FOUNDATIONS IN UNIVERSITY FINANCE ACCOUNTS PAYABLE

Transcription

1 FOUNDATIONS IN UNIVERSITY FINANCE ACCOUNTS PAYABLE

2 Accounts Payable Charlie Sinex Director, Accounts Payable and Records Management Participant Outcomes Recognize Accounts Payable s role in the timely and accurate payment of authorized liability obligations for Indiana University Anticipate how your department s financial activities impact payments I N D I A N A U N I V E R S I T Y 1

3 Agenda Getting to Know AP Purchasing & Accounts Payable Paying Our Vendors Purchase Orders & Invoices Disbursement Vouchers (DVs) the department is key Procurement Card multiple activities & roles I N D I A N A U N I V E R S I T Y 2

4 Accounts Payable GETTING TO KNOW AP I N D I A N A U N I V E R S I T Y 3

5 Getting to Know AP AP Organization Director - Accounts Payable and Records Management Supervisor - Accounts Payable Operations Manager - Accounts Payable Technical Operations Research Invoice Resolution Team Disbursement Voucher Team Electronic Document Processing Team Invoice Processing Team Records Management Technical Operations Support 4

6 Getting to Know AP AP supports the mission of FMS: to provide assurance that through stewardship of university resources the university s fiscal reputation is above reproach. More specifically AP provides timely and accurate payments of IU s liability obligations: with the help of department staff and academic staff, following standard operating procedure based on IU policy provisions I N D I A N A U N I V E R S I T Y 5

7 Getting to Know AP AP performs the following basic functions: Administers IU s financial expenditure policies and procedures Issues payments to non-employees and vendors and reimbursements to employees, non-employees and vendors through various payment methods Monitors compliance with federal and state laws, rules, regulations, IU s policies and AP s procedures I N D I A N A U N I V E R S I T Y 6

8 Getting to Know AP AP in Practice Processes timely and accurate payments Ensures all payments are properly supported with complete audit documentation Provides support and expertise to IU organizations and vendors regarding liability (outgoing) payments I N D I A N A U N I V E R S I T Y 7

9 AP Authorized Liability Transactions Three (3) methods to pay vendors and reimburse employees: 1. Payment Request (PREQ) 1 a. Manual b. Electronic 1 Credit Memo (CM) Processing credits are issued by vendors to offset payment obligations 2. Disbursement Vouchers (DV) 3. Procurement Cards (PCDO) I N D I A N A U N I V E R S I T Y 8

10 Pay Totals Fiscal Year 2015 Total Payment Requests (PREQ): 348,079 Total PREQ dollars: $ million Total Disbursement Vouchers (DV): 52,914 Total DV dollars: $ 96.1 million Total Procurement Card Documents (PCDO): 57,102 P-Cards: $ 15.5 million I N D I A N A U N I V E R S I T Y 9

11 Accounts Payable PURCHASING & ACCOUNTS PAYABLE I N D I A N A U N I V E R S I T Y 10

12 Purchasing & Accounts Payable Addressing a Common Misconception: AP is associated with but not part of Purchasing (Office of Procurement Services). I N D I A N A U N I V E R S I T Y 11

13 Purchasing & Accounts Payable Procurement Policies that drive AP procedure: Purchasing Authority FIN-PUR-1.0 Exceptions to Purchasing Authority FIN-PUR-1.1 Delegation of Purchasing Authority FIN-PUR-1.2 Responsibilities in Acquisition Process FIN-PUR-4.0 Restricted Purchases FIN-PUR-10.0 University Procurement Contracts FIN-PUR-20.0 I N D I A N A U N I V E R S I T Y 12

14 Purchasing & Accounts Payable Financial Policies that drive AP procedure: Role of Fiscal Officer, Account Manager and Account Supervisor FIN-ACC-I-1 Fiscal Misconduct FIN-ACC-I-30 Allowable Hospitality Expenses FIN-ACC-I-50 Inappropriate Use of University Funds FIN-ACC-I-330 Disbursement Voucher Supporting Documentation FIN-ACC-I-420 Internal Controls FIN-ACC-I-470 Gifts to Employees or Non-Employees FIN-ACC-I-590 I N D I A N A U N I V E R S I T Y 13

15 Accounts Payable PAYING OUR VENDORS PURCHASE ORDERS & INVOICES I N D I A N A U N I V E R S I T Y 14

16 Financial Doc Lifecycles Purchasing & Accounts Payable Purchasing Accounts Payable Requisition Purchase Order Payment Request Credit Memo (REQS) (PO) (PREQ) (CM) Initiated by the department Upon submission, creates APO or routes to Purchasing to open PO Generated from Requisition documents Managed by Purchasing Created by AP from vendor submitted invoice Routed to department for review and approval Created by AP from vendor submitted credit memo Routed to department as an FYI document I N D I A N A U N I V E R S I T Y 15

17 Whom should IU pay? SMALL GROUP ACTIVITY Review the following invoices. Which vendor should be paid? 1. Invoice : ElectriCom LLC 2. Invoice 95700: Hilton San Diego Bayfront, PO Vendor: Hilton Hotels Corporation

18 Invoice discussion points You are correct: Electricom LLC should be paid. However: 1. The requisition opened to The PO was not received by PO then ed to vendor per department request. 4. Payment processed to (ACH deposit). 5. IU notified payment returned, PO amended, payment reprocessed to I N D I A N A U N I V E R S I T Y 17

19 Invoice discussion points Correct answer is D. Sunstone Park Lessee, LLC ( ) should be paid. How would you know? 1. The invoice does not provide sufficient information to connect to Sunstone Park Lessee, LLC. 2. It is necessary to call the provider and ask for their FEIN number to confirm with whom IU is working and to whom IU should pay. I N D I A N A U N I V E R S I T Y 18

20 Your Role in Getting Your Vendors Paid Communicate with your vendors about Requisitions (REQS) / Purchase Orders (POs): Ensure accuracy of the vendor record via tax ID confirmation Confirm accuracy of cost of goods and services Provide PO document or PO# to vendor Review Requisitions / Purchase Orders for: Vendor Selection Funding estimated orders and quoted orders have unique payment processing rules Accounting PO accounting drives GL expense Itemization PO and invoice itemization match provides an internal control I N D I A N A U N I V E R S I T Y 19

21 Your Role in Getting Your Vendors Paid Communicate with your vendors about invoices: Provide link to Ideal Invoice to new vendors Ensure your vendor bills with intended PO# on the invoice Do not resubmit invoices, use KFS lookup and / or contact AP instead Vendors have a disbursement lookup available Set appropriate expectations for payment timeline Review Payment Requests for: Amount (overpayments, underpayments, short payments) Duplicates I N D I A N A U N I V E R S I T Y 20

22 Your Role in Getting Your Vendors Paid Fiscal approval of Payment Requests represents: The proper vendor and amount are being paid The GL entries are as intended or will be corrected per intention There has been receipt of satisfactory goods / services I N D I A N A U N I V E R S I T Y 21

23 Accounts Payable DISBURSEMENT VOUCHERS THE DEPARTMENT IS THE KEY I N D I A N A U N I V E R S I T Y 22

24 Top 3 Challenges with DVs 1. Supporting documentation 2. Route logs 3. Notes and note notification I N D I A N A U N I V E R S I T Y 23

25 Disbursement Voucher (DV) Lifecycle KFS user initiates and submits DV DV routes to Image Attachment Node KFS User uploads DV Supporting Documentation AP attaches Supporting Documentation DV routes through workflow for approval DV routes to Travel or AP for final Compliance review DV reaches final approval DV payment is generated Contact FMSDVHLP if: You are experiencing issues with the AP Upload Tool Your DV is awaiting approval from AP Disbursement Manager Group You uploaded documents, but those documents haven t been attached to the DV four days later. Do not contact FMSDVHLP if: Your DV is awaiting approval from a non-ap org Your DV hasn t routed and you haven t uploaded supporting documentation You need a check from a DV cancelled 24

26 Reading a DV Route Log: See activity handout. You will be asked: Who is last to review and approve? Who is next to review and approve? Whose review and approval is complete? I N D I A N A U N I V E R S I T Y 25

27 DV notes to individuals EXAMPLE: Note not yet acted upon EXAMPLE: Note has been acted upon I N D I A N A U N I V E R S I T Y 26

28 DV notes to team group names EXAMPLE: Team note not yet acted upon EXAMPLE: Team note has been acted upon I N D I A N A U N I V E R S I T Y 27

29 Your Role in Successful DV Processing GENERAL USAGE GUIDELINES Understand when REQS/PO is required. Utilize reimbursement DV for emergency purchases. Utilize standard procurement methods at all other times. I N D I A N A U N I V E R S I T Y 28

30 Your Role in Successful DV Processing SUPPORTING DOCUMENTATION Upload supporting documentation with critical data redacted i.e. SSN, credit card numbers. Contact fmsdvhlp 4 days after upload if DV is still at KFS ImageAttachment node. Include proof of payment documentation for reimbursement DVs. Send note notification to the individual or team of whom you expect action. I N D I A N A U N I V E R S I T Y 29

31 Accounts Payable PROCUREMENT CARDS MULTIPLE ACTIVITIES AND ROLES I N D I A N A U N I V E R S I T Y 30

32 Procurement Card Document (PCDO) Lifecycle Purchasing Departments request P-card from purchasing for use in their department Purchasing manages policies regarding allowable uses of university P-cards US Bank US Bank pays the vendor at the time of credit card purchase US Bank sends billing files for previous week s purchases to IU KFS US Bank submits transaction detail electronically to IU overnight This information + KFS default account is used to create PCDO documents PCDO documents automatically route to departments for review AP AP pays US Bank weekly through billing files for previous week s purchases AP audits departmental submission of statements and receipts for compliance with university policy and procedure I N D I A N A U N I V E R S I T Y 31

33 Keeping Up with Your Procurement Card Communicate with your org about your Procurement Card (Pcard): Use only for IU purchases Gather receipts as soon as they are available Submit your Procurement Card documentation: Organize your receipts in they order they appear on your statement Review and submit Exception to Policy and Hospitality Approvals as needed Submit to AP in a timely manner I N D I A N A U N I V E R S I T Y 32

34 When You Need Help ACCOUNTS PAYABLE WEBSITE: PAYMENT REQUESTS AND PROCUREMENT CARDS Research Invoice Resolution Team (RIRT) (812) DISBURSEMENT VOUCHERS AND DV VENDOR DOCUMENTS Disbursement Voucher Team (812) I N D I A N A U N I V E R S I T Y 33

35 Takeaways What we hope you learned today: Timely and accurate payments of authorized liability obligations enhances trust and reliability Your role in ensuring timely and accurate payments Accounts Payable is a resource center of professionals who are here to help! I N D I A N A U N I V E R S I T Y 34

36 Questions? I N D I A N A U N I V E R S I T Y 35