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UT System AdministrationUT System AdministrationProcard HolderProcard Holder

Meeting/TrainingMeeting/Training

November 10, 2004November 10, 2004

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AgendaAgenda• Opening CommentsOpening Comments

• Procard Process is Changing – Phase I of II Procard Process is Changing – Phase I of II – Jenny Murphy, Becky Franklin, and Michael Valdez, APSJenny Murphy, Becky Franklin, and Michael Valdez, APS

• Reminders involving Procard Use & Reminders involving Procard Use & Supporting DocumentationSupporting Documentation

• Procard & Historically Underutilized Procard & Historically Underutilized Business InitiativeBusiness Initiative– Orlando Castaneda & Christi Johnson, HUB Orlando Castaneda & Christi Johnson, HUB

CoordinatorsCoordinators

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ChancellorMark Yudof

Vice Chancellor for AdministrationTonya Brown

Asst. Vice Chancellor for Operations & Support Servicesvacant

Assistant Director of APSJenny Murphy

BuyerKyle Hayes

Supervisor of Accounts PayableBecky Franklin

Administrative AssociateRita George

Accounting AssistantMary Ann Howard

Senior AccountantMichael Valdez

Accounting AssistantKim Tucker

Accounting AssistantJennifer Ramos

Accounting AssistantBecky Mendez

Clerical Assistant (75%)

Sally Rankin

APS Organizational Chart

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The Procard Process is The Procard Process is Changing – Changing – Phase I of IIPhase I of II

• Phase I – Phase I – Awareness & TrainingAwareness & Training

• Phase I Implementation:Phase I Implementation: November November 20042004

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The Procard Process is The Procard Process is Changing – Changing – Phase II of IIPhase II of II

• Phase II –Phase II – DEFINE Coding and DEFINE Coding and ApprovalApproval

• Phase II Implementation Date:Phase II Implementation Date:– This will vary by department. Michael This will vary by department. Michael

Valdez, APS, will work with appropriate Valdez, APS, will work with appropriate individuals from each department to individuals from each department to implement the process. He will begin implement the process. He will begin setting up meetings in November.setting up meetings in November.

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What you need to know when you What you need to know when you leave the training/meeting today:leave the training/meeting today:

– Processing and approving Procard and Office Processing and approving Procard and Office Depot transactions (aka VP7s) will be the Depot transactions (aka VP7s) will be the responsibility of System Administration responsibility of System Administration departments.departments.

– Phase I of II is in progress.Phase I of II is in progress. – Today you will receive all of the documentation Today you will receive all of the documentation

that you have sent to APS for procard charges that you have sent to APS for procard charges that have not yet passed through. Please that have not yet passed through. Please safeguard the information; your department safeguard the information; your department will need to send it in with a Monthly Procard will need to send it in with a Monthly Procard Log by November 16.Log by November 16.

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What you need to know when you What you need to know when you leave the training/meeting today leave the training/meeting today (cont.):(cont.):• Summary of Phase I:Summary of Phase I:

– Phase I begins with the VP7 documents that APS Phase I begins with the VP7 documents that APS will receive, via DEFINE, from U. T. Austin on will receive, via DEFINE, from U. T. Austin on November 8November 8thth or 9 or 9thth..

– APS has training scheduled with Procard holders APS has training scheduled with Procard holders on November 10on November 10thth and at that time, APS will return and at that time, APS will return all documentation that we have received for all documentation that we have received for procard transactions that have not been approved procard transactions that have not been approved in DEFINE.in DEFINE.

– A A Procard Authorization Form Procard Authorization Form is no longer required is no longer required or desired on the front of every procard purchase. or desired on the front of every procard purchase.

– A NEW A NEW Monthly Procard Transaction Log Monthly Procard Transaction Log needs to needs to be maintained by your department.be maintained by your department.

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What you need to know when you What you need to know when you leave the training/meeting today leave the training/meeting today (cont.):(cont.):• Summary of Phase I Summary of Phase I (cont.):(cont.):

– Your department needs to enter an Your department needs to enter an object code for each transaction on the object code for each transaction on the procard log before submitting the log procard log before submitting the log and other supporting documentation to and other supporting documentation to APS. The deadline is November 16. APS. The deadline is November 16. Note: A lot of the support you will need Note: A lot of the support you will need is what we are returning to your today.is what we are returning to your today.

– All approvals should be documented All approvals should be documented when the information is submitted to when the information is submitted to APS.APS.

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What you need to know when you What you need to know when you leave the training/meeting today leave the training/meeting today (cont.):(cont.):

• Summary of Phase I Summary of Phase I (cont.):(cont.):

– APS will review your support and object codes. APS will review your support and object codes. An APS contact will call to discuss any changes An APS contact will call to discuss any changes to the object codes that are necessary and to the object codes that are necessary and why. This type of dialogue should continue why. This type of dialogue should continue going forward as your procard holder or going forward as your procard holder or designated employee learns object codes.designated employee learns object codes.

– APS will enter the codes and final approve your APS will enter the codes and final approve your procard and office depot transactions in procard and office depot transactions in DEFINE, while your department is in Phase I.DEFINE, while your department is in Phase I.

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Object Code Training & Object Code Training & ResourcesResources

• Becky Franklin’s KnowledgeBecky Franklin’s Knowledge• There are a set of “most commonly used” There are a set of “most commonly used”

object codes used for Procard and Office object codes used for Procard and Office Depot transactions.Depot transactions.

• Use DEFINE resources.Use DEFINE resources.• If you have questions after checking these If you have questions after checking these

resources please call an APS employee for resources please call an APS employee for assistance. assistance.

• There is information in your packet.There is information in your packet.

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U. T. Austin’s Policy on VP7 U. T. Austin’s Policy on VP7 ProcessingProcessing• The designated departmental personnel must The designated departmental personnel must

verify the charges and approve the VP7s in a verify the charges and approve the VP7s in a timely manner. Failure to timely review and timely manner. Failure to timely review and approve VP7s will result in actions by the approve VP7s will result in actions by the Procurement Card Program as follows:Procurement Card Program as follows:– First failure to timely approve VP7s: warning letterFirst failure to timely approve VP7s: warning letter– Second failure to timely approve VP7s: 30-day Second failure to timely approve VP7s: 30-day

suspension of card privileges suspension of card privileges – Third failure to timely approve VP7s: loss of card Third failure to timely approve VP7s: loss of card

privilegesprivilegesNote: This has always been the policy; APS just wanted to make Note: This has always been the policy; APS just wanted to make

sure the departments are aware of it during this transition.sure the departments are aware of it during this transition.

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Should I purchase this on my Should I purchase this on my procard?procard?• Is the purchase for a Is the purchase for a Disallowed ItemDisallowed Item? If yes, ? If yes,

don’t purchase the item with your procard.don’t purchase the item with your procard.• Is the amount of the purchase greater than $999? Is the amount of the purchase greater than $999?

If yes, do not purchase with your procard. If yes, do not purchase with your procard.• What if the vendor will split the order in two so What if the vendor will split the order in two so

that I’m under the $999 amount? Don’t put this that I’m under the $999 amount? Don’t put this on your procard; it is called split purchasing and it on your procard; it is called split purchasing and it circumvents purchasing guidelines. The only circumvents purchasing guidelines. The only exception to this is for registrations which can be exception to this is for registrations which can be split.split.

• Is the vendor going to charge me tax? If yes, Is the vendor going to charge me tax? If yes, provide them your provide them your tax exempt formtax exempt form..

• When in doubt, call APS.When in doubt, call APS.

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Real Examples of Exceptions Real Examples of Exceptions APS has seen over the past six APS has seen over the past six months.months.• Unallowable ChargesUnallowable Charges

– CandyCandy– Apple Annie’s food for meetingApple Annie’s food for meeting– Birthday cardBirthday card– Rental of an item for an entertainment eventRental of an item for an entertainment event– Purchase of an item to donate to charityPurchase of an item to donate to charity

• Split charges – 3 ( All computer equipment Split charges – 3 ( All computer equipment related)related)

• Supporting documentation with appropriate Supporting documentation with appropriate approvals not complete when sent to APS.approvals not complete when sent to APS.

• Tax charged on some purchases.Tax charged on some purchases.

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What happens when there are What happens when there are exceptions?exceptions?• It depends on the exception.It depends on the exception.

– If it is an unallowable charge or split order the If it is an unallowable charge or split order the card holder is notified via e-mail. The card holder is notified via e-mail. The department head and the person that department head and the person that approved the expenditure is copied on the approved the expenditure is copied on the notification.notification.

– A credit to the card from the vendor maybe A credit to the card from the vendor maybe needed and then the vendor is paid through an needed and then the vendor is paid through an appropriate method.appropriate method.

– An employee may need to reimburse U.T. in An employee may need to reimburse U.T. in some cases.some cases.

– The procard may be suspended or cancelled in The procard may be suspended or cancelled in some cases.some cases.

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Do you have adequate supporting Do you have adequate supporting documentation?documentation?

• Is there supporting documentation attached Is there supporting documentation attached to ensure the dollar amount paid is accurate?to ensure the dollar amount paid is accurate?

• Did an authorized departmental approver Did an authorized departmental approver approve the purchase?approve the purchase?

• Is the purchase for something that also needs Is the purchase for something that also needs approval by someone outside of your approval by someone outside of your department (i.e., OTIS -because it is a printer department (i.e., OTIS -because it is a printer or something that will be hooked up to the or something that will be hooked up to the network. Facilities - because it is something network. Facilities - because it is something that will require electrical work.)? If yes, have that will require electrical work.)? If yes, have the approvals been obtained?the approvals been obtained?

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Do you have adequate supporting Do you have adequate supporting documentation?documentation?

• Are all columns filled out on the procard Are all columns filled out on the procard spreadsheet to insure compliance with spreadsheet to insure compliance with rules & regulations? Including an estimate rules & regulations? Including an estimate of how much the vendor would charge for of how much the vendor would charge for services or a commodity.services or a commodity.

• Is the purchase for office supplies to a Is the purchase for office supplies to a vendor other than Office Depot? If yes, the vendor other than Office Depot? If yes, the purchase documentation must specify why purchase documentation must specify why the Office Depot program was not utilized. the Office Depot program was not utilized.

• For Office Depot purchases did someone For Office Depot purchases did someone other than the person that created the other than the person that created the order sign that the merchandise was order sign that the merchandise was received?received?

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Questions?Questions?

Thank you for attending Thank you for attending today’s meeting! today’s meeting!

We appreciate you.We appreciate you.

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AppendixAppendix

• The following slides will not be The following slides will not be covered in the training today, but we covered in the training today, but we want to pass the information on to want to pass the information on to you. Please read through them so you. Please read through them so that you are aware of Phase II and that you are aware of Phase II and changes to printing requirements.changes to printing requirements.

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Summary of Changes at the dept’l Summary of Changes at the dept’l levellevel• What will be different when Phase I and II are What will be different when Phase I and II are

implemented?implemented?– The procard holder or a different designated The procard holder or a different designated

department employee will receive a monthly set department employee will receive a monthly set of VP7’s through DEFINE (normally on the 8of VP7’s through DEFINE (normally on the 8 thth/9/9thth).).

– An employee in your department will add object An employee in your department will add object codes for the VP7 documents that are received codes for the VP7 documents that are received from U. T. Austin, via DEFINE, once a month.from U. T. Austin, via DEFINE, once a month.

– The procard holder in your department will be The procard holder in your department will be responsible for obtaining and maintaining responsible for obtaining and maintaining required supporting documentation for charges. required supporting documentation for charges. The procard holder is responsible for providing The procard holder is responsible for providing this information to the person in your this information to the person in your department that will approve all charges in department that will approve all charges in DEFINE by the monthly deadline established by DEFINE by the monthly deadline established by U. T. AustinU. T. Austin..

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Summary of Changes at the dept’l Summary of Changes at the dept’l levellevel• What will be different when Phase I and II are What will be different when Phase I and II are

implemented (cont.)?implemented (cont.)?– A person in your department will be given the A person in your department will be given the

authority to approve VP7s in DEFINE. APS will authority to approve VP7s in DEFINE. APS will train this person on what they need to review train this person on what they need to review before he/she approves.before he/she approves.

– APS will continue to offer to scan your APS will continue to offer to scan your department’s procard payment documentation department’s procard payment documentation into FileNet if you send it to us “ready to scan”.into FileNet if you send it to us “ready to scan”.

– Mike Valdez, APS, will monitor the Procard Mike Valdez, APS, will monitor the Procard activity by reviewing a sample of departments activity by reviewing a sample of departments and transactions monthly. Similar to the and transactions monthly. Similar to the process Internal Audit performed at one time.process Internal Audit performed at one time.

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Update on Initiatives and Update on Initiatives and Helpful SuggestionsHelpful Suggestions

• Printing & Copying – Require three Printing & Copying – Require three bids regardless of dollar amountbids regardless of dollar amount

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Printing/Copying at UT System Printing/Copying at UT System AdministrationAdministration

• NoNo distinction is made between distinction is made between printingprinting and and copyingcopying (duplicating) of materials (including CDs) at (duplicating) of materials (including CDs) at UT System Administration. UT System Administration. BothBoth require a minimum require a minimum of three (3) documented bids, regardless of dollar of three (3) documented bids, regardless of dollar amount, according to the recent opinion rendered by amount, according to the recent opinion rendered by OGC regarding this old Texas State law. OGC regarding this old Texas State law. • If the dollar amount exceeds $5,000.00, then two If the dollar amount exceeds $5,000.00, then two (2) HUB documented bids are also required – one (1) (2) HUB documented bids are also required – one (1) from an from an ethnic-minority ownedethnic-minority owned vendor and one (1) vendor and one (1) from a from a woman-ownedwoman-owned vendor. vendor.

****Exception:Exception: you are NOT required to obtain competitive bids if you are NOT required to obtain competitive bids if printing is done by a University facility such as University printing is done by a University facility such as University Printing or University Duplicating. Document the bids that you Printing or University Duplicating. Document the bids that you received. For more information on University Printing or received. For more information on University Printing or University Duplicating, please visit University Duplicating, please visit http://www.utexas.edu/services/printing/index.html http://www.utexas.edu/services/printing/index.html

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Update on Initiatives and Update on Initiatives and Helpful Suggestions Helpful Suggestions

• Helpful SuggestionsHelpful Suggestions– Please use forms from our website. Several Please use forms from our website. Several

have been updated; the date of update has have been updated; the date of update has been added.been added.

– Be sure to date-stamp all invoices and Be sure to date-stamp all invoices and documentation related to payables at the documentation related to payables at the time they are received by your department. time they are received by your department. This is a legal requirement and affects the This is a legal requirement and affects the calculation of late payment penalties to calculation of late payment penalties to vendors.vendors.

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Update on Initiatives and Update on Initiatives and Helpful SuggestionsHelpful Suggestions

• Helpful SuggestionsHelpful Suggestions– When you send loose documents to APS, When you send loose documents to APS,

please document what we need to do please document what we need to do with it.with it.