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Explore the current usage and issues related to over 20,000 UVs at UMBC, including concerns about efficiency, procurement conflicts, audit trails, and processing times. Learn about appropriate use of P-cards, purchase orders, and universal vouchers to ensure timely vendor payments and solid audit trails. Discover how to streamline the payment process for all types of payments. Contact UMBC's procurement and business services directors for more information.
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Universal Vouchers at UMBC9/9/2008Terry Cook, AVP, Admin ServicesBen Lowenthal, AVP, Financial Services
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
Concerns • Processing time • Prompt payment of vendor • Audit exceptions • Procurement issues • Policy and process training • Streamlined processing for all
Payment vehicles • Pcard • Purchase order • Other • Universal Voucher • Working fund • Expense reimbursement
Pcard – Appropriate Use • Any payment less than $5,000 • Certain purchase types excluded (entertainment, gifts, etc.) • Vendor must accept credit cards
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.
Purchase Order – Appropriate Use • All purchases $5,000 and above (which require competition). • Purchases below $5,000 where Pcard is not accepted.
Purchase Order Advantages • Proactive vs. reactive • Timely payment • Electronic approval and audit trail • Administratively efficient
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)
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)
State Payment Process • Payment is made on same schedule regardless of Universal Voucher or PO. • Approximately 12-15 working days after submittal to Annapolis.
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)
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
Saves up to 15-19 days! • Proactive vs. Reactive • Insures adherence to procurement policy • Solid audit trail • Timely vendor payment
Our commitments to you • PeopleSoft training • Business Process training • Communication • E-mail with invoice attached if receipt is not entered
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.
Questions? • Sharon Quinn, Director of Procurement squinn@umbc.edu; 5-2540 • Jim Citro, Director, Business Services citro@umbc.edu; 5-3632
