An Overview of Accounting Processes at UWMadison Accounting Services

1
An Overview ofAccounting Processesat
UW-MadisonAccounting Services
Business Topics Seminar October 7, 2008
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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

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Accounting Services Process Overview
Funds In
Funds Out
Accountability
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Accounting Services Process Overview
Financial Transactions Received and Processed
Legacy Accounting System (Vendor Refunds,
Refunds of Receipts, Cash Advances)
SFS System (P-card, TERs, PIRs, DP/ERs,
PO-related )
Vendor/Employee Payments
Data Storage (General Ledger Capital Inv. System)
Data Retrieval (WISDM)
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Types of Transactions

• Purchasing Card (SFS)
• Travel Expenses (SFS/ATS)
• Payment to Individuals (SFS)
• Direct Payments/Employee Reimbursements (SFS)
• PO-related (SFS)
• Vendor Refunds, Refunds of Receipts, Cash
  Advances (Legacy)

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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

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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

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Purchasing CardProgram

• Jan Richardson

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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

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Program Growth

• 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
• (FY 08-09)
• 1,865 Total Cards
• 454 Purchasing Cards approved for travel
• Averaging 17,160 transactions and 5,308,350/
  month on Purchasing Cards

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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

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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

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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

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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

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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

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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/

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Questions?
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Travel Expense Reporting and Reimbursement

• Jan Richardson

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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

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Travel Web Resourcehttp//www.bussvc.wisc.edu/acc
t/travel/welcome.html
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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.

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Types of Travel Expense Reimbursements

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

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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!

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UW-MadisonTravel Training Tutorialhttp//www.bus
svc.wisc.edu/acct/travel/ter/ter_tutorial.html
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What Can I Find on the Travel Store Front?

• In-State Hotel Contract information
• Tax Exemption and Contract Rate Letter
• Car Rental Contract Information
• Travel Agency Information
• Out-of-state Hotel Information
• UWSA Pocket Travel Guide
• Traveler resources (i.e. flight tracker, currency
  converter etc.)
• Gateway for ATS information

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UW-Madison Travel Storefronthttp//www.bussvc.wis
c.edu/acct/travel/storefront/index.html
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Division and Department Responsibility
Traveler or proxy prepares TER upon trip
completion 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
approval signature
TER is routed to Dean/Directors Office for
approval signature
Once approved, Dean/Directors Office routes
TER to Accounting Services
If TER is 133 funded, TER is routed to RSP for
approval. RSP approves and routes to Accounting
Services
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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
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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

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Common Errors

• Missing Airfare Receipts or confirmation of
  payment
• Conference Brochure/Registration Form Required
  to show length of conference and what was include
  in 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

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Automated Travel System (ATS)

• Timeline
• Fall 2008 -- Program pilot starts in selected
  divisions and department.
• January 2009 -- Campus rollout begins on a
  department by department basis depending on
  results of pilot.
• FAQs

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Automated Travel System (ATS)

• When ATS 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)

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Questions?
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Payment to Individual Reports

• Jose Carus

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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.

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Definitions of Payments Using a PIR
http//www.bussvc.wisc.edu/acct/policy/pir/pirdef.
html
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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

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Policies Procedures To assist you we have web
instructions at http//www.bussvc.wisc.edu/acct/i
nstructions/acpir.html.
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PIR Tutorial http//www.bussvc.wisc.edu/acct/pir/p
ir_tutorial.html
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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

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Questions?
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Direct Payments Non-Travel EmployeeReimburseme
nts

• Virginia Brown

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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.

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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

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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

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Direct Payment Form Instructions
http//www.bussvc.wisc.edu/acct/instructions/direc
t_payment.html
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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

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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

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Questions?
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Purchase Order (PO) Payment Process

• Virginia Brown

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

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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

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Cycle Time to Produce a Check
Day 1 Enter Payment To Produce
Voucher Verification
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Cycle Time to Produce a Check
Day 1 Enter Payment To Produce
Voucher Verification
Day 2 Error Correction Budget Check
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Cycle Time to Produce a Check
Day 1 Enter Payment To Produce
Voucher Verification
Day 2 Error Correction Budget Check
Day 3 Posting to General Ledger Check
Printing Reporting to DOA
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Cycle Time to Produce a Check
Day 1 Enter Payment To Produce
Voucher Verification
Day 2 Error Correction Budget Check
Day 3 Posting to General Ledger Check
Printing Reporting to DOA
Day 4 Checks Distributed to Vendors
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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

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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

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Emergency Transactions

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

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Vendor Relations

• Disputes
• Statements
• Past Due Invoices
• Payment Corrections

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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

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

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

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Questions?
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Cash Management

• Sharon Hughes

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

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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

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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

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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

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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

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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

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Questions?
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Shared Financial Systems (SFS)

• Hua Ramer

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Shared Financial System TeamWhat Do We Do?

• Maintain SFS system data department ID (UDDS),
  account trees for WISDM reporting, non-grant
  project IDs.
• Maintain transaction editing data.
• Provide SFS system support to the operational
  staff.
• Implement accounting processes in SFS.
• Implement WISDM financial reporting enhancements
  and improvements.
• Year end closing/balances.

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FY08-09 Major SFS Projects

• Implement revenue accounting process in SFS (cash
  receipts, revenue transfers and sales tax
  accounting).
• Implement non-sponsored project process in SFS.
• Implement year end closing processes in SFS.
• Work with Purchasing to implement year end PO
  processes.

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More Information About SFShttp//www.bussvc.wisc.
edu/acct/sfs/index.html
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WISDM Training Website
Additional WISDM grants training manuals will
come soon.
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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.

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Questions?
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On-line evaluations will be sent by OHRD
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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