Orientation for Co-Manager and Consultants

1. Orientation for Co-Manager and Consultants Center for Student Business prepared by: Donna Vanasse

2. SR Training • learn guidelines & policy for spending money (and holding events) • You will be financially responsible for your business • Co-Managers put trust & confidence in you to manage their funds Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

3. Signature Responsibility is required: EXPENSE To invest in Capital equipment Purchases for Your business EXPENSE To submit co-managers’ hours for payroll EXPENSE To open Purchase orders To buy goods for Resale. To use a PROCARD To schedule Campus Center meeting rooms Or the Dukes Room in the Student Union. Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

4. SR Training is for: • Student Business Co-Managers – Bookkeepers, Payroll Managers, Procard Holders, Consultants and to Schedule Meeting Rooms • All Co-Managers may attend • For Student Businesses, SR Training is mostly financial • and presented by the CSB. • For Registered Student Organizations, • Signature Responsibility workshops are given by CSD • and emphasize event planning Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

5. Who Are The Student Businesses? FY09 Payroll $255,000 SGA Funds $26,000 for undergraduate consultants Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

6. Earthfood's Cafe People's Market Greenough Sub Shop Sylvan Snack Bar Campus Design & Copy Bike Coop Sweets 'N More Tix Unlimited Board of Student Business Director 2 Grad Assistants Office Manager 8 Undergraduate Consultants Center for Student Business Role of the CSB • Educate • Train • Supervise • Mentor Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

7. Center for Student Development 416 Student Union • Provide Business Services and Advising for Event Planning to all: • RSOs – Registered Student Organization • Fraternities & Sororities • Student Businesses • Cultural Centers & Success Programs Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

8. Student Affairs Trust Fund Fiscal Year 2009 • $1.9 million allotted to RSO’s in a Budget Process managed by the SGA each spring • State & university policy define how money is managed Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

9. Two types of Accounts • Fee Account - 51082 • Annual Budget is requested, approved by SGA, & allotted to an RSO. Funds may be allocated for office supplies & equipment, copies, paying performers or speakers. • Must be used to benefit all students: can not be used to pay for food for events or to buy gifts for members • Revenue Account - 51119 • Money earned through fund-raising, membership dues, revenue from events, donations, etc. All financial accounts are managed by CSD Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

10. Accounts • Each Student Business has a Revenue account • Student Businesses are self-sustaining • Enough revenues are generated by each Student Business to cover student payroll and all expenses Revenues > Expenses Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

11. The goal of the Center for Student Business is to support the mission of the student-run businesses. Their mission is threefold: Who’s Who • To provide co-curricular training and • education in cooperative management, • life skills and specific business skills • in a supportive and diverse setting. 2. To offer products and services to the UMASS community and paid employment to undergraduate students. 3. To serve the university community CSB provides oversight and guidance to The Student Businesses. Each business must generate sufficient Income to make the investments necessary For the long-term survival of the business Vice Chancellor for Student Affairs and Campus Life Associate Vice Chancellor for Student Affairs and Campus Life Director Center for Student Business TEAM 2 Graduate Students Business Development Coordinator Program Coordinator Administrative Coordinator Center for Student Business 8 Undergraduate Business Consultants One Student to maintain CSB computer network 8 Student Businesses employing 130 - 140 Undergraduate Students 8 Undergraduate Bookkeepers and 8 Undergraduate Payroll Managers, Procard Holders Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

12. SGA Constitution & By-Laws – A Student Business: • Is established and operated by undergraduate students • Shall provide goods/services to the entire University community • Shall provide educational and employment opportunities to the undergraduate student of the university Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

13. Be open for operations on a continuous basis during Fall and Spring academic sessions Act in accordance with the Equal Opportunity policies of the University of Massachusetts Supply a copy of the operations & policy manual to the SGA Have access to the CSB computers, office equipment and professional advice SGA Constitution & By-Laws TITLE VII – A Student Business Will… Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

14. HANDBOOK • Each business has a handbook with policies and guidelines • Contains information on hiring, training, operations and management • Yearly Update due as part of the annual reactivation on Campus Pulse • Save a copy in your Business file in PubDir in the CSB computer • Policies may only be changed by vote Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

15. Financial Account Information Financial Records are maintatined using the same fiscal year as the university • Fiscal Year – July 1st to June 30th • Each business uses Quickbooks software as a financial management tool • Other ledgers (excel) required in the CSB are payroll, inventory, register discrepancy file, sales tracking, vendor ledgers, & procard files • Tix – Vending & Event Logs • CD&C – Billing Files for customer jobs • Bike Coop – Purchasing Log • Back-up documentation is filed in the CSB – • Purchase orders, invoices, credits, deposit slips, credit card • receipts, etc. Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

16. Financial Accounts are identified by three series of numbers Purchase Orders, Internal Recharges, Payroll, Deposit Slips, Telcom Requests, outgoing mail, Work orders, etc. Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

17. Account CodesIdentifies Categories of Revenues & Expenses • The state maintains a very long list of account codes to identify categories of all revenues and expenses • Refer to the list of account codes when opening PO’s, IR’s, or making Deposits • University Account Statements (UAS) –show all monthly income and expenses • arranged byaccount code Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

18. Revenue Codes for Deposits People’s Market Bike Coop CD&C Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

19. Expense Codes for Purchases I am paying for an ad in the Collegian. 735100 Opening a purchase order to pay for fresh fruit & vegetables 739301 I want to order paper goods from Mansfield Paper 739400 Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

20. Purchase Orders - PO Every purchase made by a student group, university department, or state agency must have a paper trail. (Our records will be audited) • Purchase orders are how the university does business • a “PO” is a credit agreement between your business and a vendor • When the university issues a Purchase Order, it is making a guarantee to the vendor of your ability to pay the bill • Submit a PO Request Form to CSD Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

21. Purchase Orders • Your Bookkeeper will maintain a vendor ledger to track the amount of money available in each purchase order • Purchasers & Consultants will need to know how much $ has been spent and how much $ is still available in your budget • Bookkeepers track each invoice applied to a PO • Purchase Orders are valid for one fiscal year • Ideally, the PO has enough $ to cover a semester – Increases may be necessary Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

22. Open a PO Before Purchasing • University Policy requires that you have a Purchase Order prior to placing an order. • Example: Sweets ‘N More needs to have their stove serviced. • They call the Vendor to get an estimated cost. • The Bookkeeper opens a Purchase Order with that vendor. • Sweets makes an appointment for the service. • They receive an invoice from the service tech. • The invoice is given to the bookkeeper to be applied to the PO • Payment is made by the university Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

23. Paying Invoices • The purchase order encumbers funds from your account • Your bookkeeper submits the invoice for processing • It is logged & processed by CSD and Accounts Payable • Treasurer’s Office mails a check to the vendor • The PO is disencumbered • Invoice payments show up on the monthly University Account Statement Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

24. Purchase Order Written communication Between Co-Managers Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

25. CSD Account Specialists January Ophelia Kamran Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

26. Vendor Statements • Bookkeepers & Consultants review statements that come in the mail • They must follow up with the vendor if an invoice is on the statement but you have not received it. • Some vendors will freeze your purchasing if invoice payments take too long Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

27. Budget • Consultants prepare a budget for the year based on previous financial information • Steering Committees, Purchasers, Maintenance Committees, Bookkeepers, Payroll Managers, etc. need a copy of the budget to plan spending • All Capital purchases must be included in the budget Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

28. Cash Flow Loan • Many Student Businesses have very small contingency funds • Purchasing Guidelines require that we encumber funds prior to making Purchases • And…Revenues from YCMP and UCARD are received one month after they are earned • So…Cash Flow loans are calculated and put into the accounts before opening each semester • Loans are paid back each semester or at the end of the fiscal year Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

29. Tax Exempt • As part of a state agency, your business is tax exempt for purchasing • Any purchase your business makes using a Purchase Order or a Procard will be tax exempt But Speaking of tax… People’s Market, CD&C, Earthfoods Café and Bike Coop do collect 6.25% sales tax From customers on non-food sales and are required To submit quarterly sales tax to the Massachusetts Department of Revenue x Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

30. Using Contracted Vendors can save $$$ • For certain purchases, we are required to use vendors who have entered into CONTRACTS with the university/state • Some of the vendors with CONTRACTS are: • WB Mason – Office Supplies • IKON Office Solutions & OCE – Copy Machines • See UMASS contracts for – T-Shirt Printing, commercial foodservice equipment, Food Vendor http://www.umass.edu/procurement/commcont.html Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

31. Capital Equipment • Please discuss in detail any plans for making large purchases with the CSB • All CAPITAL EQUIPMENT purchases will require a budget and presenting a proposal to the CSB • Research use of Contracted Vendors • We will help you coordinate special services from the university like: plumbing, electrical, carpentry, etc. • The Purchase Order should be requested before November 1st or April 1st to allow for delivery and set-up while students are on campus • Requires a Receiving Report Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

32. Sole Source – Exceptions to Purchasing Policy – Use of Contracted Vendors • When a student business spends more than $5,000 per year with a vendor, a SOLE SOURCE form is required to be on file in CSD – Bookkeeper’s Task • Sole Source forms require you to verify that you have done research regarding the prices you will pay - Purchaser’s Task • On the form, your purchaser or bookkeeper will verify why you are using a particular vendor (especially if the product is covered by a University Contract) Support local vendors Socially Conscious Vendor Fair Trade Coffee & Tea Specialty Items & Organic products Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

33. Procard • A procard can be issued to one co-manager from each business (It cannot be used by anyone else.) • New cardholders are required to attend a 2 hour UNIVERSITY PROCARD TRAINING and 15 minute CSB training • use contracted vendors, etc. • WB Mason – Office Supplies (~50% discount) • Each Student Business has a policy for using the procard effectively • See Donna for Record Keeping policy for procard holders – about 1 hour/month • Plan ahead when the Procard holder will be leaving the business… • Designate one person to go to training and apply for a new procard Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

34. See Rosemary • Cashout Committee Members • have to be trained!!! • We have to fit the state model for revenues • Deposit Forms, Data entry in CSB • How to reprogram the register when prices are changed • How to swipe YCMP at the register Cash Deposits • University policy for cash-handling requires daily deposits and accurate record keeping • Teller’s Hours 9am – 3:30pm (closed 12:30 -1:30pm) • All Cash-Out Committee members must attend the Cash Out Training • Standardized procedures for registers • How to process YCMP or UCard swipes • How to fill out deposit slips • Use your CASH BAGS for making dailydeposits. • Student Union businesses can make deposits after 3:30 • by calling Facilities Services or Security. • Snack Bars: • Call for an escort from Public Safety for after hours deposits • 545-2121 Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

35. Making Deposits • Deposits are made at the Cashier’s Window on the lower level of the Campus Center. • List checks individually on the deposit form – see next slides for details(although most businesses do not accept personal checks) • Daily deposits are reconciled by your consultant with monthly account statements Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

36. Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

37. Depositing Checks Do not write on or stamp the back of a check Enter the amount being deposited into each account code, checks are considered cash Write in: Your speed type/account code Complete the department notes portion of the deposit form: payer name on check and amount Jane Doe $500.00 Double check the date, signature, amount Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

38. Note: Register Discrepancy Over/Short Report • If the daily cash deposit has a deviation of $20.00 or more, you are required to fill out a written statement giving information about why you think the deposit was not correct. • Forms are in CSB or on our Website • Give completed forms to Program Coordinator 24 - 48 hours of the discrepancy Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

39. Cash Bank • The cash bank is a loan that you take out at the beginning of the semester so you will have cash for your registers. • You must pay back this LOAN as soon as you have earned enough cash. • Please document this in your cash-out files in the CSB. • Student taking out the loan must have valid SR Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

40. Other Sources of Revenue • RSO – Internal Recharge (IR) • Any account managed by CSD • RSO must submit an IR for processing • Consultant or Biller will review daily IR reports • Campus Department • Recharge Authorization for Departmental Billing • Blue forms – obtain signature to authorize billing Emphasis: Obtain Signatures Prior to providing service Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

41. Quickbooks • All revenues & expenses are entered into one GENERAL LEDGER in Quickbooks • Co-Managers are required to enter data once a week • Look for this icon on the start menu: Follow Instructions for opening Quickbooks at each workstation Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

42. Open the Chart of Accounts Click on “General Ledger” Revenues Expenses Sorted by Account Codes Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

43. Quickbooks • Refer to the Financial Manual in the CSB for details about using Quickbooks • Every Revenue & Expense is entered by Co-Managers • Weekly • Invoices, cashout, procard purchases, catering jobs, IR’s received or written, vending revenue – other? Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

44. Monthly Financial Statements • Your Consultant reconciles Quickbookswith monthly University Account Statements • Enters overhead expenses • Meets with bookkeeper & cashout (other Co-Managers) to clarify discrepancies • Presents Financial Reports at All Staff Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

45. Other Expenses • Full Costing 7.5% of all Expenses (FY10) • CSB Tax – 1% of revenue each semester • BOB Dues - $75.00 per semester • Monthly cost of phones, internet connections, UCard Reader rental • 6.25% State Sales Tax on non food sales: Peoples Market, CD&C, Bike Coop • Shipping or delivery charges (Bike Coop) • Processing Fees for UCard, Credit Card (CD&C) Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

46. Do not spend CASH • Use a purchase order or Procard for all business purchases • Reimbursement for purchases without prior approval are not allowed under University Policies • If you have an emergency purchase to make, see Donna Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

47. Can We Open a Bank Account? • University policy states that you may not open an outside bank account • All cash (except for the cash bank for your registers) should be deposited to your University account on a daily basis. • Tips are deposited on a weekly basis *roll change – buy coin wrappers • At the end of each semester, you will deposit your cash bank and return your cash bag to CSD Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

48. Due Dates for Information • Co-managers will come in to the CSB every week for data entry • There is a monthly fine when data is not entered on a timely basis • Financial data comes from many sources- inventory, invoices, payroll, procard, cash-out , billing & vending files • Each Co-Manager needs to be responsible and be held accountable Due Date: 7th of each month Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

49. Center for Student Business, UMass Amherst, D. Vanasse Sept 2009

50. DUE DATE – Inventory Data Entry • Inventory is taken at the beginning and end of each semester as well as the last day of each month of business. The data must be entered in the CSB computer files by your co-manager by the 7th of each month. Consultants calculate the cost of beginning & ending inventory each month COGS is important when creating a financial statement Due Date: 7th of each month Center for Student Business, UMass Amherst, D. Vanasse Sept 2009