1 APS’ Customer Advisory Group Training Comptroller of Public Accounts’ Post Payment Audit May 18, 2004

2 Agenda Opening Comments Opening Comments Review of The Comptroller of Public Accounts’ Post Payment Audit of The University of Texas System Administration Review of The Comptroller of Public Accounts’ Post Payment Audit of The University of Texas System Administration –Purchasing “Documentation Issues” –Procard Issues Update on Initiatives and Helpful Suggestions Update on Initiatives and Helpful Suggestions

3 Opening Comments Employee Changes in APS Employee Changes in APS –Kyle Hayes reclassified to a Buyer –Jennifer Ramos hired as an Accounting Assistant –Sally Rankin was hired as a Clerical Assistant APS’ web site has a current listing of responsibilities as a result of these changes APS’ web site has a current listing of responsibilities as a result of these changes

4 Comptrollers’ Post Payment Audit Conclusion Conclusion –It is apparent that the U. T. System Administration's error rates far exceed the norm for state agencies and institutions of higher education. August 22, 2003

5 Post Audit Actions Actions taken by Accounting and Purchasing Services: Actions taken by Accounting and Purchasing Services: –Revised Procard Procedures and Procard Request Form. –Provided training to all Procard holders in June and July of –APS reviews “requests for payments” for adequate supporting documentation and works with departments when documentation is lacking. –Train key employees in departments on the requirements for purchasing and making payments with all funds.

6 Comptrollers’ Post Payment Audit (con’t) Purchasing Findings Purchasing Findings –Incorrect amount paid (freight was not included in original agreement ) Departmental Responsibility: Always ask if freight will be charged when obtaining a price quote. Include a documented agreed upon amount for freight on the purchase agreement. If amount can not be determined, document so on the agreement and indicate an estimated amount that will be paid to the vendor for freight. Departmental Responsibility: Always ask if freight will be charged when obtaining a price quote. Include a documented agreed upon amount for freight on the purchase agreement. If amount can not be determined, document so on the agreement and indicate an estimated amount that will be paid to the vendor for freight.

7 Comptrollers’ Post Payment Audit (con’t) Purchasing Findings (con’t) Purchasing Findings (con’t) –Purchase agreement was created after the service was rendered, the goods were received, and/or after an invoice was received. –Missing Documentation (price and quantity were not documented prior to payment) Departmental Responsibility : Document the agreement at the time the goods or services are ordered from the vendor. If a P.O. is not required, it can be as informal as an , post-it notes, scrap piece of paper (just make sure you include the date, vendor, commodity/service, number of items or type of service, and price quote.) Departmental Responsibility : Document the agreement at the time the goods or services are ordered from the vendor. If a P.O. is not required, it can be as informal as an , post-it notes, scrap piece of paper (just make sure you include the date, vendor, commodity/service, number of items or type of service, and price quote.)

8 Comptrollers’ Post Payment Audit (con’t) Purchasing Findings (con’t) Purchasing Findings (con’t) –Missing Statutory Authority to Purchase Departmental Responsibility: Do not purchase anything consumable with state funds, including water. Also, do not pay for non-employee travel with state funds unless a contract provides for reimbursement of travel expenses associated with services provided (53, 63, or ). Departmental Responsibility: Do not purchase anything consumable with state funds, including water. Also, do not pay for non-employee travel with state funds unless a contract provides for reimbursement of travel expenses associated with services provided (53, 63, or ).

9 Comptrollers’ Post Payment Audit (con’t) Procard Findings Procard Findings –Purchase agreement was created after the service was rendered, the goods were received, and/or after an invoice received. –Sales tax was paid on a procard purchase. –One purchase of prohibited item: food –Missing documentation to prove that the items purchased were received.

10 Comptrollers’ Post Payment Audit (con’t) Procard Findings (con’t) Procard Findings (con’t) –Incorrect amount paid in relation to “original agreement”

11 Comptrollers’ Post Payment Audit (con’t) Procard Assignment/Challenge; Please… Procard Assignment/Challenge; Please… –Use all the form’s sections; it assists you with documenting the “purchasing agreement” prior to payment. –Turn in form and adequate documentation to APS within three days of the purchase. Please tape receipts to a piece of 8x11 paper. –Make every effort to avoid paying sales tax. –Do not make split orders to justify using a procard Split Order Definition: Payments to the same vendor, on the same day, with the same procard, that total >$ Split Order Definition: Payments to the same vendor, on the same day, with the same procard, that total >$

12 Comptrollers’ Post Payment Audit (con’t) Key thing to remember from today! Key thing to remember from today! –Remember to document your understanding of a purchase prior to making the purchase and provide this to APS when requesting a payment.

13 Update on Initiatives Procards – Allows departments to make small purchases efficiently and at a lower cost to U. T. Procards – Allows departments to make small purchases efficiently and at a lower cost to U. T. –Material –Services –Other Please see handout in your packet for specific examples. Please see handout in your packet for specific examples.

14 Update on Initiatives (Con’t.) Point Plus – Allows departments to create their own P.O.s up to $5,000. Point Plus – Allows departments to create their own P.O.s up to $5,000. –OTIS and Facility Services are successfully preparing their own PBOs (up to $5,000). –If you are interested please contract Kyle Hayes (3745).

15 Helpful Suggestions The Procard Administrator, Rita Mosely, U. T. Austin, may call you directly if she sees charges related to office supplies from a vendor other than Office Depot hitting your procard. Don’t be alarmed or feel that you have done something wrong…let her know that you provided an explanation on the supporting documentation as to why Office Depot could not be utilized in this situation. The Procard Administrator, Rita Mosely, U. T. Austin, may call you directly if she sees charges related to office supplies from a vendor other than Office Depot hitting your procard. Don’t be alarmed or feel that you have done something wrong…let her know that you provided an explanation on the supporting documentation as to why Office Depot could not be utilized in this situation. –(Note: This is the way U. T. Austin has chosen to monitor the activity to ensure compliance with the OD agreement. Rita never sees Procard or OD expenditure supporting documentation from U. T. Austin or System Administration. Also, she does not distinguish U. T. Austin from U. T. System Administration card holders.)

16 Helpful Suggestions All purchases are tax exempt regardless of the funding source. Tax is not reimbursable on state accounts. Make sure to use a tax exempt form when making purchases. Available at: All purchases are tax exempt regardless of the funding source. Tax is not reimbursable on state accounts. Make sure to use a tax exempt form when making purchases. Available at: Please use APS web site to download the most current forms (e.g. Portrait Business Expense Form). Please use APS web site to download the most current forms (e.g. Portrait Business Expense Form).

17 Helpful Suggestions - Clarification Get credit for HUB purchases using your Procard. Follow the instruction provided in the March 13 th e- mail. Also, remember to always consider HUB vendors for your department’s purchasing needs; a helpful search tool is available at Get credit for HUB purchases using your Procard. Follow the instruction provided in the March 13 th e- mail. Also, remember to always consider HUB vendors for your department’s purchasing needs; a helpful search tool is available at Contracts and APS forms – If your department submits multiple requests for partial payments against a contract or APS form we rely on the approver to verify that the payment does not exceed the total amount allowed by the contract or APS form. Contracts and APS forms – If your department submits multiple requests for partial payments against a contract or APS form we rely on the approver to verify that the payment does not exceed the total amount allowed by the contract or APS form.

18 Suggestions – We need to ask for your help and/or input. Corrections – APS is looking into the best way to manage these requests. We would like to solicit your input. For the interim, please send all transaction correction requests to Becky Franklin. She will monitor these to make sure they are handled until we get a more permanent solution. Corrections – APS is looking into the best way to manage these requests. We would like to solicit your input. For the interim, please send all transaction correction requests to Becky Franklin. She will monitor these to make sure they are handled until we get a more permanent solution. Procard - “old” documentation sent to APS where no charges have come through will be returned to department’s for disposition. Procard - “old” documentation sent to APS where no charges have come through will be returned to department’s for disposition. Some wireless devices have not been returned to APS, could you help us obtain them? Some wireless devices have not been returned to APS, could you help us obtain them?

19 Questions? Thank you for attending today’s meeting!