Transcript Accounts Payable - College of William & Mary

Business Process Changes: What to expect?
September 2014
Agenda

Introduction

SPCC

Independent Contractors

Honorariums

Awards, Prizes and Stipends

Direct Payments

Reimbursements

Signature Authority Differences

Other Topics

Vendor Payment Request Form (VPRF)
Introduction
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As of July 1, 2014 updated business processes became
effective on campus.
Increase of SPCC usage
Each transaction necessitates an assessment of how to
be paid
Back-up documentation for AP payment is enhanced
Uniform processes throughout campus
Cost Savings
1099 Reporting
Payment Process - SPCC


Require use of SPCC for all allowable purchases under $5,000,
unless:

Vendor does not accept credit card

Vendor charges additional fees for credit card transactions
Benefits:

Timely Posting of Payment to Banner

Eco-Friendly

Ability to view documents at will

Increase Prompt Pay Compliance

Debt Set Off

1099 Reporting

Cost-Savings
Questions about SPCC Payment
Process

Q. Do we need to use the SPCC for expenditures
listed as approved direct pays?
 Yes,

if the vendor accepts credit cards.
Q. What if I enter an eVA order that exceeds $5000
and I am now receiving numerous invoices all under
$5000, do I still have to use the SPCC to make
payments.
 Yes,
if the vendor accepts credit cards.
Q. What documentation is required for SPCC
payments
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Vendor Payments
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Receipt (preferred: Invoice,
Contract, Receiving Documents…)
Business Meals

Itemized Receipt and all other required
components of the business meal
(business reason for the meal, number
and names attendees and affiliation,
type of meal, per diem spent, if meal
exceeds per diem allowance,
justification for 50% and signature from
approver)

Over 150% per diem is not allowed on
SPCC
Travel (if Restriction Lifted)
must include a Travel
Authorization for all Employees

Lodging
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Airline and Rail Tickets

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Hotel Folio, Internet Receipt
Internet Receipt
Moving and Relocation

Invoice, Bill of Lading (for common
carrier), Tenure Agreement, M & R
Summary Form signed by Provost

Rental Car
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Invoice and business purpose
Departments
should use a
Form similar to
this to ensure all
required fields are
provided.
Independent Contractor Payment Process
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What is an independent contractor?

An independent contractor is an individual who is subject to the
control and direction of another individual only as to the result of his
work, not as to the means and details to accomplish such.

If a service requires special skill, any specialist called in to perform
the task is usually an independent contractor.
Process

Step 1: Complete appropriate Independent Contractor form
(Procurement website)

Step 2: Purchase Order must be entered into eVA
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Step 3: VPRF
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Supporting documentation – Contract and vendor invoice
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Form W-9
Honorarium Process
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An honorarium is a one-time payment, made to an individual who is not an
employee of the College of William and Mary for a special and non-recurring
activity or event for which no remuneration is collectible by law. Honoraria are
typically paid to persons of scholarly or professional standing with the intent of
showing appreciation for participation in the College educational, research, or
public service activities.

If payment is negotiated and agreed upon, it is considered a contractual
agreement, and should be processed as a payment for professional services,
not as an honorarium.

An honorarium may not be used for the following
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To replace or circumvent procedures for paying consultants
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To pay College of William and Mary salaried and non-salaried employees
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As a reimbursement in lieu of undocumented expenses
Process
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Step 1: Complete Honorarium Form (Procurement Website)
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Step 2: VPRF (Account 714130)
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Supporting Documentation: Honorarium Form
Awards, Prizes and Stipends Process
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Awards & Prizes to NON-Employees or Students - Prizes and awards are defined as
financial support provided in recognition of special skills, achievements,
performance, competition, contest, or other criteria. Payments may be used for any
purpose (not limited to educational expenses) and are taxable income to the
recipient. The reason for the award or prize should be attached to the VPRF as
supporting documentation, and the expenses should be charged to account
714130.
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Stipend – A stipend is a payment to an individual or organization as an incentive to
participate in State sponsored programs and activities (such as restoration
projects). The award letter and description of program should be attached to the
VPRF as supporting documentation, and expense should be charged to account
714180.
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Process
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VPRF
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Supporting Documentation: Award/Prize/Stipend Letter outlining the reason for the payment
Direct Payments
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A direct pay occurs when an item or service is purchased outside the Procurement
system and an invoice is presented to Accounts Payable for payment, in other
words, a payment without a purchase order.
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Allowable Direct Pays
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Advertisements
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Conference Fees
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On-Campus dining services catering
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Honoraria
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Moving and Relocation expenses
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Professional Organization Membership Dues
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Scholarships and Fellowships
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If the purchase is not on the eVA exemption list, justification for the purchase must
be attached to the form. Departments or individuals requesting an ineligible direct
pay will be given one warning.

Subsequent violations will be forwarded to the Vice Presidents for Finance and
Administration for review.
Q. What documentation is required for all
travel related Direct Bills?

Travel Direct Bill for vehicle and common carrier
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Travel Hotel Folio
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Travel Authorization

Moving and Relocation
 Bill
of Lading (for common carrier)
 Tenure
M
Agreement
& R Summary Expense Form
Reimbursements

A reimbursement occurs when an individual uses their own funds to purchase a
good or service and then requests the College pay them back.
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Express services when out of town
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Business Meals including Sodexo catering
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Moving and Relocation
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Printing if less than $50
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Travel (Conference Fees, Lodging, Meals, Parking fees and Tolls, Personal Vehicle
Mileage, Public Carriers)
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Continuing Education course tuition
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Emergencies only with written justification
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Justification is needed for all reimbursements not on the allowable list.
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You must use the correct AP form to request reimbursements.
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Virginia state tax will not be reimbursed.
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Departments or individuals requesting an ineligible reimbursement will be given
one warning.
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All ineligible reimbursements submitted will be returned.
Student Reimbursements
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Q. Are students reimbursements for food
purchases subject to per diem and
business meal rules?

Yes.

The Travel regulation does not provide
guidelines for snacks. Ice cream
socials and coffee breaks, for
example, ARE allowed, but there is no
category for them under the state per
diem regulations, so we simply should
“lump” those under the appropriate
“meal” allowance based upon the
time of day of the coffee break/ice
cream social.

Departments at CWM should use the
time table below based upon a
generally accepted business practice
of restaurants. (B)
Breakfast: midnight until 11:00 a.m.
– (L) lunch: 11:00 a.m. – 3:30 p.m.
(D) Dinner 3:30 p.m. – midnight

Q. Do we have to do anything different to
process student reimbursements?

The expectation is that departments
use the SPCC card when possible to
provide supplies and materials to the
student groups. But when the activity
makes it necessary for a student to be
reimbursed, in addition to the paid
receipts and proof of payment the
department must provide a detailed
description of the student activity. The
voucher has to describe the reason for
the student purchase.

Office and Lab supplies are examples
of improper purchases by a student.
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In addition, Students should never be
made responsible to pay an invoice for
the College of William and Mary.
Procurement Signature Authority vs
Accounts Payable Signature Authority
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The Financial Operations Signature Authority Form designates individuals
with direct authority and related responsibility to commit funds of the
Organization code and Index numbers listed on the form for Financial
Operations documents that includes, but are not limited to: vendor
payments, travel authorizations, reimbursements requests, Small Purchase
Charge Card (SPCC) monthly reconciliation, non-travel business meals
forms and journal voucher revenue or expense transfers.
On an annual basis, the Office of Financial Operations will formally request
that each department review its list of active indexes and submit an
updated listing of authorized signatures to Financial Operations.
Individuals designated to approve financial transactions or expenditures
are responsible for ensuring the following:
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An understanding of what is being approved
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The information and supporting documentation is accurate and complete
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The transaction is allowable, reasonable and justified
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There are adequate funds to cover the expenses
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The funding source is appropriate for the expenditure
Procurement Signature Authority vs
Accounts Payable Signature Authority
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The Procurement Signature Authority refers to the Contracting
Signature Authority Policy. Board of Visitors By-Laws delegates
signature authority to President, Provost, Vice President for
Administration or Vice President for Finance depending on
contract type. They have authority to sub-delegate.

Contracting and Signature Authority Policy
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To sign a contract an employee must have written delegation to do so.
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Delegation is granted to specific position & individual and
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Training is required to receive and retain authority
Contract review/approvals by Procurement – All contracts over $5,000 must be
reviewed and approved by Procurement in advance with documentation attached to
eVA requisition. Contract review can also be done for contracts less than $5,000.
This can be done by attaching the contract to your purchase order in eVA, by adding an
additional line of $5,000 describing the line as ‘for procurement review’.
Other Topics
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Professional Memberships & Professional License Renewals – VPRF or
SPCC is the acceptable method for payment of institutional memberships,
licenses and dues which are transferable to anyone the institute may
assign.

e-Books – On Amazon.com, locate the product you want to purchase and
select the ‘Give as Gift’ option from the right-hand side-bar. Complete the
purchase by emailing the app (gift to the recipient). The recipient will
receive an email with instructions on how to access the app after you have
completed checkout.

Electronic Approval - The Office of Sponsored Programs is the only
department at the College that has been granted permission to approve AP
forms electronically. The OSP signature is needed in advance for all goods
and services; however if not approved in advance (through the
Procurement system or through TA) you must present to OSP prior to
sending to AP.
Other Topics, continued

Checks made payable to William and Mary – The Accounting Office will no longer be
issuing checks payable to William and Mary if the department objective is to
transfer funds between accounts and/or departments. The departments must
prepare a JV to achieve this goal.

Sodexo – How do I place an order that exceeds the allowable per diem? For an
online order, use an “8” index number for your charge. This will alert the system to
offer you the meal rates that exceed the standard per diem rates. Before you
submit the paperwork for payment, you can cross out the “8” index and use the
correct index. Remittance Address - Sodexo-Lockbox, P. O. Box 536922, Atlanta, GA
30353

Cell Phone - Under IRS guidelines employers may not purchase personal cell
phones for employees; purchases of this kind are taxable reportable income to the
employee. However, cell phones for business use can be obtained by the
Procurement Office and we will continue to reimburse for data plans until a Cell
Phone Policy is implemented.

IT Purchases – Regardless of the cost or fund source, IT must review requests prior
to purchase of all desktop and laptop purchases/leases, printers, servers, nonstandard or specialized software and technology consulting services. The approval
must be attached to the vendor payment form as supporting documentation.

Exemptions in IT purchases –All exemptions should be attached to the VPRF.
Vendor Payment Request Form Changes
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Special Handling Request
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Accounting distribution Changes
Per Sponsored Programs, if this
box is checked and you are
paying with a grant; The OSP
office must approve the change.

Additional Payment Information
Vendor Payment Request Form Other Issues

Remittance will ONLY be sent to Vendors when required. If the department “wishes” to
send a copy; the department needs to send it on their own. In addition, when the
remittance is required the department is to provide the copy for Accounts Payable.
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Vendor Type Information
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This is often the most overlooked part of the form however it is the most significant one for IRS
reporting purposes. Let’s review:
Questions