, and a public consultation was conducted throughout February and March. As a result, the policy was refined and further clarified.
The purposes of the policy are to:
- ensure the appropriate oversight of capital expenditures and internal loans commensurate with the value and risk associated with those activities; and
- establish a framework for requests, approvals, monitoring and reporting.
The policy establishes tailored processes for each subject matter. In particular:
- With respect to both Construction Projects and IT Projects:
- Projects valued at over $5 million require Board approval.
- Projects valued at $5 million or less require the approval of the President’s Executive Committee or their delegate.
- Approval requests must be made in accordance with the administrative directives issued by the relevant authorities (described in the proposed policy).
- There is a process to address proposed increases to the approved budgets.
- The Procedures to the Policy set out details of various approvals (for example, Board 1, 2 and 3 approvals and the role of the President’s Executive Committee).
- With respect to Capital Purchases, which are purchases of assets used for productive purposes and with an expected useful life in excess of one year, these are to be approved in keeping with UBC’s Signing Resolutions.
- With respect to Internal Loans, which are loans made by the UBC Treasury to UBC’s own academic, administrative and ancillary units in return for a commitment to repay the loan:
- Loans valued at over $5 million require Board approval.
- Loans valued at $5 million or less require the approval of the President’s Executive Committee or their delegate.
- All applications for Internal Loans must be made in accordance with the administrative directives issues by the Vice President, Finance & Operations.
A copy of the amended Policy #126 is available at http://universitycounsel.ubc.ca/files/2017/06/policy126.pdf.