Purchasing and Accounts Payable Frank FioRito – Director

AP/PO/PCard The Team: Donna Taylor – AP Manager Mike Wheaton – PCard Administrator (and purchase order processing) Elena Mancari – AP Clerk – Direct Pay Luz Arellano – AP Clerk – PO Related Invoices

Authority to bind IIT to contracts IIT’s policies are posted on the General Counsel’s website https://web.iit.edu/general- counsel/resources/policies-and-procedures One policy identifies those that have authority to contract in the name of IIT

Purchasing Procedures Are designed to comply with the IIT policies Designed to comply with Federal law Meant to protect IIT from loss Not necessarily designed to be quick

Decentralized buying under centralized control Simply follow the Purchasing Manual Write this link down! https://web.iit.edu/sites/web/files/departme nts/purchasing/pdfs/Purchasing%20Manual% 20edit%20version%2002%2021%202017%20re vision.pdf (Just kidding)

How to buy? 1. Goods under $500 2. Goods under $2,500 with PCard available 3. Goods over $500, but no PCard

Tools Under $500 - Request for Check Under $2,500 – Pcard Over $500, but No Pcard Available – Banner Requisition

Exceptions to the use of POs Certain payments for goods and services do not require a purchase order. These exceptions include, but are not limited to: Payment of taxes, assessments, and fees imposed by government agencies Pass-through payments to IIT customers’ vendors when required by contract between IIT and its customers (both internal and external). Confidential legal and benefit services Workers compensation claims and insurance premiums Exceptions that are approved by the Controller to avoid duplication of orders. Donations including support of community groups through purchase of attendance tickets for fundraising events. Institutional Memberships (e.g. trade organizations) Registrations (e.g. conferences, seminars, etc.) Utilities   Payments for these exceptions can be processed using a Request for Check regardless of dollar amount.

Request for Check Exercise 1

AP 2

AP 3

AP 4

AP 5

AP 6

AP 6

Over $25,000 Vendor Selection Form Sole Source Justification Memo

Vendor Selection Form Exercise What is wrong here?

Sole source justification memo Would you accept this?

Purchase requisitions 1. You have to have access to Banner 2. You have to know how to use Banner There are some training tools posted at the Purchasing Portal. Also on the Controller’s Website

Why is Purchasing at IIT so complex? Decentralized Purchasing requires the departments to follow all sorts of different processes: How to Buy

We have many, many, many rules We have many, many, many, answers: Keep going back to the Purchasing Portal Check out How to Buy

Accounts Payable When goods and services are provided, the vendor sends the invoice. The invoice must get to Accounts Payable in order to START the payment process An invoice can be entered into Banner ready to go, but it won’t create a check for payment unless the invoice is approved in Banner

How do invoices get to AP? By policy: PO vendors send invoicing directly to AP By reality: Directly to AP or forwarded to AP by whoever gets the invoice Key Concept: The invoice MUST get to AP

Common Questions for A/P https://web.iit.edu/sites/web/files/departme nts/accounts-payable/pdfs/faq_AP.pdf

Expense and Travel Reimbursement Use a Request for Check to get payments made for purchases Use an Employee Travel and Expense Reimbursement for reimbursement for travel related expenses

Self Service Banner Provides a means of tracking the progress of your: Requisition Purchasing order Invoicing Cash disbursement

What are the pain points? Not familiar with Banner Budget issues No catalog of vendors Need new vendor added Vendor hasn’t been paid Pcard credit at limit Employee Expense and Travel Report rejected Invoice submitted but vendor not paid Etc.

Travel