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Payment Solutions 101

Payment Solutions 101

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Payment Solutions 101

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  1. Payment Solutions 101 An Overview of the Payment Solutions Process at Rice University

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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)

  8. 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)

  9. 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

  10. 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

  11. Rice University Purchasing Card RICE UNIVERSITY Tax Exempt # 74-1109620 5567 0154 5555 5555 10/06 - 10/08 Samuel Smart Rice University

  12. 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

  13. 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

  14. Purchases Less than $5,000 With an Invoice • Confirm that the invoice is an originalinvoice • 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

  15. 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

  16. 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 invoicenor 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

  17. 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

  18. 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

  19. 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

  20. Purchase Orders • Purchase Order forms are available from Payment Solutions • Call ext. 6700 • Email your request to • 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

  21. 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 RegistrationForm complete and attacha ProcurementBrief

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. Payments to Faculty, Staff and Students • Reimbursement for Out of Pocket Expenses • Mileage Reimbursement • Relocation Expenses • Prizes/Awards/Scholarships • Payment for Services Rendered

  33. 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

  34. 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**

  35. 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

  36. 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

  37. 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)

  38. For Questions and/or Trainingcontact Regina Diaz ext. 6715 or