Financial Process and Procedures Research Management Centre IIUM

RESEARCH FINANCIAL ACTIVITY Purchasing Approval Authority Procurement Quotation Purchase Order Advancement Miscellaneous Travelling Reconciliation Payment Claims Suppliers / Vendors

Direct Purchase Quotations Tender PURCHASE

Recommendation from ITD Direct Purchase Vs Quotations TYPE OF PROCUREMENT DIRECT PURCHASE QUOTATION Amount Up to RM20,000 RM20,001 – RM500,000 Suppliers / Vendors Registered with IIUM Mechanism Procurement Form Proposal No. of Quotation One (1) At least five (5) IT related items Recommendation from ITD Recommendation 1. Principal Researcher 1. Head of Department / Head of Research 2. Dean of RMC Attachment 1. Quotation 5 quotation Letter invitation for quotation (if less than 5 quotations) Tender quotation form Integrity pact form Approval 1. Dean RMC (RM20,000) 2. Director RMC Kuantan (< RM15,000) 3. Other Dep. Dean (< RM10,000) 1. Rector & Exec. Finance Director (RM20,001 – RM200,000) 2. Chairman SFC & Rector (RM200,001 – RM500,000

PURCHASING – Documents to be Submitted

Get 5 quotations from suppliers Direct Purchase Kuliyah Get 5 quotations from suppliers Prepare complete proposal and attachment Get recommendation from HOD / HOR ITD Get recommendation for IT items RMC Get recommendation from Dean RMC FD Get approval from Exec. Finance Director Rector Get approval from Rector Key-in system / prepare for PO / send PO Kuliyah Get quotation from supplier Prepare complete Procurement Form ITD Get recommendation for IT items RMC Get approval from Dean / Dep. Dean of RMC Key-in system / prepare for Purchase Order (PO) Send PO to suppliers

PURCHASING – Other matters Do not split purchase requisition from the same supplier/vendor Quotations sent by vendors must be in a sealed envelops before the specified deadline and opened by Quotation Opening Committee (at least 3 person including 1 finance rep). Sole distributers – attach with support letter from manufacturer Supplier registration – liaise with Purchasing Unit, Finance Division Virement of allocation – liaise with Research Unit, RMC

Travelling Miscellaneous ADVANCEMENT

ADVANCEMENT – Miscellaneous Get recommendation from Dep. Dean (Postgraduate & Research) / Head of Research (HOR) / Head of Department (HOD) Maximum amount is RM10,000 Require to submit receipts for prior advancement taken at least 70% before request new advancement Not allow for the purpose of Research Assistant (RA) salary / purchasing of assets / travelling Shall be reconciled of total amount within 6 months from date of disbursement

ADVANCEMENT – Travelling Complete application forms received one month prior the travel date. Amount of advancement based on grade entitlement Only for food allowance and hotel based on MSD circulars Shall be reconciled within 14 days after arrival at Malaysia

ADVANCEMENT – Process and procedures Miscellaneous Travelling Kuliyah Prepare the complete Miscellaneous Advancement Form Get recommendation from HOD / HOR RMC Get approval from Dean / Dep. Dean of RMC Key-in system / prepare for Payment Voucher FD Review and advice bank for payment Bank Transfer directly to Researcher’s account Kuliyah Get complete approval for travelling Prepare the complete Travelling Advancement Form RMC Get approval from Dean / Dep. Dean of RMC Key-in system / prepare for Payment voucher FD Review and advice bank for payment Bank Transfer directly to Researcher’s account

Suppliers / Vendors Research Exp. Claim Travelling Claim PAYMENT

Goods received / services provided PAYMENT – Suppliers / Vendors Received in good conditions Quantity and specification as Purchase Order (PO) Acknowledged by receivers on Delivery Order (DO) Goods received / services provided Review and verify to ensure price / amount is accurate against Purchase Order (PO) / Quotation Invoices / bills

PAYMENT – Claims Original receipts only Sort receipts according to Research Financial Vote Certify on the form according to related votes Travelling claims follow entitlement rate based on MSD circular Travelling for Official Duties / Seminar or Courses Use separate form for Travelling and Other Expenses Claim Total claims shall be reconciled against ADVANCEMENT taken (if any)

PAYMENT – Research Financial Vote RESEARCH VOTE TYPE DESCRIPTION 11000 Research Assistant Honorarium for RA 22000 Transportation of Goods Goods delivery – road & other transportation 23000 Communication and Utilities Mail & courier / Telephone 24000 Rental Ship / boat & other rental 26000 Supply of Raw Materials for Repair & Maintenance Electrical / Computer maintenance & repair 27000 @   Research Materials & Supplies (Vote 26000 is for E-science project only) Office stationery Journal & periodicals (books, journal, publication fee) Disposable science supply Research material supplies Computer software and license (renew license existing software, new software below) 28000 Maintenance and Minor Repair Services Scientific equipment maintenance & repair Civil maintenance & repair (small renovation, install partition)

PAYMENT – Research Vote TYPE DESCRIPTION 29000 Professional Services & Other Services (printing, hospitality) Honorarium Entertainment (refreshment) Printing (photocopy) Patent Scientific & research services Others services/data analysis Professional membership 35000 Equipment Inventory / Scientific equipment Office furniture / equipment Server Software Av equipment Computer

Claim Entitlement for Official Duties Food Allowance 24 hours or more Not allowable if provided by the Organizer If meals not provided Breakfast- 20% Lunch - 40% Dinner - 40% Daily Allowance more than 8 hours but less than 24 hours 50 % of meal allowance Hotel / Lodging Allowance Flight / Mileage Claims

Travelling Claims Miscellaneous Exp. Official phone, fax or postage charges Laundry expenses supported by receipt for not less than 3 days stay Airport tax supported by receipt Excess baggage for official items; supported by receipt Parking, toll or ferry charges supported by receipt Mileage Claim Need to use airplane or train unless: Distance is less than 240 km Officer has to discharge duties at several places within the journey It is considered important for the officer to use his own vehicle Officer has to bring others for the official duty

Travelling Claims 14 days after arrival Departure and Arrival Date and Time must be clearly stated on the claim form Food, Hotel or Lodging allowances are paid according to official duties entitlement Original Receipts must be attached together with the claim form( if any) Total claims shall be reconciled against ADVANCEMENT taken (if any) Claim form must be sign by claimant, HOD and approved by the Dean/Deputy Dean RMC

Obstacle in RMC Financial Process Incomplete document / proposal (approval / recommendation ITD / quotation / integrity pact) Goods deliver prior issuance of Purchase Order Unregistered Supplier/Vendor with IIUM Receipts are not properly arranged according to vote Invoices are not surrender to RMC Communication breakdown Insufficient of Research Budget