Universal Vouchers at UMBC 9/9/2008 Terry Cook, AVP, Admin Services Ben Lowenthal, AVP, Financial Services Universal Vouchers at UMBC 9/9/2008 Terry Cook, AVP, Admin Services Ben Lowenthal, AVP, Financial Services

Current Usage & Issues More than 20,000 UVs annually Approaches 50% of total non- salary University payments. Inefficient process Possible procurement policy conflicts Poor audit trail/insufficient documentation

Concerns Processing time Prompt payment of vendor Audit exceptions Procurement issues Policy and process training Streamlined processing for all

Payment vehicles Pcard Purchase order Other –Universal Voucher –Working fund –Expense reimbursement

Pcard – Appropriate Use Any payment less than $5,000 Certain purchase types excluded (entertainment, gifts, etc.) Vendor must accept credit cards

P-card advantages Quickest way to get a vendor paid Paperwork is on back-end vs. front end Administratively efficient This is the preferred payment methodology.

Purchase Order – Appropriate Use All purchases $5,000 and above (which require competition). Purchases below $5,000 where Pcard is not accepted.

Purchase Order Advantages Proactive vs. reactive Timely payment Electronic approval and audit trail Administratively efficient

Universal Vouchers – Appropriate Use Honorariums/stipends RSTARS payments Registrations (where p-card is not accepted) Association memberships (where p- card is not accepted) Refunds of revenue Intellectual Property Rights Payment Student cultural events (where p-card is not accepted)

Ordering & Payment Process Adhere to purchase guidelines. Procurement will return UV’s not meeting criteria. All Invoices must be submitted by vendor directly to Accounts Payable (Admin Building – Room 306)

State Payment Process Payment is made on same schedule regardless of Universal Voucher or PO. Approximately working days after submittal to Annapolis.

Purchase order process Proactive On-line creation and approval No mailing/delivery time On-line tracking On-line and immediate receiving Invoice processed immediately upon receipt (no late payment justification)

Universal voucher process Reactive Manual creation and approval Mailing/delivery time – 3 days No tracking No record of receipt Review and approval by Accounts Payable and Procurement – 3 days Additional potential delays –If late, need late justification letter (20-25%) – 3-5 days –Incomplete UV form – goods and services stamp signed – 3-5 days –New vendor creation by AP (If PO – would already be there) – 3 days

Saves up to days! Proactive vs. Reactive Insures adherence to procurement policy Solid audit trail Timely vendor payment

Our commitments to you PeopleSoft training Business Process training Communication with invoice attached if receipt is not entered

Working Fund Usage 1130 transactions (high usage) Exception based processing slows daily business processing Pre-planning and pcard use should reduce this dramatically Policies on F/S website Review will adhere to policy.

Questions? Sharon Quinn, Director of Procurement Jim Citro, Director, Business Services