Jennifer Collins Manager Andre Simmons Assistant Manager Accounts Payable Role of Accounts Payable Accounts Payable is responsible for examining all accounts claims and demands against the University of Georgia and for making payment of all the Universitys legally incurred obligations ID: 130522
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Slide1
Introduction to Accounts Payable
Jennifer Collins, Manager
Andre Simmons, Assistant Manager
Accounts PayableSlide2
Role of Accounts Payable
Accounts Payable is responsible for examining all accounts, claims, and demands against the University of Georgia, and for making payment of all the University’s legally incurred obligations for materials and services other than payrolls.
No payments are to be made unless there is money in the Treasury legally allocated for such payments, and until the Accounts Payable Department has been presented with supporting documents and invoices which have been reviewed and found to be correct. Slide3
Regulating Entities
Federal
Internal Revenue Service (1099 reporting, TIN matching/B-Notices, Accountable Plan, Employee/Independent Contractor relationships)
US Treasury Department (OFAC)-maintains a Specially Designated Nationals List that we must review
Sarbanes-Oxley-Requires certification and attestation of a public company’s internal controls.
State
Board of Regents (Delegates Procurement function)
State Accounting Office
Department of Revenue (Escheatment of Unclaimed Property)Slide4
International Tax Coordinator,
Susan Caldwell
UGA must comply with Federal tax and immigration regulations when processing payments to foreign nationals.
Phone: (706) 583-8193
Fax: (706) 542-6779
Email:
susanc@uga.eduWebsite: www.busfin.uga.eduSlide5
Fiscal Year 2011
Accounts Payable disbursed $653,140,062 in expenditures.
AP paid 251,487 invoices
AP issued 122,874 checks
Initiated 613 wires
Processed 568 ACH transfers Slide6Slide7
Travel & Encumbrances
Elena Williams, Supervisor
Administrative Functions
Printing Checks Daily
Approving & Encumbering Travel Authorizations
Vendor Creations in the Unified Vendor Database
Review and assign appropriate object codes to UGAMart requisitions and check requestsSlide8
Vendor Creation/Additions/Revisions
Accounts Payable and Procurement now function from one unified vendor database.
Vendor creation requires approval from both Accounts Payable and Procurement before the vendor will be available for use.
Vendor profile form:
http
://
www.busfin.uga.edu/forms/vendor_profile.pdfSlide9
Purchase Requisitions and Check Requests
Two “vehicles” for procuring goods flow through Travel & Encumbrances.
Purchase Requisitions: Items that have to be “procured” through the
Procurement Office.
Check Requests: “Charge” commitmentsSlide10
Purchase Requisitions
Purchase requisitions come to Travel & Encumbrances for 2 things:
Review object code assigned by department and modify if needed.
Review free balance in account to verify funding exists to support the purchase. Account/Budget Check messages and warnings appear under the history tab in
UGAMart
. Requisitions will not be approved if funding does not exist. Slide11
Purchase Requisitions
“Pre-encumbrances or commitments” are only established if the requisition can be readily identifiable as construction or is for a purchase greater than $50,000. These purchase types often require a lengthy bid process. On status reports, these commitments are identifiable by reference numbers that start with PM. Slide12
Purchase Requests
If no criteria exists to create a commitment, the purchase requisition flows to Procurement once approved by Travel & Encumbrances. If the funding source is a restricted account and one of the object codes that Contracts & Grants needs to approve before a purchase order is created, the requisition flows to C&G prior to Procurement. Slide13
Purchase Requisitions
After Procurement processes the requisition, a purchase order number will be generated. This purchase order number will begin with “E” and the funds for the purchase order will be obligated or encumbered. An encumbrance sets the money for that order aside from your account free balance. The money is held until the goods/services are received and payment is issued. On your status report, these obligations will show under the encumbrance section and will begin with a “PE.”Slide14
Liability
The money obligated for a purchase order will remain encumbered until a payment is processed for the order or until action is taken by Procurement to relieve the encumbrance.
If the end of the fiscal year comes and money is still encumbered for a purchase order on a state account, the money will roll into “Liability.” When a PO is transferred into the liability account, a JV will appear on your final fiscal year end account status report. Once that JV is completed, this encumbrance will no longer show on your status report. That does not mean the encumbrance has been paid. Slide15
Object Codes
Object codes are how we classify expenditures at UGA.
Object codes allow us to report taxable payments to the IRS.
Object codes allow us to report travel expenditures on the continuous audit for the State.
Allow UGA to query spending information for the Board of Regents and other various entities.Slide16
Common Object Codes for Purchase Requisitions
71400-Cleaning items, food, educational items, single book (not part of a set)
71410-General Office Supplies: Toner, Pens, Copy Paper, File Folders
71430-Laboratory/Research Supplies & Materials: Beakers, test tubes, chemicals, medical/hospital supplies like gloves
71500-Maintenance
74300-Non-Inventoried Equipment with costs $100-$2999.99: Furniture, file cabinets
74306-Computer & Peripherals with costs $100-$499.99: Monitors, computersSlide17
More common object codes for Purchase Requisitions
74328-Computer and Computer Peripherals with costs $500.00-$4,999.99
74308-Equipment with costs of $3000-$4,999.99-Furniture, freezers
74318-Electronic audio/visual equipment and photographic apparatus costing $500.00-$4,999.99Slide18
More common object codes for Purchase Requisitions
84320-Equipment purchases for items over $5000.00
84326-Computer and computer peripherals with a cost of more than $5000.00 (servers,
etc
)Slide19
Check Request
The second “vehicle” that comes through Travel & Encumbrances for object coding is the check request.
Check requests are normally generated to cover an expenditure that was established on a “charge” basis with the vendor.
Encumbrances are not generated from check request expenditures.
Procurement also reviews all CR’s over $5000.00 and all payments to individuals that include reimbursement for an item over $99.99 (travel excluded)Slide20
Common Check Request Object Codes
71430-Laboratory/Research Supplies
71500-Repairs
72712-Conference & Workshop expenses (expenditures in connection with holding a conference/workshop.) Examples would be room rental, audio visual charges
72714-Guest/Visitor travel: Travel for individuals not employed by UGA or receiving a fee for services rendered associated with the trip. Examples include prospective employee travel, speaker travel expenses when the speaker is not receiving a fee/payment. Slide21
Common Check Request Object Codes
72722-Dues & Memberships. Requests for payment should be accompanied by a letter of justification approved by the Department Head/Director and the cognizant Dean or Vice President or Senior Vice President.
72723-Subscriptions
72725-Registration Fees
72732-Freight or Express Shipments: All payments to UPS and FedExSlide22
Common Check Request Object Codes
72752-Tests & Analysis
72760-Other Services: Examples include photographer, musician, proofreader, catering services. These can be individuals or companies.
72763-Research Participant
74200-Printing:
Bel
-Jean, FedEx Kinkos74201-Advertising74203-Advertising-Job PostingsSlide23
Common Check Request Object Codes
75210-Reimbursable expenses for non-employees that did receive a fee for service associated with their trip. Examples would be lodging and meal expenses for a guest speaker that received $500 for giving a lecture. His meal and lodging expense would be coded 75210.
75215-Mileage reimbursement for non-employees.Slide24
Common Check Request Object Codes
76910-Internet Service & Pager Service
76930-Land Lines, Long Distance Charges, Two way radios
76932-Cellular chargesSlide25
Purchase Order Payment Section
David Manley, Supervisor
Once a purchase requisition works it’s way through Procurement and a purchase order is created and encumbered, the next phase will be payment to the vendor once the goods/services have been received.
PO Payment Section Responsibilities: Match/Review/Approve invoices for payment within
UGAMart
.
Review outstanding encumbrances and initiate inquiries to determine if purchase order should remain open or be closed. Slide26
When to Create a Receipt
If your purchase order is set up to be delivered to Central Receiving, you DO NOT have to complete a receiving report.
If your purchase order is set up to be delivered direct to your department, you will need to create a receiving report before payment can be processed. Slide27
How to Create a Receiving Report in
UGAMart
DemoSlide28
Comments
The comment feature is essential in
UGAMart
. This feature allows all communication to be documented and it effective for correspondence when utilized correctly.
Comments feature can be utilized to send Accounts Payable copies of invoices that have been received by the end user department (sometimes invoices are included with shipments).
Comments feature can be utilized to correspond about PO balances, revisions
needed,etc. Slide29
Comments
When using the comment feature, you have to indicate a recipient. You have the ability to assign multiple recipients to your message. Slide30
How to Add Comments in UGAMart
DemoSlide31
Who handles which vendors?
A-E: Carol Kainz (carolk@uga.edu)
F-M: Hall Gibson (hgibson@uga.edu)
N-S: Allison
Henninger
(allison9@uga.edu)
T-Z, Ikon/Ricoh, Sharp, Docuteam: Kathleen Green (kgreen01@uga.edu)Dell, Bio-Rad, Sigma-Aldrich, Staples: Marilyn Smith (marilyns@uga.edu)Slide32
Check Request Processing Section
Patricia Sims, Supervisor
Review/Audit check requests payable to individuals, research participants, travelers, petty cash custodians, and companies.
Handles canceling and reissuing checks.Slide33
Payments to IndividualsSlide34
Types of Payments to Individuals:
Refunds
Refunds for money paid into a revenue account. Example would be a non-employee that paid for a registration to a conference that UGA was hosting. If the attendee had to cancel and we needed to refund their registration money, this would be a refund. Refund object codes should begin with 4. There is no supporting documentation required to accompany the check request.
Adequate description
of the expense should
be detailed in the description section of the check
request. Slide35
Types of Payments to Individuals:
Cash Reimbursements
To reimburse an individual for a purchase made on behalf of the University. Receipts are required to document the expense and any purchase for an item over $99.99 requires Procurement review and approval. An example would be an employee that purchases
ziploc
bags to be used in a research lab. AP would require a check request with the receipt from where the
ziplocs
were purchased as supporting documentation. Adequate description of the charge should be detailed in the description section of the check request. Slide36
Types of Payments to Individuals:
Entertainment Charges
On occasion, an employee will pay for university related entertainment charges/meals (activities that support the underlying University purpose such as promoting good will, donor cultivation, etc.) and seek reimbursement. Alcohol cannot be purchased using a University account. These check requests for reimbursement should be accompanied by a completed University Related Business Entertainment Form and an itemized receipt. Utilize the Food Reference Chart on Ask UGA to determine appropriate funding sources. Object code should be 71401.Slide37
Types of Payments to Individuals:
Honoraria Payments
A honoraria is a payment to a non-employee in recognition of acts, awards, or fees and/or expenses for services rendered to the university.
Examples include guest lecturers, consultants (for agreements under $5000), and reimbursable travel expenses
Honoraria
form must contain original signature of recipient if there is not an invoice to accompany the request. Date of service(s), current address, and social security number must be included on the form. Slide38
Types of Payments to Individuals:
Research Participants
Classified into two groups. Payments $100 and under and payments over $100. Payments $100 or under do not require collection of the individuals social security number. Payments over $100 do require the participants social to be collected and provided to Accounts Payable.
Research Participant Payment forms should accompany the check request.
Payments
$100 and under:
http://www.busfin.uga.edu/forms/Research_Participant_Receipt_under.pdf
Payments over $100: http://www.busfin.uga.edu/forms/Research_Participant_Receipt_over.pdf
Research Participant Incentive
Payment Procedure:
http://askuga.uga.edu/default.asp?id=1784&SID=&
Lang=1
Research participant payments should utilize the object code 72763 regardless of dollar value. Slide39
Payments to CompaniesSlide40
Original invoices should accompany check requests to support the expenditure. Invoices should be readable.
UGA will remit payment to the company’s legal business name. Slide41
Electronic Check Request System
DemoSlide42
Travel
http://www.busfin.uga.edu/accounts_payable/travel.htmlSlide43
Who governs Travel?
State Accounting Office and the Office of Planning and Budget are responsible for establishing the Statewide Travel Regulations. This responsibility was assigned to these organizations through House Bill 293, which was passed into law during the 2005 legislative session. Slide44
Instate or Out-Of-State Travel?
Travel more than 50 miles from the state line of Georgia is considered out-of-state travel and requires a travel authorization (travel authority) to be submitted to the Travel & Encumbrances office prior to the trip taking place. International travel requires the approval of the Office of International Education additionally. Programming has been established in the electronic check request system to obtain these approvals.Slide45
Travel Authorities
Travel authorizations are required for out-of-state travel for insurance purposes. This authorization provides the University with documentation that this is a pre-approved business trip. The TA also allows funding to be obligated (or encumbered) and set aside from an account so the traveler will have funding to cover his/her reimbursable expense.
On a status report, travel encumbrances for employees will start with a T followed by 7 numeric digits. Slide46
Travel Authorities
Travel authorities can also be submitted for non-employees
but only for the amount of airfare that is being direct billed to UGA by one of UGA’s preferred travel agencies.
All other non-employee expenses must be handled through the reimbursement process via honoraria.
On
a status report, travel encumbrances for
non-employees will start with a H followed by 7 numeric digits.Slide47
Instate Travel for Employees
Object code 64100-All travel expenses except for mileage.
Object code 64150-Mileage only! No parking, etc.
Mileage should be entered as a second line on the account breakdown page in the e check system.
Departure and return times must be documented on the travel expense statement!Slide48
Meal Reimbursement for Instate Travel
$28 a day
Breakfast: $6.00
Lunch: $7.00
Dinner: $15.00
$36 a day (high cost areas of Chatham, Clayton, Cobb, Coweta, DeKalb, Fayette, Fulton, Glynn, Gwinnett & Richmond counties)
Breakfast: $7.00Lunch: $9.00
Dinner: $20.00Slide49
Meal Reimbursement for Instate Travel
Employees who are more than 50 miles away from home or headquarters on a work assignment and are away for more than 13 hours may be reimbursed for meals, even when there is no overnight lodging. In this situation, employees are entitled to reimbursement for the noon meal. In addition, if they depart before 6:30 a.m. are entitled to breakfast, and employees that return later than 7:30 p.m. are entitled to dinner expenses. Employees must meet the eligibility requirements outlined above
for
the per diem related to the noon meal before per diem for breakfast and/or dinner will be considered. Slide50
Meal Expenses Associated with Travel Outside of Georgia
Employees traveling outside of Georgia may receive meal per diem amounts up to the federal per diem rates
less the federal incidentals allowance.
GSA site for per diems is:
http://
www.gsa.gov/portal/category/21287
Employees traveling overnight are generally eligible for per diem amounts designed to cover all days on travel status other than the day of departure and day of return. Times of departure and return should be noted on the expense statement to substantiate meals eligible for payment of per diem. Slide51
Lodging
Employees who travel more than 50 miles from their home/office/residence/or headquarters may be reimbursed for lodging expenses associated with overnight travel. All lodging claims must be documented by receipts and must be at a business that offers lodging to the general public. Any lodging expense that exceeds GSA rates by more than 25% should be explained and justified on the travel expense statement.
GSA Per Diem Rates:
http://
www.gsa.gov/portal/category/21287Slide52
Foreign Travel
Foreign travel per diem rates have also been established
and can be viewed at:
http://
aoprals.state.gov/content.asp?content_id=184&menu_id=78
Note: UGA does not reimburse incidental expenses so that rate should be deducted. Utilize the FTR Appendix B (Breakdown of Meals/Incidentals) to verify how much should be deducted. Slide53
Taxes Associated with Lodging
Should not be charged county, municipal, or occupancy tax on lodging in Georgia.
Employees are required to submit a copy of the hotel/motel tax exemption form when they register at a hotel. It is located at:
http://www.busfin.uga.edu/forms/excise_exempt.pdf
.
Employees are required to pay state/local sales and use taxes. (UGA is only exempt from sales tax when paying by University funds.)Slide54
Mileage Reimbursements
When it is determined that a personal motor vehicle is the most advantageous form of travel, the employee will be reimbursed for business miles at $.51 per mile.
If a government owned vehicle or a rental vehicle is determined to be the most advantageous mode of travel, but a personal motor vehicle is used, the employee will be reimbursed at $.19 per mile.
Actual odometer readings are not reported on the travel expense statement. To calculate mileage, travelers can use MapQuest, Google Maps, GPS devices, or personal odometer readings, whichever is most appropriate for the circumstances. Slide55
Business Miles Traveled
Employees may be reimbursed for the mileage incurred from the point of departure to the travel destination. If an employee departs from headquarters, mileage is calculated from headquarters to the destination point. If the employee departs from his/her residence, mileage is calculated from the residence to the destination point, with a reduction for normal one-way commute miles. The same rules apply for the return trip. Slide56
Exceptions to Deducting Normal Commute Miles
The initial point of departure is on the weekend or a holiday.
If an employee does not regularly travel to an office outside of their residence, the requirement to deduct normal commute miles does not apply.Slide57
Business Miles Traveled
Employees may also be reimbursed for business miles traveled as follows:
Miles traveled to pick up additional passengers
Miles traveled to obtain meals for which employee is eligible for reimbursement.
Miles traveled to multiple work sitesSlide58
Examples of Business Miles Traveled
Ex. 1: Employee resides in Duluth, works in Athens. Normal commute mileage is 60 miles roundtrip. The employee leaves in the morning from her house to go to a meeting in Gwinnett and returns to her residence after the meeting. Total distance traveled is 30 miles. Since the employee would normally travel 60 miles in her daily commute, the State does not reimburse her for mileage since her business traveled miles are less than her normal commute miles. Slide59
Ex. 2. Employee drives from home in Jefferson to his UGA office. At 10:00 am, he leaves campus and drives to a meeting at Georgia Tech. After the meeting concludes at Tech, he returns to his residence. The trip between Jefferson and UGA is personal commuting and not reimbursed. The travel from UGA to Tech and the return trip to the residence is reimbursed, less the amount equal to the normal one way commute miles (What he normally would have traveled from UGA to Jefferson for his return trip home.) Slide60
Air Transportation
Airfare can be direct billed to UGA using one of UGA’s authorized travel agencies.
In general, it is the State policy that state officials or employees traveling by commercial air carrier travel in the most cost-effective manner and utilize the lowest possible coach fares.
Employees will not be reimbursed for the portion of non-coach (first class, business class,
etc
) airfare that exceeds the cost of the lowest, available airfare on the same flight unless:
No other space on the needed flightLicensed medical practitioner certifies that because of a person’s mental or physical condition specific air travel arrangements are required
Commissioner of Public Safety certifies that specific air travel arrangements are necessary for security reason. Slide61
Fly America Act
Requires international flights to be US carriers when available. The Fly America Act is available at
http://www.tvlon.com/resources/FlyAct.htmlSlide62
Upgrades to Non-Coach Travel
Employees may use frequent flyer miles or similar programs to upgrade to non-coach travel. Nothing in our policy precludes an employee from personally paying for an upgrade to non-coach travel. Slide63
Rental of Motor Vehicles
State contract is with Enterprise. This contract is mandatory for use by State employees.
Employees traveling on State business in a rented motor vehicle are covered by the State’s liability policy; therefore, liability coverage should be declined when renting a motor vehicle. Loss Damage Waiver/Collision Damage Waiver insurance is included in the statewide contract at no additional cost. Slide64
Unallowable Expenses
Laundry Services (when trip is under 7 days)
Tipping for maid services
Valet services when self parking is available
Theater
Entertainment
Alcoholic BeveragesBank charges for ATM withdrawls. Slide65
Required Documentation
Employees should submit their requests for reimbursement of travel expenses via a signed and approved
travel expense form at
https://
emer.uosp.uga.edu/accounts_payable/travel_expense_login.cfm
Travel expense form and required receipts should be attached to an electronic check request.
For out of state travel, make sure to reference the travel authorization in the appropriate field on the e check request. Slide66
Required Receipts
Meals purchased in lieu of those provided at conference/training (does not apply to normal per diem allowances-only when at a conference and a meal is provided and the traveler does not participate but goes somewhere else to purchase a meal.)
Lodging
Airfare
Automobile Rental
Gas for Auto Rental
SuppliesRegistration FeesLaundry Services (when trip exceeds 7 days)Visa/Passport Fees
Travel reimbursement requests should be filed within 60 days from conclusion of the trip. Reimbursement requests over 60 days can be classified as taxable income. Slide67
Group Travel Slide68
Group Travel
Group travel exists when a third party is being paid for travel expenses of an employee or a paid non-employee on official UGA business. The documentation required to process group travel provides the Accounts Payable and Accounting departments with the necessary information to complete the reporting requirements of the State.
Reference Chart of Required Documentation
: http://www.busfin.uga.edu/accounts_payable/group_travel.pdfSlide69Slide70Slide71
Are we done yet?
A few more things!Slide72
Food Purchases
Reference Chart for
Food Purchases:
http://
www.busfin.uga.edu/accounts_payable/Food_Entertainment.pdf
Policy for Purchasing Food and Business
Related Entertainment: http://askuga.uga.edu/default.asp?id=1691&Lang=1&SID=Reference chart documents what funding sources should be utilized for each purchase. If you are purchasing food, make sure it fits into one of these categories!Slide73
Wire Transfers
For International Payments Only
Bank name & address
Account number
Account name
Swift code or ABA#
Type of currency (foreign or US Dollars)Slide74
Even More Training!
Upcoming Opportunities Slide75
Employee/Independent Contractor
The IRS dictates that if an individual is performing work for UGA that is defined as an employee/employer relationship, UGA must pay that person through Payroll and withhold the proper taxes.
Decision Tree:
http://
www.busfin.uga.edu/forms/Emp_Indep_Contractor.pdf
Additional training is being offered by Mike Self, Fiscal Compliance Officer, on the afternoons of December 14
th and 15th
. Contact T&D to enroll.Slide76
Relocation Expenses
Training being offered on December 8
th
and
15
th.
Contact T&D to enroll.Relocation expenses totaled close to $500,000 last year. These expenses have the potential for negative press if proper policy & procedure is not adhered to. Slide77
Contact Us!
AP Website
:
http://www.busfin.uga.edu/accounts_payable
/
Contact list of who does what:
http://www.busfin.uga.edu/accounts_payable/apstaff.htmAccounts Payable Office: Phone: 706-542-2786