Finance & Administration Quarterly Update

Finance & Administration Quarterly Update

Business Affairs UpdateApril 27, 2009

Business Affairs Update

Agenda Items

• Purchasing: Non-Compliant Orders

• Accounts Payable: Prompt Payment

• Vendor Query Application

• Banner Program Codes and Budgets

Business Affairs Update - Purchasing

Purchasing

Non-Compliant Orders - HSC OP 72.01

“The ordering of products or services prior to the purchase order issue is considered an obligation without authority and will be reported to the end user, the department administrator or head and the appropriate dean or vice president.”


Purchasing: Non-Compliant Orders

To initiate a payment for a non-compliant order, submit a TechBuy requisition using the TechBuy “Non-Catalog Form”. The requisition must include the following:

•A completed Non-Compliant Form electronically attached to the requisition

•The statement “Non-Compliant Invoice” must appear in the internal notes section of the requisition

Payment must be made with local funds


Non-Compliant Form

•Located in the Purchasing Manual at: http://www.fiscal.ttuhsc.edu/purchasing/manual

/ Non-Compliance Form

•Leave Requisition number blank (completed in Purchasing)

•Provide an explanation and plan to prevent future non-compliance

•Person who originated obligation with vendor must sign the form

http://www.fiscal.ttuhsc.edu/purchasing/manual/




Click on Edit and add “Non-Compliant

Invoice” in the Internal Notes Section

Attach Non-Compliant

Form


Purchasing: Non-Compliant Orders

• Purchasing tracks non-compliant orders

• Notification of frequent occurrences of non-compliance to department administrator and appropriate dean or vice president according to HSC OP 72.01


Purchasing TechBuy Reminder

TechBuy (SciQuest) will not support Internet Explorer 8 (IE8), so please do not install.

TechBuy (SciQuest) will begin supporting Internet Explorer 8 (IE8) in November 2009 at which time we will send out a notice via the TechBuy Users Group email.

Business Affairs Update - Accounts Payable

Accounts Payable: Prompt Payment

Invoice Processing and the Prompt Payment Law - HSC OP 72.10

“Departments are responsible for submitting documents timely so that payments may be made promptly and late interest avoided.”


Accounts Payable: Prompt Payment Procedures (for vendor invoices sent to departments)

• Invoices must be date stamped on the date received

• Provide on face of the original invoice:

• Current Fiscal Year PO number

• Approval to pay statement

• Date the product or service was received or provided

• Signature of employee submitting the vendor invoice



• Promptly forward invoice to Accounts Payable

• Late interest calculated from the date the invoice was received by the department, but no later than 10 days from the date of the invoice

• If there is a dispute or other extenuating factors that should be considered to avoid late interest, Attachment A – Justification for Late Invoices should be attached to the invoice. (Available as a data entry form at the Payment Services Website / Accounts Payable / Forms)



• If payment of interest is required, the department is not complying with Prompt Payment Policies

• A Late Interest Report will be routinely sent to the appropriate Dean or Vice President

• If a department exhibits a history of failing to comply with the Prompt Payment Policy, Accounts Payable will contact the vendor(s) and request the change of billing address to Accounts Payable

Business Affairs Update - Vendor Payments Query

Vendor Payments Query

• Query by vendor or employee name or R#

• Available to departments now, vendors in the future

• Three sections

• Scheduled Payments

• Payment History

• Encumbrance Information

• Help Document


Vendor Payments Query

• Access from Webraider http://webraider.ttuhsc.edu

• F & A Work Tools Tab

• Purchasing / Payment Services Channel

• Purchasing

• Accounts Payable

• Travel

http://webraider.ttuhsc.edu/

Vendor Payments – Query Scheduled Payments, Payment History and Encumbrance Information by Vendor

Payment Contact – Accounts Payable Contact Information

Update Vendor Info – Method to update Vendor Information

Sign up for Direct Deposit – Direct Deposit Form

Help – Vendor Query Information Document


Search for vendor or employee by name or R#. Use % as a wild card. Read “Search Tips”.

Click on the vendor R# to display results




Business Affairs Update – Program Codes and Budgets

Program Codes

Currently (FY09) TTUHSC budgets at the Fund / Orgn (BAVL) or at the Fund / Orgn / Account (Budget Pool Account) level.

For FY 10 TTUHSC will budget at the Fund / Orgn / Program (BAVL) or Fund / Orgn / Account / Program (Budget Pool Account) level and will default program codes for every Fund.

This is a top institutional priority.


Benefits

• Less confusion in properly classifying expenses

• More consistency and accuracy for reporting

• Facilities and Administration Rate Study (IDC)

• Research Reports


How do we accomplish this change?

• Build the structure

• Finance Systems Management / Accounting Services

• Training

• Finance Systems Management

• Properly Classify Expenses

• TTUHSC Departments


Building the Structure

Finance Systems Management has worked with Accounting Services to default program codes for all funds and create new funds where necessary according to the NACUBO functions.

The Program Codes and their definitions can be found at http://webraider.ttuhsc.edu > F & A Work Tools tab > Finance Systems Management > Training Documentation > Banner Program Codes.

http://webraider.ttuhsc.edu/


Training

Finance Systems Management will conduct Program Code Workshops with definitions and real life examples as well as provide Program Code information in the Budget Packets. We will coordinate this training with Budget training in the last week of May and first week of June.


Properly Classify Expenses

Departments must know how to properly classify expenses and apply that knowledge by making sure the expense is directly related to the program code that is defaulted to the fund.

If a budget is depleted and will not cover an expense, the department must either move budget into the FOP or FOAP to cover the expense or pay for the expense with another FOP or FOAP with the same program code.


Program Code Expense Classification

Business Affairs and Accounting Services are in the process of analyzing expenses that are coded to a program code other than the one defaulted for a fund and will make adjustments if needed.

Business Affairs Update

Questions?

Documents

Finance & Administration Quarterly Update