Transcript Buy/Pay 101

Payment Solutions 101
An Overview of the Payment
Solutions Process at Rice
University
Resources and References
 Payment Solutions Website
 Policies
– Purchasing
– Travel
– Business Meeting/Entertainment Expense
– Conflicts of Interest
– Signature and Approval Authority for Contracts
 Procedures Manuals
 FAQ’s
 Administrative Systems/Banner Security
Department Responsibility
 Adhering to the Rice policies and procedures
 Providing sound stewardship of department funds
 Preparing and/or approving transactions (i.e. invoices,
check requests, travel envelopes, etc.) for prompt
payment with required supporting documentation,
account coding and appropriate signature approval
 Completing, approving and submitting purchasing card
applications
 Completing, approving and submitting signature
authorization forms
 Reconciling and reviewing monthly financial reports
and purchasing card statements on a timely basis
Department Responsibility (cont.)
 Identifying purchasing needs
 Ordering products and arranging for delivery
 Arranging for vendor payment with appropriate
documentation and coding
 Reviewing and completing travel expense
envelopes/statements/business and entertainment
forms within thirty days of the trip/event
Signature Authority
 Signature authority must be requested and periodically
confirmed by the department chair/head (or delegated
individual) and updated in the signature card database
 Areas of approval authority include:
–
Approval Levels (e.g. $2,500, $10,000 or amount
required)
–
Allowable Transactions (purchase orders, invoices,
travel, work orders, etc.)
–
Allowable Funds/Orgs
Signature Authority (cont.)
 Authorized signers must review and acknowledge that
they are familiar with the following policies:
– Conflicts of Interest Related to the Purchasing of Supplies,
Services, and Equipment (No. 838)
– Signature and Approval Authority for Contracts (No. 810)
– Purchasing Policy (No. 814), Travel Policy (No. 806) and the
Business Meeting and Entertainment Policy (No. 811)
 Approvals
– Approver can’t approve his or her own expense
– Approver can’t approve if they attend the event
– Approver may never report to the individual for whom the
expense is incurred
 Receipts over a year old require a Dean/VP approval
Planning for Purchases
 Are there fund restrictions
– Gift (G)
– Endowment Spending (H)
– Research funds (R)
 Is there availability in your budget
 When available, give small, minority and women-owned
business enterprises the opportunity to compete
 Lease vs. Purchase Decision Making
– Contact General Counsel prior to signing the lease agreement
– Capitalized leases - contact Property Accounting for special
accounting rules (x 3429)
Planning for Purchases (cont.)
Hazardous Materials, Select Agents and Controlled
Substances
 May only be ordered by individuals who have completed the
Environmental Health and Safety training course
– Contact the Environmental Health and Safety Office (ext. 4444)
Research Animals
 May only be purchased through the Animal Resource Facility
– Contact the Animal Resource Facility Manager (ext. 3502)
Bidding Information

Purchasers should solicit bids for goods and services
– A minimum of 3 documented bids or justification for sole
source purchasing is required for all purchases totaling
$25,000 or more
– Sole source justification is required for all professional
services when the total contract is over $25,000

When the lowest bid is not accepted, justification is
required

Submit copy of bids and/or sole source purchasing
with documentation when appropriate and send to
Payment Solutions with a completed and approved
purchase order
Document Coding
 Fund/Org/Account clearly recorded
 Program, Activity and/or Location codes should be indicated
following the fund/org/account code combination when
appropriate
 Account coding
 Account code listings can be found on the Web
 Expense Codes (7XXXX)
 Equipment Codes (75XXX and 76XXX)
 Do not code any expense to an account beginning with 6
 For questions regarding equipment coding contact:
 Pat Jones ext. 3429
 For questions regarding all other coding contact:
 Crystal Davis ext. 2478
 Flor Garcia ext. 3435
Rice University
Purchasing Card
RICE UNIVERSITY
Tax Exempt # 74-1109620
5567 0154 5555 5555
Samuel Smart
Rice University
10/06 - 10/08
Rice University
Purchasing Card (cont.)
 The purchasing card is a corporate Mastercard issued
by JPMorgan Chase
 The PCard is the preferred method of payment for the
following:
– general purchases less than $5,000
– travel, entertainment and business meeting expenses
Payment Options for Purchases
Less than $5,000
 When accepted by the vendor, pay for your purchase
with your Rice University purchasing card
– If MasterCard is not accepted, arrange for the vendor to invoice
your department directly by providing the following information:
 University address
 Department name and mail stop
 Contact name and phone number
 Please note:
– Rice is exempt from paying Texas sales tax. When arranging for
payment, provide the vendor with the Federal Tax ID number.
This number is located on the front of the purchasing card
– Tax exempt certificate is located on the Payment Solutions
website
Purchases Less than $5,000
With an Invoice
 Confirm that the invoice is an original invoice
 Review the invoice for accuracy
 Ensure that Texas sales tax is not being charged
 Code the invoice for payment (fund/org/account)
 Ensure that the invoice is approved by an authorized
signer. The signature on the invoice indicates the items
were received in good order or the services performed
were satisfactory
 Send the invoice and all required documentation to
Payment Solutions, MS77 for processing
Purchases Less than $5,000
Without an Invoice
A check request form can be used to request
payment if no invoice is available
 Payments must include:
 Individuals
 Rice individual– employee # or student #
 Non rice individual– social security # - W9 Form (retain a
copy for the department files)
 Vendors
 New vendor – completed W9 Form (retain a copy for the
department files)
 Existing vendor – name and address
 Code the check request with the appropriate fund/org/account
 Attach supporting documentation
 The check request must be approved by an authorized signer
Purchases Less than $5,000
Without an Invoice (cont.)
 Clearly indicate any special handling requests (i.e.
attachments, call for pickup, etc)
 Send the check request to Payment Solutions,
MS77 for processing
Check request should only be used to:
 Pay a vendor who cannot/will not submit an invoice
nor accepts the purchasing card
 Vendor cannot/will not deliver the goods or services
and then invoice the department directly
 Pay honorarium or refunds
 Reimburse faculty/staff/students for expenses
greater than $100
Reimbursement for
Out of Pocket Expenses
 Requires “One Over” signature approval
 Equal to or less than $100
– Reimburse with Petty Cash
 Submit Petty Cash Voucher to the Cashier’s Office
 Call the Cashier’s Office for information (ext. 4946)
 Greater than $100
– Reimburse with a Check Request
 Attach original detailed receipts as backup
 Submit to Payment Solutions, MS77 for processing
Reimbursement for
Mileage Expenses
 Mileage reimbursements may be requested for round trips in
excess of five miles provided that the employee provides the
following information:
– the date of the incurred mileage
– a clear and precise business purpose of the trip
– the beginning and end points of the trip
 For reimbursement of mileage over $100, a mileage voucher form
(available from Payment Solutions) should be completed,
approved and submitted to Payment Solutions, MS77
 Approved mileage vouchers equal to or less than $100 should be
submitted to the Cashier’s Office for reimbursement
 Mileage associated with travel should be submitted on a travel
form to avoid possible duplication
 Mileage rates available on the Payment Solutions website
Purchases Equal to or
Greater than $5,000
 Require a purchase order
 Dividing a large transaction into dollar amounts below
the total PO in order to circumvent required approvals
is not allowed
 First time vendors may require credit information along
with the tax exempt certificate before they will extend
credit to the University. Payment Solutions has the
credit reference form available to the departments on
the Payment Solutions website
Purchase Orders
 Purchase Order forms are available from Payment
Solutions
– Call ext. 6700
– Email your request to [email protected]
 4 part form which is a commitment for payment
– Yellow is the work copy
– White is the vendor copy
– Blue is the department copy
– Green is the receiving report
 Detailed instructions are in the Purchasing and
Payment Manual
Purchase Orders
 Equipment purchased (account code - 75XXX and
76XXX)
– Complete and attach a Property Control Registration Form
– This form is available from Property Accounting (ext. 3428)
 Equipment purchased on a research fund (75XXX)
– In addition to a Property Control Registration Form complete
and attach a Procurement Brief
PO Receiving Report
 Receiving Copy (green)
– For purchases equal to or greater than $5,000, receipt of goods
and services must be performed and acknowledged by a Rice
employee other than the approver
– Partial payments - submit copy of green receiving report with
the partial payment box checked
– Final payments - submit original green receiving report with the
final payment box checked
– On occasion, the total amount due on the invoice will be
greater than the original purchase order amount. When this
occurs, the difference will be paid if it is less than 10% of the
total purchase order amount
Invoice Payment on POs
 By signing the invoice, the signer is indicating that
– the original invoice is being submitted
– the PO number is recorded on the invoice
– Texas sales tax is not being charged
– the purchased items noted on the invoice have been received
in good order and the invoice is to be paid
Professional Services
 Require a Professional Services Agreement (PSA) when
the total amount of services purchased is $5,000 or
greater
 Departments are encouraged to work with the Office of
General Counsel to review written agreements and
contracts prior to the document being approved and
signed
 A purchase order should be prepared for the total cost
of services. The purchase order is important to
encumber the funds and provide funding information
– If the agreement or contract is signed by an authorized signer
the purchase order does not need to be signed
Professional Services (cont.)
 When sponsored agreement dollars are charged attach
a copy of the PSA or agreement to every invoice
submitted for payment
 For all other funds charged, a copy of the PSA or
agreement should be attached to the first invoice and
subsequent invoices may certify that a PSA or
agreement is on file in the department
Post-Payment
Refunds:
 Send Deposit Voucher Form to Cashier’s Office, MS55
– Rice checks payable to vendors should not be deposited by the
department. Forward them to Disbursements
Credit Memos:
 Treated the same as an invoice. Signature authority,
coding and documentation are needed
Post-Payment
Void Checks/Stop Payments
 Contact Disbursements Office
– Teresa Blumentritt ext. 4812
– Patricia Morrison ext. 4546
Changes in Original Coding
 Submit an Expense and Revenue Correction Form to
MS70
– Crystal Davis ext. 2478
– Flor Garcia ext. 3435
Travel, Business Meeting &
Entertainment Expenses
 IRS regulations apply to the following expenses and
require additional information
 Faculty/Staff/Students
– Online TEBM Envelope
– Travel Statement
– B/E Form
 Require “One-Over” Approval
 Travel Advances
– Student travel
– Group travel
– International travel
 Travel & B/E Procedures Manuals
Travel, Business Meeting &
Entertainment Expenses
Traveler’s Responsibilities
 Obtaining and saving true and accurate original and detailed
receipts
 Providing all required receipts to the preparer of the travel
envelope/ statement
 Verifying the expenditure amounts recorded on the final travel
envelope/statement are accurate
 Verifying that all costs allowed by the university policy have been
included on the final travel envelope/statement
 Signing the travel envelope/statement
 Ensuring that a complete and accurate travel envelope/statement is
submitted within 30 days upon completion of the trip. IRS rules
require travel expenses to be documented in a timely manner
Travel, Business Meeting &
Entertainment Expenses
All Rice travel should be cleared using the online travel
envelope/statement
Non-Rice employees can use the online
envelope/statement
 The department is responsible for maintaining the physical travel
envelopes/statements ensuring that any exceptions to the Travel
Policy and procedures are noted
 The department is responsible for providing currency translation
documentation for receipts in foreign currency
Relocation Expenses
 IRS regulations apply. Get details before committing
– Teresa Blumentritt x4812 or Tessie Skulski x 4004
 Monitored by the Controller’s Office regarding
taxation issues
 Information available in the Purchasing and Payment
Manual
 Expenses/Reimbursements reported on a Relocation
Expense Report. This form can be found on the
Controller’s Website
Payments to Faculty,
Staff and Students
 Reimbursement for Out of Pocket Expenses
 Mileage Reimbursement
 Relocation Expenses
 Prizes/Awards/Scholarships
 Payment for Services Rendered
Payment of Prizes, Awards,
Scholarships
 These types of student payments are submitted on a
paper Check Request form with appropriate backup
 MUST be submitted to the Student Financial Services
department for review/approval
– Payments to previously enrolled students are processed by
Payment Solutions
– Payments to currently enrolled students must be posted to the
student’s account and are processed via the Cashier’s
Office/Disbursements
Payment to Faculty/Staff/Students
for Services Rendered
 A Personnel Action Form (PAF - not a check request)
must be completed for a payment to a Rice employee
for services rendered or a one time payment for a
special project. A student PAF must be completed for
services rendered to Rice by a student
– For Faculty/Staff, the PAF is sent to Human Resources
– For Students, the PAF is sent to Student Financial Services
**Contact HR regarding any assignment of a secondary
job that might move a non-exempt employee into the
area of overtime compensation**
Research Procurement
 Know your grant/contract. Some have restrictions.
– All expenses must have clear relationship/benefit to the
contract/grant
– See Section 11 of Purchasing and Payment Manual
 Requires Principal Investigator (PI) or PI designee
signature
 OSR Website
– Links to federal guidelines which determine whether the
expense is allowed
Common Research Restrictions
 Entertainment Expenses
 Alcohol Expenses
 International Travel
– Use of US Flag Carrier
 Others -- see Section 11 of the Purchasing Manual
*Attend Research Administrators’ Meetings hosted by
OSR and Research Accounting
Property Accounting
 Monitor/track capital equipment purchases
 Capital equipment purchases require a Property
Control Registration Form and approval from Property
Accounting
 Section 12 of the Purchasing and Payment Manual
 Contact Pat Hall-Jones; ext 3429 (Property Accounting
Manager)
For Questions and/or Training
contact Regina Diaz ext. 6715 or
[email protected]