Payment Solutions 101

1. Payment Solutions 101 An Overview of the Payment Solutions Process at Rice University

2. Resources and References • Payment Solutions Website • Policies • Purchasing • Travel • Business Meeting/Entertainment Expense • Conflicts of Interest • Signature and Approval Authority for Contracts • Procedure Manuals • FAQs • Administrative Systems/Banner Security

3. Department Responsibility • Adhering to the Rice policies and procedures. • Providing sound stewardship of department funds. • Prepare and/or approve transactions (i.e.. invoices, check requests, travel envelopes, etc.) for prompt payment with required documentation, account coding and signature approval. • Submitting approved Purchasing Card Applications. • Submitting Signature Authorization Forms. • Reconciling and reviewing monthly reports and Purchasing Card statements on a timely basis.

4. Signature Authority • Signature authority must be requested and periodically confirmed by the department chair/head (or delegated individual) and updated in the Signature Card database. • Areas of approval authority include: • Approval Levels • Allowable Transactions • Allowable Funds/Orgs • Authorized signers must review and acknowledge that they are familiar with the following policies: • Conflicts of Interest Related to the Purchasing of Supplies, Services, and Equipment (No. 838) • Signature and Approval Authority for Contracts (No. 810).

5. Planning for Purchases • Fund Restrictions • Gift (G) • Endowment Spending (H) • Research funds (R) • Available Budget • Small Business, Minority and Women Vendors • Lease vs. Purchase Decision Making • Contact General Counsel • Hazardous Materials

6. Bidding Information • Purchasers should solicit bids for goods and services. • A minimum of 3 documented bids or justification for sole source purchasing is required for all purchases totaling $25,000 or more. • When the lowest bid is not accepted, justification is required. • Submit copy of bids and/or sole source purchasing with documentation when appropriate and a approved and coded purchase order.

7. Document Coding • Fund/Org/Account clearly recorded • Program, Activity and/or Location codes should be indicated following the fund/org/account code combination when appropriate • 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

8. Purchases Totaling $2,500 or Less RICE UNIVERSITY Tax Exempt # 74-1109620 5567 0154 5555 5555 10/06 - 10/08 Samuel Smart Rice University

9. Payment Options for Purchases Less than $5,000 • When accepted by the vendor, pay for your purchase with your Rice University purchasing card. • If MasterCard is not accepted, arrange for the vendor to invoice your department directly by providing the following information: • University address • Department name and mail stop • Contact name and phone number • Please note: • Rice is exempt from paying Texas sales tax. When arranging for payment, provide the vendor with the Federal Tax ID number. This number is located on the front of the purchasing card.

10. Purchases Less than $5,000 With an Invoice • Confirm that the invoice is an originalinvoice. • Ensure that Texas sales tax is not being charged. • Code the invoice for payment (fund/org/account). • Ensure that the invoice is approved by an authorized signer. The signature on the invoice indicates the items were received and in good order. • Send the invoice and all required documentation to Payment Solutions, MS77 for processing.

11. Purchases Less than $5,000 Without an Invoice A check request form can be used to request a payment if no invoice is available. • Payments must include: • to a vendor (new vendor only) – W9 Form (retain a copy for the department files). • Rice individual– employee # • Non rice individual– social security # - W9 Form (retain a copy for the department files). • Code the check request with the appropriate fund/org/account. • Attach required backup documentation. • Have the check request approved by an authorized signer.

12. Purchases Less than $5,000 Without an Invoice • Clearly indicate any special handling requests (i.e.. attachments, call for pickup, etc). • Send the check request with all of the above to Payment Solutions, MS77 for processing. Limit check request use! Use a CQ to: • Pay vendors who cannot submit invoices • Pay honoraria to non-Rice faculty/staff/students • Reimburse faculty/staff/students for expenses greater than $100 • Request travel advances (Note: see Travel Policy for restrictions)

13. Reimbursement for Out of Pocket Expenses • Requires “One Over” signature approval • Less than $100 • Reimburse with Petty Cash • Submit Petty Cash Voucher to the Cashier’s Office • Call the Cashier’s Office for information • $100 or Greater • Reimburse with a Check Request form • Attach receipts as backup • Submit to Payment Solutions, MS77 for processing

14. Reimbursement for Mileage Expenses • Mileage rates available on the Payment Solutions website • Submit mileage incurred while traveling on a travel statement or travel envelope • Submit mileage on a check request or mileage voucher if incurred locally • Both forms should include: • Clear and precise business purpose of the trip • The date of the incurred mileage • The beginning and end points of the trip

15. Purchases of $5,000 or Greater • Require a purchase order • Exceptions: • Professional Service payments due to 1099 reporting • Maintenance Agreement payments when an approved, written contract is on file in the department.

16. Purchase Orders • Purchase Order forms are available from Payment Solutions • Call ext. 6700 • Email your request to payment@rice.edu • 4 part form which is a commitment for payment • Yellow is the work copy • White is the vendor copy • Blue is the department copy • Green is the receiving report • Detailed instructions are in the Purchasing and Payment Manual

17. Purchase Orders • Equipment purchased (account code - 75XXX and 76XXX) • Complete and attach a Property Control Registration Form. • Equipment purchased on a research fund (75XXX) • In addition to a Property Control RegistrationForm complete and attacha ProcurementBrief . • Purchase of $25,000 or more • Attach bid documentation or sole source purchasing

18. Invoice Payment on POs • Invoices must be reviewed by a person other than the individual who approved the original Purchase Order. • By signing the invoice, the signer is indicating that • the original invoice is being submitted • the PO number is recorded on the invoice • Texas sales tax is not being charged • the purchased items noted on the invoice have been received in good order and the invoice is to be paid. • Receiving Copy (green) • Submit copy of green with partial payments. • Submit original green with final payment.

19. Post-Payment Refunds: • Send Deposit Voucher Form to Cashier’s Office, MS55 • Rice checks payable to vendors should not be deposited by the department. Forward them to Disbursements. Credit Memos: • Treated the same as an invoice. Signature authority, coding and documentation are needed. • Contact Disbursements Office • Diane Berger ext. 3441

20. Post-Payment Void Checks/Stop Payments • Contact Disbursements Office • Teresa Blumentritt ext. 4812 • Patricia Morrison ext. 4546 Changes in Original Coding • Submit an Expense Transfer Form • Crystal Davis or Flor Garcia, MS70

21. Travel, Business Meeting & Entertainment Expenses • IRS regulations apply to the following expenses and require additional information. • 3 Forms for Rice Faculty/Staff • Online TEBM Form • Travel Statement • B/E Form • Require “One-Over” Approval • Travel Advances • Student travel • Group travel • International travel • Non-Rice Travelers • No Rice travel statement required although these forms may be used • Travel & B/E Procedure Manuals

22. Relocation Expenses • IRS regulations apply. Get details before committing! • Teresa Blumentritt x4812 or Tessie Skulski x 4004 • Monitored by the Controller’s Office regarding taxation issues. • Information available in the Purchasing and Payment Manual. • Expenses/Reimbursements reported on a Relocation Expense Report. This form can be found on the Controller’s Website.

23. Payments to Faculty, Staff and Students • Reimbursement for Out of Pocket Expenses • Mileage Reimbursement • Relocation Expenses • Prizes/Awards/Scholarships • Payment for Services Rendered

24. Payment of Prizes, Awards, Scholarships • These types of student payments are submitted on a Check Request form with appropriate backup. • MUST be submitted to the Student Financial Services department for review/approval. • Distributed through the Cashier’s Office.

25. Payment to Faculty/Staff/Students for Services Rendered • For Faculty/Staff, request is made on a PAF to Human Resources. **Contact HR regarding any assignment of a secondary job that might move a non-exempt employee into the area of overtime compensation.** • For Students, request is made on a Student Personnel Action form sent to Student Financial Services.

26. Research Procurement • Know your grant/contract. Some have restrictions. • All expenses must have clear relationship/benefit to the contract/grant. • See Section 11 of Purchasing and Payment Manual • Requires Principal Investigator (PI) or PI designee signature • OSR Website • Links to federal guidelines which determine whether the expense is allowed

27. Common Research Restrictions • Entertainment Expenses • Alcohol Expenses • International Travel • Use of US Flag Carrier • Others -- see Section 11 of the Purchasing Manual Attend Research Administrators’ Meetings hosted by OSR and Research Accounting

28. Property Accounting • Monitor/track capital equipment purchases. • Capital equipment purchases require a Property Control Registration Form and approval from Property Accounting. • Section 12 of the Purchasing and Payment Manual. • Contact Pat Hall-Jones; ext 3429 (Property Accounting Manager)

29. For Questions and/or Trainingcontact Regina Diaz ext. 6715 or Regina.R.Diaz@Rice.edu