UT System Administration Procard Holder Meeting/Training

1. UT System AdministrationProcard HolderMeeting/Training November 10, 2004

2. Agenda • Opening Comments • Procard Process is Changing – Phase I of II • Jenny Murphy, Becky Franklin, and Michael Valdez, APS • Reminders involving Procard Use & Supporting Documentation • Procard & Historically Underutilized Business Initiative • Orlando Castaneda & Christi Johnson, HUB Coordinators

3. APS Organizational Chart Chancellor Mark Yudof Vice Chancellor for Administration Tonya Brown Asst. Vice Chancellor for Operations & Support Services vacant Assistant Director of APS Jenny Murphy Administrative Associate Rita George Buyer Kyle Hayes Senior Accountant Michael Valdez Supervisor of Accounts Payable Becky Franklin Accounting Assistant Mary Ann Howard Accounting Assistant Becky Mendez Accounting Assistant Jennifer Ramos Accounting Assistant Kim Tucker Clerical Assistant (75%) Sally Rankin

4. The Procard Process is Changing – Phase I of II • Phase I – Awareness & Training • Phase I Implementation: November 2004

5. The Procard Process is Changing – Phase II of II • Phase II –DEFINE Coding and Approval • Phase II Implementation Date: • This will vary by department. Michael Valdez, APS, will work with appropriate individuals from each department to implement the process. He will begin setting up meetings in November.

6. What you need to know when you leave the training/meeting today: • Processing and approving Procard and Office Depot transactions (aka VP7s) will be the responsibility of System Administration departments. • Phase I of II is in progress. • Today you will receive all of the documentation that you have sent to APS for procard charges that have not yet passed through. Please safeguard the information; your department will need to send it in with a Monthly Procard Log by November 16.

7. What you need to know when you leave the training/meeting today (cont.): • Summary of Phase I: • Phase I begins with the VP7 documents that APS will receive, via DEFINE, from U. T. Austin on November 8th or 9th. • APS has training scheduled with Procard holders on November 10th and at that time, APS will return all documentation that we have received for procard transactions that have not been approved in DEFINE. • A Procard Authorization Form is no longer required or desired on the front of every procard purchase. • A NEW Monthly Procard Transaction Log needs to be maintained by your department.

8. What you need to know when you leave the training/meeting today (cont.): • Summary of Phase I (cont.): • Your department needs to enter an object code for each transaction on the procard log before submitting the log and other supporting documentation to APS. The deadline is November 16. Note: A lot of the support you will need is what we are returning to your today. • All approvals should be documented when the information is submitted to APS.

9. What you need to know when you leave the training/meeting today (cont.): • Summary of Phase I (cont.): • APS will review your support and object codes. An APS contact will call to discuss any changes to the object codes that are necessary and why. This type of dialogue should continue going forward as your procard holder or designated employee learns object codes. • APS will enter the codes and final approve your procard and office depot transactions in DEFINE, while your department is in Phase I.

10. Object Code Training & Resources • Becky Franklin’s Knowledge • There are a set of “most commonly used” object codes used for Procard and Office Depot transactions. • Use DEFINE resources. • If you have questions after checking these resources please call an APS employee for assistance. • There is information in your packet.

11. U. T. Austin’s Policy on VP7 Processing • The designated departmental personnel must verify the charges and approve the VP7s in a timely manner. Failure to timely review and approve VP7s will result in actions by the Procurement Card Program as follows: • First failure to timely approve VP7s: warning letter • Second failure to timely approve VP7s: 30-day suspension of card privileges • Third failure to timely approve VP7s: loss of card privileges Note: This has always been the policy; APS just wanted to make sure the departments are aware of it during this transition.

12. Should I purchase this on my procard? • Is the purchase for a Disallowed Item? If yes, don’t purchase the item with your procard. • Is the amount of the purchase greater than $999? If yes, do not purchase with your procard. • What if the vendor will split the order in two so that I’m under the $999 amount? Don’t put this on your procard; it is called split purchasing and it circumvents purchasing guidelines. The only exception to this is for registrations which can be split. • Is the vendor going to charge me tax? If yes, provide them your tax exempt form. • When in doubt, call APS.

13. Real Examples of Exceptions APS has seen over the past six months. • Unallowable Charges • Candy • Apple Annie’s food for meeting • Birthday card • Rental of an item for an entertainment event • Purchase of an item to donate to charity • Split charges – 3 ( All computer equipment related) • Supporting documentation with appropriate approvals not complete when sent to APS. • Tax charged on some purchases.

14. What happens when there are exceptions? • It depends on the exception. • If it is an unallowable charge or split order the card holder is notified via e-mail. The department head and the person that approved the expenditure is copied on the notification. • A credit to the card from the vendor maybe needed and then the vendor is paid through an appropriate method. • An employee may need to reimburse U.T. in some cases. • The procard may be suspended or cancelled in some cases.

15. Do you have adequate supporting documentation? • Is there supporting documentation attached to ensure the dollar amount paid is accurate? • Did an authorized departmental approver approve the purchase? • Is the purchase for something that also needs approval by someone outside of your department (i.e., OTIS -because it is a printer or something that will be hooked up to the network. Facilities - because it is something that will require electrical work.)? If yes, have the approvals been obtained?

16. Do you have adequate supporting documentation? • Are all columns filled out on the procard spreadsheet to insure compliance with rules & regulations? Including an estimate of how much the vendor would charge for services or a commodity. • Is the purchase for office supplies to a vendor other than Office Depot? If yes, the purchase documentation must specify why the Office Depot program was not utilized. • For Office Depot purchases did someone other than the person that created the order sign that the merchandise was received?

17. Questions? Thank you for attending today’s meeting! We appreciate you.

18. Appendix • The following slides will not be covered in the training today, but we want to pass the information on to you. Please read through them so that you are aware of Phase II and changes to printing requirements.

19. Summary of Changes at the dept’l level • What will be different when Phase I and II are implemented? • The procard holder or a different designated department employee will receive a monthly set of VP7’s through DEFINE (normally on the 8th/9th). • An employee in your department will add object codes for the VP7 documents that are received from U. T. Austin, via DEFINE, once a month. • The procard holder in your department will be responsible for obtaining and maintaining required supporting documentation for charges. The procard holder is responsible for providing this information to the person in your department that will approve all charges in DEFINE by the monthly deadline established by U. T. Austin.

20. Summary of Changes at the dept’l level • What will be different when Phase I and II are implemented (cont.)? • A person in your department will be given the authority to approve VP7s in DEFINE. APS will train this person on what they need to review before he/she approves. • APS will continue to offer to scan your department’s procard payment documentation into FileNet if you send it to us “ready to scan”. • Mike Valdez, APS, will monitor the Procard activity by reviewing a sample of departments and transactions monthly. Similar to the process Internal Audit performed at one time.

21. Update on Initiatives and Helpful Suggestions • Printing & Copying – Require three bids regardless of dollar amount

22. Printing/Copying at UT System Administration No distinction is made between printing and copying (duplicating) of materials (including CDs) at UT System Administration. Both require a minimum of three (3) documented bids, regardless of dollar amount, according to the recent opinion rendered by OGC regarding this old Texas State law. If the dollar amount exceeds $5,000.00, then two (2) HUB documented bids are also required – one (1) from an ethnic-minority owned vendor and one (1) from a woman-owned vendor. **Exception: you are NOT required to obtain competitive bids if printing is done by a University facility such as University Printing or University Duplicating. Document the bids that you received. For more information on University Printing or University Duplicating, please visit http://www.utexas.edu/services/printing/index.html

23. Update on Initiatives and Helpful Suggestions • Helpful Suggestions • Please use forms from our website. Several have been updated; the date of update has been added. • Be sure to date-stamp all invoices and documentation related to payables at the time they are received by your department. This is a legal requirement and affects the calculation of late payment penalties to vendors.

24. Update on Initiatives and Helpful Suggestions • Helpful Suggestions • When you send loose documents to APS, please document what we need to do with it.