Payment Solutions 101

1
Payment Solutions 101

• An Overview of the Payment Solutions Process at
  Rice University

2
Resources and References

• Payment Solutions Website
• Policies
• Purchasing
• Travel
• Business Meeting/Entertainment Expense
• Conflicts of Interest
• Signature and Approval Authority for Contracts
• Procedures Manuals
• FAQs
• Administrative Systems/Banner Security

3
Department Responsibility

• Adhering to the Rice policies and procedures
• Providing sound stewardship of department funds
• Preparing and/or approving transactions (i.e.
  invoices, check requests, travel envelopes, etc.)
  for prompt payment with required supporting
  documentation, account coding and appropriate
  signature approval
• Completing, approving and submitting purchasing
  card applications
• Completing, approving and submitting signature
  authorization forms
• Reconciling and reviewing monthly financial
  reports and purchasing card statements on a
  timely basis

4
Department Responsibility (cont.)

• Identifying purchasing needs
• Ordering products and arranging for delivery
• Arranging for vendor payment with appropriate
  documentation and coding
• Reviewing and completing travel expense
  envelopes/statements/business and entertainment
  forms within thirty days of the trip/event

5
Signature Authority

• Signature authority must be requested and
  periodically confirmed by the department
  chair/head (or delegated individual) and updated
  in the signature card database
• Areas of approval authority include
• Approval Levels (e.g. 2,500, 10,000 or
  amount required)
• Allowable Transactions (purchase orders,
  invoices, travel, work orders, etc.)
• Allowable Funds/Orgs

6
Signature Authority (cont.)

• Authorized signers must review and acknowledge
  that they are familiar with the following
  policies
• Conflicts of Interest Related to the Purchasing
  of Supplies, Services, and Equipment (No. 838)
• Signature and Approval Authority for Contracts
  (No. 810)
• Purchasing Policy (No. 814), Travel Policy (No.
  806) and the Business Meeting and Entertainment
  Policy (No. 811)
• Approvals
• Approver cant approve his or her own expense
• Approver cant approve if they attend the event
• Approver may never report to the individual for
  whom the expense is incurred
• Receipts over a year old require a Dean/VP
  approval

7
Planning for Purchases

• Are there fund restrictions
• Gift (G)
• Endowment Spending (H)
• Research funds (R)
• Is there availability in your budget
• When available, give small, minority and
  women-owned business enterprises the opportunity
  to compete
• Lease vs. Purchase Decision Making
• Contact General Counsel prior to signing the
  lease agreement
• Capitalized leases - contact Property Accounting
  for special accounting rules (x 3429)

8
Planning for Purchases (cont.)

• Hazardous Materials, Select Agents and Controlled
  Substances
• May only be ordered by individuals who have
  completed the Environmental Health and Safety
  training course
• Contact the Environmental Health and Safety
  Office (ext. 4444)
• Research Animals
• May only be purchased through the Animal Resource
  Facility
• Contact the Animal Resource Facility Manager
  (ext. 3502)

9
Bidding Information

• Purchasers should solicit bids for goods and
  services
• A minimum of 3 documented bids or justification
  for sole source purchasing is required for all
  purchases totaling 25,000 or more
• Sole source justification is required for all
  professional services when the total contract is
  over 25,000
• When the lowest bid is not accepted,
  justification is required
• Submit copy of bids and/or sole source purchasing
  with documentation when appropriate and send to
  Payment Solutions with a completed and approved
  purchase order

10
Document Coding

• Fund/Org/Account clearly recorded
• Program, Activity and/or Location codes should be
  indicated following the fund/org/account code
  combination when appropriate
• Account coding
• Account code listings can be found on the Web
• Expense Codes (7XXXX)
• Equipment Codes (75XXX and 76XXX)
• Do not code any expense to an account beginning
  with 6
• For questions regarding equipment coding contact
• Pat Jones ext. 3429
• For questions regarding all other coding contact
• Crystal Davis ext. 2478
• Flor Garcia ext. 3435

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Rice University Purchasing Card
RICE UNIVERSITY Tax Exempt 74-1109620
5567 0154 5555 5555
10/06 - 10/08
Samuel Smart Rice University
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Rice University Purchasing Card (cont.)

• The purchasing card is a corporate Mastercard
  issued by JPMorgan Chase
• The PCard is the preferred method of payment for
  the following
• general purchases less than 5,000
• travel, entertainment and business meeting
  expenses

13
Payment Options for Purchases Less than 5,000

• When accepted by the vendor, pay for your
  purchase with your Rice University purchasing
  card
• If MasterCard is not accepted, arrange for the
  vendor to invoice your department directly by
  providing the following information
• University address
• Department name and mail stop
• Contact name and phone number
• Please note
• Rice is exempt from paying Texas sales tax. When
  arranging for payment, provide the vendor with
  the Federal Tax ID number. This number is located
  on the front of the purchasing card
• Tax exempt certificate is located on the Payment
  Solutions website

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Purchases Less than 5,000 With an Invoice

• Confirm that the invoice is an original invoice
• Review the invoice for accuracy
• Ensure that Texas sales tax is not being charged
• Code the invoice for payment (fund/org/account)
• Ensure that the invoice is approved by an
  authorized signer. The signature on the invoice
  indicates the items were received in good order
  or the services performed were satisfactory
• Send the invoice and all required documentation
  to Payment Solutions, MS77 for processing

15
Purchases Less than 5,000 Without an Invoice

• A check request form can be used to request
  payment if no invoice is available
• Payments must include
• Individuals
• Rice individual employee or student
• Non rice individual social security - W9 Form
  (retain a copy for the department files)
• Vendors
• New vendor completed W9 Form (retain a copy
  for the department files)
• Existing vendor name and address
• Code the check request with the appropriate
  fund/org/account
• Attach supporting documentation
• The check request must be approved by an
  authorized signer

16
Purchases Less than 5,000 Without an Invoice
(cont.)

• Clearly indicate any special handling requests
  (i.e. attachments, call for pickup, etc)
• Send the check request to Payment Solutions,
  MS77 for processing
• Check request should only be used to
• Pay a vendor who cannot/will not submit an
  invoicenor accepts the purchasing card
• Vendor cannot/will not deliver the goods or
  services and then invoice the department directly
• Pay honorarium or refunds
• Reimburse faculty/staff/students for expenses
  greater than 100

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Reimbursement for Out of
Pocket Expenses

• Requires One Over signature approval
• Equal to or less than 100
• Reimburse with Petty Cash
• Submit Petty Cash Voucher to the Cashiers Office
• Call the Cashiers Office for information (ext.
  4946)
• Greater than 100
• Reimburse with a Check Request
• Attach original detailed receipts as backup
• Submit to Payment Solutions, MS77 for processing

18
Reimbursement for Mileage Expenses

• Mileage reimbursements may be requested for round
  trips in excess of five miles provided that the
  employee provides the following information
• the date of the incurred mileage
• a clear and precise business purpose of the trip
• the beginning and end points of the trip
• For reimbursement of mileage over 100, a mileage
  voucher form (available from Payment Solutions)
  should be completed, approved and submitted to
  Payment Solutions, MS77
• Approved mileage vouchers equal to or less than
  100 should be submitted to the Cashiers Office
  for reimbursement
• Mileage associated with travel should be
  submitted on a travel form to avoid possible
  duplication
• Mileage rates available on the Payment Solutions
  website

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Purchases Equal to or Greater than 5,000

• Require a purchase order
• Dividing a large transaction into dollar amounts
  below the total PO in order to circumvent
  required approvals is not allowed
• First time vendors may require credit information
  along with the tax exempt certificate before they
  will extend credit to the University. Payment
  Solutions has the credit reference form available
  to the departments on the Payment Solutions
  website

20
Purchase Orders

• Purchase Order forms are available from Payment
  Solutions
• Call ext. 6700
• Email your request to payment_at_rice.edu
• 4 part form which is a commitment for payment
• Yellow is the work copy
• White is the vendor copy
• Blue is the department copy
• Green is the receiving report
• Detailed instructions are in the Purchasing and
  Payment Manual

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Purchase Orders

• Equipment purchased (account code - 75XXX and
  76XXX)
• Complete and attach a Property Control
  Registration Form
• This form is available from Property Accounting
  (ext. 3428)
• Equipment purchased on a research fund (75XXX)
• In addition to a Property Control Registration
  Form complete and attach a Procurement Brief

22
PO Receiving Report

• Receiving Copy (green)
• For purchases equal to or greater than 5,000,
  receipt of goods and services must be performed
  and acknowledged by a Rice employee other than
  the approver
• Partial payments - submit copy of green receiving
  report with the partial payment box checked
• Final payments - submit original green receiving
  report with the final payment box checked
• On occasion, the total amount due on the invoice
  will be greater than the original purchase order
  amount. When this occurs, the difference will be
  paid if it is less than 10 of the total purchase
  order amount

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Invoice Payment on POs

• By signing the invoice, the signer is indicating
  that
• the original invoice is being submitted
• the PO number is recorded on the invoice
• Texas sales tax is not being charged
• the purchased items noted on the invoice have
  been received in good order and the invoice is to
  be paid

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Professional Services

• Require a Professional Services Agreement (PSA)
  when the total amount of services purchased is
  5,000 or greater
• Departments are encouraged to work with the
  Office of General Counsel to review written
  agreements and contracts prior to the document
  being approved and signed
• A purchase order should be prepared for the total
  cost of services. The purchase order is important
  to encumber the funds and provide funding
  information
• If the agreement or contract is signed by an
  authorized signer the purchase order does not
  need to be signed

25
Professional Services (cont.)

• When sponsored agreement dollars are charged
  attach a copy of the PSA or agreement to every
  invoice submitted for payment
• For all other funds charged, a copy of the PSA or
  agreement should be attached to the first invoice
  and subsequent invoices may certify that a PSA or
  agreement is on file in the department

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Post-Payment

• Refunds
• Send Deposit Voucher Form to Cashiers Office,
  MS55
• Rice checks payable to vendors should not be
  deposited by the department. Forward them to
  Disbursements
• Credit Memos
• Treated the same as an invoice. Signature
  authority, coding and documentation are needed

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Post-Payment

• Void Checks/Stop Payments
• Contact Disbursements Office
• Teresa Blumentritt ext. 4812
• Patricia Morrison ext. 4546
• Changes in Original Coding
• Submit an Expense and Revenue Correction Form to
  MS70
• Crystal Davis ext. 2478
• Flor Garcia ext. 3435

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Travel, Business Meeting Entertainment Expenses

• IRS regulations apply to the following expenses
  and require additional information
• Faculty/Staff/Students
• Online TEBM Envelope
• Travel Statement
• B/E Form
• Require One-Over Approval
• Travel Advances
• Student travel
• Group travel
• International travel
• Travel B/E Procedures Manuals

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Travel, Business Meeting Entertainment Expenses

• Travelers Responsibilities
• Obtaining and saving true and accurate original
  and detailed receipts
• Providing all required receipts to the preparer
  of the travel envelope/ statement
• Verifying the expenditure amounts recorded on the
  final travel envelope/statement are accurate
• Verifying that all costs allowed by the
  university policy have been included on the final
  travel envelope/statement
• Signing the travel envelope/statement
• Ensuring that a complete and accurate travel
  envelope/statement is submitted within 30 days
  upon completion of the trip. IRS rules require
  travel expenses to be documented in a timely
  manner

30
Travel, Business Meeting Entertainment Expenses

• All Rice travel should be cleared using the
  online travel envelope/statement
• Non-Rice employees can use the online
  envelope/statement
• The department is responsible for maintaining the
  physical travel envelopes/statements ensuring
  that any exceptions to the Travel Policy and
  procedures are noted
• The department is responsible for providing
  currency translation documentation for receipts
  in foreign currency

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Relocation Expenses

• IRS regulations apply. Get details before
  committing
• Teresa Blumentritt x4812 or Tessie Skulski x 4004
• Monitored by the Controllers Office regarding
  taxation issues
• Information available in the Purchasing and
  Payment Manual
• Expenses/Reimbursements reported on a Relocation
  Expense Report. This form can be found on the
  Controllers Website

32
Payments to Faculty, Staff and Students

• Reimbursement for Out of Pocket Expenses
• Mileage Reimbursement
• Relocation Expenses
• Prizes/Awards/Scholarships
• Payment for Services Rendered

33
Payment of Prizes, Awards, Scholarships

• These types of student payments are submitted on
  a paper Check Request form with appropriate
  backup
• MUST be submitted to the Student Financial
  Services department for review/approval
• Payments to previously enrolled students are
  processed by Payment Solutions
• Payments to currently enrolled students must be
  posted to the students account and are processed
  via the Cashiers Office/Disbursements

34
Payment to Faculty/Staff/Students for Services
Rendered

• A Personnel Action Form (PAF - not a check
  request) must be completed for a payment to a
  Rice employee for services rendered or a one time
  payment for a special project. A student PAF must
  be completed for services rendered to Rice by a
  student
• For Faculty/Staff, the PAF is sent to Human
  Resources
• For Students, the PAF is sent to Student
  Financial Services
• Contact HR regarding any assignment of a
  secondary job that might move a non-exempt
  employee into the area of overtime compensation

35
Research Procurement

• Know your grant/contract. Some have restrictions.
• All expenses must have clear relationship/benefit
  to the contract/grant
• See Section 11 of Purchasing and Payment Manual
• Requires Principal Investigator (PI) or PI
  designee signature
• OSR Website
• Links to federal guidelines which determine
  whether the expense is allowed

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Common Research Restrictions

• Entertainment Expenses
• Alcohol Expenses
• International Travel
• Use of US Flag Carrier
• Others -- see Section 11 of the Purchasing
  Manual
• Attend Research Administrators Meetings hosted
  by OSR and Research Accounting

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Property Accounting

• Monitor/track capital equipment purchases
• Capital equipment purchases require a Property
  Control Registration Form and approval from
  Property Accounting
• Section 12 of the Purchasing and Payment Manual
• Contact Pat Hall-Jones ext 3429 (Property
  Accounting Manager)

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For Questions and/or Trainingcontact Regina
Diaz ext. 6715 or Regina.R.Diaz_at_Rice.edu