Transcript Understanding Purchasing and Payables

Understanding Purchasing and Payables
March – April 2010
Agenda
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Mission of Accounts Payable/Purchasing
Staff
Buying for the University
Competitive Bid Process
POs and corresponding invoices
Procurement Card
Requests for Payments
Travel
Supplier Information Form
Timelines
Purchasing and Payables Mission Statement
The mission of UNI Accounts Payable &
Purchasing Services is to support the goals and
diversity of the university in education, research
and public service by procuring quality goods
and services at competitive prices, and by
providing responsive and responsible service to
all university departments. This mission is
further supported by an audit and processing of
invoices and payments to ensure accurate and
timely payments to our suppliers creating
positive working relationships.
Purchasing and Payables Staff
• Lisa Steimel – International Travel, service Request for
Payments, and void checks
• Tiffany Aronson – Domestic Travel and Standard
Request for Payments
• LuAnn Andreessen – PO invoice matching, credit
applications and tax exempt certificates
• Kathy Schwanz – POs, Pcards, and Approval Hierarchy
• Molly Rickert – Request for Proposals and Pcards
• Jon Westhoff – Request for Proposals and Conflict of
Interest Suppliers
• Brian Looby – Policies and procedures, contracts
Buying for the University of Northern Iowa
• Everyone has an active role in making
University purchases. Because of this we
request that everyone makes an effort to
follow certain guidelines to ensure that we
are receiving the highest quality
product/service for the best price.
• Purchasing/Payables follows University,
Board of Regents, State, and Federal
guidelines.
Competitive Bid Process
• Submit to a buyer for bid (purchases expected
to exceed $25,000 for goods/services)
• The bid threshold reduces to $2,000 if we
expect a Conflict of Interest Supplier may
participate.
• Single purchase items in excess of $250,000
require Board of Regents approval
• Orders over $1,000,000 must go on a Board of
Regents docket and need a minimum of 60 days
advance notice.
Competitive Bid Process (cont.)
• Request for Quote – a document provided to bidders
requesting prices for goods or services such as
computers.
• Request for Proposal – a request for bidders to
provide customized response, often for services or
goods that include a service element. Responses may
include pricing, enhancements, implementation plan
and timeline. Ex. Marketing or the SIS project.
• Request for Information – a request issued to
suppliers within the scope of a specific commodity or
market to determine the viability of a concept. No
award is made from an RFI.
Purchase Orders
Did you know that we issue
approximately 2000 POs
each FY?
• A purchase order is the offer of a contract
between the University and an off-campus
supplier for the purchase of goods/services.
• On-line requisitions should typically be used
when the purchase exceeds $5,000 or when
the expense is recurring throughout a fiscal
year. Exceptions to this are certain suppliers
who are primarily Pcard such as OfficeMax,
Fisher Scientific, Dell, and Apple.
Purchase Orders – Invoicing and Payment
• Three way match - Purchase order, receipt, and
invoice quantities must match within acceptable
limit before the corresponding invoice can be
paid.
• Because of the 3-way match it is necessary to
receive on the item in Oracle to initiate
payment.
• Invoices for POs should be sent directly to
Accounts Payable, LuAnn Andreessen. RFPs
should not be created for these invoices.
Preferred Suppliers
Campus Supply
Supplier of 1st choice
• Office supplies through
OfficeMax agreement
• Paper products
• Toner
• Light bulbs
UNI/Regent/State Contracts
Contracts identified on the OBO
website
• Copiers
• Cellular
• Bus/Charters
• Fisher Scientific
• Dell/Apple
• CDW
• Best Buy
• Des Moines Register
Procurement Card
• Purchases made with the Pcard provide for
timely payments to our suppliers, reduce
number of reimbursements to employees, assist
with sales tax exemption and allow for a dispute
process.
• Pcards are the first choice for purchases of
goods less than $5,000 unless it is a recurring
expense that may need to be bid.
• Currently averaging 300 statements per month
in excess of $550,000 in spend. This has
increased from $215,000 per month in 2005.
Procurement Card (cont.)
• US Bank is paid for the entire bill within days
after the end of the monthly cycle and charged
to a clearing account.
• Cardholders monthly limit is refreshed
immediately following a cycle on the 26th of the
month and is not tied to payment of the
statement.
• Departmental accounts are charged when the
individual statement and reconciliation is
audited and approved in OBO.
Procurement Cards (cont.)
• Pcard reconciliations require at least 2
signatures; the cardholder and appropriate
supervisor.
• Procurement card training is now required
prior to obtaining a procurement card and
again every 3 years prior to receiving a new
card following expiration.
http://www.vpaf.uni.edu/obo/accounts_payable/procard_manual.pdf
Request for Payments
• The Request for Payment (RFP) form is used
for processing supplier invoices not tied to
PO, reimbursements to employees not
related to travel, payment for honoraria or
services performed by invited guests, and
replenishing reimbursement funds.
Request for Payments
• These should primarily be payments to
individuals for services or suppliers who will
not accept Pcards and don’t belong on a
requisition/PO.
• Certain payments to students may need to
go through the Financial Aid office.
Did you know that OBO
receives more than 1700
Request for Payments per
month!
Purchase Orders
Procurement Card
• Front-End Approval
by appropriate
approver
• Encumbrances
• Goal of payment
within supplier
terms
• Requires 3-way
match allowing for
inspection
• Efficient electronic
approval
• Requires supplier
form
• Formal approval
(signature) after
purchase
• No encumbrances
• Immediate payment
to vendors
• Allows for dispute
process for
unsatisfactory
product
• Electronic process
under review, but
least amount of
paperwork
• No supplier form
required
Request for
Payments
• Formal approval
(signature) after
purchase
• No encumbrances
• Goal of payment
within supplier
terms
• Ability to hold
payment for
inspection
• Manual process
with minimal ability
to process reports
• Requires supplier
form
Traveling for the University
• The first step in the process for employee travel is
the Travel Authorization Form including the
business purpose of the trip, approved funding,
and appropriate signatures.
• A travel authorization and reimbursement always
require 2 signatures, the employee and appropriate
supervisor no matter what the traveler’s position.
Individuals can’t approve their own travel.
• Non-staff travel does not require the travel
authorization and can be processed on either an
RFP or Travel Form.
Travel (cont.)
• Pcards should be utilized for airline tickets
and registrations.
• All employees are strongly encouraged to
sign up for direct deposit.
Did you know that
OBO processes more
than 500 travel
requests per month?
Cash Advances
• Cash advance requests should be used in
circumstances in which cash or checks are
needed for group or international travel.
• Utilize the University Cash Advance Form
located on the OBO website or in the Forms
Repository.
• Submit the Cash Advance Form at least 10
business days in advance of the trip.
Cash Advances (cont.)
• Employee
Completes Cash
Adv. Form and
Obtains Approvals
from Dept and
OBO
• Check or direct
deposit issued
• Clearing Account
Charged
Cash Advance Issued
to Employee
Employee Travels
• Employee or
others obtain
receipts and
documentation
• Employee completes
travel reimbursement
and obtains necessary
approvals
• OBO audits and
approves travel
paperwork
• Departmental account
charged and advance
cleared
Employee Submits
Travel Reimbursement
Supplier Information Form
• A new more concise Supplier Information Form was
introduced in the Fall of 2009 but still allows for
data collection such as supplier terms and Conflict
of Interest.
• The new form is required for any suppliers who will
receive payments.
• This form is necessary even for travel
reimbursements and refunds for individuals. (An
alternative is to obtain a completed W-9)
• Offers the ability to receive direct deposit. We are
currently working to transition to direct deposit for
all current and future suppliers.
OBO Processes
• All documents received in the OBO should be
placed in the black bin on the front counter of
the office where the students are located. This
includes RFPs, Travel, Pcards, Supplier Forms
and PO invoices.
• At the close of business all documents are date
stamped with the received date and logged.
• Special instructions should be noted directly on
the documents and not on the outside of the
envelope.
OBO Process (cont.)
RFPs/Travel
Procurement Card
• Audited by appropriate
individual, Lisa or Jackie
• Internal goal of data entry
within 7 calendar days of
receipt with appropriate
documentation and
approvals.
• Once through data entry
then follows the payment
schedule
• Audited by appropriate
individual, Kathy or Jackie
• Internal goal of all charges
posted the month following
the statement date
• Once approved, uploaded
directly to the General
Ledger and charge posted
to the departmental
account
Payment Schedules and Deadlines
Payments
• Direct Deposits are
processed at
approximately 3 p.m. each
afternoon in accordance
with supplier terms
• Checks are issued on
Wednesday afternoon
Deadlines
• RFPs and Travel – month
end closing is done on the
3rd business day of the new
month.
• Procurement card – due on
the 18th following the close
of the card, typically posted
the month following the
charges.
Questions?
Procurement
Card
Request for
Proposals/POs
Purchasing/Payables
Travel/Cash
Advances
Request for
Payments