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Finance

Finance. Why We Do What We Do. Organizational Chart for Executive Director, Finance. What Are Our Goals?. Accurate financial transactions Compliance with donor, sponsor, university, state, and federal rules Efficient transaction processing

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Finance

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  1. Finance Why We Do What We Do

  2. Organizational Chart for Executive Director, Finance

  3. What Are Our Goals? • Accurate financial transactions • Compliance with donor, sponsor, university, state, and federal rules • Efficient transaction processing • Best value procurement, while using HUB vendors whenever possible • Secure and user friendly financial system

  4. Accurate Financial Transactions • What does this mean? • Correct account • Appropriate cost center • Correct vendor, address, invoice, dates, and amount on vouchers • Correct vendor and order information on requisitions and PO’s • Correct tax treatment • Correct accounting treatment

  5. Accurate Financial Transactions • Why is this important? • Financial data is used by UH management to make decisions • Bad data leads to bad decisions • Financial data is evaluated for accuracy by internal and external auditors • Inaccurate data could mean loss of funding, fines, and bad publicity

  6. Accurate Financial Transactions • Why is this important? • Financial data is evaluated by legislators, sponsors, and donors to determine if we are meeting our goals • Ensure the correct items are ordered • Ensure vendors are paid correctly • Ensure 1099-MISC, 1042S, and W-2 Forms are correct

  7. Compliance with Donor, Sponsor, University, State, and Federal Rules • External Rules • OMB Circular A-21, A-110, etc. (federal funds) • US Treasury Regulations • Texas Government Code • Texas Constitution • Texas Education Code • Texas Administrative Code • External Rulemakers • Federal Agencies that Sponsor Research • Internal Revenue Service • Texas Legislature • Texas Comptroller’s Office • Government Accounting Standards Board

  8. Compliance with Donor, Sponsor, University, State, and Federal Rules External Rules that Apply to Specific Funds • State Funds (1xxx and some 7xxx) • Purchase Policies and Procedures Guide https://fmx.cpa.state.tx.us/fm/pubs/purchase/index.php • Travel Allowance Guide https://fmx.cpa.state.tx.us/fm/pubs/travallow/index.php • General Appropriations Act (GAA) http://www.lbb.state.tx.us/Bill_80/7_Conference/80-7_Conference_0507.pdf • Legislative Budget Board Guidelines for Higher Education Assistance Funds (HEAF) http://www.uh.edu/mapp/11/110201.pdf • Auxiliary Funds (3xxx) • Auxiliaries, Athletics, and Alumni activities cannot be supported by state appropriated funds (GAA, Article III) • Athletics cannot purchase alcoholic beverages with any funds and must follow NCAA guidelines (GAA, Article III)

  9. Compliance with Donor, Sponsor, University, State, and Federal Rules External Rules that Apply to Specific Funds • Restricted Funds (4xxx) • Donor requirements for scholarships • Donor requirements for endowment income • Sponsored Project Funds (5xxx) • Sponsor requirements for research contracts and grants • Federal regulations for federal grants http://www.research.uh.edu/Departments/Office_of_Contracts_and_Grants/Federal_Policies_and_Regulations • Endowment and Loan Funds (6xxx) • Donor requirements for endowment fund • Bank requirements for loan fund • Agency Funds (9xxx) • Owner of fund (not UH) determines how it is used • Must meet minimal documentation standards

  10. Compliance with Donor, Sponsor, University, State, and Federal Rules • Internal Rules • UH System Board of Regents Policies • http://www.uhsa.uh.edu/regents/policy/ • UH System Administrative Memorandums (SAMs) • http://www.uhsa.uh.edu/sam/ • UH Manual of Administrative Policies and Procedures (MAPPs) • http://www.uh.edu/mapp/

  11. Compliance with Donor, Sponsor, University, State, and Federal Rules • Institutional Compliance Program • Identify external rules we must follow • Determine the risk of not complying with those rules • Develop a plan to reduce the risk of noncompliance • Overview of Institutional Compliance Program http://www.uh.edu/plantops/ehrm/index.html • Report suspected fraud and noncompliance at http://www.mysafecampus.com/

  12. Efficient Transaction Processing • Workflow and Document Imaging for Finance Transactions • Faster approval • Track transactions through approval process • Discard paper copy when posted • P-Cards for Non-Travel Purchases $5,000 or Less • Fewer employee reimbursements • Fewer vouchers to pay vendors • Update cost center/account in SDOL • Travel Cards for Travel Purchases • Less out-of-pocket cost for traveler • Update cost center/account in SDOL

  13. Best Value Procurement While Using HUB Vendors Whenever Possible • Texas HUB Vendor Directory • http://www2.cpa.state.tx.us/cmbl/cmblhub.html • Lists all HUB vendors in Texas • See HUB search instructions • UH HUB Vendor Directory • http://www.uh.edu/hub/ • Lists some HUB vendors used by UH

  14. Secure and User Friendly Financial System • Finance System Security • Request for UHS Finance System Access (FS002) required for access by UH employees • http://www.uh.edu/finance/Forms/Access_Request/FinancialSystem.html

  15. Secure and User Friendly Financial System • Finance System Security • Password must be at least 10 characters and contain at least 1 number • Password must be changed each 60 days • Annual Secure Our Systems training must be completed by all employees

  16. Secure and User Friendly Financial System • User Friendly (We Hope) • Single sign-on for Finance, HR and Student Systems, and PASS • Workflow and document imaging • Custom reports • Public queries • Verification worksheet to verify cost center transactions • 24/7 access via web

  17. Secure and User Friendly Financial System • PeopleSoft Design • Finance, HR, and Student systems share common fields so they can “talk” to each other • Enter data once and it can be reused • Enter Requisition • Copy to PO • Copy to PO Voucher

  18. Procurement • Education Code • State universities may purchase goods and services by whatever method is deemed the best value for the institution (Section 51.9335) http://tlo2.tlc.state.tx.us/statutes/statutes.html • Texas Administrative Code • Utilize HUB vendors whenever possible (Title 34, Part 1, Chapter 20, Subchapter B) http://info.sos.state.tx.us/pls/pub/readtac$ext.viewtac • Texas Government Code • Prohibits payments to persons and companies “on hold” with the state (Section 403.055) http://tlo2.tlc.state.tx.us/statutes/statutes.html • Texas Constitution • Printing must be competitively bid (Article 16, Section 21) http://tlo2.tlc.state.tx.us/txconst/toc.html

  19. Procurement • State fund rules • Purchase Policies and Procedures Guide https://fmx.cpa.state.tx.us/fm/pubs/purchase/index.php • Federal fund rules • OMB Circular A-21, etc. http://www.research.uh.edu/Departments/Office_of_Contracts_and_Grants/Federal_Policies_and_Regulations • UH rules • PO purchases – MAPP 04.01.01 • Voucher purchases – MAPP 04.01.03 • P-Card purchases – MAPP 04.01.11 • Contracts – MAPP 04.04.01A • HEAF purchases – MAPP 11.02.01

  20. Procurement • UH resources • Procurement Rules Checklist • Best Practices for Vendor Payments • State Fund Procurement Restrictions • P-Card and Travel Card Matrix • P-Card Guidelines • Vendor Hold Status • http://www.uh.edu/finance/pages/References.htm

  21. Procurement • UH resources • http://www.uh.edu/purchasing/ • Addendum A: Vendor Selection Flowchart • Addendum B: Pre-Approval Form for Requisitions • Addendum C: Purchase Requisitions Exceeding $100,000 • Justification for Proprietary (Sole Source) Acquisition • Buyer’s Checklist • Lab Animal Flowchart and Purchase Request Form http://www.uh.edu/finance/pages/forms.htm

  22. Travel • TX Govt Code 660.007 (all funds) • Minimize travel expenses; travel arrangements must be cost effective • IRS rules (all funds) • Publication 463, Travel, Entertainment, Gift, and Car Expenses http://www.irs.gov/ • Accountable plan • Documentation • Business purpose • State fund rules • Travel Allowance Guide https://fmx.cpa.state.tx.us/fm/pubs/travallow/index.php

  23. Travel • Federal fund rules • OMB Circular A-21, etc. http://www.research.uh.edu/Departments/Office_of_Contracts_and_Grants/Federal_Policies_and_Regulations • UH rules http://www.uh.edu/mapp/ • State fund travel – MAPP 04.02.01A • Local fund travel – MAPP 04.02.01B • Corporate Travel Card – MAPP 04.02.01C • Student travel – MAPP 04.02.04 • Travel Card – MAPP 04.02.05

  24. Travel • UH resources • Travel Voucher Checklist (for State Fund, Local Fund, and Non-Overnight Transportation) • Mileage Reports • Travel Accounts • P-Card and Travel Card Matrix • Travel Card Guidelines • http://www.uh.edu/finance/pages/AP_Travel.htm

  25. Taxable Payments to Individuals • IRS rules • Publication 15, Employer’s Tax Guide • Publication 15A, Employer’s Supplemental Tax Guide • Publication 15B, Employer’s Tax Guide to Fringe Benefits • Publication 521, Moving Expenses • UH rules • Taxable Fringe Benefits – SAM 03.D.06 • Moving Expenses – MAPP 02.02.05

  26. Taxable Payments to Individuals • UH resources • Voucher Workflow Matrix for Scholarships and Tax-Related Payments http://www.uh.edu/finance/pages/References.htm • Exhibit A: Tax Treatment of Scholarships, Stipends, and Awards/Prizes/Gifts http://www.uh.edu/sam/ (SAM 03.D.06) • Exhibit B: Taxable Payments or Reimbursements to Employees http://www.uh.edu/finance/pages/forms.htm • Exhibit C: Most Frequent Taxable/Non-taxable Fringe Benefits http://www.uh.edu/sam/ (SAM 03.D.06) • Addendum A: Authorization for Moving and Relocation Expenses http://www.uh.edu/mapp/ (MAPP 02.02.05)

  27. Tax Exemption • Texas Sales and Use Tax Exemption Certificate http://www.uh.edu/finance/pages/tax_doc.htm • UH rules: MAPP 04.01.03 and P-Card Guidelines • Do not pay sales tax to Texas vendors when paying by voucher • Employees are expected to present Certificate to Texas vendors, except for business meals • If vendor refuses Certificate, employee can be reimbursed for full amount of tax (except on fund 5) • If employee does not present Certificate, employee can be reimbursed up to $10 sales tax per transaction (except on fund 5) • If Texas vendor charges sales tax on P-Card, ask vendor to refund the sales tax to the P-Card

  28. Tax Exemption • Texas Hotel Occupancy Tax Exemption Certificate http://www.uh.edu/finance/pages/tax_doc.htm • UH rules • State Funds - MAPP 04.02.01A • Employee must present Certificate to Texas hotel and verify state portion of hotel occupancy tax (6%) is not charged • If hotel refuses Certificate, notify AP and employee can be reimbursed for tax • If employee does not present Certificate, he/she cannot be reimbursed for tax • Local Funds – MAPP 04.02.01B • Employee is reimbursed for tax (except fund 5) whether he/she presented Certificate or not; notify AP if hotel refuses certificate

  29. Accounting • Federal Rules • Government Accounting Standards Board (GASB) Accounting Rules http://www.gasb.org/ • UH Resources • Account List • GL Journal Checklist (under GL Journal Workflow Information) • Fund Equity Transfers (under Transaction Processing) • Service Center and Auxiliary Business Process Matrix (under SC Voucher Workflow Information) • http://www.uh.edu/finance/pages/References.htm

  30. Fraud Prevention • Governor Perry’s Executive Order RP-36 Relating to Preventing, Detecting, and Eliminating Fraud, Waste, and Abuse http://www.governor.state.tx.us/divisions/press/exorders/rp36 • UH Response • Department Fraud Risk Survey • Institutional Fraud Risk Survey • Fraud Reporting Hotline http://www.mysafecampus.com • Fraud and Institutional Compliance FAQs on the Web http://www.uh.edu/finance/ • Fraud Prevention and Awareness Training • Code of Ethics Training

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