How to Process Payment Documentation. Presented by Allison Peyton November 3, 2015

How to Process Payment Documentation Presented by Allison Peyton November 3, 2015

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How do I receive access to PeopleSoft? Go to the Connect U ND website http://www.und.nodak.edu/cnd Finance Access

How do I receive access to ImageNow? Go to the Accounting Services website http://und.edu/finance-operations/accounting-services/ Other Forms ImageNow New User Request Form

Accounting Services Web Page Payment Processing Page

Expense Table For a quick reference when processing payments, check out our payment processing page on our website. Use the Expense Table in the quick links to see what documentation is necessary for your payment. Expense Table

Meals Table A quick reference that is helpful when processing payments for food, is our Meals Table. (Food purchases will be covered in more detail later)

Other Quick Links & Help Also on our payment processing page are other helpful reference tables. They are listed in the links. Other training and information is available on the Help tab.

Glossary & Forms Glossary Under Resources on our web page Where to find our forms Click on the link for Forms under the heading other in either the tree on the left or in the body of the Accounting Services Home Page

Coding of Purchases When making a purchase, the first step is to classify the expense. Account number listing Account number description Appendix A of the NDUS Accounting Manual (page 99) The Account number determines if the purchase requires a Purchase Requisition, can be processed with an e-form in ImageNow, or charged on the Purchasing Card.

Business Purpose and Prudent Use of Funds All purchases at the University must have a documented business purpose. As a public institution, the University must demonstrate the prudent use of funds entrusted to it by its various constituencies. The general public, legislators, students, donors and granted organizations and individuals must be assured that funds are wisely spent and do not personally benefit University officials and employees

Awards and Prizes Awards to employees are subject to tax withholding and should be processed through the Payroll Office. Awards to UND students that are considered financial assistance should be processed through the Student Financial Aid Office The following information should be provided for all recipients of cash awards, cash equivalent awards (gift cards/gift certificates) or merchandise prizes: The purpose of the award Name and home address of the recipient Last four digits of Social Security Number or EMPLID of the recipient This information will be filed with the payment document and is necessary for compliance with Internal Revenue Service reporting requirements.

Cellular Phones University of North Dakota allows the purchase of mobile devices and wireless plans for individuals and departments. If a UND mobile device and wireless plan are not provided, UND allows, but does not require, a department to pay an employee a taxable monthly payroll amount to defray expenses for business use of the mobile device. In limited cases, and when the employee does not have a Universityowned mobile device or does not receive a monthly payroll amount, UND may reimburse an employee for the expense of a personal mobile device plan if business usage costs the employee more than the price of their personal plan, and the reimbursement does not occur on a regular basis. Due to the nature of certain global travel, exceptions may exist. Any provision for a cell phone or mobile device, whether through monthly payroll amount or UND-owned device, is at the sole discretion of an employee's supervising department and based on availability of funds. Policy: Cell Phones and Other Mobile Devices (2.18)

Dues and Memberships All payments for memberships and service club dues must include a statement explaining: the business purpose why the membership is required the benefit to the University. Memberships and service club dues should not extend beyond 12 months unless significant cost savings can be documented. If possible, memberships shall be in the name of the University of North Dakota and not an individual. This promotes transferability of the membership. Contact Grants and Contracts Administration to see if the payment of membership and service club dues are allowable on your sponsored project prior to charging the project. The original invoice must be included with the electronic payment request and sent to Accounting Services for payment, or if payment is made with the UND Purchasing Card the original invoice must be included with the approved statement.

Employer-Employee Relationship All payments for services where an employer/employee relationship exists will be processed through Payroll. This will include payments to current staff and faculty members providing services to other university departments where an employer/employee relationship exists. Payments to individuals for services such as guest lecturer, discussion leader, etc., including appropriate travel reimbursements, may be processed on an eform through the Accounting Services Office provided: The individual is not currently employed by the university. The individual has not been employed during the calendar year. The individual is receiving a one-time total payment for these services. Please use the Determination of Worker Status Form to determine if an employer-employee relationship exists. This replaces the IRS 20 Factor Questions.

Equipment Purchases EXPENDABLE EQUIPMENT includes all personal property with (1) an extended useful life in excess of one year, (2) an identity which is not altered materially through use and (3) an acquisition price (invoice cost less discounts, plus freight charges, plus tradein value given) is less than $5000. These types of items include shelving units, movable cabinets, coat racks, modular furniture, workstations & moveable walls regardless of amount, etc. CAPITAL EQUIPMENT includes all personal property with (1) an extended life in excess of one year, (2) an identity which is not altered materially through use (3) an acquisition price equal to or greater than $5000. Capital equipment may be classified as movable equipment or fixed equipment.

Excluded (Debarred) Vendors UND is required to comply with OMB Circular A-110, which addresses debarred and suspended parties. Beginning August 1, 2005, UND had added a compliance acknowledgement to all Purchase Requisitions and payment requests. The department will be responsible for the review of the list and that the vendor submitted on the requisition or eform is not debarred or suspended. The list of federally excluded and suspended parties is available at www.sam.gov. Further details and instructions can be found on the Purchasing website http://und.edu/finance-operations/purchasing/sam.cfm. Please contact Purchasing if you have any questions on Excluded vendors.

Licensed Logo Vendor Any products bearing University marks or logos must follow UND's policy regarding use and licensed vendors. Visit http://und.edu/identity for information regarding licensing and appropriate logo use. The Trademark Use Request Form is also available at the Identity website under "Merchandise/Licensing. A copy of the approved Trademarks Use Request should be attached to the purchasing card statement of account, or submitted with the invoice if payment is done through ImageNow.

Payments for Services Effective July 1, 2007, an actual invoice/agreement will be required for payments for services. Services equal to or >$5000.00 will require a purchase order. Departments can utilize the invoices for services form or the agreements located at http://und.edu/financeoperations/purchasing/forms.cfm

Agreements or Contracts Effective March 18, 2014, the Agreement or Contract Authorization policy was approved. The policy can be found on the Finance and Operations policy page (http://und.edu/finance-operations/_files/docs/1-4-agreementcontract-authority.pdf). The department will need to document that the agreement or contract has been reviewed by Legal Counsel. This can be confirmed via sticky note in ImageNow or per memo. The agreement/contract should also be approved by the appropriate individual. List of eligible signers is also available on our payments webpage.

Maintenance Agreements Effective September 2014, preventive maintenance agreements costing less than $5,000 are no longer required to be reviewed by the Purchasing Office. These agreements will still need to be reviewed by Legal Counsel and have the appropriate approval per UND policy. Departments are the record holders for the agreements and legal review documentation. Preventive maintenance agreements are formal agreements between UND and a third party to keep buildings and equipment in good condition by conducting regular inspections or performing necessary repairs. Software maintenance agreements are not preventive maintenance agreements and are not categorized as preventive maintenance agreements.

Software Licenses Effective July 1, 2009, purchases for software licenses of $5,000 or more will require a Purchase Requisition (PR) through Purchasing. All purchases of software that are $5,000 or more will be reviewed by the Office of the Chief Information Officer. Departments may purchase if less than $5,000 on the University Purchasing Card or eform without a PR if it meets the following criteria: Off-the shelf or click-through application software with standard end user license agreements Online resources (e.g. training tutorials, reference collections) with standard end user license agreements. Support, upgrades and renewals of existing software Software purchased through campus software agreements from CILT is exempt from the software purchasing procedures.

Licenses Payment for professional licenses related to an individual s employment is allowable if the license is required or preferred on the Staff Requisition Form or Faculty Request to Recruit form; included in the Position Description, or adds value to the quality of instruction, research or services to Students and/or the University. Grants, cooperative agreements, and contracts normally do not allow these expenditures.

Missing Receipt/Invoice Effective July 1, 2010, a Certificate of Missing Receipt/Invoice Form must be completed for any lost or unobtainable receipt/invoice. A notarized statement is no longer required.

Payment Documents We currently process four different types of payments utilizing two different processes. ImageNow eform and Workflow All Non-PO invoice payments PO payments (there is no eform for these payments) Blanket or Annual Purchase Order Payments Purchasing Card

Payment Documents What is an eform? We implemented a paperless payment process using a software called ImageNow. We use ImageNow to process payments for a large variety of items used by departments on a day-to-day basis. Non-employee & student travel as well as food purchases are also processed this way. In order to obtain all the information we need, an electronic form or eform is completed within ImageNow This electronic process is also utilized for purchases less than $5000 to meet the small day-today needs of those departments that are large users of a variety of different items. The Account Listing indicates whether or not a transaction can be processed on an eform. Please refer to the Account Listing to obtain this information.

Payment Documents What is a PO PAYMENT? Under University of North Dakota policy, purchases greater than or equal to $5000 and those that fall under certain Accounts require that a Purchase Requisition be obtained from the Purchasing Office. The Account Listing should be reviewed to ascertain whether or not a given Account requires a Purchase Requisition. The Purchase Order number that is obtained may be used in connection with a Blanket Purchase Order or standard Purchase Order. When an item that meets the above criteria for a Purchase Order number has been ordered by a department within the university, the item will generally be shipped to Central Receiving. Central Receiving delivers the merchandise to the department.

Payment Documents What is a BLANKET or ANNUAL PURCHASE ORDER? Blanket purchase order payments are utilized for recurring purchases from the same vendor that would normally require a purchase order. Under University of North Dakota policy, all Blanket Purchase Order payments are to be processed with an eform. A Blanket Purchase Order number is obtained from the Purchasing Office by completing a Purchase Requisition. If the invoice is received by the department it should be forwarded to Accounting Services to enter into the ImageNow process.

Payment Documents What is a PURCHASING CARD? The purchasing card is a credit card issued in the name of the UND employee, to employees designated by UND management, to make purchases <$5000 for official UND business needs. The purchasing card will enable employees to purchase goods and services more efficiently and eliminate the preparation of eform payment requests to make these purchases. The purchasing card payment system is an individual bill / central payment system. The cardholder prints a monthly account statement for information and reconciliation purposes only. UND Accounting Services obtains a consolidated electronic billing file and makes payment to the purchasing card vendor on behalf of all cardholders. Expenditure transactions are processed and posted to the appropriate departmental fund that has been reallocated by the cardholder in Payment Net or using the default fund code string assigned to each purchasing card. Purchasing Card procedures are located at http://und.edu/financeoperations/purchasing/purchasing-card.cfm

Payment Documents The following list are some of the vendors that only accept payments on the PCard: BEST BUY OFFICEMAX SAM S CLUB TSC - TRACTOR SUPPLY COMPANY TARGET UNIVERSITY BOOKSTORE WAL-MART

Payment Documents Detailed step by step instructions for each type of payment are available on our web site. Look for the How to Process under each type of payment.

Payment Documents Payments should include the following: Proper departmental approval. This is documented within ImageNow using a department approval stamp. The approver should have a Signature Authorization Form on file with Accounting Services for the funding department. If more than one department is funding the payment, a stamp from each funding department is required. When reimbursing someone for expenses incurred, someone other than the person being reimbursed should authorize payment for the department. Sufficient funds should be available in the fund to cover the expenditure.

Payment Documents Accounting Services will process the payment and mail the payment to the address listed on the eform, unless departments specifically request that the payment be held for pickup, by marking "Hold Check". No payments should be made from vendor statements. Discounts should be taken when within the vendor terms. Sales tax should be deducted from the invoice if the item is shipped to UND or was purchased in North Dakota. Include the proper Fund(s), Department(s), Account(s), Program Number(s) and Project Number(s). The correct Account(s) should be used. Please refer to the Account Listing. Receipt(s) or invoice(s) should equal the requested payment amount. Payment requests that have a total payment amount of $1.00 (one dollar) or less will not be processed.

Payment Documents The vendor name and address on the eform should be the same as on the invoice. If it does not match, please contact Accounting Services. A completed W-9 is required for all new vendors. Purchases exceeding $5000 may not be submitted on multiple payment requests to comply with the $5000 limitation. For payments to organizations, the full name of the organization should be given, not just the initials (no acronyms). If there is an error on an invoice from the vendor, the department should contact the vendor and either get a corrected invoice or approval from the vendor to change the invoice. If the invoice is to be changed, there should be a notation/sticky note on the invoice stating the name of the person at the company who approved the change and the date the change was approved. If an item has been returned or removed from the invoice, a credit memo from the vendor should accompany the invoice. Freight should be included as part of the cost of the item. Compliance with all University Policies pertaining to expenditure of funds should be followed.

Payment Documents Payment requests that include food purchases should include the following information: Type of function Location of function (city and state) Date of function Meal served (breakfast, lunch, dinner, break) Number attending List of those attending Itemized, original receipt/invoice; credit card slip or statement is not acceptable Any food purchases in excess of 125% of the per diem, need to have written justification for the excess spending. Group Meals Policy Meals Table

Payment Documents Payments for tangible items EForm payments, as indicated on the account listing are valid only for purchases <$5000 and are NOT valid for capital asset acquisitions (inventory items). The reference/po# should be given to the vendor at time of order and should appear on the vendor invoice. Purchases exceeding $5000 may not be submitted on multiple payment requests to comply with the $5000 limitation.

Payment Documents PO Payments Original invoice(s) are received at Accounting Services, EERC and Facilities. Sometimes the invoice(s) may be mailed to the department. The department should forward the invoice to Accounting Services. All invoices should be billed to the University of North Dakota. The PO payments will be processed through the Non-eForm workflow within ImageNow. Please reference the How to process for detailed instructions. The funding source that the payment will be issued from is the funding source assigned to the Purchase Order. If this funding source changes, contact the Purchasing Office to change the funding on the PO. The item description on the invoice should match the item description on the Purchase Order. Quantities received should agree with the quantities ordered. If an item was obtained via a bid, the department should verify that the items are paid at the unit price per item as set in the bid. Verify whether or not shipping is FOB (freight on board). If it is FOB, no freight should be charged.

Payment Documents Blanket or Annual Purchase Order Payments The Blanket Purchase Order number should appear on the invoice and will be the Ref/PO# on the eform. Fund number(s) and Account(s) charged on the eform should be authorized on the blanket order. If additional funds or Accounts need to be authorized on a blanket order, a written request to modify the Blanket Purchase Order should be sent to the Purchasing Office prior to the payment being submitted to Accounting Services. Capital equipment equal to or greater than $5000 should not be purchased on a blanket order.

Foundation Reimbursements As of January 1, 2014 all payments that are considered an allowable expenditure for the University must be paid through UND. If the payments are to be reimbursed from the Foundation, code these payments to your Foundation flow through fund (26xxx). The number of the fund at the Foundation that you wish to apply the payment to will also be referenced on your payment (description line in ImageNow, transactions notes in PaymentNet, white space above the funding totals on a travel voucher,). These flow through funds may not be used on Journal Entries or Journal Imports At the end of the month, Accounting Services submits a report of all these transactions to the UND Foundation. Once the reimbursement check is received, Accounting Services will deposit the check and email the department(s) a copy of the receipt.

Corrections to Payment Documents A Journal Voucher is used to make corrections to payments for all Funds that originated on a Voucher.

Tax Exempt Status The university is exempt from sales taxes applicable to purchases, rentals and leases of tangible personal property that is purchased and shipped to UND or is purchased from a North Dakota vendor. The university's tax exempt certificate number is E-2001. A copy of the Tax Exempt Certificate is available in the Accounting Services Office or the Purchasing Office or on the Associate VP of Finance webpage. For those departments utilizing the UND Purchasing Card, the UND tax exempt number is embossed on the purchasing card. The university currently has tax exempt status with many states. Prior to incurring expenses with a vendor located within these states, departments should thoroughly review the certificate instructions to ensure that all required procedures are followed. The certificates are located at http://und.edu/finance-operations/associate-vp/state-taxexempt-certificates.cfm

Unallowable Expenditures The following items are unallowable expenditures from University funds: Air Cleaners/Purifiers/Filters Alcoholic beverages Calling Cards Christmas Cards Coffeepots Cups, water glasses, napkins, tableware, etc. Decorations Entertainment First class or business class airfare Flowers Food or beverages for departmental activities Gifts Gift Cards for Employees Greeting Cards Holiday Cards Holiday Decorations Late check-out charges Lost Departmental Keys Parking Permits for UND Staff/Faculty/Students Parking or other traffic tickets Personal care items Phone Cards Pictures Picture Frames Plants Room guarantee charges Software installed on Non-University owned computers Spouse or travel companion (s) expenses Travel insurance Water Coolers Any additional exceptions will be approved on a case-by-case basis. Please note that this is not an all inclusive listing. If you have questions please contact Accounting Services.

Other Questions?

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