Transcript AGENDA - University of Tennessee Health Science Center

Finance & Operations
AGENDA

Division of Finance & Operations
Campus Budget
Monthly Reporting
Contract Processing
Procurement Cards
Accounts Payable
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Division of Finance and
Operations

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F & O ORGANIZATION CHART
Vice Chancellor / CFO
Finance
Accounting & Budget

Business / Operations
Business Contracts
Police / Parking
Purchasing
Auxiliaries
Accounts Payable /
Payroll
Mail Services
Bursar & Student
Loans
Bookstore
Special Projects
Dining Services
Sponsored Projects
Accounting
Printing & Copy
Center
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Campus Budget

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DEFINITIONS

 Unrestricted Funds: (E-accounts) Funds provided to meet the
primary educational mission of the university (sometimes referred
to as Educational & General Funds)
 Restricted Funds: (R-accounts) Funds provided to meet a
designated purpose – research, scholarships, endowed chairs, etc.
 General Operating Budget: Funding provided across campus to
meet operational needs – referred to as ORANGE dollars.
 Sources are from State Appropriations, Tuition & Fees, and F&A Revenue
 What’s the difference between Unrestricted and Gen’l Oper
Budget?: Unrestricted Funds includes some self-supporting
activities like continuing education, conferences and auxiliaries.
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FY 2013 BUDGET

TOTAL Budget
$433.6 million
Gen’l Oper Budget
$206.7 million
F&A
6%
Sales &
Svc
6%
Spon
Prog
42%
Genl
Oper
48%
Tuition
33%
State
61%
Gifts &
Endow
4%
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GENERAL OPERATING BUDGET
FY 2005 Actual
Total $157.9 million

FY 2013 Budget
Total $206.7 million
F&A
9%
F&A
6%
Tuition
19%
Tuition
33%
State
72%
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State
61%
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GENERAL OPERATING BUDGET
FY 05
FY 06
FY 07
State
Appropriation
$113.0
$115.4
$125.7
Tuition & Fees
30.0
34.0
36.9

Facilities &
Admin
14.9
14.8
$157.9
$164.2
TOTAL Gen’l
Oper
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
$134.8
$129.0
$122.7
$117.6
$119.2
$125.4
40.4
44.3
52.1
58.6
68.2
68.6
14.3
13.8
12.0
15.7
15.9
14.2
12.7
$176.9
$189.0
$185.3
$190.5
$192.1
$201.6
$206.7
$225
$200
F&A
$175
$150
T&F
$125
$100
$75
$50
Gains in State funding in FY 07 and
FY 08 have been lost and replaced in
part by tuition and enrollment
increases.
State
$25
$0
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TOTAL BUDGET
FY 2005 Actual
Total $350.6 million
Genl
Oper
45%
Gifts &
Endow
5%
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FY 2013 Budget
Total $433.6 million
Sales &
Svc
6%
Sales &
Svc
11%
Spon
Prog
39%

Genl
Oper
48%
Spon
Prog
42%
Gifts &
Endow
4%
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TOTAL REVENUE
FY 05
FY 06
FY 07
$157.9
$164.2
$176.9
18.1
27.1
137.8
Sales & Service
TOTAL Budget
General Operating
Gifts & Endow
Income
Sponsored
Programs
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
$189.0
$185.3
$190.5
$192.1
$201.6
$206.7
18.2
21.2
23.1
18.7
17.9
18.9
18.4
145.6
143.5
150.3
153.6
156.1
176.4
185.0
180.5
36.8
32.6
31.9
32.6
32.0
34.9
23.6
25.1
28.0
$350.6
$369.5
$370.5
$393.1
$394.1
$400.2
$410.0
$430.6
$433.6

$450
$400
Sales & Svc
$350
$300
Spon Prog
$250
$200
Gifts
$150
$100
Gen’l Oper
$50
$0
FY 05
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FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
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EXPENDITURES BY COLLEGE / DIVISION
FY 2012 FINAL

7,708,179
17,549,022
2,008,883
19,557,905
1,366,325
136,914
1,503,239
55,080,807
127,941,966
183,022,773
2,718,648
25,912,026
28,630,674
13,015,448
37,379,528
50,394,976
4,636,172
2,179,818
6,815,990
14,017,823
8,036,184
22,054,007
948,102
308,378
1,256,480
5,270,341
25,378
5,295,719
11,207,513
1,497,062
12,704,575
3,063,719
0
3,063,719
20,989,296
0
20,989,296
Finance & Operations
8,055,342
0
8,055,342
Information Tech Services
5,516,719
127
5,516,846
Research
4,300,854
682,352
4,983,206
40,550,550
0
40,550,550
215,588,107
206,515,370
422,103,477
Graduate Health Sciences
Colleges
TOTAL ALL
FUNDS
406,753
Dentistry
Medicine
Memphis
Chattanooga
Knoxville
Nursing
Pharmacy
Chancellor's Office
Administration
Restricted Funds
7,301,426
Allied Health
Chief of Staff
Academic, Faculty, &
Student Affairs
Development & Alumni
Affairs
Facilities & Utilities
Campus General
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Unrestricted
Funds
TOTAL HSC
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FY 2012 ALL FUNDS
EXPENDITURES

$422.1 million
Med - Memphis
43.5%
Med - Chattanooga
6.8%
Med - Knoxville
12.0%
Grad Health
0.4%
Dentistry
4.7%
Allied Health
1.8%
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General
9.6%
Admin
14.4%
Nursing
1.6%
Pharmacy
5.2%
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Monthly Reporting
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OLD REPORT  4 PAGE SUMMARY

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NEW REPORT  1 PAGE SUMMARY
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Contract Processing
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WHAT IS A CONTRACT?

 Technically, a contract is a specific proposal to enter in an
arrangement between two or more parties.
 Verbal or written
 There must be some consideration (something of value) to
one exchanged for performance by the other .
 Dollar value does not matter: receivables, zero-dollar, and
payable contracts are all processed the same way and only
authorized officials can sign them.
 Title of document does NOT matter: All of these are
contracts:
 Memorandum of Understanding / MOU
 Agreement or Letter of Agreement
 Lease
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CONTRACTS

When does UT policy require a contract (or PO)
in order for an invoice to be paid?
 When a transaction is valued at $5,000.00 or more.
When does UT policy require a contract go to
through the formal review process?
 Every single contract regardless of dollar value.
 Even if the vendor requires that a contract be signed
for a transaction less then $5,000 or receivable to UT
or for no cost.
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DOLLAR THRESHOLDS

$5,000 or more requires an NCJ* or Bid
 NCJ: Non-Competitive Justification – explains why
can’t you go out for bid.
$100,000 or more  non-delegated for campus
signature
$250,000 and longer than one year  requires
State Fiscal Review Committee approval in
most circumstances
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FOUR MOST IMPORTANT RULES

 Only authorized officials can sign contracts!
 For the HSC, the Chancellor, Executive Vice Chancellor
and Vice Chancellor for Finance
 All business contracts must go through our
Business Contract Office.
 Research agreements go through Research Admin.
 Departments are responsible for reviewing
contracts for business terms (prices, etc.), and
operational/technical specifications.
 Departments should not negotiate legal terms and
conditions with the vendor.
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MAJOR PROHIBITED PROVISIONS

The University cannot accept the following:
 Requirements for arbitration or mediation
 Obligations to pay legal fees, court costs, audit fees,
etc.
 Governing law other than Tennessee
 Indemnity or hold harmless clauses
 Limitations of liability or payment of punitive
damages
 University employees as a party to the contract
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Procurement Cards
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PROCUREMENT CARDS

 Established to allow for a more cost efficient
alternative to make purchases under $5000.
 Using the procurement card allows for a quicker,
more efficient purchasing process
 Therefore a quicker receipt of needed goods and
 Quicker payment to vendors.
 University Policy FI0530 has an extensive listing of
those items that are considered inappropriate.
 The HSC has about 150 cards that are issued
through the Bank of America.
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PROCUREMENT CARDS –
FREQUENTLY ASKED QUESTIONS

 Can we make purchases from Amazon and use the Pcard??
 Yes, as long as we don’t provide any of our bank information.
 Sometimes vendors will ask that you guarantee purchases by
“tying” a bank account to them. We do not allow this. (Paypal,
for instance, will allow certain types of upgraded transactions if
the buyer does this.)
 If we make on line purchases (from Amazon or other
vendors) how do we avoid paying sales tax??
 When going through the check-out process, you will need to
remove the sales tax or see if there is a box to check to show
exempt. (each vendor will be different). Unless it has changed,
Amazon will not start adding sales tax until 2014.
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PRO CARDS FAQS

 Are we exempt from paying sales tax in other states or
just Tennessee??
 Some states offer exemptions. Please see the Comptrollers
Office website for a list. (http://controller.tennessee.edu/ Left
hand side – click TAX)
 Is it possible address the concerns of BrainBits, NEB,
Antibodies Inc, and World Precision Instruments? Can
something be worked out with Research Diets Inc, they
don’t accept POs. Also maybe autoship is a possibility?
 Absolutely. We will get Laboratory Animal Care and Purchasing
together to review and find a solution.
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PRO CARD FAQS

 Would it be possible to receive multiple cards with the same
account number? That would resolve some late night or
weekend purchase issues.
 Yes, as long as the cards were in different individual’s names.
 Yes, there is still a primary holder who would be responsible for
the card, as well as a verifier and approver who would be
associated with each card.
 If this staff person leaves my lab, it is my understanding that
Finance will no longer approve procurement cards for
anyone else in my lab.
 No, this is not true. We will assign a card to another appropriate
staff person.
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Accounts Payable
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EQUIPMENT INVENTORY
 Threshold:

 $1,500 for sensitive minor equipment (i.e., computers)
 Other equipment is recorded at $5,000 or greater
 We are currently in the process of reviewing the annual
equipment inventory.
 Each year, Departments must go through and physically
observe the equipment listed on their inventory sheets.
 For missing or surplus equipment, there are steps that must be
followed to complete appropriate notifications.
 Failure by the department to complete the process in a
timely manner can cause problems for the University
during our audits.
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TRAVEL

 In processing these payments, we are required to audit
the travel expense report as filed by the traveler /
department.
 If problems are found, we assist the department to
correct those problems so that we can pay those
reimbursements.
 Unless there is a serious problem with the expense
report, we have a goal of five business days to request
payment, but currently we are typically able to
accomplish this in three business days.
 FYI, we process over 4000 travel reimbursements a year.
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SEMINARS / CONFERENCES

 We register employees to attend these events and
email the participant with the related information
about payment for the event.
 We have a special procurement card for this purpose –
Departments cannot use their pro card for registrations.
 Doing so, we are generally able to get a refund if the
attendee has to cancel after the deadline whereas the
participant often cannot.
 The Department makes all of the other
arrangements.
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Capital Funding
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CAPITAL FUNDING PROCESS

 The State of Tennessee provides capital funding in three
categories:
 Capital Outlay
 Major capital projects
 Primarily new construction or major renovations to existing facilities
 Funded primarily from State General Obligation Funds
 Capital Maintenance
 Major projects from reconstruction to rehabilitation and renovation
 Significant renovations, repairs, or improvements to existing facilities
 Funded primarily from State General Obligation Funds
 Institutionally Funded
 Major projects, including new construction funded by the campus
through revenue generating bonds or major gifts.
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CAPITAL PROJECT FUNDING

$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
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Outlay
Maintenance
Pharmacy Building
Inst Funded
GEB / Simulation Ctr
Building Demo
= $24.1 mill
= $4.0 mill
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