Current Usage & Issues

1. Universal Vouchers at UMBC9/9/2008Terry Cook, AVP, Admin ServicesBen Lowenthal, AVP, Financial Services

2. 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. Concerns • Processing time • Prompt payment of vendor • Audit exceptions • Procurement issues • Policy and process training • Streamlined processing for all

4. Payment vehicles • Pcard • Purchase order • Other • Universal Voucher • Working fund • Expense reimbursement

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

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

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

9. 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. 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. 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. 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. 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. Saves up to 15-19 days! • Proactive vs. Reactive • Insures adherence to procurement policy • Solid audit trail • Timely vendor payment

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

16. 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 • Review will adhere to policy.

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