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School of Medicine Administrators’ Meeting August 12, 2009 Ian Paul Da Costa 12-407 MDCC Manager
UCLA Accounts Payable
Corporate Financial Services School of Medicine Administrators - - PowerPoint PPT Presentation
Corporate Financial Services School of Medicine Administrators - - PowerPoint PPT Presentation
Corporate Financial Services School of Medicine Administrators Meeting August 12, 2009 Ian Paul Da Costa 12-407 MDCC Manager UCLA Accounts Payable Corporate Financial Services Agenda Introduction Accounts Payable Update
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Corporate Financial Services
Introduction
FY0708
Incoming Paper Invoices = 584,460
Number of Paper Invoices Processed = 585,432
Number of Electronic Txns Processed = 125,544
Number of Overtime Days Worked = 36
Cost for Overtime and Temps = $211,125
Other costs: staff morale, turnover, S&E, productivity and customer satisfaction
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Corporate Financial Services
Accounts Payable Update
Five open positions/hiring freeze
Budget cuts for students, overtime, temps etc
Increased automation:
EDI (Sigma, FedEx)
ViP (ASUCLA, Castle Press)
Ghost Cards
Imaging with OCR
Backend Imaging (invoices on “I” status)
Holiday closure/furlough days
Bottom-line – We need your help!
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Corporate Financial Services
Reimbursement Policy
Reimbursements Summary: Reimbursements for non-travel, non-entertainment and non- communication-related expenses are exceptions to our normal procurement methods and subsequently might take longer to process, since they require additional approval per Section V of UCLA Policy 740. Employees should never advance personal funds to purchase goods or services on behalf of the University. Standard procurement policy requires that departments use the approved procurement methods, such as LVOs, purchase orders
- r procurement cards. In addition, we do not reimburse
employees for payments for services to individuals or companies that are subject to income reporting.
Article ID: 1002729 http://map.ais.ucla.edu/go/1002729
http://www.ucop.edu/ucophome/policies/acctman/d-371-16.pdf
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Corporate Financial Services
Reimbursement Policy – Why is this important?
Inefficient
take longer to process
more costly to the University in the long run
don’t allow for automation efforts (EDI, ViP, ghost cards)
mask the details of purchases needed to obtain better pricing
don’t allow us to consolidate spend with approved vendors.
Invasive
require proof of payment [i.e. bank/credit card statements sometime needed]
details are matter of public record.
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Corporate Financial Services
Reimbursement Policy – Why is this important?
Burdensome
employees advance their personal funds
more stringent review process to comply with policy requirements etc (Conflict of Interest, tax reporting/withholding)
interest can accrue on the expenses which is not subject to reimbursement.
Risk
purchases not pre-approved via the PAN process
insufficient transactional detail in orders (”office supplies”)
reimbursements could be subject to lengthy delays going through the exceptional approval process
reimbursement requests might be denied
transactions might be subject to tax reporting
IRS might rule (later) during an audit that items are unsubstantiated expenses or a taxable benefit
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Corporate Financial Services
Examples – Missing Details or Emerging Trends?
- rder_num
- rder_item_desc
amt crtn_dt
1685NKD15400 REIMBURSEMENT TO **** FOR MICROPHONE AND ACCESSORIES PURCHASE/EXPENSE. AMOUNT PAID $747.25, PAYMENT TYPE: CREDIT CARD. 747.25 21-Apr-09 1685NKD57900 REIMBURSEMENT TO **** FOR MICROPHONE AND BAG EXPENSE/PURCHASE. AMOUNT PAID $491.48, PAYMENT TYPE: CREDIT CARD. 491.48 12-Jun-09 1685NKD57600 REIMBURSEMENT TO **** FOR MICROPHONE EXPENSE/PURCHASE. AMOUNT PAID $38.95, PAYMENT TYPE: CREDIT CARD. 38.95 11-Jun-09
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Corporate Financial Services
School of Medicine Reimbursements*
Between: 07/01/08 – present**
6,818 transactions
Total: $2,013,273
Range: $1.99 - $8,588
# Employees paid: 2,640
* Data is for illustrative purposes only and excludes items processed by Travel Accounting, though it might include some entertainment txns. ** Source QDB through 8/6/09
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Corporate Financial Services
Campus Transactions by Volume (07/1/08 – present)
Rank vendor_id vendor_name # Trans Total Amount ($) 1 194952001 OFFICEMAX CONTRACT INC 92,353 10,903,470 2 007211001 FISHER SCIENTIFIC COMPANY LLC 57,351 15,012,839 3 000579001 ASUCLA SERVICES & ENTERPRISES 27,005 19,274,723 4 VARIOUS USBANK 52,056 18,158,941 5 005317002 SIGMA ALDRICH INC 17,554 3,122,275 6 000545003 ARROWHEAD 13,435 372,743 7 194952001 OFFICEMAX INC 10,773 1,242,983 8 024915007 INVITROGEN CORPORATION 10,247 4,096,098 9 096391004 AMERICAN EXPRESS 9,782 2,982,514 10 028519004 CDW GOVERNMENT INC 7,835 4,156,867 11 167472501 KST DATA INC 7,017 18,870,619 12 EMPLOYEES SCHOOL OF MEDICINE REIMBURSEMENTS 6,818 2,013,273 13 006105007 VWR INTERNATIONAL INC 6,680 1,735,853 14 073776007 PRAXAIR DISTRIBUTION INC 6,579 878,941 15 054673001 GRAINGER 6,548 1,938,231
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Corporate Financial Services
Top 10 Depts (07/01/08 – present)
dept_code # trans total amount 1520 352 195,332 1685 456 189,281 1625 388 151,240 1557 400 121,589 1580 464 105,849 1553 181 60,794 1850 200 60,031 1430 305 56,753 1655 192 54,424 1562 123 53,488
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Corporate Financial Services
Department Responsibilities & Pending Items
Limit the reimbursement of tangible goods to $500.
Deduct the full retail value of a rebate or promotional item from the employee reimbursement. [UC Policy BUS-43 (Materiel Management), Part 3 (Purchase Transactions), Section X (Personal Purchases) prohibits employees from benefiting from university purchases.]
Laptop $ 500 Promo (iPod/printer/Best Buy Rewards) $ 100 Receipt Total $ 600 Reimbursement Amount $ 400 only
Pending (UCOP) - Encouraging the use of strategic sourcing
- contracts. (This could mean that reimbursements for these
commodities will need stronger substantiation.)
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Corporate Financial Services
Partial Reimbursements
Partial reimbursements are not permitted, the basis being, if these are truly legitimate, substantiated business purchases then the entire cost should be covered by the University. However, after considering all the factors (i.e. tax implications, business appropriateness, ownership issues, data security etc) we are proposing to make the following changes:
Reimbursee Partial Permitted Notes
Students (non- employees) Yes If valid business reason for practice. Residents Yes If valid business reason for practice. Faculty/Staff No
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Corporate Financial Services
CFS Resources
Invoices on I Status for Org 2200 as of 8/8/09
2,302 items – this represents one day’s work but can translate to between one – three days of additional work to resolve
$3.67 million outstanding (is this encumbered or was it accrued?)
Monthly Open Houses - ongoing
Quarterly CFS Open Houses - ongoing
CAO/CFO Meetings - ongoing
Special “I” Status Workshops – complete; special SoM session needed?
Special e-mail address to obtain invoice copies – completed
Fiscal Close On-Campus Assistance Center – completed
Procurement policy class - implemented
Special training sessions – ongoing; special SoM session needed?
PO Box addresses established for reimbursements and utility payments
WE WANT TO HELP!
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Corporate Financial Services
Accounts Payable Resources (cont..)
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Corporate Financial Services
Procurement to Pay
Recap
Resources
What else can we do to help you?
Communication to the campus
Other resources/tools to assist
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Corporate Financial Services
Accounts Payable
Q & A
Thanks for your support!
Contact Info:
Bill Propst, x46027 wpropst@finance.ucla.edu Ian Da Costa, x48790 idacosta@finance.ucla.edu