MARYWOOD UNIVERSITY PURCHASING & ACCOUNTS PAYABLE HANDBOOK

Transcription

1 MARYWOOD UNIVERSITY PURCHASING & ACCOUNTS PAYABLE HANDBOOK

2 Table of Contents: Page Number Introduction 3 General Purchasing Policies - Unauthorized or Restricted Purchases Purchasing Procedures -The Purchase Requisition -The Purchase Order -Requisition for Emergency Supplies and Services -Confirming Orders -Purchases Requiring Prepayment 6 9 Other Purchase Transactions That Do Not Require a Purchase Order Policy and Procedures Using the Purchasing VISA Credit Card. 13 Travel & Business Expense Policy. 15 Entertainment Policy Independent Contractors 19 Copiers 22 Printing Services. 25 Mailing Services.. 29 Post Office Services 31 Appendixes: Appendix A Purchasing/Accounts Payable Forms. 32 Appendix B Descriptions of and Policies Relating to Line Items Appendix C Fiscal Procedures for Agency Accounts.. 62 Appendix D Receiving and Ordering Advice for OfficeMax Solutions.. 77 Appendix E Instructions Preferred Travel Agency Usage 80 Appendix F Instructions Preferred Local Hotel Usage 84 Appendix G Instructions DHL Express Usage.. 90 Appendix H General Purchasing Considerations. 94 -Purchasing Documentation & Bidding -Sole Source Purchases Appendix I Code of Ethics and Code of Conduct.. 98 Appendix J OMB Circular A Appendix K Governmental Regulations

3 INTRODUCTION What can the Purchasing/Accounts Payable Office do for you? Hello. We are the Purchasing/Accounts Payable Office, also referred to as the Fiscal Services Department. We are located in the Liberal Arts Center, Room 70. This handbook details the policies and procedures of both offices. All employees and agents of the University who participate in the purchasing process at Marywood University are to follow these policies and procedures. The following pages will give you information on what we do and how we can assist you in the Purchasing and Accounts Payable process. Functions of Purchasing (summary) Oversee all purchasing functions campus wide Serve as a liaison between the university and its vendors to obtain the best price and service available and resolve any vendor problems Review all purchase requisitions for compliance, accuracy and appropriate approval Collect and compare receiving documents from departments with invoices from vendors and review for appropriate supporting documentation and proper sales tax treatment and ensure that all applicable discounts have been taken before invoices are processed for payment by the Accounts Payable Office. Review and update as necessary purchasing policies and procedures and any forms or documents used to enact the purchasing function Assist and train university department personnel in purchasing procedures as necessary The Purchasing Office exists to serve all University departments in the procurement of all material, supplies, equipment, and contracted services necessary to support the operations of each department and the mission of the University. Our goal is to obtain these goods and services as economically as possible within accepted standards of quality and service with delivery at such places and times as are required by the departments in the best interests of the University and in compliance with all applicable governmental regulations and laws. Can I make a purchase without first contacting the Purchasing Office or without a Purchase Order? NO! Although department heads and other personnel may have considerable contact with vendors to obtain price quotations and obtain product and service information, such personnel may not place orders with vendors. Only the Purchasing Office has the final authority to conduct and conclude negotiations with vendors concerning prices and conditions of sale, including final vendor selection, and only the Purchasing Office may place the actual order by way of an official purchase order form. Purchase orders will be mailed unless the Purchasing Office is instructed otherwise. In the event that a department would like an order faxed or phoned in, that is the responsibility of the department. The department will be contacted when the purchase order has been issued and can pick it up, then phone or fax. 3

4 Contact Fiscal Services for guidance before proceeding with any purchases. Do not presume that your actions will be approved after the fact. Exceptions will be worked out between Fiscal Services, Purchasing, and the user department as circumstances and good business practices warrant. Please remember that the Purchasing function at Marywood is a cooperative undertaking between the Purchasing Office, the vendor and the user department. In most cases, department heads suggest a vendor when a purchase requisition is submitted to the Purchasing Office. It is presumed that the suggested vendor is selected by a department head after he/she has contacted several vendors and has reviewed the established purchasing criteria, namely, price, quality, service, shipping costs, availability, the lease/buy option if applicable, necessity, and other considerations that may be appropriate (see Appendix H General Purchasing Considerations for detailed information regarding these matters). In some cases written documentation of bids, price comparisons, number and names of vendors contacted, etc. may be required with a purchase requisition, though in most cases this documentation can remain in departmental files. The Accounts Payable Office is responsible for the payment of all goods and services on campus. Contact Accounts Payable with questions and concerns about vendor payments, travel and expense claims, and independent contractor payments. How often are Accounts Payable checks issued? The Accounts Payable Department issues checks three times a week Monday, Wednesday, and Thursday. Checks are issued at approximately 12:30pm and are available for pick-up at the Cashiers Window after 2:00pm. These times are approximate and can be changed or altered under certain circumstances. Ordinarily, it can take up to a week for a check to be issued. If a check is needed as soon as possible, the requisition must be hand delivered to the Accounts Payable Assistant with a verbal request for the check to be issued ASAP. At that time the requester will be informed of when the check can be issued. Just marking rush or needed by a date is not sufficient for rush processing. Below is a list of items that the Purchasing/Accounts Payable Office can help you complete. Listed next to the task is the page number(s) where you will find instructions and advice on how to complete this item. The Purchasing/Accounts Payable Office can assist you with these and other issues: Completing a purchase requisition, pages 9, 33 Ordering office supplies, pages 8, 77 Making travel arrangements, pages 16, 80 Finding a vendor for a product, page 94 Making reservations and arrangements for a speaker or visiting lecturer, page 21 Purchasing goods from on campus providers, such as the Bookstore, Printing Services, and the Post Office, pages 12, 36, 43, 71, 76 On-line ordering, page 13 4

5 Making a purchase at a local retail outlet such as Wal-Mart, Best Buy, or Circuit City, page 13 DHL, FedEx pick-up arrangements, page 90 Bus or vehicle rentals, pages 7, 15 Expediting order deliveries and resolving problems with vendors, page 9 Obtaining reimbursement for travel expense, pages 15, 37 Deciding which is the appropriate Fiscal Services form to use, page 32 Deciding what is the correct object point class number to use, page 46 5

6 GENERAL PURCHASING POLICIES ALL PURCHASES OF SUPPLIES, EQUIPMENT, AND CONTRACT SERVICES THAT ARE TO BE CHARGED TO UNIVERSITY DEPARTMENTS OR FUNDS CONTROLLED BY THE UNIVERSITY MUST BE MADE THROUGH THE PURCHASING OFFICE. LIMITED EXCEPTIONS TO THIS POLICY ARE NOTED BELOW. For definition purposes, purchases, purchase transactions and procurement transactions include the award and administration of contracts, agreements and subcontracts for the purchase, lease or otherwise acquiring of goods and services. The ordinary award or purchase document is the official Marywood University Purchase Order, but other contract forms approved by the Vice President for Business Affairs may also be used when necessary. The policies and procedures that follow apply to all such transactions supported by all funds controlled by the University including federal, state, and other grant and contract funds. They incorporate long-standing procedures and practices of the University and also special requirements and regulations mandated by various agencies from which the University secures funds for special programs. Unauthorized or Restricted Purchases THE UNIVERSITY CANNOT BE OBLIGATED EXCEPT BY PERSONS AUTHORIZED TO DO SO. The Board of Trustees and the President has delegated this authority to the Vice President for Business Affairs for all purchasing/procurement transactions from funds controlled by the University. The Vice President for Business Affairs has further delegated this authority for purchases to the Purchasing Office. Certain designated areas of the University by virtue of their special needs and the roles they fill at the University are authorized to issue purchase orders and/or initiate purchase transactions independent of the Purchasing Office according to special procedures established for those areas. These areas are the Bookstore, and certain categories of purchases by the Library, MIS, Network Services, Physical Plant, and Printing Services. No other departments may assume this privilege. No one else has the authority to enter into a procurement transaction that binds or incurs a financial obligation for the University unless so designated by the President or the Vice President for Business Affairs. Purchases made by individuals to whom this authority has not been specifically delegated are considered "unauthorized purchases" and are considered personal obligations of the person making the purchase. An unauthorized purchase transaction or order is one that is made without the proper authorization of the Purchasing Office, or one of the areas noted in the preceding paragraph, and is intended to be charged to University funds. An unauthorized purchase may be evidenced by a purchase requisition that is sent in for approval to the Purchasing Office after the goods are already purchased or ordered, or it may be evidenced only by an invoice from the vendor or by a check requisition for payment of charges. Any individual who makes an unauthorized purchase has incurred a personal obligation and is personally responsible for the payment of the charges incurred. The following is a list of items which cannot be purchased with University funds or which have restrictions attached to their purchase. This list should not be considered all inclusive, and good judgment should dictate prudent use of University funds. 6

7 Gifts, cards, flowers, plaques or monetary awards to individuals. Gifts and remembrances to honor employees or external friends of the University are charged to budgets administered by the President of the University and the Assistant Vice President for Human Resources. In special circumstances, a gifts line item is approved for a departmental budget. Exceptions to this policy must be approved by one s immediate supervisor. This is a Policy Statement that appears in the Marywood University Policies and Procedures Manual titled Gift Giving and Remembrances. Seasonal decorations such as for Christmas, for use in departmental offices, may not be charged to department budgets. Such decorations are purchased by the Housekeeping Department only. Personal use items such as brief cases, desk pen sets, PDAs, coffee pots, and food items such as candy or snacks for the department, may not be purchased from departmental budgets. Also, University personnel with purchasing authority may not purchase items for individuals for their personal use or negotiate special discounts for University employees. Subscriptions. Only professional subscriptions related to a particular function of a department can be charged to University budgets. Subscriptions must be in the name of Marywood University, C/O the department. Personal subscriptions to magazines, newspapers, etc. are not allowed. Departments are to avoid duplicate subscriptions of the same publication. Memberships. The only memberships subsidized by the University should be registered in the University s name, c/o the individual involved. The cost of individual memberships in professional organizations is the responsibility of the individual. However, professional memberships related to their work at the University are paid for the Sisters of the IHM with funds provided by the congregation. These funds are not to be included in a department budget. Computing Equipment/Software. The Director of MIS must approve all computer technology purchases. Academic departments that wish to purchase inkjet printers, digital, video and still cameras, or video editing equipment and other audio and video components, should contact the Assistant to the Vice President for Academic Affairs-for Technology, for suggestions and/or approval. If there are any questions regarding these types of purchases, please confer with the Purchasing Office before any orders are placed. Equipment having an impact on utility services or that requires physical plant alterations must be approved by the Physical Plant Department. Chemical Purchases. Special approval is required for all purchases of chemicals. Federal and State environmental regulations provide guidelines for the handling and storage of chemicals on campus. The University is required to follow these guidelines that are for the safety of everyone on campus. Therefore, one of the Environmental Safety Administrators must approve all purchases of chemicals. Many of the chemicals used on campus have already been approved and the names of these chemicals are maintained on a master list that can be accessed on the Marywood website, and therefore do not require a specific approval for every purchase. If a department wishes to order a chemical not on the list, then specific approval from one of the Environmental Safety Administrators is required before the Purchasing Office can issue a purchase order. Unapproved purchases/orders will not be honored and will be returned to the sender. Purchases for Clubs, Student Organizations & Agency Accounts. There are separate policy guidelines regarding these purchases. They are listed under Appendix C. Bus rentals to transport students must be processed through the Purchasing Office for all University Departments. Whenever a bus is rented for transportation of students or employees of 7

8 the University, the bus rental company must provide the driver. A current Certificate of Liability Insurance must also be provided to the University. Other vehicle rentals to transport students. The rental of vehicles other than a bus, to transport students, must be made through Enterprise Car Rental-the approved vendor on Campus. STUDENTS CANNOT RENT vehicles to transport other students or employees. An employee over the age of 25 with a valid Pennsylvania Drivers License must be the designated driver and renter. Arrangements must be made through the Purchasing Office via a purchase requisition. The employee should call Enterprise to reserve the vehicle. Due to safety concerns the rental of 10 to 15 passenger vans is prohibited. Because the charges will be the responsibility of the University, and the person driving the vehicle is a University employee, no additional insurance is necessary; they are covered under the existing University insurance policy. Failure to comply with this policy places the respective individual fully responsible should an accident or damage to a rental vehicle occur. When renting a vehicle from Enterprise, regular purchasing procedures detailed in this Handbook should apply. For information regarding renting a vehicle for business travel by an employee, please see the Travel Policy and Procedures section in this Handbook. Brochures & Advertising. The Director of Communications must approve purchase requisitions for brochures and advertising before being submitted to the Purchasing Office. Any purchase requisition not so approved will not be honored. Advertising for instructional departments must be processed through the respective department s Dean s budget. Employment advertising must be coordinated through the Human Resources Department. All contracts including leases and service agreements must be processed through the Purchasing Office accompanied by a purchase requisition. Department heads may not sign service contracts, leases, or rental agreements, unless permission to do so has been approved through the Fiscal Services Department or the Office of the Vice President for Business Affairs. Agreements and contracts whose financial terms will be binding on the University must be referred to the Vice President for Business Affairs before acceptance and execution. Such agreements, contracts, and other official documents are to be forwarded to the Business Affairs Office for review before being submitted to the Purchasing Office with a purchase requisition. Office Supplies. All departments must use OfficeMax Solutions to purchase their office supplies. All orders must be placed on-line. Purchase requisitions or requests for reimbursement of office supply purchases, using a vendor other than OfficeMax, will not be honored without prior approval from the Fiscal Services Department. Please note the only exception that applies is if office supplies are purchased from the Marywood University Bookstore. For more information regarding the purchasing of office supplies please refer to Appendix D titled OfficeMax Solutions Ordering & Receiving Instructions. Dining Services. Food served in any Marywood University facility is to be provided under the direction of the University s Dining Service Chartwells. This would include luncheon and dinner meetings for lecturers, consultants, auditors, departmental guests, and departmental meetings that take place on campus. Exceptions to this policy must be approved by a Vice- President. Allowable/Unallowable Grant Purchases. Caution must be exercised for all purchases from grant accounts. Grant directors are responsible for observing restrictions or regulations concerning purchases from grant accounts. Ordinarily, the restrictions are included in the grant agreement or in regulations referenced in grant agreements. The general rule is that charges to grant accounts should be allowable, allocable and reasonable. Most federal grants and contracts may refer to the cost principles included in Office of Management and Budget A-21 (OMB A- 21), which give guidance on allowable and unallowable costs. 8

9 PURCHASING PROCEDURES The Purchase Requisition The proper procedure to purchase or obtain any supplies, equipment, or services not otherwise delegated, is to submit a standard Purchase Requisition Form to the Purchasing Office. Upon completion, the purchase order number is written in the box located in the upper right hand corner of the requisition. For quick and efficient processing the requisition must be filled out properly including pertinent information such as the suggested vendor including an address, zip code, and phone number; where the goods are to be delivered including department, building, and room number; along with the date by which the items are needed. Also included should be a complete and accurate description of the item(s) including product or catalog numbers and quantity, the correct unit price, extended amount, and the budget number, along with the proper object point classification number. Make sure the person authorized to sign off on the appointed budget signs the requisition. If any of these items are missing or incomplete the Purchasing Office does retain the right to return the requisition to the requesting department to be filled out properly. This will delay the processing of your purchase order and therefore it is advisable to review the form before sending it to the Purchasing Office for completeness and accuracy. Please refer to Appendix A for complete instructions on how to fill out the Purchase Requisition. A sample copy of the form is also supplied. The Purchase Order 1. Upon receipt of a completed purchase requisition, the Purchasing Office issues an official Purchase Order. 2. Two copies of the Purchase Order are printed. One copy is mailed to the vendor. One copy is forwarded to the department this is considered the receiving copy. Please be aware that if you indicate on the purchase requisition that you are faxing or phoning in the order and instruct Purchasing not to mail a confirming copy, you will receive only 1 copy of the Purchase Order. This copy can be used to fax or phone the order in and then will also be used as the receiving copy of the Purchase Order. 3. Immediately upon receipt of items ordered, the receiving copy of the Purchase Order is signed, dated, and sent to the Purchasing Office as evidence that items requested have been received. For partial deliveries, do not hold the receiving copy. Back orders can be acknowledged on a back order acknowledgement form supplied by the Purchasing Office. Please report immediately the following to the Purchasing Office: 1. Delay in receiving goods ordered. 2. Special attention requested but not rendered by the vendor. 3. Claims, shortage, or damages noted upon receipt of materials. Do not return goods until advised by the Purchasing Office. 9

10 Ordinarily, the Purchasing Office will issue a purchase order for the items listed on the purchase requisition to the suggested vendor on the assumption that the department has followed the general purchasing guidelines. These guidelines can be found in Appendix H titled General Purchasing Considerations. The Purchasing Office has the authority to challenge the ordering department concerning the quality, quantity, and type of materials requested or to suggest another vendor so that the best interest of the University may be served. As stated earlier, when office furnishings are needed, the department needs to speak to the Superintendent of Housekeeping/Maintenance first. They will check to see if there is an existing piece of furniture in storage that will meet the department s needs. If not, they will advise you on how and where to order the furnishing. When computer hardware or software is needed, the requests must be made to the MIS Department first. They will make a determination of whether or not the equipment is necessary or whether or not it is already available on Campus. Requisitions for Emergency Supplies and Service The Purchasing Office will be pleased to cooperate with any departments in taking care of a GENUINE emergency. Purchases under this category include those items necessary for continuity of operations or situations which arise suddenly and cannot be reasonably anticipated. Contact the Purchasing Office for instructions as to the procedure when the emergency develops. A purchase order can be issued on short notice so that a purchase order number can be given to a vendor by phone or so that a purchase order can be faxed to the vendor by the user department. Departments should not phone or fax orders to vendors or make purchases without a valid purchase order number from the Purchasing Office. When necessary the Purchasing Office will assist departments by phoning or faxing orders. However, due to the volume of purchase orders processed by the Purchasing Office daily, it is preferred that the user department phone or fax their own orders once they are completed. Confirming Orders As stated above, orders may be placed by phone or fax if the circumstances warrant it. A Purchase Order will then be sent to the vendor with the notation "Confirming Order-Do Not Duplicate. Such orders may be placed by phone or fax only after a purchase order number has been issued by the Purchasing Office. To obtain a purchase order number, a purchase requisition must be submitted to the Purchasing Office with a request that the user department be allowed to phone or fax the order. The Purchasing Office will then issue a purchase order and notify the user department of the purchase order number. Purchases Requiring Prepayment As a rule, payment will not be made before goods or services are received. However, prepayments can be made in situations where it is required by a vendor or in cases where prepayment results in significant savings to the University. A prepaid purchase must be processed on a purchase requisition. The purchase requisition should note that prepayment is requested. Documentation must be attached to the requisition 10

11 justifying the need for prepayment. The final decision to determine if a prepayment may be made rests with the Purchasing Office. Such orders may take an extra day or two to process. Check requisitions attached to vendor order forms will not be honored for prepaid purchase transactions. 11

12 OTHER PURCHASE TRANSACTIONS THAT DO NOT REQUIRE A PURCHASE ORDER Check Requisitions are to be used only for subscriptions, membership renewals, and a limited number of special purchase situations authorized by the Accounts Payable Office or Fiscal Services prior to the purchase being made. Proper back-up documentation, i.e. renewal forms, applications or invoices, should be attached to the check requisition. Any check requisition without proper back up attached could delay the processing. PURCHASES MADE BY INDIVIDUALS AND SUBMITTED TO THE PURCHASING OR ACCOUNTS PAYABLE OFFICE WITHOUT PRIOR APPROVAL WITH A CHECK REQUISITION WILL NOT BE HONORED FOR PAYMENT. Petty Cash Requisitions. Petty cash may be used for small purchases of less than $100. Petty cash requests are to be made at the Purchasing Office with a blue Petty Cash Requisition Form before a purchase is actually made except for emergency purchases. Receipts for petty cash expenditures are required for audit documentation. Receipts are to be handed in to the Cashier's Office within 5 days of the receipt of the petty cash. Interdepartmental Charges. Departments may charge purchases made at the Bookstore, Dining Services, MIS and I-Tech Services to their respective department budgets. Personnel complete an Inter-Departmental Charge Requisition Form (yellow) making sure to first have it authorized by the chairperson or person with budget authority before submitting it to the department/area where the purchase is being made. Further instructions on how to complete each of these forms along with sample copies of the forms themselves can be found in Appendix A Purchasing Forms. 12

13 POLICY AND PROCEDURES FOR USING THE UNIVERSITY PURCHASING VISA CREDIT CARD When placing an order, it is always preferable to use a purchase order and have the company direct bill us. However, there are some instances where a purchase order will not be accepted. On-line orders are becoming more prevalent and more than likely need the use of a credit card. Sometimes a company doesn t want to go through the trouble of establishing credit with us if they know it s going to be a small or one-time order. Smaller companies sometimes prefer payment up front. Also, some companies will agree to establish credit with us after the first order is prepaid either by check or credit card. In any of these instances the Marywood University VISA held in the Purchasing Office can be utilized. IMPORTANT: Each time an order is placed using the VISA, it must be pre-approved by the Purchasing Department. The account number should not be kept on file and used whenever the department deems it necessary. If an order is placed without prior approval from the Purchasing Department, the individual placing the order may be held personally liable for the charge. On-Line Ordering & the Proper Use of the Credit Card 1. Prepare a Purchase Requisition, just as you would for any other order. Under the description of the items that you are ordering, inform the Purchasing Assistant that the VISA will need to be used instead of a purchase order. Also give a reason as to why the VISA is being used instead of a purchase order, i.e.: Company will not accept purchase order, etc. After the Purchasing Assistant has determined that this is a legitimate use of the VISA, she will forward to you via the VISA information: name of account as it appears on card, account number, expiration date, and the 3 digit verification number that appears on the back of the credit card. It is the department s responsibility to place the order using the credit card information provided. The State Sales Tax-Exempt number will also be included in this information. You must forward this number to the vendor so that we will not be charged sales tax on the order. If Purchasing disallows the request, an will be forwarded to the department with an explanation of how to proceed with the order without the use of the credit card. 2. Purchasing will use the purchase requisition to encumber the department s budget. The original purchase order will not be sent to the vendor, however the receiving copy of the purchase order will still be forwarded to the department. When the department receives their order, clear the receiving copy of the purchase order just as you would for any other order. If you were given any documents with your order, an invoice/packing slip, or if you received a confirmation for the order, please attach these document(s) to the receiving copy and forward them to the Purchasing Office. 3. If the total amount of the order is different from the original estimate, Purchasing will amend the encumbrance to reflect the true total. Using the VISA at Wal-Mart, Best Buy--or other local retail outlets An alternative to using petty cash to purchase items at retail outlets that will not accept a purchase order, or direct bill the University is to use the VISA to charge the order. It has been verified that the two retail stores listed above will not accept a purchase order from us, but will allow us to use the VISA to purchase items. If you want to purchase from any other local retail outlets, please 13

14 verify with the store first whether or not they will accept a University purchase order. If they refuse, then follow the procedure stated below. 1. Complete a purchase requisition. The requisition will be used to encumber the department s budget. The requisition should be properly completed with the authorized signature, the correct budget and object point class number, and a total amount. If you are not sure of how much is going to be spent, fill in an estimated amount. After the purchase is made the line will be amended to reflect the final total of the purchase. State a concise but thorough description of what is going to be purchased. Underneath the description, state that you are using the VISA to purchase the items at the store. List the name and address of the store where purchases are being made in the Suggested Vendor area. Forward the requisition to the Purchasing Department and a purchase order will be generated. 2. Sign log pick up credit card. Each time the card leaves the department, a log is signed, stating the person s name, department, and the date and time the card is being taken. After you sign the log you will be given the credit card, the original purchase order, and the receiving copy of the purchase order. The store may want to see the original copy of the purchase order, therefore make sure you take it with you. The credit card should be used and returned as quickly as possible. In certain situations, we may allow you to take the card overnight, but we will not allow you to keep the card over a weekend. 3. Tax-exempt notification. Because we are a tax-exempt entity, most purchases should not have sales tax added to them. To ensure that there isn t, the following procedures have been put into place. For purchases being made at Wal-Mart, taxexempt cards are available. If your department frequents Wal-Mart, you can obtain an individual Wal-Mart tax-exempt card from the Customer Service Desk. We would keep the card in our files for future use. We also have a blank one that anyone from Marywood can use. For purchases being made at Best Buy, you will be given a copy of the most current State Sales Tax-Exempt Certificate to take to the store with you. Best Buy is supposed to have a copy of the certificate on file, but sometimes it s best to take a copy with you, verifying that we are a tax-exempt entity, and therefore should not be charged sales tax. If purchases are being made at any other retail outlet besides the two mentioned above, a Tax-Exemption Certificate would be prepared for you to take to the store. The store may not have one on file if no one from Marywood University has purchased there before. The certificate must be shown at the time of purchase to ensure that we will not be charged sales tax. After the purchase is made return the credit card, the store receipt, and the receiving copy of the purchase order. Sign and date the receiving copy of the purchase order. If the amount is different from what was initially encumbered cross out the wrong amount on the receiving copy and write in the correct amount. We will amend the line on the system. The last step is to sign the log verifying that the card was returned. If the store did not want the original purchase order it can be kept for the department files or disposed of it is not necessary to return it to Purchasing. 14

15 TRAVEL & BUSINESS EXPENSE POLICY POLICY STATEMENT Marywood University will be responsible for actual and reasonable expenses related or associated with University travel and business. Grants and contracts administered by the University may be subject to specific conditions. If conditions are not stated, the University s policies will apply. Allowable Expenses Allowable expenses include transportation, lodging, meals, parking fees, tolls and other necessary expenses incurred by University employees while traveling on approved University business. Airfare should be on regularly scheduled commercial airlines. The least expensive business or economy class should be purchased. First class tickets are unallowable. Personal Vehicles. The use of employees personal vehicles is reimbursable according to the mileage reimbursement policy of the University. Employees are responsible for carrying adequate automobile insurance coverage, and they should address insurance related questions regarding the use of personal vehicles for their jobs to their own insurance agents. Vehicle Rental. A car may be rented only when it is either the most economical means of transportation or necessary due to the nature of the trip. Ordinarily, a compact, intermediate or mid-size car should be selected. Use of passenger vans is prohibited due to safety concerns. Lodging. The University will honor reasonably cost-effective reservations for lodging within the scheduled dates for University business. When planning for lodging, inquiry should be made to see if there is a corporate rate available that is less expensive than the convention rate. Receipt Requirements. Original receipts are required to support all expenditures, such as the cardholder s copy of credit card transactions, the passenger s copy of airline tickets, an original and detailed restaurant receipt rather than a check stub that lists only a total. Expenditures not supported by receipts will be acceptable in rare instances with a detailed written explanation signed by the employee s supervisor. Unallowable Expenses. Following is a representative list of expenses that are not allowable under this policy. Personal entertainment Hotel movie rentals Cost of alcoholic beverages Conference optional events such as golf Costs for family members and personal friends Personal phone calls in excess of one per day to the traveler s home Cost or losses due to negligence or theft Travel or flight insurance Gasoline, insurance, maintenance, repair and other costs related to personal vehicles Traffic violation fines and parking tickets 15

16 PROCEDURES Arrangements may be made through a travel agency, through online web providers or by going directly to a vendor such as hotel, airline, etc. Airfare. Individual travel reservations may be made through online sources or through a travel agency using a personal credit card, a Marywood University issued VISA, or a Marywood University issued purchase order. When a Marywood VISA is used, submit a Credit Card Monthly Charges Report along with the original receipt to the Purchasing Department. When a personal credit card is used, submit a travel expense report along with original receipts to substantiate costs. When a University purchase order is used, obtain a purchase order before making the reservation final. AAA Travel, Abington Travel, and Travel World accept Marywood purchase orders. Please follow the detailed instructions in Appendix E, titled Instructions Travel Agencies Approved Vendor List, on how to proceed for all three of these options. Personal Vehicles. A travel expense report listing mileage incurred for each day must be submitted when requesting reimbursement from the University. Other than the items specified on the travel expense report form, there are no receipt requirements for mileage reimbursement. Car Rental. Employees are responsible for making their own arrangements with the approved car rental firm. The employee must provide evidence of University employment and reference the University s corporate account number. When a University purchase order is used, obtain a purchase order before making the reservation final. When a Marywood VISA is used in lieu of a purchase order, submit a Credit Card Monthly Charges Report along with the original receipt to the Purchasing Office. When a personal credit card is used, submit a travel expense report along with the original receipt to the Accounts Payable Office. Lodging. University personnel must book their own accommodations. An Accounts Payable check, a personal credit card, or a Marywood University VISA is acceptable. If an Accounts Payable check is to be used, the employee should request at the time of the reservation, a faxed confirmation on the lodging provider s letterhead, stating the name of the person staying, the confirmation reservation number, the date or dates of the stay, and a room rate per day including all applicable taxes. The employee must attach the fax to a check requisition form signed by the authorizer of the budget to be charged, and submit it to the Accounts Payable Office. When the check has been issued, the employee can pick it up at the Cashier s Office prior to departure. Any additional charges applied, i.e. parking, phone calls, or meal charges, will be paid for by the employee and the employee can request reimbursement of these expenses when they return from the trip. When a personal credit card is used, a travel expense report form with original receipts attached will substantiate costs. 16

17 When the payment is made with a Marywood VISA, the card must have been issued to the employee using it. The VISA kept in the Purchasing Office cannot be used. Travel Advances: When out-of-pocket expenses are expected to be significant, travel advances can be arranged. Advances should be requested using a Check Requisition and should be requested at least one week prior to expected travel in order to give ample time for the check to be issued and also to allow time for the traveler to cash the check. Departments have limited funds available for travel and therefore the employee should discuss with their respective department head or chair as to how much to request. For trips where expenses are not expected to exceed $100 or for emergency travel needs, petty cash can be requested by completing a Petty Cash Requisition. Travel Reporting: After the traveler returns from the trip a Travel Expense Report Form must be completed within 60 days of the issuance of the travel advance check. If you find that you will not need the funds immediately, the check can be voided and reissued at a more convenient time. Original receipts must be attached to substantiate all expenses except mileage and the authorizing signer on the budget should approve the report. This should be done in all cases, even where there are no funds due to the traveler. For further instructions on how to fill out the form, please see Appendix A Purchasing Forms. IMPORTANT NOTE: Travel advances (both petty cash and check) should be reconciled and excess funds, if any, returned as soon as possible upon completion of the trip. IRS regulations require the university to report travel advances as additional income and to withhold appropriate income taxes on these advances unless the expenses are accounted for within a reasonable period of time. If the receipts are not received within this time period, the funds may be added to your W-2 as income. This is per IRS Regulation (g)(2) and following. This is done in order to clear the advance from the traveler s accountability. Reporting of an advance as income does not relieve the employee of the legal liability to account to Marywood University for the travel advance and to return unused portions. Therefore if any advance has not been accounted for within 60 days after the traveler has returned the University will deduct the outstanding balance of any travel advance from his or her payroll check. This allows the University to recover the advance from any salary owed the employee in case of termination of employment or failure to submit a travel claim. 17

18 ENTERTAINMENT OF UNIVERSITY GUESTS AND EMPLOYEES POLICY POLICY STATEMENT Marywood University considers it appropriate to entertain guests and employees if the occasion supports the mission, goals, and objectives of the University. University Guests On occasion, it is appropriate to provide a meal or reasonably priced entertainment for business contacts, donors, and friends of the University. Such expenses may be charged to University budgets when the expenses are related to University business and the job responsibilities of the University host. To qualify as entertainment under IRS guidelines, entertainment expenses must be directly related to or associated with business. 1. All entertainment expenses, whether local or while traveling, must be listed when reporting business expenses, with original, itemized receipts attached. Marywood University s Travel Expense Report Form facilitates detailed itemization. 2. The following documentation is required by the IRS: a. Date(s) entertainment occurred. b. Names, titles, and business relationship to persons or groups who were entertained. c. Place entertainment occurred. d. Business purpose or reason for entertainment. 3. Reimbursements for payment of charges for alcoholic beverages are permissible entertainment expenses as outlined above, except that the cost of alcoholic beverages may not be charged against University or other funds related to any grant programs or contracts. University Employees Expenses for entertainment of University employees exclusively may be charged to departmental budgets if approved through the usual budget process. Entertainment expenses for spouses or other members of an employee s family or friends may not be charged to University budgets, except with the approval of the President. 18

19 INDEPENDENT CONTRACTORS Payment(s) to individual(s) who are not employees of Marywood University, who perform a service for the University, are considered Independent Contractors. Purchases of services of Independent Contractors are processed through the Fiscal Services Department by way of an Agreement For Compensation of Independent Contractors, which will be referred to hereafter as an Independent Contractor Form. Independent Contractors can include but are not limited to consultants, entertainers, guest speakers, visiting experts, photographers, officials for athletic events, or an individual who is hired to perform a specific service for the University. The Fiscal Services Department may not process payments to individuals until it has been ascertained that the person being paid is considered either an Independent Contractor or an Employee. The Internal Revenue Service (IRS) is increasing the audit of Independent Contractor payments, and both the University and the individual are subject to substantial financial penalties for failure to comply with federal regulations. The guidelines below may be used to aid in deciding whether or not the person hired is considered an Independent Contractor or Employee. These guidelines are not conclusive. They are part of a list that the IRS has developed to help identify individuals as Employees or Independent Contractors. If there is any doubt the department should check with Fiscal Services for help in determining the status of an individual and how they will be paid. Who is an Independent Contractor? Has a place of business and a business listing in a directory when the services are offered to the public. Selects the clients and is free to work for one or more during any given interval. Determines the time and place work will be performed. Provides the tools and materials needed to perform the work. Does not participate directly or indirectly in the benefit programs of the University. Relationship can be terminated only according to the terms of agreement or contract. May agree to perform specific services for a fixed price and generally does not receive regular amounts at stated intervals or is not reimbursed for business expenses separately. Performs the required task or tasks according to the contractor's own manner and method, outside of the direction or control of the University Activities are not controlled or directed by the University or subject to the University s right to control or direct the task or tasks to be performed. Can earn a profit or suffer a loss as a result of the services being performed. Pay for own travel expenses, and some Independent Contractors typically bill back to the client for said expenses. The difference is that the control of the expenses is in the hand of the Independent Contractor. Can hire assistants or other employees to perform work for them. Responsible for end results and are usually not required to submit reports. Who is an Employee? An Employee is subject to the will and control of the employer not only as to what shall be done but how it shall be done. It is not necessary that the employer actually direct or control the manner in which the services are performed; it is sufficient if the employer has the right to do so. Can be discharged by the employer at any time and the Employee also has the right to quit 19

20 a job without any liability to the employer. The Employee is furnished with tools and a place to work by the employer. No liability for business expenses, paid for time and labor. Usually paid by unit of time. Can usually hold more than one job at a time, though some employers do require a loyalty oath and can prevent Employees from taking some alternate jobs. Employer pays travel expenses retaining the right to control and direct the Employee s actions. Cannot get someone else to perform the work for them. Employers require an employee to submit oral or written progress of their work. Students who are already employed by the University (work-study or hourly) cannot be reimbursed as an Independent Contractor. For example, if a student is hired to perform music at a University related function or act as security at a University sponsored event and also is employed in the work-study program or is employed as a regular hourly employee, the request for payment must be made through the Payroll Department. An employee of the University should not normally receive both a 1099MISC and a W-2 from Marywood though there are certain circumstances where this may happen. If an employee is performing a service for the University that is very diverse from their normal job requirements a 1099MISC may be issued for said services. For clarification on this matter please confer with the Accounts Payable Assistant before proceeding. If after analysis it is determined that the person is considered an Employee and not an Independent Contractor the request for payment should be taken to the Human Resources/Payroll Department. If it is determined that the person is an Independent Contractor the person will be paid through the Accounts Payable Office. An Independent Contractor form is required for compensation. Requests for compensation for Independent Contractors must be made at least two weeks in advance of the desired payment date. The payment date must be within the same calendar year as that date on which the services were rendered under the agreement. The compensation for such individuals is usually charged to the.300 object classification in department budgets, although circumstances may require that other object classes be used on rare occasions. It is requested that the department confer with Fiscal Services before making a decision on whether or not to use a different object point classification other than.300. Independent Contractors will not be reimbursed for their services if the request is made on a Check Requisition or any other unauthorized form. A signed Independent Contractor Form along with a signed W-9 with the individuals Social Security Number must be submitted to Fiscal Services before reimbursement will be remitted. Payment will not be issued until the contracted services have been completed. Payment of $600 or more in a calendar year to an Independent Contractor will be reported to the Internal Revenue Service and a Form 1099 will be issued to the Independent Contractor by January 31 of the year following the calendar year in which the services are rendered. Reimbursement of Travel Expenses for Independent Contractors. Per IRS guidelines, one of the characteristics of an Independent Contractor is that the individual pays all their own travel and miscellaneous expenses directly. Payment of a lump sum or a flat fee clearly supports the Independent Contractor classification. Therefore the Fiscal Services Department, except in extraordinary circumstances, requires that the Independent Contractor pay for their travel expenses. For reimbursement, an 20