1. www.umbc.edu 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

2. www.umbc.edu 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

3. www.umbc.edu Concerns Processing time Prompt payment of vendor Audit exceptions Procurement issues Policy and process training Streamlined processing for all

4. www.umbc.edu Payment vehicles Pcard Purchase order Other –Universal Voucher –Working fund –Expense reimbursement

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

6. www.umbc.edu 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.

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

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

9. www.umbc.edu 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)

10. www.umbc.edu 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)

11. www.umbc.edu State Payment Process Payment is made on same schedule regardless of Universal Voucher or PO. Approximately 12-15 working days after submittal to Annapolis.

12. www.umbc.edu 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)

13. www.umbc.edu 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

14. www.umbc.edu Saves up to 15-19 days! Proactive vs. Reactive Insures adherence to procurement policy Solid audit trail Timely vendor payment

15. www.umbc.edu Our commitments to you PeopleSoft training Business Process training Communication E-mail with invoice attached if receipt is not entered

16. www.umbc.edu 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 www.umbc.edu/accounting www.umbc.edu/accounting Review will adhere to policy.

17. www.umbc.edu Questions? Sharon Quinn, Director of Procurement squinn@umbc.edusquinn@umbc.edu; 5-2540 Jim Citro, Director, Business Services citro@umbc.educitro@umbc.edu; 5-3632