Payment Payment SolutionsSolutions 101 101

An Overview of the Payment An Overview of the Payment Solutions Process at Rice Solutions Process at Rice

UniversityUniversity

Resources and ReferencesResources and References

Payment Solutions WebsitePayment Solutions Website Policies Policies

– PurchasingPurchasing– TravelTravel– Business Meeting/Entertainment ExpenseBusiness Meeting/Entertainment Expense– Conflicts of InterestConflicts of Interest– Signature and Approval Authority for ContractsSignature and Approval Authority for Contracts

Procedure ManualsProcedure Manuals FAQsFAQs Administrative Systems/Banner SecurityAdministrative Systems/Banner Security

Department ResponsibilityDepartment Responsibility

Adhering to the Rice policies and procedures.Adhering to the Rice policies and procedures. Providing sound stewardship of department funds.Providing sound stewardship of department funds. Prepare and/or approve transactions (i.e.. invoices, Prepare and/or approve transactions (i.e.. invoices,

check requests, travel envelopes, etc.) for prompt check requests, travel envelopes, etc.) for prompt payment with required documentation, account coding payment with required documentation, account coding and signature approval.and signature approval.

Submitting approved Purchasing Card Applications.Submitting approved Purchasing Card Applications. Submitting Signature Authorization Forms.Submitting Signature Authorization Forms. Reconciling and reviewing monthly reports and Reconciling and reviewing monthly reports and

Purchasing Card statements on a timely basis.Purchasing Card statements on a timely basis.

Signature AuthoritySignature Authority Signature authority must be requested and Signature authority must be requested and

periodically confirmed by the department periodically confirmed by the department chair/head (or delegated individual) and updated in chair/head (or delegated individual) and updated in the Signature Card database.the Signature Card database.

Areas of approval authority include:Areas of approval authority include:

– Approval LevelsApproval Levels

– Allowable TransactionsAllowable Transactions

– Allowable Funds/OrgsAllowable Funds/Orgs

Authorized signers must review and acknowledge Authorized signers must review and acknowledge that they are familiar with the following policies:that they are familiar with the following policies:

– Conflicts of Interest Related to the Purchasing of Conflicts of Interest Related to the Purchasing of Supplies, Services, and Equipment (No. 838) Supplies, Services, and Equipment (No. 838)

– Signature and Approval Authority for Contracts (No. 810). Signature and Approval Authority for Contracts (No. 810).

Planning for PurchasesPlanning for Purchases

Fund RestrictionsFund Restrictions – Gift (G)Gift (G)– Endowment Spending (H) Endowment Spending (H) – Research funds (R)Research funds (R)

Available BudgetAvailable Budget Small Business, Minority and Women VendorsSmall Business, Minority and Women Vendors Lease vs. Purchase Decision MakingLease vs. Purchase Decision Making

– Contact General CounselContact General Counsel

Hazardous MaterialsHazardous Materials

Bidding InformationBidding Information

Purchasers should solicit bids for goods and services.Purchasers should solicit bids for goods and services.

– A minimum of 3 documented bids or justification for sole source A minimum of 3 documented bids or justification for sole source purchasing is required for all purchases totaling $25,000 or purchasing is required for all purchases totaling $25,000 or more. more.

When the lowest bid is not accepted, justification is When the lowest bid is not accepted, justification is required.required.

Submit copy of bids and/or sole source purchasing with Submit copy of bids and/or sole source purchasing with documentation when appropriate and a approved and documentation when appropriate and a approved and coded purchase order.coded purchase order.

Document CodingDocument Coding Fund/Org/Account clearly recordedFund/Org/Account clearly recorded

Program, Activity and/or Location codes should be indicated Program, Activity and/or Location codes should be indicated following the fund/org/account code combination when following the fund/org/account code combination when appropriateappropriate

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

Purchases Totaling Purchases Totaling

$2,500 or Less$2,500 or Less

RICE UNIVERSITYTax Exempt # 74-1109620

5567 0154 5555 5555Samuel SmartRice University

10/06 - 10/08

Payment Options for Purchases Payment Options for Purchases Less than $5,000 Less than $5,000

When accepted by the vendor, pay for your purchase with When accepted by the vendor, pay for your purchase with your Rice University purchasing card.your Rice University purchasing card.

– If MasterCard is not accepted, arrange for the vendor to invoice If MasterCard is not accepted, arrange for the vendor to invoice your department directly by providing the following information:your department directly by providing the following information:

University addressUniversity address

Department name and mail stopDepartment name and mail stop

Contact name and phone numberContact name and phone number

Please note:Please note:

– Rice is exempt from paying Texas sales tax. When arranging for Rice is exempt from paying Texas sales tax. When arranging for payment, provide the vendor with the Federal Tax ID number. This payment, provide the vendor with the Federal Tax ID number. This number is located on the front of the purchasing card.number is located on the front of the purchasing card.

Purchases Less than $5,000 Purchases Less than $5,000 With an InvoiceWith an Invoice

• Confirm that the invoice is an Confirm that the invoice is an originaloriginal invoice.invoice.

• Ensure that Texas sales tax is not being charged.Ensure that Texas sales tax is not being charged.

• Code the invoice for payment (fund/org/account).Code the invoice for payment (fund/org/account).

• Ensure that the invoice is approved by an authorized Ensure that the invoice is approved by an authorized

signer. The signature on the invoice indicates the items signer. The signature on the invoice indicates the items

were received and in good order.were received and in good order.

• Send the invoice and all required documentation to Send the invoice and all required documentation to

Payment Solutions, MS77 for processing.Payment Solutions, MS77 for processing.

Purchases Less than $5,000 Purchases Less than $5,000 Without an InvoiceWithout an Invoice

A check request form can be used to request a A check request form can be used to request a payment if no invoice is available.payment if no invoice is available.• Payments must include:Payments must include:

• to a vendor (new vendor only) – W9 Form (retain a copy for to a vendor (new vendor only) – W9 Form (retain a copy for the department files).the department files).

• Rice individual– employee #Rice individual– employee #

• Non rice individual– social security # - W9 Form (retain a Non rice individual– social security # - W9 Form (retain a copy for the department files).copy for the department files).

• Code the check request with the appropriate Code the check request with the appropriate fund/org/account.fund/org/account.

• Attach required backup documentation.Attach required backup documentation.

• Have the check request approved by an authorized Have the check request approved by an authorized signer.signer.

Purchases Less than $5,000 Purchases Less than $5,000 Without an InvoiceWithout an Invoice

• Clearly indicate any special handling requests (i.e.. Clearly indicate any special handling requests (i.e.. attachments, call for pickup, etc).attachments, call for pickup, etc).

• Send the check request with all of the above to Send the check request with all of the above to Payment Solutions, MS77 for processing.Payment Solutions, MS77 for processing.

Limit check request use! Use a CQ to:Limit check request use! Use a CQ to:

• Pay vendors who cannot submit invoicesPay vendors who cannot submit invoices

• Pay honoraria to non-Rice faculty/staff/studentsPay honoraria to non-Rice faculty/staff/students

• Reimburse faculty/staff/students for expenses Reimburse faculty/staff/students for expenses greater than $100greater than $100

• Request travel advances (Note: see Travel Policy for Request travel advances (Note: see Travel Policy for restrictions)restrictions)

Reimbursement for Out of Reimbursement for Out of Pocket ExpensesPocket Expenses

Requires “One Over” signature approvalRequires “One Over” signature approval Less than $100 Less than $100

– Reimburse with Petty CashReimburse with Petty Cash Submit Petty Cash Voucher to the Cashier’s OfficeSubmit Petty Cash Voucher to the Cashier’s Office Call the Cashier’s Office for informationCall the Cashier’s Office for information

$100 or Greater$100 or Greater– Reimburse with a Check Request formReimburse with a Check Request form

Attach receipts as backupAttach receipts as backup Submit to Payment Solutions, MS77 for processingSubmit to Payment Solutions, MS77 for processing

Reimbursement for Mileage Reimbursement for Mileage ExpensesExpenses

Mileage rates available on the Payment Solutions websiteMileage rates available on the Payment Solutions website– Submit mileage incurred while traveling on a travel statement or Submit mileage incurred while traveling on a travel statement or

travel envelope travel envelope

– Submit mileage on a check request or mileage voucher if incurred Submit mileage on a check request or mileage voucher if incurred locallylocally

Both forms should include:Both forms should include:– Clear and precise business purpose of the tripClear and precise business purpose of the trip

– The date of the incurred mileageThe date of the incurred mileage

– The beginning and end points of the tripThe beginning and end points of the trip

Purchases of $5,000 or Purchases of $5,000 or GreaterGreater

Require a purchase order Require a purchase order

– Exceptions:Exceptions:

Professional Service payments due to 1099 reportingProfessional Service payments due to 1099 reporting

Maintenance Agreement payments when an approved, Maintenance Agreement payments when an approved, written contract is on file in the department.written contract is on file in the department.

Purchase OrdersPurchase Orders Purchase Order forms are available from Payment Purchase Order forms are available from Payment

SolutionsSolutions– Call ext. 6700Call ext. 6700

– Email your request to payment@rice.eduEmail your request to payment@rice.edu

4 part form which is a commitment for payment4 part form which is a commitment for payment– Yellow is the work copyYellow is the work copy

– White is the vendor copy White is the vendor copy

– Blue is the department copyBlue is the department copy

– Green is the receiving report Green is the receiving report

Detailed instructions are in the Purchasing and Detailed instructions are in the Purchasing and

Payment ManualPayment Manual

Purchase OrdersPurchase Orders

Equipment purchased (account code - 75XXX and Equipment purchased (account code - 75XXX and 76XXX)76XXX)

– Complete and attach a Complete and attach a Property Control Registration Form.Property Control Registration Form.

Equipment purchased on a research fund (75XXX)Equipment purchased on a research fund (75XXX)

– In addition to a Property Control RegistrationIn addition to a Property Control Registration Form completForm complete e and attachand attach a Procurementa Procurement BriefBrief . .

Purchase of $25,000 or morePurchase of $25,000 or more

– Attach bid documentation or sole source purchasingAttach bid documentation or sole source purchasing

Invoice Payment on POsInvoice Payment on POs

Invoices must be reviewed by a person other than the Invoices must be reviewed by a person other than the individual who approved the original Purchase Order. individual who approved the original Purchase Order.

By signing the invoice, the signer is indicating thatBy signing the invoice, the signer is indicating that

– the original invoice is being submitted the original invoice is being submitted

– the PO number is recorded on the invoicethe PO number is recorded on the invoice

– Texas sales tax is not being chargedTexas sales tax is not being charged

– the purchased items noted on the invoice have been received the purchased items noted on the invoice have been received in good order and the invoice is to be paid.in good order and the invoice is to be paid.

Receiving Copy (green)Receiving Copy (green)

– Submit copy of green with partial payments.Submit copy of green with partial payments.

– Submit original green with final payment.Submit original green with final payment.

Post-PaymentPost-Payment

Refunds: Refunds: Send Deposit Voucher Form to Cashier’s Office, Send Deposit Voucher Form to Cashier’s Office,

MS55MS55– Rice checks payable to vendors should not be Rice checks payable to vendors should not be

deposited by the department. Forward them to deposited by the department. Forward them to Disbursements.Disbursements.

Credit Memos:Credit Memos: Treated the same as an invoice. Signature Treated the same as an invoice. Signature

authority, coding and documentation are needed.authority, coding and documentation are needed. Contact Disbursements OfficeContact Disbursements Office

– Diane Berger ext. 3441Diane Berger ext. 3441

Post-PaymentPost-Payment

Void Checks/Stop PaymentsVoid Checks/Stop Payments Contact Disbursements OfficeContact Disbursements Office

– Teresa Blumentritt ext. 4812Teresa Blumentritt ext. 4812– Patricia Morrison ext. 4546Patricia Morrison ext. 4546

Changes in Original CodingChanges in Original Coding Submit an Expense Transfer FormSubmit an Expense Transfer Form

– Crystal Davis or Flor Garcia, MS70Crystal Davis or Flor Garcia, MS70

Travel, Business Meeting & Travel, Business Meeting & Entertainment ExpensesEntertainment Expenses

IRS regulations apply to the following expenses and IRS regulations apply to the following expenses and require additional information.require additional information.

3 Forms for Rice Faculty/Staff3 Forms for Rice Faculty/Staff– Online TEBM FormOnline TEBM Form– Travel StatementTravel Statement– B/E FormB/E Form

Require “One-Over” Approval Require “One-Over” Approval Travel Advances Travel Advances

– Student travelStudent travel– Group travelGroup travel– International travelInternational travel

Non-Rice Travelers Non-Rice Travelers – No Rice travel statement required although these forms may be No Rice travel statement required although these forms may be

usedused Travel & B/E Procedure ManualsTravel & B/E Procedure Manuals

Relocation ExpensesRelocation Expenses

IRS regulations apply. Get details before committing!IRS regulations apply. Get details before committing!– Teresa Blumentritt x4812 or Tessie Skulski x 4004Teresa Blumentritt x4812 or Tessie Skulski x 4004

Monitored by the Controller’s Office regarding Monitored by the Controller’s Office regarding taxation issues.taxation issues.

Information available in the Purchasing and Payment Information available in the Purchasing and Payment Manual.Manual.

Expenses/Reimbursements reported on a Relocation Expenses/Reimbursements reported on a Relocation Expense Report. This form can be found on the Expense Report. This form can be found on the Controller’s Website.Controller’s Website.

Payments to Faculty, Payments to Faculty, Staff and StudentsStaff and Students

Reimbursement for Out of Pocket ExpensesReimbursement for Out of Pocket Expenses Mileage ReimbursementMileage Reimbursement Relocation ExpensesRelocation Expenses Prizes/Awards/ScholarshipsPrizes/Awards/Scholarships Payment for Services RenderedPayment for Services Rendered

Payment of Prizes, Awards, Payment of Prizes, Awards, ScholarshipsScholarships

These types of student payments are submitted on a These types of student payments are submitted on a

Check Request form with appropriate backup.Check Request form with appropriate backup.

MUSTMUST be submitted to the Student Financial Services be submitted to the Student Financial Services

department for review/approval.department for review/approval.

Distributed through the Cashier’s Office.Distributed through the Cashier’s Office.

Payment to Payment to Faculty/Staff/Students for Faculty/Staff/Students for

Services RenderedServices Rendered

For Faculty/Staff, request is made on a PAF to Human For Faculty/Staff, request is made on a PAF to Human Resources. Resources.

**Contact HR regarding any assignment of a secondary job that **Contact HR regarding any assignment of a secondary job that might move a non-exempt employee into the area of overtime might move a non-exempt employee into the area of overtime compensation.**compensation.**

For Students, request is made on a Student Personnel For Students, request is made on a Student Personnel Action form sent to Student Financial Services.Action form sent to Student Financial Services.

Research ProcurementResearch Procurement

Know your grant/contract. Some have restrictions.Know your grant/contract. Some have restrictions.– All expenses must have clear relationship/benefit to the All expenses must have clear relationship/benefit to the

contract/grant.contract/grant.

– See Section 11 of Purchasing and Payment ManualSee Section 11 of Purchasing and Payment Manual

Requires Principal Investigator (PI) or PI designee Requires Principal Investigator (PI) or PI designee

signaturesignature

OSR Website OSR Website – Links to federal guidelines which determine whether the expense is Links to federal guidelines which determine whether the expense is

allowedallowed

Common Research RestrictionsCommon Research Restrictions

Entertainment ExpensesEntertainment Expenses

Alcohol ExpensesAlcohol Expenses

International Travel International Travel – Use of US Flag CarrierUse of US Flag Carrier

Others -- see Section 11 of the Purchasing ManualOthers -- see Section 11 of the Purchasing Manual

Attend Research Administrators’ Meetings Attend Research Administrators’ Meetings hosted by OSR and Research Accountinghosted by OSR and Research Accounting

Property AccountingProperty Accounting

Monitor/track capital equipment purchases.Monitor/track capital equipment purchases.

Capital equipment purchases require a PCapital equipment purchases require a Property roperty Control Registration FormControl Registration Form and approval from and approval from Property Accounting.Property Accounting.

Section 12 of the Purchasing and Payment Manual.Section 12 of the Purchasing and Payment Manual.

Contact Pat Hall-Jones; ext 3429 (Property Contact Pat Hall-Jones; ext 3429 (Property Accounting Manager)Accounting Manager)

For Questions and/or TrainingFor Questions and/or Training

contact Regina Diaz ext. 6715 or contact Regina Diaz ext. 6715 or Regina.R.Diaz@Rice.eduRegina.R.Diaz@Rice.edu