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Understanding Purchasing and Payables. March – April 2010. Agenda. 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.
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Understanding Purchasing and Payables March – April 2010
Agenda • 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.
Did you know that we issue approximately 2000 POs each FY? Purchase Orders • 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 UNI/Regent/State Contracts Contracts identified on the OBO website Copiers Cellular Bus/Charters Fisher Scientific Dell/Apple CDW Best Buy Des Moines Register Supplier of 1st choice • Office supplies through OfficeMax agreement • Paper products • Toner • Light bulbs
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!
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.
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, 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 • 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
Payment Schedules and Deadlines Payments 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. • Direct Deposits are processed at approximately 3 p.m. each afternoon in accordance with supplier terms • Checks are issued on Wednesday afternoon