1. Business Process Changes: What to expect?
Accounts Payable
Business Process Changes: What to expect?
September 2014

2. Agenda Introduction SPCC Independent Contractors Honorariums
Awards, Prizes and Stipends
Direct Payments
Reimbursements
Signature Authority Differences
Other Topics
Vendor Payment Request Form (VPRF)

3. Introduction
As of July 1, 2014 updated business processes became effective on campus.
Increase of SPCC usage
Each transaction necessitates an assessment of how to be paid
Back-up documentation for AP payment is enhanced
Uniform processes throughout campus
Cost Savings
1099 Reporting

4. Payment Process - SPCC
Require use of SPCC for all allowable purchases under $5,000, unless:
Vendor does not accept credit card
Vendor charges additional fees for credit card transactions
Benefits:
Timely Posting of Payment to Banner
Eco-Friendly
Ability to view documents at will
Increase Prompt Pay Compliance
Debt Set Off
1099 Reporting
Cost-Savings

5. Questions about SPCC Payment Process
Q. Do we need to use the SPCC for expenditures listed as approved direct pays?
Yes, if the vendor accepts credit cards.
Q. What if I enter an eVA order that exceeds $5000 and I am now receiving numerous invoices all under $5000, do I still have to use the SPCC to make payments.

6. Q. What documentation is required for SPCC payments
Vendor Payments
Receipt (preferred: Invoice, Contract, Receiving Documents…)
Travel (if Restriction Lifted) must include a Travel Authorization for all Employees
Lodging
Hotel Folio, Internet Receipt
Airline and Rail Tickets
Internet Receipt
Moving and Relocation
Invoice, Bill of Lading (for common carrier), Tenure Agreement, M & R Summary Form signed by Provost
Business Meals
Itemized Receipt and all other required components of the business meal (business reason for the meal, number and names attendees and affiliation, type of meal, per diem spent, if meal exceeds per diem allowance, justification for 50% and signature from approver)
Over 150% per diem is not allowed on SPCC
Rental Car
Invoice and business purpose

7. Departments should use a Form similar to this to ensure all required fields are provided.

8. Independent Contractor Payment Process
What is an independent contractor?
An independent contractor is an individual who is subject to the control and direction of another individual only as to the result of his work, not as to the means and details to accomplish such.
If a service requires special skill, any specialist called in to perform the task is usually an independent contractor.
Process
Step 1: Complete appropriate Independent Contractor form (Procurement website)
Step 2: Purchase Order must be entered into eVA
Step 3: VPRF
Supporting documentation – Contract and vendor invoice
Form W-9

9. Honorarium Process
An honorarium is a one-time payment, made to an individual who is not an employee of the College of William and Mary for a special and non-recurring activity or event for which no remuneration is collectible by law. Honoraria are typically paid to persons of scholarly or professional standing with the intent of showing appreciation for participation in the College educational, research, or public service activities.
If payment is negotiated and agreed upon, it is considered a contractual agreement, and should be processed as a payment for professional services, not as an honorarium.
An honorarium may not be used for the following
To replace or circumvent procedures for paying consultants
To pay College of William and Mary salaried and non-salaried employees
As a reimbursement in lieu of undocumented expenses
Process
Step 1: Complete Honorarium Form (Procurement Website)
Step 2: VPRF (Account )
Supporting Documentation: Honorarium Form

10. Awards, Prizes and Stipends Process
Awards & Prizes to NON-Employees or Students - Prizes and awards are defined as financial support provided in recognition of special skills, achievements, performance, competition, contest, or other criteria. Payments may be used for any purpose (not limited to educational expenses) and are taxable income to the recipient. The reason for the award or prize should be attached to the VPRF as supporting documentation, and the expenses should be charged to account
Stipend – A stipend is a payment to an individual or organization as an incentive to participate in State sponsored programs and activities (such as restoration projects). The award letter and description of program should be attached to the VPRF as supporting documentation, and expense should be charged to account
Process
VPRF
Supporting Documentation: Award/Prize/Stipend Letter outlining the reason for the payment

11. Direct Payments
A direct pay occurs when an item or service is purchased outside the Procurement system and an invoice is presented to Accounts Payable for payment, in other words, a payment without a purchase order.
Allowable Direct Pays
Advertisements
Conference Fees
On-Campus dining services catering
Honoraria
Moving and Relocation expenses
Professional Organization Membership Dues
Scholarships and Fellowships
If the purchase is not on the eVA exemption list, justification for the purchase must be attached to the form. Departments or individuals requesting an ineligible direct pay will be given one warning.
Subsequent violations will be forwarded to the Vice Presidents for Finance and Administration for review.

12. Q. What documentation is required for all travel related Direct Bills?
Travel Direct Bill for vehicle and common carrier
Travel Hotel Folio
Travel Authorization
Moving and Relocation
Bill of Lading (for common carrier)
Tenure Agreement
M & R Summary Expense Form

13. Reimbursements
A reimbursement occurs when an individual uses their own funds to purchase a good or service and then requests the College pay them back.
Express services when out of town
Business Meals including Sodexo catering
Moving and Relocation
Printing if less than $50
Travel (Conference Fees, Lodging, Meals, Parking fees and Tolls, Personal Vehicle Mileage, Public Carriers)
Continuing Education course tuition
Emergencies only with written justification
Justification is needed for all reimbursements not on the allowable list.
You must use the correct AP form to request reimbursements.
Virginia state tax will not be reimbursed.
Departments or individuals requesting an ineligible reimbursement will be given one warning.
All ineligible reimbursements submitted will be returned.  

14. Student Reimbursements
Q. Are students reimbursements for food purchases subject to per diem and business meal rules?
Yes.
The Travel regulation does not provide guidelines for snacks.  Ice cream socials and coffee breaks, for example, ARE allowed, but there is no category for them under the state per diem regulations, so we simply should “lump” those under the appropriate “meal” allowance based upon the time of day of the coffee break/ice cream social. 
Departments at CWM should use the time table below based upon a generally accepted business practice of restaurants. (B) Breakfast:  midnight until 11:00 a.m. – (L) lunch: 11:00 a.m. – 3:30 p.m. (D) Dinner 3:30 p.m. – midnight
Q. Do we have to do anything different to process student reimbursements?
The expectation is that departments use the SPCC card when possible to provide supplies and materials to the student groups. But when the activity makes it necessary for a student to be reimbursed, in addition to the paid receipts and proof of payment the department must provide a detailed description of the student activity. The voucher has to describe the reason for the student purchase.
Office and Lab supplies are examples of improper purchases by a student.
In addition, Students should never be made responsible to pay an invoice for the College of William and Mary.

15. Procurement Signature Authority vs Accounts Payable Signature Authority
The Financial Operations Signature Authority Form designates individuals with direct authority and related responsibility to commit funds of the Organization code and Index numbers listed on the form for Financial Operations documents that includes, but are not limited to: vendor payments, travel authorizations, reimbursements requests, Small Purchase Charge Card (SPCC) monthly reconciliation, non-travel business meals forms and journal voucher revenue or expense transfers.
On an annual basis, the Office of Financial Operations will formally request that each department review its list of active indexes and submit an updated listing of authorized signatures to Financial Operations. Individuals designated to approve financial transactions or expenditures are responsible for ensuring the following:
An understanding of what is being approved
The information and supporting documentation is accurate and complete
The transaction is allowable, reasonable and justified
There are adequate funds to cover the expenses
The funding source is appropriate for the expenditure

16. Procurement Signature Authority vs Accounts Payable Signature Authority
The Procurement Signature Authority refers to the Contracting Signature Authority Policy. Board of Visitors By-Laws delegates signature authority to President, Provost, Vice President for Administration or Vice President for Finance depending on contract type. They have authority to sub-delegate.
Contracting and Signature Authority Policy
To sign a contract an employee must have written delegation to do so.
Delegation is granted to specific position & individual and
Training is required to receive and retain authority
Contract review/approvals by Procurement – All contracts over $5,000 must be reviewed and approved by Procurement in advance with documentation attached to eVA requisition. Contract review can also be done for contracts less than $5, This can be done by attaching the contract to your purchase order in eVA, by adding an additional line of $5,000 describing the line as ‘for procurement review’.

17. Other Topics
Professional Memberships & Professional License Renewals – VPRF or SPCC is the acceptable method for payment of institutional memberships, licenses and dues which are transferable to anyone the institute may assign.
e-Books – On Amazon.com, locate the product you want to purchase and select the ‘Give as Gift’ option from the right-hand side-bar. Complete the purchase by ing the app (gift to the recipient). The recipient will receive an with instructions on how to access the app after you have completed checkout.
Electronic Approval - The Office of Sponsored Programs is the only department at the College that has been granted permission to approve AP forms electronically. The OSP signature is needed in advance for all goods and services; however if not approved in advance (through the Procurement system or through TA) you must present to OSP prior to sending to AP.

18. Other Topics, continued
Checks made payable to William and Mary – The Accounting Office will no longer be issuing checks payable to William and Mary if the department objective is to transfer funds between accounts and/or departments. The departments must prepare a JV to achieve this goal.
Sodexo – How do I place an order that exceeds the allowable per diem? For an online order, use an “8” index number for your charge. This will alert the system to offer you the meal rates that exceed the standard per diem rates.  Before you submit the paperwork for payment, you can cross out the “8” index and use the correct index.  Remittance Address - Sodexo-Lockbox, P. O. Box , Atlanta, GA
Cell Phone - Under IRS guidelines employers may not purchase personal cell phones for employees; purchases of this kind are taxable reportable income to the employee.  However, cell phones for business use can be obtained by the Procurement Office and we will continue to reimburse for data plans until a Cell Phone Policy is implemented.
IT Purchases – Regardless of the cost or fund source, IT must review requests prior to purchase of all desktop and laptop purchases/leases, printers, servers, non- standard or specialized software and technology consulting services.  The approval must be attached to the vendor payment form as supporting documentation.
Exemptions in IT purchases –All exemptions should be attached to the VPRF.

19. Vendor Payment Request Form Changes
Special Handling Request
Accounting distribution Changes
Additional Payment Information
Per Sponsored Programs, if this box is checked and you are paying with a grant; The OSP office must approve the change.

20. Vendor Payment Request Form Other Issues
Remittance will ONLY be sent to Vendors when required. If the department “wishes” to send a copy; the department needs to send it on their own. In addition, when the remittance is required the department is to provide the copy for Accounts Payable.
Vendor Type Information
This is often the most overlooked part of the form however it is the most significant one for IRS reporting purposes. Let’s review:

21. Questions