Brown Bag Breakfast Briefing: Professional Service Providers

Purchasing Professional Services On occasion, the university requires the services of a professional service provider. A professional service provider (PSP) is an independent contractor or company that provides infrequent, technical, or specialized services to Rutgers. Departments seeking to hire a Professional Service Provider must review the Engagement and Payment of Professional Service Provider Policy which outlines in detail the steps required to engage and pay for professional service providers.  http://policies.rutgers.edu/PDF/Section20/20.1.17-current.pdf

Purchasing Professional Services The Professional Service Provider Matrix is designed to assist departments with determining the type of RIAS requisition to create and the forms that need to be attached.  Please note that this matrix is a guide and does not list all possible professional service providers.  Departments are encouraged to find the professional service provider description that best matches the area and if you are still unclear on what paperwork to use please contact Purchasing. http://purchasing.rutgers.edu/ProfessionalServices.html http://procure.rutgers.edu/ProfessionalServices/profservices%20grid.htm

Classification of Services Professional Service Provider is an independent contractor or company that provides infrequent, technical, or specialized services to Rutgers. Independent Contractor is an individual that contracts with Rutgers to provide a defined set of services, for which Rutgers controls, at most, the desired results of the service, but does not control the means or method of accomplishing the result. An independent contractor is sometimes referred to as a consultant Employee is an individual who provides Rutgers with services, for which Rutgers controls the desired result and the means and method for which the individual achieves such results. General Service Contractor is an individual or company that provides useful manual skills or labor that may or may not produce a tangible commodity. For more information check out Section I.A.1-4 of the policy PSP – infrequent technical or specialized services IC – contract w RU for a defined set of services EE – RU controls results, means, method GSC – manual skills or labor – electricians, carpenters

Responsibility Department Responsibilities Establish need and funding Select PSP thru bid or wavier Determine that no conflict of interest exists Appoint a Project Director to manage PSP Maintain accurate and complete files Review and approve PSP invoices

Responsibility Purchasing Responsibilities Assist departments with the bid process Ensure policies and procedures are followed Execute PSP agreements Issuance of POs for engagement over $1,000 Controller’s Responsibilities Issuance of check request, payments for all engagements <$1000 Issuing payment against approved invoices and open Pos for PSP’s where the engagement is >$1000 Ensure all payment polices and procedures are followed Report payments to the IRS and SNJ

Procedures for engaging when > $1000.00 Determine suppliers Obtain quotes Select supplier If supplier is a former Federal, state or local elected official? Per Policy 60.1.14 Employment of Current and Former Public Officials. submit an Employment of Current and Former Public Officials Form to HR Complete Request for Engagement of PSP Form Complete Bid Wavier Form Complete PSP agreement Once approved by Purchasing a PO will be issued Determine if the Supplier is a current or former federal, state, and/or local elected or appointed government official. If yes, submit the Employment of Current and Former Public Officials Form to University Human Resource within 30 days of appointment or engagement. For more information, regarding this form please refer to Rutgers Policy Section 60.1.14 Employment of Current and Former Public Officials. Completed Bid Waiver Form if additional quotes could not be obtained and the amount is over $5,000. The department must provide the reasons why additional quotes could not be obtained and the reasonableness of the fees being charged Note – there are now two PSP agreements

Procedures for engaging when < $1000.00 Does not need agreement Department must have on file for audit Scope of work No conflict of interest between PSP and department Cost of services are reasonable Copies of all deliverables If supplier is a former Federal, state or local elected official? Submit an Employment of Current and Former Public Officials Form to HR Complete Request for Engagement of PSP Form Compete Check Request Form and attach all documents

Procedures for paying PSPs Approve and submit invoices for payment Nature of services, dollar amount Natural Accounts Incorporated entities 31000 - Other Services Individuals and LLC 31100 - Professional Services - Consultants is used for consultant agreements with independent personal service providers 37200 – Professional Services NRA – for an individual that is a nonresident alien 37800 – Payment to NRAs working abroad – for a nonresident alien performing service outside the US Please add and emphasize to the slides that the invoices must be prepared and SIGNED by the consultant, preferably on their letterhead.  This was a major audit finding we discovered in SMLR.

Invoices All payments to PSPs must be processed via an Invoice from the PSP. No longer can the Fee for Services be paid on an Invoice [PO or Check Request] and Out-of-Pocket expenses be paid via a TABER. The invoice must specify the name and address of the professional service provider, the nature and dollar amount of the services rendered, an itemization of out-of-pocket expenses, if any are to be paid, Back up documentation for the out of pocket expenses should be attached to the invoice and the service period covered by the invoice.

Invoices (continued) The invoice must be approved for payment (as evidenced by an original signature) by the project director authorized to engage the professional service provider only after the services (or a proportional amount of the services) were satisfactorily performed. Finally, the Purchase Order number must be noted on the invoice before the invoice is submitted to Invoice Processing for payment.

Grant Specific Issues Timeframe of work performed needs to be within Grant Period Expenses Included in Rate Invoices processed timely Follow DGCA record retention requirements 8 years after the end date