An Overview of Accounting Processes at UWMadison Accounting Services

1
An Overview ofAccounting Processesat
UW-MadisonAccounting Services
Business Topics Seminar December 2, 2008
2
Agenda

• Overview Jan Richardson
• Purchasing Card Program Jan Richardson
• Travel Management Program Jan Richardson
• Payments to Individuals Jose Carus
• Break (950-1000 AM)
• Direct Payments/Non-Travel Employee
  Reimbursements/Purchase Order Payment Process
  Virginia Brown
  
• Cash Management Sharon Hughes
• Shared Financial System (SFS) Hua Ramer

3
Accounting Services Process Overview
Funds In
Funds Out
Accountability
4
Accounting Services Process Overview
Financial Transactions Received and Processe
d

Legacy Accounting System (Receipts/Sales Credit
Transfer Form, Accounts Receivable Deposit
Form)
SFS System (P-card, TERs, PIRs, DP/ERs, PO-relat
ed, Cash Advances, Refund of Receipts, Receipt
/Sales Credit
Deposit, Vendor Refund Deposit)
Vendor/Employee Payments
Data Storage (General Ledger Capital Inv. System
)
Data Retrieval (WISDM)
5
Types of SFS Transactions

• Purchasing Card (SFS)
• Travel Expenses (SFS/ATS)
• Payment to Individuals (SFS)
• Direct Payments/Employee Reimbursements (SFS)
• PO-related (SFS)
• Cash Advances (SFS)
• Refund of Receipts (SFS)
• Receipt/Sales Credit Deposit (SFS)
• Vendor Refund Deposits (SFS)

6
Items of Interest

• Accounting Services Home Page http//www.bussvc.w
  isc.edu/acct/acct.html
  
• Accounting Services Staff Directory and
  Functional Directory http//www.bussvc.wisc.edu/ac
  ct/acctdir.htmlhttp//www.bussvc.wisc.edu/acct/fu
  nctdir.xls
• Policy and Procedure Indexhttp//www.bussvc.wisc.
  edu/acct/policy/ppindex.html

7
Items of Interest (contd)

• Accounting Services Traininghttp//www.bussvc.wis
  c.edu/acct/train.htmlOffice of Human Resource
  Development
  
• Business Services How To Documentshttp//www.bu
  ssvc.wisc.edu/howto/HowMain.html
  
• Acronyms Indexhttp//www.bussvc.wisc.edu/acronym/
  acronym.html
  

8
Purchasing CardProgram

• Jan Richardson

9
The Purchasing Card Programhttp//www.bussvc.wisc
.edu/acct/purchcd/index.html

• PURPOSE OF THE PROGRAM
• Simplify and Speed up Purchasing Process
• Reduce Paperwork
• Replace Open Vendors, Reduce Blanket Orders and
  Low Dollar Orders
  
• Process Registrations, Subscriptions and
  Membership Renewals

10
Program Growth

• Where we are now
• (FY09)
• 1,865 Total Cards
• 454 Purchasing Cards approved for travel
• Averaging 17,160 transactions and 5,308,350/
  month on Purchasing Cards

• Where we started
• 1994 began pilot (20 cards)
• 1995 27 cards issued (23 CALS)
• 122 transactions
• 22,800 worth of business
• Program Expansion began in 1997
• Where we are now (FY09)
• 1,865 Total Cards
• 454 Purchasing Cards approved for travel
• Averaging 17,160 transactions and 5,308,350/
  month on Purchasing Cards
  

11
How the Card Works

• Department obtains Deans Office Approval
• Forms are completed to establish Site Manager
  and Cardholdershttp//www.bussvc.wisc.edu/acct/pu
  rchcd/index.html
  
• Site Manager Form
• Cardholder Account Set Up Form
• Cardholder Agreement Form

12
Responsibilities

• Cardholder
• Determines what needs to be purchased
• Follows Purchasing Policy and Procedures
  including special approvals list
  http//www.bussvc.wisc.edu/purch/ppp4.html
  
• Some purchases require additional approval before
  ordering

13
Responsibilities Cardholder Cont.

• Keeps a log or Statement of Account report,
  indicating purchases made
  
• Attaches documentation for each purchase
• Indicates funding changes on the log
• Forwards log and documentation on to Site Manager
  at the end of the two-week cycle
  
• Reviews the e-mailed Cardholder Statement

14
Responsibilities

• Site Manager
• Collects the log and reviews the documentation
  for appropriateness
  
• Uses the PVS Net Software to reconcile and make
  accounting code reallocations
  
• Signs off on the log when reconciliation is
  complete
  
• Keeps the log and documentation on file for the
  required 7 years
  
• Refers to noncompliance policy if
  necessaryhttp//www.bussvc.wisc.edu/acct/purchcd/
  NoncompliancePolicyandProcedures.doc

15
Differences between the P-card and Corporate
Travel Card

• P-card (with approval for travel)
• Institutional Liability
• Airfare
• Lodging
• Car Rental
• Hotel parking

• Corporate Travel Card
• Individual Liability
• Within travel regulations
• Individual meals
• Other travel-related
• Requires submission of TER

16
Contacts

• Your Department Administrator and Deans Office
• Yvonne QuammePurchasing Card Program Manager21
  N. Park Street, Suite 5301608-265-9800,
  yquamme_at_bussvc.wisc.edu
  
• Meghann SuchomelPurchasing Card Program
  Support608-262-3300, msuchomel_at_bussvc.wisc.edu
  
• http//www.bussvc.wisc.edu/acct/purchcd/

17
Questions?
18
Travel Expense Reporting and Reimbursement

• Jan Richardson

19
What Can I Find on the Travel Resource Web
Site?

• Policy guidelines for all travel costs
• Travel Expense Report Forms along with samples
• Sample Travel Advance Form and Instructions
• Relocation Resources
• Event Planning Forms
• Procedures for documenting and processing travel
  related transactions
  
• Flowcharts of common travel related processes

20
Travel and Expense Resourceshttp//www.bussvc.wis
c.edu/acct/TEWeb/index.html
21
Travel Expense Reports

• Travel Expense Reports (TERs) are used to
  reimburse UW employees for all out-of-pocket
  business travel costs.
  
• Conditions and amounts of travel reimbursement
  are governed by the State of Wisconsin Uniform
  Travel Schedule Amounts and University policy.
  
• Amounts reimbursed for travel are negotiated by
  the State of Wisconsin, biennially.
  
• The rates and policy conditions are for all
  funding sources and for all staff, academic,
  unclassified and classified.

22
Types of Travel Expense Reimbursements

• Airfare or Other Transportation Costs
• Lodging
• Meals
• Mileage
• Moving Costs
• Registrations
• Miscellaneous expenses purchased in travel status

23
Travel Training Tutorial

• To keep up with training needs and policy
  changes, UW Madison has developed a web-based
  training and resource guide on travel.
  
• You can learn the basics of TER preparation right
  at your desk!

24
UW-MadisonTravel Training Tutorialhttp//www.bus
svc.wisc.edu/acct/travel/ter/ter_tutorial.html
25
Information for UW-Madison Travelershttp//www.b
ussvc.wisc.edu/acct/TEWeb/travel/index.html

• Account Codes for Travel
• Airfare Claims Flowchart
• Car Rentals
• In State
• Out-of-State
• Rental Car Claims Flowchart
• Communication Memos
• Domestic Lodging Maximums
• FAQs
• e-Reimbursement FAQs
• General Travel FAQs
• International Travel Guidelines
• Lodging Claims Flowchart
• In State Lodging
• Out of State Lodging

• Meal Claims
• Meal Claims Flowchart--For UW Employees on Travel
  Status
  
• Meal Claims Flowchart--In Madison and Outside of
  Madison
  
• Meals--UW Employees Paid For Others
• Mileage Claims Flowchart
• My Corporate Card (personal liability)
• Payment/Reimbursement Methods
• Registration Fee Claims Flowchart
• Resources for Travel
• Travel Agencies
• Travel Definitions
• UW Corporate Frequent Flyer Accounts

26
Information for e-Reimbursementhttp//www.bussvc.
wisc.edu/acct/TEWeb/reimbursement/index.html
27
Division and Department Responsibility
Traveler or proxy prepares TER upon trip comple
tion
claimant signs
Traveler or proxy routes TER to supervisor for
approval signature
Traveler or proxy routes TER to supervisor for
approval signature
TER is routed to Dean/Directors Office for appr
oval
signature
TER is routed to Dean/Directors Office for appr
oval
signature
Once approved, Dean/Directors Office routes TE
R
to Accounting Services
If TER is 133 funded, TER is routed to RSP for
approval. RSP approves and routes to Accounting
Services

28
Accounting Services Responsibility
This process currently takes 10-15 business days
from the time it reaches Accounting
TER is reviewed for SFS account code accuracy
and compliance w/travel policy.
TER is received in Accounting Services and date
stamped.
Once reviewed and approved, TER is entered into
SFS AP system.
Payee is added to SFS AP vendor file. If
payee already exists, address is verified or
updated.
Checks are printed locally and mailed out 3
business days after they are initially entered
29
What Are Some of the Items We Look At?

• Coach/Economy Airfare is being claimed, proper
  receipts are attached
  
• Meals are in accordance with policy and receipted
  when needed
  
• Mileage calculations are correct
• Lodging amount is in accordance with policy and
  receipts are attached
  
• Correct SFS account code and approval signatures
• Any other documentation necessary to explain
  trip
  
• Payee and check mailing instructions are clearly
  understood

30
Common Errors

• Missing Airfare Receipts or confirmation of
  payment
  
• Conference Brochure/Registration Form Required
  to show length of conference and what was
  included in registration fee
  
• Meeting/Conferences have no agenda/brochure, list
  of participants, business purpose
  
• Contract Vendors are not used
• Departure and Return Times are missing
• Detailed Receipts No credit card slips!
• Incorrect account codes are used
• Payee information missing or incorrect

31
e-Reimbursement Implementation

• Timeline
• November 2008Phase I began with training 25 LS
  travelers
  
• December 2008Intercollegiate Athletics is
  trained and implements e-Reimbursement
  
• January-February 2009CALS, WVER, Engineering,
  and Medical School begin rollout
  
• April 2009Phase II begins with expansion of
  pilot sites and adding more divisions
  
• More information is available at
  http//www.bussvc.wisc.edu/acct/TEWeb/implementati
  onPlan.html

32
e-Reimbursement System

• When e-Reimbursement is implemented, paper forms
  will not be used to process the following
  
• all employee travel/non-travel reimbursements
• non-employee reimbursements
• travel related cash advances
• pre-trip approvals (where required)

33
Questions?
34
Payment to Individual Reports

• Jose Carus

35
What is a Payment to Individual
Report?http//www.bussvc.wisc.edu/acct/instructio
ns/acpir.html

• A Payment to Individual Report, or PIR, is used
  as a payment and reporting mechanism for
  payments to non-employees.

36
Definitions of Payments Using a PIR
http//www.bussvc.wisc.edu/acct/policy/pir/pirdef.
html
37
What Type of Payments http//www.bussvc.wisc.edu/a
cct/ccode.html

• 2162 Travel - Non-Employees 
• 2620 Services Provided by an Individual
• 3750 Cash Prizes and Cash Awards to Individuals
  
  
• 3860 Royalties
• 2637 Research Subjects
• 5750 Student Loans
• 5709 Research Support
• 5710 Participant Support
• 5711 Student Aid - Excluding Loans
• 5713 Tuition and Fees

38
Policies Procedures To assist you we have web
instructions at http//www.bussvc.wisc.edu/acct/i
nstructions/acpir.html.
39
PIR Tutorial http//www.bussvc.wisc.edu/acct/pir/p
ir_tutorial.html
40
Contacts at 21 N. Park, Suite 6101

• Lori Nolley PIRs Payment to Individuals
  lnolley_at_bussvc.wisc.edu, 263-9361http//www.buss
  vc.wisc.edu/acct/policy/pir/pirpol.html
  
• Jose A. Carus, Jr. Tax Compliance Manager
  jcarus_at_bussvc.wisc.edu, 262-0582
  http//www.bussvc.wisc.edu/acct/tax.html
  
• ITINs Individual Taxpayer Identification
  Number
  
• UBIT Unrelated Business Income Tax
• Sales Tax Issues
• Moving Expenses
• Year-End Tax Reporting
• Payment Tax Issues

41
Questions?
42
Direct Payments Non-Travel EmployeeReimburseme
nts

• Virginia Brown

43
Direct Payments http//www.bussvc.wisc.edu/acct/in
structions/direct_payment.html

• Payments which do not require a requisition or
  Purchasing Agent action.
  
• Usually invoices from vendors but may be
  non-travel related reimbursements to employees.

44
Types of Direct Payments

• 3140 Fleet Credit Card Gas
• 3720 Subscriptions
• 3730 Memberships
• 3700 Postage/Postage Meter
• 3860 Royalties to sole proprietorships and
  partnerships when payment is made to a company
  
• 2623 Royalties to Corporations
• 3740 Madison Newspapers/Milwaukee Journal
  Sentinel Classified Advertising
  
• 2100 Hosting Expense Reimbursement

45
Types of Direct Payments

• 2201 Non-Contract Cellular Phone Service
  Reimbursement
  
• 2260 Internet/DSL Charge Reimbursement
• Utility Payments
• Registration Fees
• Meeting/Conference food beverage (under 5000)
• Miscellaneous supply reimbursements
• Tuition reimbursements

46
Direct Payment Form Instructions
http//www.bussvc.wisc.edu/acct/instructions/direc
t_payment.html
47
What is Needed for Direct Payment Processing?

• Complete Funding information
• Coding information is online at
  http//www.bussvc.wisc.edu/acct/coding.html
  
• Invoice number or created invoice number
• Payment information, who is the check to be
  issued, where is it to be sent or any special
  instructions
  
• Appropriate department and division approvals
• Direct Payment Form is online at
  http//www.bussvc.wisc.edu/acct/forms/direct_payme
  nt.xls

48
CONTACTS

• Jan BlieseSuite 5301, 21 N. Park
  St.jbliese_at_bussvc.wisc.edu262-2018
  
• Steve SauerSuite 5301, 21 N. Park
  St.ssauer_at_bussvc.wisc.edu262-1919

49
Questions?
50
Purchase Order (PO) Payment Process

• Virginia Brown

51
How Does My Invoice Get Paid?
Requisition
Purchase Order (PO)
Vendor Invoice
Purchase Order Payment Process
Payment Notice From Department
52
Purchase Order Payments
Verifies Data
Disputes
Approved Invoices
Vendor Relations
SFS Entry
53
Purchase Order PaymentsVerify

• Pricing
• Contract
• Freight Terms
• Tax
• Multiple Class Code (Splits)
• Positive Approval
• Foreign Currency Requests

• Invoice
• Vendor name
• Valid Purchase Order Number
• Date
• Ship to Address
• Invoice Items Match Work Copy
• Current Charges

54
Prompt Pay

• A properly submitted invoice must be paid within
  30 days of receipt or interest must be paid.
  
• Payment Notice Form http//www.bussvc.wisc.edu/acc
  t/payment.doc

55
Cycle Time to Produce a Check
Day 1 Enter Payment To Produce Voucher Verific
ation
56
Cycle Time to Produce a Check
Day 1 Enter Payment To Produce Voucher Verifi
cation
Day 2 Error Correction Budget Check
57
Cycle Time to Produce a Check
Day 1 Enter Payment To Produce Voucher Verifi
cation
Day 2 Error Correction Budget Check
Day 3 Posting to General Ledger Check Printing
Reporting to DOA
58
Cycle Time to Produce a Check
Day 1 Enter Payment To Produce Voucher Verifi
cation
Day 2 Error Correction Budget Check
Day 3 Posting to General Ledger Check Printing
Reporting to DOA
Day 4 Checks Distributed to Vendors
59
Why is an invoice disputed? Reasons

• Purchase Order Number is invalid
• Purchase Order Number has expired
• Pricing does not comply with contract
• Description on invoice does not match description
  on Purchase Order

60
And More Reasons

• Ordering has taken place before procurement
  process has been completed
  
• Over shipment on a Purchase Order
• Merchandise was returned
• Items not received
• Incorrect items received

61
Emergency Transactions

• Emergency Transactions (ETs)http//www.bussvc.wis
  c.edu/acct/forms/etr.xls

62
Vendor Relations

• Disputes
• Statements
• Past Due Invoices
• Payment Corrections

63
Vendor Relations Contacts at 21 N Park St. ,
Suite 5301

• Vendors A-F
• Jeanette Rutschowjrutschow_at_bussvc.wisc.edu,
  262-4688
  
• Vendors G-O
• Carol Smithcsmith_at_bussvc.wisc.edu, 262-1306
• Vendors P-Z Numerical
• Sandy Bolsonsbolson_at_bussvc.wisc.edu, 262-1527

64
Purchase Order Payments and Vendor Relations
Supervisors at 21 N. Park, Suite 5301

• Virginia Brown vbrown_at_bussvc.wisc.edu, 262-4865
• Vacant

65
Questions?
66
Cash Management

• Sharon Hughes

67
Cash Management
Cash and Checks
Charge Card Deposits
Wire/ACH Transactions
TBAs
US Bank
WISDM
Daily Report from US Bank
Entered into Accounting System
68
Cash Management http//www.bussvc.wisc.edu/acct/ca
shmgt.html
69
Policies

• Cash Advanceshttp//www.bussvc.wisc.edu/acct/poli
  cy/ca/capol.html
  
• Accounts Receivable, Invoicing, and Collections
  http//www.bussvc.wisc.edu/acct/policy/collect/co
  lpol.html
  
• Revenue Accounting http//www.bussvc.wisc.edu/acc
  t/policy/revenue/revpol.html
  
• Revenue Producing Activities http//www.bussvc.wi
  sc.edu/acct/policy/rpa/rpapol.html
  
• Merchant Credit Card http//www.bussvc.wisc.edu/a
  cct/ccmerch.html

70
Cash Advance Procedure, Forms and Instructions

• Policy and Procedure http//www.bussvc.wisc.edu/a
  cct/policy/ca/capro.html
  
• Cash Advance Request Formhttp//www.bussvc.wisc.e
  du/acct/forms/capp2.xls
  
• Cash Advance Individual/Department Custodian
  Agreementhttp//www.bussvc.wisc.edu/acct/forms/ca
  pp1.doc
  
• Cash Advance Accounting Formhttp//www.bussvc.wis
  c.edu/acct/forms/capp3.xls

71
Revenue Accounting, Procedures, Forms and
Instructions

• Revenue Accounting http//www.bussvc.wisc.edu/acc
  t/policy/revenue/revpol.html
  
• Receipts/Sales Credit Deposit http//www.bussvc.w
  isc.edu/acct/acslscr.xls
  
• Receipts/Sales Credit Transfer http//www.bussvc.
  wisc.edu/acct/scrtran2.xls
  
• Incoming Department Wire/ACH http//www.bussvc.w
  isc.edu/acct/forms/wire_in.html
  
• Refunds of Receipts/Sales Credit
  http//www.bussvc.wisc.edu/acct/refund.xls

72
404 Campus Credit CardRPA Revenue Producing
Activities(does not include purchasing cards)

• Becoming a Credit Card Merchanthttp//www.bussvc.
  wisc.edu/acct/policy/rpa/rpapol404.html
  
• Cardholder Information Security Program (CISP)
  and Payment Card Industry (PCI) Information
  http//www.bussvc.wisc.edu/acct/pci/pci.html

73
Instructions and Forms Related to Vendor
Refunds/Payments

• Vendor Refund Formhttp//www.bussvc.wisc.edu/acct
  /acvndrfn.xls
  
• Outgoing Draft/Wire Formshttp//www.bussvc.wisc.e
  du/acct/forms/wire_out.xls

74
Contacts at 21 N. Park, Suite 6101

• Sharon Hughes, shughes_at_bussvc.wisc.edu, 262-1305,
  Supervisor
  
• Barb Bausch, bbausch_at_bussvc.wisc.edu, 262-5980
  Cash Advances Replenished Checking Accounts
  DREV
  
• Janet Hamm, jhamm_at_bussvc.wisc.edu,
  265-2909Outgoing Wires and Drafts Merchant
  Credit Card Accounts Merchant Credit Card
  Policies Accounts Receivable Invoices
  Collections
• Kathy Virnig, kvirnig_at_bussvc.wisc.edu,
  262-0658Daily Revenue Reporting of Bank, Wires,
  and Credit Card Deposits Vendor Refunds
  Receipt and Sales Credit Transfers Refund of
  Receipts Single Point web based banking info

75
Questions?
76
Shared Financial Systems (SFS)

• Hua Ramer

77
Shared Financial System Team What Do We Do?

• Accounting System
• Accounting system setup/update for on-going
  transaction processing.
  
• System implementation and testing of new
  processes.
  
• Provide SFS system support to the operational
  staff.
  
• Work with units on campus to develop new
  accounting process and procedures.
  
• Month end closing, year end closing.
• Help process improvement efforts by developing
  and implementing new systems.
  
• Work with other business system implementation
  project teams to integrate/interface other
  business systems with accounting systems.

78
Shared Financial System TeamWhat Do We Do?

• Financial Reporting and Queries
• Provide WISDM user support.
• Plan and conduct WISDM training classes.
• Work with DoIT and UWS to fix WISDM system
  problems.
  
• Implement WISDM financial reporting enhancements
  and improvements.
  
• Development and implement query data view
  tables.
  
• Provide campus financial data user query
  support.
  

79
More Information About SFShttp//www.bussvc.wisc.
edu/acct/sfs/index.html
80
WISDM Information Website
81
WISDM Data Views

• Requesting access
• Down load WISDM Authorization Form
  fromhttp//www.bussvc.wisc.edu/acct/sfs/wisdm/wis
  dm2.doc
  
• Submit completed form toSFS Team, 21 N. Park St,
  Suite 6101 or fax to 262-5060
  
• Accessing the system
• https//wisdm2.doit.wisc.edu
• Where to get help
• Contact a Divisional WISDM Expert in your
  divisionhttp//www.bussvc.wisc.edu/acct/sfs/wisdm
  /wisdm_expert_list.html
  
• Visit SFS Training Websitehttp//www.bussvc.wisc.
  edu/acct/sfs/tools.html
  
• Questions on financial data e-mail to SFS Project
  Team sfsmsn_at_bussvc.wisc.edu.
  
• Questions on grants data e-mail to RSP
  wisdm_at_rsp.wisc.edu or contact your RSP grants
  contact.
  

82
Questions?
83
On-line evaluations will be sent by OHRD
84
Thanks for Coming!!

• UW-Madison Accounting Services
• 21 N. Park Street, Suites 5301 and 6101
• Madison, WI 53715-1218
• Phone [phone]FAX [phone] Web
  http//www.bussvc.wisc.edu/acct/acct.html