Transcript VCU Procurement and Payment

VCU Qatar
Conference and Meeting Basics: A-Z
Richmond Procurement Contacts
VCU Qatar Support Office Senior Buyer
Mary Lou Kastelburg
(804)827-1900
[email protected]
VCUQatar Senior Payment and Travel Officer
Karen Beebe
(804)828-1078 (W) 8:00-4:30EST
(804)399-2008 (Blackberry)
[email protected]
Group E-mail for VCU-Q Invoice Communication
[email protected]
Planning
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Who is attending the event?
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VCU-Q employees requires a TA
Need a close estimate of head count
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Used to block off appropriate number of hotel rooms
Used to accurately estimate persons for catering events
What expenses are involved in this event?
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Meeting Rooms
A/V Equipment
Lodging Rooms
Meal and/or Break Catering
Business Services (copying, faxes, etc.)
Parking
Planning
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When does the event take place?
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Where does the event take place (City/Country)?
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Will meals be needed or are breaks sufficient?
Will overnight lodging be necessary?
Do the rates change because of the time of year?
Affects allowable per diem and lodging rates
Where are people traveling from or returning to?
Why is VCU paying for this event?
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Is it purely social or to cultivate donors/donations?
(local funds required)
If not, what is VCU-Q’s business purpose at this event?
Department Responsibilities
Departments are responsible for identifying:
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Applicable hotel facilities:
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Lodging Rooms needed – must follow policy guidelines
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QF Per Diem Rates - GSA M&IE = Allowable Lodging Rates
If expenses exceed 200% of the CONUS/OCONUS allowable for
lodging, cost justification, local funds, and VP signature is
required.
Good Negotiation Points = no specific limitations
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Meeting Rooms - this is often not charged for
Audio Visual/ “AV” – rates are negotiable
Business Services –good negotiation point.
Department Responsibilities
Departments are also responsible for identifying:
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Catering service requirements for their specific events
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Number of people guaranteed for event
Items to be served at meal / break / reception
Is the budget within allowable rates?
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Follows that same regulations as business meals
 # of attendees x 150% of per diem for meal
 This includes tax, tips, and service fees
 If >150%, local funds and VP signature required
Will alcohol be served?
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Need Appropriate approval - Dean
Local Funds (including portion of tax, tips, and service
fees) – must place bartender on local even if a $$ bar
Department Responsibilities
A few more things…
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Has the Banquet Event Order (BEO) been
provided?
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This serves as your itemized receipts
This is also your reference to make sure you were
charged appropriately according to your contract
terms
Are food/beverage charges separate rather
than part of a lumped fee?
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If food/beverage are lumped as part of a
“meeting fee” or “conference fee” this must be
negotiated up front with the vendor or we may
not be able to pay the invoice on state funds
Department Responsibilities
And a few more things…
 Service Charges / Gratuities:
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When establishing pricing, departments should:
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Attempt to negotiate a service charge / gratuity that
does not exceed 18%
Ensure that no service charge / gratuity is applied to
lodging rooms or meeting rooms
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These items are no longer negotiated by Purchasing –
this is your responsibility now
Verify that the prices shown are inclusive of all taxes,
service fees and gratuities or have these items
specifically addressed in the contract
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In other words – read the fine print
If you don’t see this information, you need to ask.
Department Responsibilities
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Contracts up to $7500 (27,300 QAR):
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Maintain and submit a full copy to AP; a copy
is not required to be maintained by
Purchasing.
Contracts of $7501 (27,300 QAR)or more:
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Forward a copy of the approval to Purchasing
with the Hotel contract document(s).
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This should include Ed Gibbs’ signature (or an
appropriate representative from VCU Procurement)
This copy should also be signed by the vendor
Department Responsibilities
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Deposits / Prepayment:
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Departments should advise the Hotel representative that
VCU-Q does not pay deposits or prepay for an event.
VCU-Q will issue a purchase order (EP#), or utilize a credit
card, to reserve the event at the hotel.
It is the Department’s responsibility to negotiate rates and
make sure the bill is sent to AP with all of the necessary
signatures and documentation.
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TA s if necessary
BEOs (Banquet Event Orders)
Individual and group folios
Participant List
Appropriate approvals
Appropriate funding
Price Negotiation
How to negotiate the fees for restricted items:
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Banquets / Meals - are treated the same as business meals
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Approximate at least 29% for taxes, service fees, and gratuities
for meals.
If food rates are higher than allowed by state, but the overall
rate for the event is acceptable, ask for the amount allocated to
food to be reduced
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Room rentals
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Meeting Room rentals are not restricted
A/V Equipment is not restricted
Don’t pay service /gratuity charges.
If this is free, verify that the room rates and food
rates are within the allowable per diems
How do I need to be billed?
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Itemization for lodging and meals
Direct billing for room and parking only– no extras!
Contract
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University Purchasing reviews hotel contract
documents for legal sufficiency ONLY!!!!!
…the rest is up to you!!!!
Requisitions
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Requisition Line Items:
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Separate lines for:
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Lodging rooms (rate and tax per night)
Meeting rooms
AV equipment
Meals (including taxes, service fees, and gratuities)
Alcohol / Bartender / Cash Bar
Incidentals (e.g. porterage, parking, bartender, meat
carvers, etc.) to be paid by VCU
The dollar value must reflect all estimated charges,
inclusive of taxes, service charges and/or gratuities.
If overages of >150% for the meal, the dollar value
over the 150% must be split-coded to a local fund.
Requisitions
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(Cont.)
Commodity Description:
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Overall Business purpose
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Attendees
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If a purely social reason is given, the entire event
must be placed on local
Listed by name either in the EP or attached as
supplemental documentation
Overage reasons, business purpose for
phone calls, fax / internet fees, etc.
Requisitions
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(Cont.)
Local vs. State
Change Orders:
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Can’t do a change order to switch index codes:
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Cancel the current EP# and create a new one with the
new index codes
Add a line to the current EP# with the new index code
and liquidate one of the other lines
If the original order amount did not exceed $7500
(27,300 QAR), but the change order results in the
order exceeding $7500 (27,300 QAR), the
department shall submit a copy of the Hotel contract
document(s) as executed by VCU, when submitting
the eVA change order.
Credit Card Transactions
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Credit Card Transactions:
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If paid with a credit card, the Department shall
identify (on the fax coversheet submitted with the
Hotel contract documents) the total maximum
estimated dollar value, inclusive of taxes, service
charges, and/or gratuities.
Provide a breakdown for the costs associated with:
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Lodging rooms
Meeting rooms
AV equipment
Meals
Incidentals (e.g. porterage, parking, bartender, meat
carvers, etc.)
Do NOT fax the c.c. number to the Hotel or include
the c.c. number on the contract document(s).
Hotel Contract Documents
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Processing Lead Times – Allow enough time:
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Contract Negotiation – this does not happen in 1 day
Contract Review by Procurement – this is not
immediate and can not be skipped - DO NOT SIGN THE
CONTRACT YOURSELF! IT IS A LEGAL DOCUMENT!
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Gathering of supplemental documentation
Securing necessary signatures
 Designee for meals
 Dean for alcohol
 VP for overages >150% on meals or >200% on
lodging
Supplemental Documentation
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Banquet Event Orders (“BEO”s)
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Must be submitted – this is not optional
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Speak with the hotel regarding this issue from the
beginning – food / beverages must be separate
BEOs provide your required itemization
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This is an issue with some vendors
It will be an issue with AP for payment if BEOs are not
included
BEOs also show your contracted pricing – can not
reflect a $0 charge due to package pricing
 Steer clear of package pricing or negotiate on
another basis – must show actual prices on
restricted items
Supplemental Documentation
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Travel Authorizations for employees/
students
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Even if they are not being personally
reimbursed
Expenses are being incurred on their behalf
Justification if an employee spends the
night at an in-town/local conference site
Questions