1. Department Head / Chair Training
Finance & Operations

2. AGENDA Division of Finance & Operations Campus Budget
Monthly Reporting
Contract Processing
Procurement Cards
Accounts Payable
September 21, 2018

3. Division of Finance and Operations
September 21, 2018

4. F & O Organization Chart
Vice Chancellor / CFO
Finance
Accounting & Budget
Accounts Payable / Payroll
Bursar & Student Loans
Special Projects
Sponsored Projects Accounting
Business / Operations
Business Contracts
Police / Parking
Purchasing
Auxiliaries
Mail Services
Bookstore
Dining Services
Printing & Copy Center
September 21, 2018

5. Campus Budget
September 21, 2018

6. Definitions
Unrestricted Funds: (E-accounts) Funds provided to meet the primary educational mission of the university (sometimes referred to as Educational & General Funds)
Restricted Funds: (R-accounts) Funds provided to meet a designated purpose – research, scholarships, endowed chairs, etc.
General Operating Budget: Funding provided across campus to meet operational needs – referred to as ORANGE dollars.
Sources are from State Appropriations, Tuition & Fees, and F&A Revenue
What’s the difference between Unrestricted and Gen’l Oper Budget?: Unrestricted Funds includes some self-supporting activities like continuing education, conferences and auxiliaries.
September 21, 2018

7. FY 2013 Budget
September 21, 2018

8. General Operating Budget
September 21, 2018

9. General Operating Budget
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
State Appropriation
$113.0
$115.4
$125.7
$134.8
$129.0
$122.7
$117.6
$119.2
$125.4
Tuition & Fees
30.0
34.0
36.9
40.4
44.3
52.1
58.6
68.2
68.6
Facilities & Admin
14.9
14.8
14.3
13.8
12.0
15.7
15.9
14.2
12.7
TOTAL Gen’l Oper
$157.9
$164.2
$176.9
$189.0
$185.3
$190.5
$192.1
$201.6
$206.7
F & A
T & F
Gains in State funding in FY 07 and FY 08 have been lost and replaced in part by tuition and enrollment increases.
State
September 21, 2018

10. Total Budget
September 21, 2018

11. Total Revenue General Operating $157.9 $164.2 $176.9 $189.0 $185.3
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
General Operating
$157.9
$164.2
$176.9
$189.0
$185.3
$190.5
$192.1
$201.6
$206.7
Gifts & Endow Income
18.1
27.1
18.2
21.2
23.1
18.7
17.9
18.9
18.4
Sponsored Programs
137.8
145.6
143.5
150.3
153.6
156.1
176.4
185.0
180.5
Sales & Service
36.8
32.6
31.9
32.0
34.9
23.6
25.1
28.0
TOTAL Budget
$350.6
$369.5
$370.5
$393.1
$394.1
$400.2
$410.0
$430.6
$433.6
Sales & Svc
Spon Prog
Gifts
Gen’l Oper
September 21, 2018

12. Expenditures by College / Division
FY 2012 FINAL
Unrestricted Funds
Restricted Funds
TOTAL ALL FUNDS
Colleges
Allied Health
7,301,426
406,753
7,708,179
Dentistry
17,549,022
2,008,883
19,557,905
Graduate Health Sciences
1,366,325
136,914
1,503,239
Medicine
Memphis
55,080,807
127,941,966
183,022,773
Chattanooga
2,718,648
25,912,026
28,630,674
Knoxville
13,015,448
37,379,528
50,394,976
Nursing
4,636,172
2,179,818
6,815,990
Pharmacy
14,017,823
8,036,184
22,054,007
Administration
Chancellor's Office
948,102
308,378
1,256,480
Chief of Staff
5,270,341
25,378
5,295,719
Academic, Faculty, & Student Affairs
11,207,513
1,497,062
12,704,575
Development & Alumni Affairs
3,063,719
Facilities & Utilities
20,989,296
Finance & Operations
8,055,342
Information Tech Services
5,516,719
127
5,516,846
Research
4,300,854
682,352
4,983,206
Campus General
40,550,550
TOTAL HSC
215,588,107
206,515,370
422,103,477
September 21, 2018

13. FY 2012 All Funds Expenditures
September 21, 2018

14. Monthly Reporting
September 21, 2018

15. Old Report  4 Page Summary
September 21, 2018

16. September 21, 2018

17. New Report  1 Page Summary
September 21, 2018

18. September 21, 2018

19. Contract Processing
September 21, 2018

20. What is a contract?
Technically, a contract is a specific proposal to enter in an arrangement between two or more parties.
Verbal or written
There must be some consideration (something of value) to one exchanged for performance by the other .
Dollar value does not matter: receivables, zero-dollar, and payable contracts are all processed the same way and only authorized officials can sign them.
Title of document does NOT matter: All of these are contracts:
Memorandum of Understanding / MOU
Agreement or Letter of Agreement
Lease
September 21, 2018

21. Contracts
When does UT policy require a contract (or PO) in order for an invoice to be paid?
When a transaction is valued at $5, or more.
When does UT policy require a contract go to through the formal review process?
Every single contract regardless of dollar value.
Even if the vendor requires that a contract be signed for a transaction less then $5,000 or receivable to UT or for no cost.
September 21, 2018

22. Dollar Thresholds $5,000 or more requires an NCJ* or Bid
NCJ: Non-Competitive Justification – explains why can’t you go out for bid.
$100,000 or more  non-delegated for campus signature
$250,000 and longer than one year  requires State Fiscal Review Committee approval in most circumstances
September 21, 2018

23. Four Most Important Rules
Only authorized officials can sign contracts!
For the HSC, the Chancellor, Executive Vice Chancellor and Vice Chancellor for Finance
All business contracts must go through our Business Contract Office.
Research agreements go through Research Admin.
Departments are responsible for reviewing contracts for business terms (prices, etc.), and operational/technical specifications.
Departments should not negotiate legal terms and conditions with the vendor.
September 21, 2018

24. Major Prohibited Provisions
The University cannot accept the following:
Requirements for arbitration or mediation
Obligations to pay legal fees, court costs, audit fees, etc.
Governing law other than Tennessee
Indemnity or hold harmless clauses
Limitations of liability or payment of punitive damages
University employees as a party to the contract
September 21, 2018

25. Procurement Cards
September 21, 2018

26. Procurement Cards
Established to allow for a more cost efficient alternative to make purchases under $5000.
Using the procurement card allows for a quicker, more efficient purchasing process
Therefore a quicker receipt of needed goods and
Quicker payment to vendors.
University Policy FI0530 has an extensive listing of those items that are considered inappropriate.
The HSC has about 150 cards that are issued through the Bank of America.
September 21, 2018

27. Procurement Cards – Frequently Asked Questions
Can we make purchases from Amazon and use the Pcard??
Yes, as long as we don’t provide any of our bank information.
Sometimes vendors will ask that you guarantee purchases by “tying” a bank account to them.  We do not allow this.  (Paypal, for instance, will allow certain types of upgraded transactions if the buyer does this.)
If we make on line purchases (from Amazon or other vendors) how do we avoid paying sales tax??
When going through the check-out process, you will need to remove the sales tax or see if there is a box to check to show exempt. (each vendor will be different).  Unless it has changed, Amazon will not start adding sales tax until 2014.
September 21, 2018

28. Pro Cards FAQs
Are we exempt from paying sales tax in other states or just Tennessee??
Some states offer exemptions.  Please see the Comptrollers Office website for a list. ( Left hand side – click TAX)
 Is it possible address the concerns of BrainBits, NEB, Antibodies Inc, and World Precision Instruments? Can something be worked out with Research Diets Inc, they don’t accept POs.  Also maybe autoship is a possibility?
Absolutely. We will get Laboratory Animal Care and Purchasing together to review and find a solution.
September 21, 2018

29. Pro Card FAQs
Would it be possible to receive multiple cards with the same account number?  That would resolve some late night or weekend purchase issues.
Yes, as long as the cards were in different individual’s names.
Yes, there is still a primary holder who would be responsible for the card, as well as a verifier and approver who would be associated with each card.
If this staff person leaves my lab, it is my understanding that Finance will no longer approve procurement cards for anyone else in my lab.
No, this is not true. We will assign a card to another appropriate staff person.
September 21, 2018

30. Accounts Payable
September 21, 2018

31. Equipment Inventory Threshold:
$1,500 for sensitive minor equipment (i.e., computers)
Other equipment is recorded at $5,000 or greater
We are currently in the process of reviewing the annual equipment inventory.
Each year, Departments must go through and physically observe the equipment listed on their inventory sheets.
For missing or surplus equipment, there are steps that must be followed to complete appropriate notifications.
Failure by the department to complete the process in a timely manner can cause problems for the University during our audits.
September 21, 2018

32. Travel
In processing these payments, we are required to audit the travel expense report as filed by the traveler / department.
If problems are found, we assist the department to correct those problems so that we can pay those reimbursements.
Unless there is a serious problem with the expense report, we have a goal of five business days to request payment, but currently we are typically able to accomplish this in three business days.
FYI, we process over 4000 travel reimbursements a year.
September 21, 2018

33. Seminars / Conferences
We register employees to attend these events and the participant with the related information about payment for the event.
We have a special procurement card for this purpose – Departments cannot use their pro card for registrations.
Doing so, we are generally able to get a refund if the attendee has to cancel after the deadline whereas the participant often cannot.
The Department makes all of the other arrangements.
September 21, 2018

34. Capital Funding
September 21, 2018

35. Capital Funding Process
The State of Tennessee provides capital funding in three categories:
Capital Outlay
Major capital projects
Primarily new construction or major renovations to existing facilities
Funded primarily from State General Obligation Funds
Capital Maintenance
Major projects from reconstruction to rehabilitation and renovation
Significant renovations, repairs, or improvements to existing facilities
Institutionally Funded
Major projects, including new construction funded by the campus through revenue generating bonds or major gifts.
September 21, 2018

36. Capital Project Funding
GEB / Simulation Ctr = $24.1 mill
Building Demo = $4.0 mill
September 21, 2018