1. Wisconsin School of Business Financial Management Overview Financial Management Office Overview, Roles, & Responsibilities June 2014

2. Topics FMO Team Members ( Team Member Responsibilities Link) What Does The FMO Do? Financial Overview Financial Overview Model What is a Funding String? State Funds Unified Budget Financial Reporting (Coming Soon!) Transaction Types & Best Practices Purchasing Authority (and Best Practices) Electronics/Software Purchase Approvals Travel (and Best Practices) E-Reimbursement (and Best Practices) Guided Expense Tool Intro Procurement Cards (and Best Practices) Direct Payments to vendors (DPs)/Payments To Individuals (PIRs) (and Best Practices) Grant and Grad School Funding Administration (and Best Practices) Capital Inventory Shop@UW Cost Transfers and Documentation Shared Purpose and Partial Payment Expenses UW Foundation (and Best Practices) Graduation Expenses Miscellaneous Reminders/Updates

3. FMO Team Members NamePositionAreaE-mail Jim Walker Assistant Dean – Director of Financial Management FMOjwalker@bus.wisc.edu Joseph SidleyAccountant – SeniorFMOjsidley@bus.wisc.edu Lisa LearishAccountant – SeniorFMOllearish@bus.wisc.edu John WolfAccountant – JourneyFMOjwolf@bus.wisc.edu Jenny YuanFinancial Specialist 3FMOjyuan@bus.wisc.edu Kelly YoungFinancial Specialist 3FMOkyoung@bus.wisc.edu VacantFinancial Specialist 3FMO Gina SrenaskiFinancial Specialist 3 Executive Education (Fluno Center) gsrenaski@exed.wisc.edu FMO Website: http://tinyurl.com/WSB-FMO Go to Contacts & Responsibilities Page for Individual Team Member Responsibilities

4. What Does The FMO Do? Responsible for processing, approving, and auditing, over $65 million in payments on purchase orders, p-card transactions, direct payments to vendors, payments to individuals, expense reports, check requests, gift deposits, etc., on over 450 accounts, for more than 700 employees, non- employees, and vendors. The FMO is also responsible for financial analysis/reporting for Departments, Centers, and the Dean’s Office; campus budgets; financial-aid; year-end closing; monthly reconciliations; internal billings; fund monitoring; PCI Compliance; and providing assistance for all financial-related inquiries. We work hard to continuously provide process improvements, through designing, building, implementing, and providing feedback on new tools, guides, etc., for internal processes/initiatives, as well as campus-wide initiatives.

5. Wisconsin School of Business Financial Structure State WISDM: https://authhub.wisconsin.edu/?app=WISDMhttps://authhub.wisconsin.edu/?app=WISDM Funding: Account-Fund-Dept ID-Program-Project Fiscal Year: 7/1-6/30 P-Card DP/PIR POs & Invoices Cost Transfers Sales Credit Deposits Vendor Refunds UW Foundation UW Campus Access: http://www.supportuw.org/http://www.supportuw.org/ Funds: 12 (Expendable), 32 (Endowment) Fiscal Year: 1/1-12/31 Gift Deposits Check Requests e-Reimbursement Financial Overview

6. What is a Funding String? 3100-233-122000-4-PRJ47BB Account-Fund-DeptID-Program-Project 4 digits-3 digits-12XXXX-0-9 or R-7 digits http://www.bussvc.wisc.edu/acct/coding.html

7. State Funds *Regardless of the source of the funds, once transferred to the state side, all expenditures must follow state policies and procedures (even if it is only $1) FundsDescription 101General Program Operations – Educational Programs (GPR Appropriation) 104General Program Operations – Extension Programs (GPR Appropriation) 131Academic Student Fees 133Non-Federal Grants and Contracts 135Funding from the Wisconsin Alumni Research Foundation (WARF) 136General Operations Receipts Received for Programs 144Federal Grants and Contracts 185Center for Urban Land Economics Research Sponsorships 233 Gift funds (Revenue directly from UW Foundation Accounts) *Note: Once the money is in a 233, it must follow State policies

8. Unified Budget In 2013, the Wisconsin School of Business implemented the first-ever unified budget. This is an annual process completed by all departments, centers, and areas across the school. During this process, each area is asked to forecast recurring expenses, and budget for new initiatives and events for the upcoming year. Once each unit has developed their proposed budget, they must submit them to the FMO for review and approval. Timeline Late DecemberBudget Process Launches Late December-End of January Budget development by units; FMO assisting as requested End of JanuarySubmissions due End of January to Mid-February Review by FMO, Dean’s Office Mid-February to Mid- March Budget review meetings between units, Dean’s Office, FMO End of MarchWSB FY Budget finalized

9. Financial Reporting The Financial Reporting Tool is currently undergoing testing and will be available by August 1, 2014! Stay Tuned!

10. Purchasing Authority The Wisconsin School of Business does not currently have Delegated Purchasing Authority All agreements/contracts (for any dollar amount), etc. (including Revenue and PA agreements), must be signed by official, delegated individuals. Forward all requests to the FMO, for proper routing and processing All expenses > $5,000 must be paid via a Purchase Order (PO) No Serial Purchasing References: Delegation: http://www.bussvc.wisc.edu/purch/delegation.htmlhttp://www.bussvc.wisc.edu/purch/delegation.html Purchasing Services: http://www.bussvc.wisc.edu/purch/purch.htmlhttp://www.bussvc.wisc.edu/purch/purch.html

11. Best Practices: Purchasing Contracts All agreements/contracts, except WSB – Conference Services contracts, must be processed through the FMO, regardless of amount. Complete the “Contract & Purchase Order Request Form” and attach supporting documentation and/or vendor bids Processing Time varies, depending on complexity of the request. Allow at least 2-3 weeks for typical contracts (note that some contracts may take longer to process, so please submit with as much lead time as possible) Purchasing – Total Cost between $5,000-$50,000 Obtain at least 3 competing, simplified bids (including the quote from the vendor of choice) from different vendors Standardize the format and wording, in which requests for bids are sent to vendors Allow at least 3-4 weeks for processing Complete the “Contract & Purchase Order Request Form” and attach supporting documentation and/or vendor bids Purchasing – Total Cost over $50,000 Before contacting any vendors, please work with Jenny in the FMO, to determine the best way to proceed (if an Official Sealed Bid is required, Purchasing Services will be directly involved as well) Allow no less than 6-8 weeks for processing Complete the “Contract & Purchase Order Request Form” and attach supporting documentation and/or vendor bids Group Trips Start planning at least 9-12 months in advance (but no less than 6 months). Meet with Jenny in advance of planning (also review the “Financial Guide to Group Trips” booklet and complete the “Group Travel Authorization Request Form” and the Contract & Purchase Order Request Form, on the FMO website, under Group Travel)Group Travel **The FMO is working to develop an online submission and tracking system for contract and purchasing requests. We hope to make it available sometime in 2014.

12. Electronics/Software Purchase Approvals Please obtain pre-approval from ITS before purchasing Electronics, Software, and Hardware items Submit Electronic Equipment and Software Purchase requests (i.e. software licenses, boxed software, monitors, tablets, etc.), to the Information Technology Solutions (ITS) Department, through the following link: https://app.smartsheet.com/b/form?EQBCT=225dc652d3534d89bfb1d564f9a1d8c0 https://app.smartsheet.com/b/form?EQBCT=225dc652d3534d89bfb1d564f9a1d8c0 Requests for small, miscellaneous items, such as keyboards, mice, etc., may be submitted to ITS by e-mail, through: support@bus.wisc.edusupport@bus.wisc.edu Please Note: The UW has enterprise licenses for some software programs, so please check with ITS, BEFORE purchasing any software. Some software is also available to UW employees (for personal use), at greatly reduced pricing or free-of-charge. Purchases made without ITS approval may delay reimbursement (if purchased using personal funds) while post-approval is reviewed and may result in item not being reimbursable Pre-Approval from ITS prevents unnecessary purchases (i.e. If the school already has the item needed or is able to obtain at a greatly reduced cost) & ensures proper tracking of University Property

13. Travel Fox World Travel (FWT) is the UW’s contracted travel agency for domestic, international, and group travel** To book individual airfare online, use Concur, the contracted self-booking tool. To access Concur, log-in through UW System’s TravelWIse website at: http://web.uwsa.edu/travel/login/http://web.uwsa.edu/travel/login/ Requires NetID to log in to TravelWIse and a separate Concur log-in to access the booking tool To work directly with a travel agent at Fox World Travel, call FWT at 920-230-6467 or toll-free at 866-230-8787 (higher booking fees apply) All UW-Madison employees, students and authorized agents of the university must be approved by UW-Madison Risk Management prior to operating a vehicle for university business, regardless of whether a personal, Fleet, DOA or rental vehicle is usedUW-Madison Risk Management **The UW’s purchasing card (P-Card) and the UW’s personal-liability Corporate Card may only be used through the contract vendor. Individual airfare booked through non-contract vendors (online or travel agency), may not be pre-paid using the P-Card, or reimbursed prior to the trip

14. Best Practices: Travel Book flights as early as possible to ensure low-cost tickets Flights Cost comparisons for flights REQUIRED for the following: Indirect routing / extra stops for personal reasons: Allowable provided there are no additional costs incurred. Departing from and/or returning to an alternate city: Allowable provided the fare is more cost effective for the UW, including parking, mileage, meals, additional overnight stays, etc. Departing earlier/returning later than business requires: Allowable a day late if it results in a substantial savings in airfare to offset the extra costs of the room, meals, etc. Be aware of lodging, meal, and tip maximums Be aware of receipt requirements. When in doubt, keep your receipt! References: WSB Travel Checklist: https://wiki.doit.wisc.edu/confluence/x/R7OdBhttps://wiki.doit.wisc.edu/confluence/x/R7OdB Travel Policies: http://www.bussvc.wisc.edu/acct/policy/travel/trpol.htmlhttp://www.bussvc.wisc.edu/acct/policy/travel/trpol.html

15. Travel and Expense Reimbursements e-Reimbursement is UW’s Web-Based Travel and Expense Reimbursement System Reimburses UW Employees (all travel and expenses), non-employees (travel only), and newly hired relocating employees (travel and relocation expenses) Use the Guided Expense Tool (GET) to submit expense reports, whenever possible If non-UW Employee, must complete a Non-Employee Profile Setup Request Form and submit form to: fmomailbox@bus.wisc.edufmomailbox@bus.wisc.edu Reimbursement from State and/or UW Foundation Funds Legitimate business purposes required for all reimbursements References: Non-Employee Setup Request Form: http://www.bussvc.wisc.edu/acct/forms.html#NonEmployeeProfileSetup http://www.bussvc.wisc.edu/acct/forms.html#NonEmployeeProfileSetup

16. Best Practices: Travel and Expense Reimbursements ALWAYS include agendas with your receipt package (if applicable) ALWAYS verify the default funding (Accounting Default) ALWAYS submit receipt packets in a timely fashion and if you’re not sure if a receipt is needed, submit it anyway ALWAYS follow up with your departmental/center approver to advise them that a report has been submitted for their approval Enter all expenses related to a trip in one report (even prepaid expenses) For each business trip/conference, always account for these 3 expense types: Transportation/Airfare Lodging Registration Fee If combining receipts into one expense line, please show calculations Provide itemized receipts with proof of payment If a meal(s) is provided by airline/event/lodging, no further claim is allowed for that meal Additional information and reminders are provided in the travel checklist, available on the FMO Website

17. Guided Expense Tool (GET) Intro What is the Guided Expense Tool (GET)? The Guided Expense Tool is a user-friendly alternative to entering expense reimbursements directly into the e-Reimbursement system. The development of the tool is a result of feedback obtained from campus users by the APR Traveler Team. Expense reports entered into the Guided Expense Tool will feed into e-Reimbursement where the approval process will occur. Unique benefits for GET users: Guided navigation through the expense entry process Built in wizards for selecting funding and mileage rates Receipt and documentation requirement identifiers Quick access to UW – Madison policy Can I enter My Corporate Card transactions in GET and will the University still send the payment to US Bank on my behalf? Yes, you will be able to manually enter My Corporate Card transactions into GET. Approved transactions indicated as Corp Card will be paid to US Bank on your behalf. Note: You are not yet able to import your My Wallet transactions as you do in e- Reimbursement. What types of transactions can NOT be submitted using GET? Group Travel Cash Advances Relocation expenses

18. Procurement Card (P-Card) Two week cycle All in-state purchases are tax exempt For hosted group meals, must adhere to state maximums and provide the following: meal forms, participant lists, and itemized receipts Must complete the Designated User Agreement Form if others are using your card Routine P-Card audits performed Usually limited to 1 Card per Dept./Center Alternatives: Corporate Card, Personal Credit Card and the Foundation Site Managers: Kelly Young & Jenny Yuan References: P-Card: http://www.bussvc.wisc.edu/acct/purchcd/index.htmlhttp://www.bussvc.wisc.edu/acct/purchcd/index.html Meals: http://www.bussvc.wisc.edu/acct/policy/travel/meals.htmlhttp://www.bussvc.wisc.edu/acct/policy/travel/meals.html FMO Website: http://www.bus.wisc.edu/financial-management-office/http://www.bus.wisc.edu/financial-management-office/ A Visa card issued by US Bank, assigned to a specific UW employee and tied to University funding. The card is intended for low-dollar best judgment purchases that are to be paid directly by the University.

19. Best Practices: P-Card Bold all edits to funding strings (No Italics or other fonts) If split funding, put the funding strings on 2 separate lines Attach all receipts/documentation and cross-reference receipts to P-Card Statements (number each expense on the statement & note the same number on the matching receipt) Indicate the business purpose of each expense (Who, What, Where, When, Why) Ask yourself: Could an auditor understand what you bought and why? Obtain the appropriate signatures Call vendors for errors, disputes, returns, or credits Route to Site Manager to audit & edit

20. DPs and PIRs Direct Payments (DPs): Used to make payments from University- Administered Funds to vendors Payments to Individuals (PIRs): Used to make non-travel payments from University- Administered funds to individuals (non- UW employees) Prepared electronically through the Payment Request web entry systemPayment Request Excel Forms no longer accepted Amounts may not exceed $5,000 Determine if a W-9 is required. If it is, check WISDM to determine if vendor W-9 is already on file PIRs are for taxable expenses payable to non-UW employees only (to reimburse travel only expenses to a non-employee, use the e-Reimbursement System) References: DP/PIR: http://www.bussvc.wisc.edu/acct/forms.htmlhttp://www.bussvc.wisc.edu/acct/forms.html W-9 Required: http://www.bussvc.wisc.edu/acct/tax/1099tax.pdfhttp://www.bussvc.wisc.edu/acct/tax/1099tax.pdf Business Services ‘How To’: http://www.bussvc.wisc.edu/howto/HowMain.htmlhttp://www.bussvc.wisc.edu/howto/HowMain.html

21. Best Practices: DPs & PIRs When you’re not paying an invoice in full: Show your calculations Share how you have paid or plan on paying for the remainder Maximum tip/gratuity is 15% If paying a portion through foundation, it’s best to submit both payment requests to the FMO together If paying through foundation remember these limits: Meal limit is $75 per day (in combination with state limits) Wine limit is $40 per bottle (included in meal limit) Maximum tip/gratuity is 20%

22. Grant & Grad School Funding Administration Research at UW-Madison is conducted under the highest ethical and legal standards. A variety of resources is available to help researchers adhere to those standards Grant and Contract Funding, administered by the Office of Research and Sponsored Programs (RSP), come from extramurally sponsored programs, in two forms: Federal Grant and Contract Funding (144) Non-Federal Grant and Contract Funding (133) Graduate School Funding comes from the Wisconsin Alumni Research Foundation (WARF), founded in 1925. WARF is the private, non-profit patent and licensing organization for the University of Wisconsin-Madison. “135” Funds are from the Graduate School.

23. Best Practices: Grant & Graduate School Funding Administration Keep an eye out for new funding opportunities Be mindful of deadlines to submit proposals Careful budget preparation is essential to a successful research project As a PI, know the various regulatory and financial research compliance requirements for your project Effort Reporting is a federal policy and is not new. It is essential for PIs to report effort in an accurate and timely manner. Recent aggressive federal audits have resulted in multi-million dollar fines at research universities, for inaccurate effort reporting Resources: In the Wisconsin School of Business: Associate Dean for Research – Russ Coff: rcoff@bus.wisc.edurcoff@bus.wisc.edu Pre-Award – Phil Miller (Assistant Dean): pjmiller@bus.wisc.edupjmiller@bus.wisc.edu Effort Reporting – Belle Heberling (Assistant Director): bheberling@bus.wisc.edubheberling@bus.wisc.edu Post-Award – Jenny Yuan (Financial Specialist): jyuan@bus.wisc.edujyuan@bus.wisc.edu Research and Sponsored Programs (RSP): https://www.rsp.wisc.edu/https://www.rsp.wisc.edu/ Graduate School – Research Funding: http://grad.wisc.edu/resfunding/http://grad.wisc.edu/resfunding/ Graduate School – Research Policy & Compliance: http://grad.wisc.edu/respolcomp/http://grad.wisc.edu/respolcomp/ Coming soon: Grant & Grad School Funding Resource Webpage on the FMO Website!

24. Capital Inventory The Wisconsin School of Business has over 150 assets, valued at approximately $1.5 million In late 2013/early 2014, an audit conducted by an external third-party company, was completed to help us catalog our various assets The UW updated its asset management system to improve the monitoring and tracking of various inventory throughout the University Capital inventory includes items where the full acquisition price is $5,000 or more

25. Shop@UW Shop@UW is the University’s eCommerce marketplace for a variety of products (including office supplies, electronics, toner, etc.), through state contracts with a number of vendors. Products are offered through one central ePortal and at contracted prices Items such as office supplies are often delivered the next day (in-stock items) Monthly billing occurs directly through account set up for your department/center Ability to edit funding source (UW-Administered Funds/Accounts only), before transactions post to WISDM, through the PAT ToolPAT Tool Each department within the Business School has an established account For new department/center administrators, please contact Jenny to request access to existing account/re-set passwords For new faculty, academic staff, etc., please contact your department/center administrator to request office supplies, etc. All computer/electronics purchases are to be requested through the Information Technology Solutions (ITS) Department. For purchase requests, complete ITS’s online Purchase Justification Form. For requests for school-supplied toner, misc. items such as computer mice, keyboards, etc., e-mail ITS at: support@bus.wisc.eduPurchase Justification Formsupport@bus.wisc.edu All furniture/chair purchases are to be requested through the Building Services Department, through their Building Service Request webpageBuilding Service Request

26. Cost Transfers and Documentation Web-based Cost Transfer Workflow Tool (https://ct.wisc.edu/)Cost Transfer Workflow Toolhttps://ct.wisc.edu/ Paper forms no longer accepted Capability to add comments or attach documentation to the electronic transfer request Once submitted, the tool routes the request to the FMO Transfers post overnight after approval Please make sure to submit support documentation for all cost transfers (salary and non-salary) Examples of documentation include: For p-card cost transfers: copy of statement, etc. For expense reports: copy of report’s cover sheet, etc. Please also make sure to provide a detailed justification/purpose for the transfer (including why transfer was necessary) Justifications stating “charged to wrong fund”, “fund not available at time of purchase”, or “moving expense to correct fund” are usually not sufficient, and require additional clarification

27. Shared Purpose and Partial Payment Expenses Shared Purpose Expenses (Personal/Business Expenses): Reminder that personal expenses are not reimbursable and also can not be paid for using the P-Card, Shop@UW (MDS), etc. If an expense has a personal and business purpose, the expense(s) must be paid using personal funds and may be reimbursed, if cost comparisons are submitted with the request (if applicable) Please check with the FMO prior to purchasing such items, to determine if there is sufficient Business purpose for reimbursement Partial Payment Expenses: For any expense where the UW will only be paying for a portion of the total cost, costs must be paid using personal funds and a request submitted to reimburse the UW portion i.e. UW paying for $250 of a $500 plane ticket Travel expenses for students may not be reimbursed until after the travel has occurred

28. UW Foundation UW Foundation: The UW Foundation is an independent, nonprofit, tax-exempt Wisconsin corporation. They are the official fundraising and gift-receiving organization for UW. Check Request Forms: Requests payment from Foundation accounts. Check Requests can intiate payments to vendors or transfers to 233 WISDM accounts. Gift Deposit Forms: Indicate which fund the donation should be deposited into on the form. 12 Accounts: Expendable (Current or Sweep Account) 32 Accounts: Endowment (Long Term & Invested) View accounts, donor information and transaction reports in UWF Campus Access Interest is posted on a quarterly basis Foundation Accounts fund 233 WISDM Gift Accounts In general, follow these spending rules: Spend from the “12” account if you have only a “12” account“12” account Spend from the “32” account if your “12” account is set up to transfer gifts to the “32” account“32” account You can spend from either account if you maintain funds in both your “12” and “32” accounts References: Expense Guidelines: http://www.supportuw.org/campus-partners/using-gifts/expenditure-guidelines/http://www.supportuw.org/campus-partners/using-gifts/expenditure-guidelines/ Campus Access: http://www3.supportuw.org/ca/uwfcaaps.nsf/http://www3.supportuw.org/ca/uwfcaaps.nsf/ RSP Transfer Form: http://www.rsp.wisc.edu/forms/Gift/basic_form.cfmhttp://www.rsp.wisc.edu/forms/Gift/basic_form.cfm

29. Best Practices: UW Foundation Gift Deposits: Submit all gift deposits and checks directly to Jonathan Wolf or Joe Sidley (Do not leave checks in mailboxes) Check Requests: Ensure the funds are being spent as the donor intended Check the fund balance before submitting the requests Provide a business purpose (i.e. who, what, where, when, why) Any expense that can be paid for by the University should be paid through the University. If necessary, split the expenses between the State and Foundation Paying students or employees directly for services rendered or awards/scholarships is not allowed Transfers to 233 accounts should occur 3 times per year (January, June and September)

30. Graduation Expenses Note that the majority of Graduation/Commencement Expenses are NOT payable/reimbursable on the state side (i.e. costs for parties, graduation day expenses, etc.) Some Graduation expenses may be payable/reimbursable through UW Foundation Please check with FMO staff to confirm if expenses are payable/ reimbursable, PRIOR to incurring expenses

31. Miscellaneous Announcements, Reminders, & Updates Advertising and Promotional Purchases must go through and/or be pre-approved by IMC Urgent requests, checks, cash, must be handed to a team member. Please do not leave in mailboxes, etc. Purchases made for use by a UW Institution, in the State of Wisconsin are tax exempt. The tax exempt certificate is available on the accounting services website. Tax Exempt Wallet Cards are available by request, for UW employees, through the FMO office. The UW is also exempt in a few other states. Check the UW Travel Wise portal for additional information on what is exempt in each state. Tax-Exempt Wallet Cards are available for UW employees, to use while traveling or purchasing goods and services in Wisconsin, while on UW business (ask an FMO team member for details) Questions, Comments, Suggestions? Contact the FMO: fmomailbox@bus.wisc.edufmomailbox@bus.wisc.edu