1. Contracts, Procurement, and Risk Management (CPRM) Wednesday, April 8, 2009 9:00 a.m. Open Forum

2. Topics of the Day Sales tax changes with Marc Benadiba International Education Programs with John Battenburg Recycling practices with Peter Cron and Richard Wagner Purchasing tips Field trip refresher P-Card updates Q & A

3. Sales Tax Changes Presented by Marc Benadiba Effective April 1, 2009, the state sales and use tax rate increases by 1%. The 1% tax rate increase will expire on either July 1, 2011, or July 1, 2012, depending upon whether voters approve to extend it.

4. Sales Tax Basics Sales and Use tax are generally only applied to purchases of tangible goods (equipment, furniture, etc.). Sales and Use tax are applied at the same percentage rate (8.25% for the County of San Luis Obispo).

5. Sales Tax Basics Vendors (usually) include sales tax on their invoices billing the University for the purchase of tangible goods. If the vendor does not charge the University sales tax for the purchase, then it is the responsibility of the University to apply use tax to the purchase.

6. Sales Tax on Labor In general, sales taxes are not applied to stand alone labor charges. However, some labor charges in relation to taxable sales may be subject to sales tax. For example; Fabrication Labor is considered taxable Manufacturing a new piece of machinery Sizing and engraving a ring you are selling Cutting metal or lumber being provided to a customer Altering a new suit to better fit the buyer

7. Sales Tax on Labor Sales tax generally does not apply to charges for installation labor. For example; tax would not apply to your itemized charges for installing a car stereo. Sales tax generally does not apply to repair labor. Repair labor is work performed on a product to repair or restore it to its intended use. For example: Repairing the broken keypad on a cell phone Replacing a hard drive in a used computer Repairing damaged paint on your car

8. An employee purchases books from Amazon using the University Procurement (credit) card. The receipt provided to the employee does not include sales tax. Accounts Payable records and pays the charges for the books purchased, charges the department use tax and remits the use tax to the State Board of Equalization. Use Tax

9. International Education Programs Presented by John Battenburg

10. Recycling Practices Presented By Peter Cron from S.L.O. County I.W.M.A And Richard Wagner from Cal Poly

11. Purchasing Processes CPRM Brochure - Helpful Information to Assist in Purchasing Processes CPRM Procurement website with similar information: http://www.afd.calpoly.edu/cprm/procurement.asp?pid=2 http://www.afd.calpoly.edu/cprm/procurement.asp?pid=2

12. Required and Voluntary Field Trips/Activities The faculty member should have… Sufficient Knowledge of Area Detailed Instructional Agenda Detailed Itinerary Plan and Accommodate Special Needs Reviewed Permissible Conduct Guidelines Reviewed Emergency Preparedness

13. Required Field Trips/Activities: Required field trips and activities are events outside of the regularly scheduled class room/laboratory environment led by the faculty and/or university staff that are mandatory for a specific course. 1. Plan your event with the help of the Risk Management Worksheet http://www.afd.calpoly.edu/cprm/riskforms/pdf/RISKMANAGEMENTWORKSHEET110404Special_Events.pdf 2. Create a Field Activities Notification form for each student to sign http://www.afd.calpoly.edu/cprm/fieldtrips.asp?pid=5#forms 3. If necessary, complete a Sign Out Agreement for any students leaving the trip/activity http://www.afd.calpoly.edu/cprm/fieldtrips.asp?pid=5#forms 4. Maintain a documentation file that includes… The completed risk management worksheet A field activities notification form for each student Travel authorizations (see travel related slides)

14. Voluntary Field Trips: Voluntary field trips and activities are events that are not part of a class requirement and is optional for students to participate in. Trips and activities that students independently choose in order to fulfill a requirement of a course is considered voluntary. Faculty Involved in voluntary field trips and activities are recommended to: 1. Plan the event with the help of the Risk Management Worksheet http://www.afd.calpoly.edu/cprm/riskforms/pdf/RISKMANAGEMENTWORKSHEET110404Special_Events.pdf Faculty involved in voluntary field trips and activities are required to: 2. Create a University Release Agreement form for each student to sign http://www.afd.calpoly.edu/cprm/fieldtrips.asp?pid=5#forms 3. If necessary, complete a Sign Out Agreement for any students leaving the trip/activity http://www.afd.calpoly.edu/cprm/fieldtrips.asp?pid=5#forms 4. Maintain a documentation file that includes… The completed risk management worksheet A field activities notification form for each student Travel authorizations (see transportation slides)

15. Field Trip Transportation Field Trips and Activities should always start and end at the site Have the students meet at the site Responsible for their own transportation Just as they are every day to get to/from class Do not direct students to drive, route to take, stops to make, or Reimburse For Mileage Do not organize car pools

16. Arranging Transportation If you must arrange the transportation or reimburse mileage for a trip or activity there are several ways to do so including… Chartered Transportation Service (Bus rental) Contact Leah Kirklin for assistance University Vehicles driven by Employees Rental* Vehicles driven by Employee Rental* Vehicles driven Students (Identified Volunteers) Personal Vehicles driven by Students (Identified Volunteers) *Enterprise Rent-A-Car

17. Faculty, Staff, & Paid Student Assistant Drivers Procedures Are required to fill out the following documentation… 1. Authorization to operate vehicles on University Business http://www.afd.calpoly.edu/ehs/forms.asp?form=20 2. Authorization to operate personal vehicles on University Business http://www.afd.calpoly.edu/ehs/forms.asp?form=20 3. Travel 1A http://www.afd.calpoly.edu/FiscalServices/Forms/TRVL-1aform.xls - If there are several people traveling in the car with the driver, attach a list of the people who are traveling in your car to the 1A *Paid students refers only to students acting in their position as an employee not as a student enrolled in a class.

18. Non Paid Student Drivers Procedures Are required to fill out the following documentation… 1. Must be identified as University Volunteers for the purpose of driving for a Field Trip/Activity http://www.afd.calpoly.edu/HR/docs/benefits/V-1%2010-08.pdf 2. Authorization to operate vehicles on University Business http://www.afd.calpoly.edu/ehs/forms.asp?form=20 3. Authorization to operate personal vehicles on University Business http://www.afd.calpoly.edu/ehs/forms.asp?form=20 4. Travel 1A http://www.afd.calpoly.edu/FiscalServices/Forms/TRVL-1aform.xls - If there are several people traveling in the car with the driver, attach a list of the people who are traveling in your car to the 1A

19. P-Card Updates Due to reorganization within CPRM the P-Card program will temporarily be handled by: Georgia Wells at x2820 or gjwells@calpoly.edugjwells@calpoly.edu New Card Requests Questions about allowable purchases Limit Increases Suzanne LaCaro at x5190 or slacaro@calpoly.eduslacaro@calpoly.edu SAM access, training, and issues Speedcharts

20. P-Card Updates March 27 was the last day to use GE Capital P-Cards. American Express cards can be picked up in Contracts, Procurement, and Risk Management located in Bldg 1 Room 128. Why did we transition to American Express? American Express purchased the corporate portion of GE Capital. The CSU decided it was in our best interest to continue with the current P- Card contract. What do I do if a vendor does not accept American Express? Other purchasing methods such as Direct Pays, Purchase Orders, and Staff Reimbursements are available. If a vendor is interested in becoming a vendor that accepts American Express please send their contact information to Georgia Wells at gjwells@calpoly.edugjwells@calpoly.edu

21. P-Card Administration P-Card statements with all supporting receipts are due in the Accounts Payable office no later than the 15th of each month. Accounts Payable will begin communicating more actively with cardholders that submit their documentation late.

22. P-Card Administration In order to facilitate imaging P-Card statements and related documents we ask that you: 1. Tape down all receipts smaller than 8.5 x 11 onto an 8.5 x 11 sheet of paper. 2. Statements and supporting receipts should be submitted with paperclips, rather than stapled.

23. P-Card Administration As a reminder the P-Card must not be used for any Hospitality expenses. Hospitality expenses are generally comprised of hosting related expenses such as food, beverages, and promotional items.

24. Question & Answer Thank you for attending!