1.01  The purpose of this Statement of Policy and Procedure is to establish appropriate Controls for setting up Contracts and Purchase Orders (POs). 

2.01  This policy applies to MakeWay Foundation and MakeWay Charitable Society, collectively called MakeWay.

2.02  This policy applies to all MakeWay employees, contractors and vendors.

3.01  Requirement to Establish Contracts

Contracts must be established if the billable total is $10,000 or more or the signed estimate or statement of work has a billable total of $10,000 or more.

In certain instances, a contract is required regardless of monetary value. Services such as consulting, contractor work, or renovation require a contract and PO to track billable hours and completion of work. Refer to the Contract and Purchase Order Guidelines for a list of instances where a contract is required regardless of monetary value.  

3.02  Requirement to use MakeWay Contract Template

Contracts must be drafted by the Contracts Administrator using the MakeWay Contract Template whenever possible, from the information provided in the contract request form. Otherwise, the contractor’s format, referred to as the Vendor Template, may be used if all required information and clauses are present in the agreement and/or in the supporting documents. Required information includes, but is not limited to, the legal name of the contractor, address, and contact information of the contractor. Refer to the Contract and Purchase Order Guidelines for a complete list of required information and clauses that must be included in all circumstances.

Exceptions to the contract policy will be dealt with on a case -by-case basis and require approval from the Director of Finance or the CFO.

3.03  Requirement to Amend Contract

A contract amendment must be implemented when a change is needed to the terms of the contract. Contract amendments must be initiated by the Contract Manager using the contract amendment request form or Vendor Template and processed by the Contracts Administrator.

3.04  Contract Not Required

Purchase of goods or equipment does not require a contract but can be requested by the contract manager.

3.05  Requirement to Create PO

POs must be created prior to the contract being signed in order to reference the PO number within the contract, unless a PO is not required as outlined in 3.06.

The Contract Manager must provide evidence of sufficient funding to cover the financial obligations incurred through the contract to the Finance Advisor.

POs may be created for agreements where the billable total is less than $10,000 if requested by the Contract Manager

3.06  PO Not Required

Recurring costs, such as subscriptions, software licences, rent, and utilities do not require a PO. One-time costs related to rental of event venues or purchase of goods do not require a PO.

4.01  It is the responsibility of the Contract Manager to provide all required information in order to create the contract and/or PO.

4.02  It is the responsibility of the Contract Manager to secure confirmation of sufficient funds from the Finance Advisor prior to the Signing Authority executing the contract.

4.03  It is the responsibility of the Contract Manager to ensure adherence to the Contract and Purchase Order Policy.

4.04  It is the responsibility of the Contractor to adhere to the terms and conditions stated in the contract. Which includes but are not limited to performing the services as described in the contract, adhere to timelines and milestones, comply with laws and policies, deliver work to the agreed standards etc.

4.05  It is the responsibility of the Contract Administrator to draft, review and coordinate the execution of contracts in line with the organizational policies and  legal requirement, coordinate with finance teams to ensure sufficient funding is in place to cover the financial obligations that will be incurred through the contract.

4.06  It is the responsibility of the Finance Advisor to review contracts request in ensuring there is sufficient funding in place to cover the financial obligations that will be incurred through the contract

5.01  “Contract” means a signed agreement between MakeWay and a third party where MakeWay is paying for services or deliverables based on an agreed cost. It typically includes details such as the parties involved, the scope of work or products/services being provided, payment terms, delivery timelines, warranties, dispute resolution mechanisms, and any other relevant provisions.

5.02  “Contracts Administrator” means the individual who is responsible for drafting contracts, requesting the PO number, and sending contracts for signing.

5.03  “Contract Manager” means the individual responsible for overseeing the work of the contractor, including management of deliverables, oversight of work performed, and the review and approval of invoices. This is generally the Fund Advisor or Project Director.  

5.04  “Controls” are mechanisms such as reports, reviews and procedures that are designed to ensure policies are carried out and reduce the risk of fraud or error.

5.05  “Finance Advisors” means the Finance Advisor is responsible for providing timely financial expertise, guidance, and support to the projects on the Shared Platform and other program teams of the Organization.

5.06  “Purchase Order” A record within the financial system that allows MakeWay to track invoices relating to a particular Contract or Lease Agreement. It help ensure consistency, transparency, and accountability in the process.

5.07  “Vendor Template” means a contract that is provided by the contractor and is not in MakeWay’s contract format.

6.01  Expense and Purchasing Policy

6.02  Cash Management Policy

6.03  Signing Authority Policy

7.01  The procedure to follow for the generation of a Contract or Purchase Order is standardized but may vary from time to time. Refer to the Contracts and Purchase Order Guidelines for a detailed procedure.