CONTRACT/AGREEMENT PROCESSING PRESENTED BY THE BUSINESS OFFICE THURSDAY, FEBRUARY 17 TH, 2011

Transcription

1 CONTRACT/AGREEMENT PROCESSING PRESENTED BY THE BUSINESS OFFICE THURSDAY, FEBRUARY 17 TH, 2011

2 Can I commit to this hire? Employee versus Independent Contractor? Is the vendor a foreign entity? Contact Jeanne DeMatteo/Business Office or Ann Kelly/HR before contracting with an individual if: He/she is currently employed by SMC or has been employed within the current calendar year. He/she is currently a student at SMC. The work to be conducted is directly controlled and/or managed by SMC. The work to be conducted could be provided by current SMC resources (e.g. temp pool). If contractor is NOT a California resident/entity, and performing services in California, you MUST check with Linda Granko in Accounts Payable. Nonresident withholding may be required. If contractor is NOT a United States citizen or entity, and performing the service in the United States, you MUST check with John Hills in Payroll BEFORE entering into an agreement with that individual or company. The College may not be able to legally make payment and specific forms are required in these cases.

3 Contract/Agreement Overview All services provided to the College must have a properly executed agreement on file. Services are not to be paid out of pocket or with the College P-Card. The contract/agreement process may be found on the Business Office SMCnet site, AP Policies and Forms Tab: Payment for Outside Services. All agreements (except the Transportation Agreements*) may be found on the General Counsel SMCnet site or as a link through the Payment for Outside Services site. *The Transportation Agreement is on the Business Office Site, along with Exhibit A which must be a part of this agreement

4 Contract /Agreement Process Two copies of the agreement must be fully completed by the department, not the vendor (vendor = one performing service for SMC), and outline the following: The scope of duties and date(s) of service. Amount of compensation. Any reimbursement agreement such as payment of travel expenses. Send to the vendor (one performing service for SMC): Both copies of the agreement. A W9 form (unless one is already on file). Vendor returns both copies and W9.

5 Contract /Agreement Process Both copies of the agreement are then sent to Administrative Services (Sharon Neward) to obtain the College s authorized signature. No one but the President, VP for Finance or their authorized designee may sign on behalf of the College. The processing of some agreements may be delayed if SMC template agreements aren t used. When in doubt, please call Administrative Services at ext (Sharon Neward).

6 Contracts/Agreements Process (cont.) What must accompany the agreement to Administrative Services? The W9. If already on file make a note on the agreement. A Purchase Requisition if payment exceeds $1,000. Do not obtain a PO NUMBER first. If payment is to be made by Business Office credit card, note clearly on the requisition. Provide any supporting documentation, such as the credit card authorization form. Do not submit check requests or invoices with the agreement.

7 Contracts/Agreements Process (cont.) What is returned to the department? One copy of the fully executed contract. The W9. The approved requisition either with or without a PO number assigned. What is the next step? Return the original or a copy of the contract to the vendor. Keep a copy of the agreement and certificate of insurance in the department file for 3 years. Process the payment request.

8 Contract/Agreement Payment Process How do I process the payment? Nothing further required if payment is made by Business Office credit card. Submit a check request or invoice to Accounts Payable. Attach a copy of the fully executed agreement and completed W9. If multiple payments involved the copy of agreement only needs to be submitted with the first payment request. If a PO number was assigned, reflect that number on the payment request. If an approved requisition form (no PO assigned) was returned, submit it with the payment request. Note on the request approvals are attached. No need to obtain signatures again.

9 Contracts for Outside Food Services All outside food service providers must have an Independent Contractor Agreement, regardless if the service is on or off campus. (Exception: Restaurant take out or delivery ) For services on campus, additional forms are required. Agreement to Waive Food Liability And Provide Indemnification. Must be signed by the provider and Matt Carroll of Sodexo. Food Handling Guidelines form Must be signed by the provider. A Certificate of Insurance per #8 & #9 of the Independent Contractor Agreement. Forms can be found on SMCnet:

10 What does this look like? Step by step example of contract/agreement process

11 Step 1: Fully complete two copies of the agreement. a.contact information of department; contractor information (who is performing the service); contractor s contact information. b.length of contract c.scope of duties/services Example a. b. c.

12 Step 1 cont: Fully complete two copies of the agreement: d. Amount of compensation. e. How services will be paid. e. d. Step 2: Send both copies to the vendor for review and signature. Also send a W9 form for the vendor to complete and sign. Vendor returns both copies of agreement and W9.

13 Note: The name per the W9 needs to match the name indicated under Payment to be made to on the agreement. Example

14 Example

15 Be sure that the vendor fully completes the W9 with signature. W9 isn t needed if we already have one on file. Not sure if a W9 is already on file? Check with Accounts Payable. Or a W9 can always be sent to the vendor just in case. Example of completed W9.

16 What do I do now that I received everything back from the vendor? Step 3: Submit to Administrative Services: Both copies of the agreement (with the vendor s original signature). Completed W9 Purchase requisition if payment for services exceeds $1,000. Do not obtain a PO number first. Do not submit check requests or invoices with the agreement.

17 If payment for service is over $1,000, a requisition needs to be completed and attached to the agreement. Agreement will not be signed if requisition isn t included. Remember, do not obtain a PO number first Requisition should include: 1. Vendor 2. Funding source (account code) 3. Description 4. Amount 5. Authorized signatures. Note: Academic departments also need to obtain the Provost s signature. Departments reporting to the Vice Provost must obtain the Vice Provost signature.

18 What is returned to the department? One copy of the fully executed contract The W9 Approved requisition either with or without a PO number assigned Example of Approved Requisition with PO number assigned.

19 Example of Approved Requisition with no PO assigned.

20 What s next? Step 4: Return original or copy of contract to the vendor; maintain a copy for department records; process the payment request. How do I process the payment? Submit a check request or invoice to Accounts Payable. Attach a copy of the fully executed agreement. If PO was assigned, reflect that number on the payment request.

21 How do I process payment (cont.)? If an approved requisition form was returned with no PO assigned, attach with the payment request. Either check the Approved Requisition Attached box on the Check Request, or indicate on the invoice see attached for approval. There is no need to obtain signatures again.

22 What if payment needs to be made on the College Credit Card? Note on the Requisition being submitted with the agreement to Administrative Services that payment needs to be made on the Business Office Credit Card. Include credit card authorization forms. Payments cannot be made on department P Cards. Note: When the agreement is returned to you, you do not need to do anything further to initiate payment to the vendor (i.e. do not submit check requests for payments to be made on College Credit Card).

23 Frequently Asked Questions (cont.) What if I know how much a deposit is, but not the balance? The requisition should reflect one line for the deposit, and a second line with an approximation of the final balance. What if the person has already performed a service without a contract? A contract is required before payment can be made. What if someone is not receiving compensation, is a contract necessary? Yes, a contract should still be created to document the services performed and the relationship between SMC and vendor.

24 Frequently Asked Questions (FAQs) Do I really need to obtain the College s authorized signature for things such as meeting rooms, retreats, etc.? Yes, whenever SMC is being asked to commit College resources, and if the agreement includes any type of liability language ( held harmless ), the agreement must be signed by either the President or the VP for Finance. When in doubt, contact Administrative Services ext Which contract should I use? Agreement for use with Guest Speakers: Self-explanatory Agreement for use with Artists: Bands and Performers Independent Contractor Agreement: Individuals and vendors whose services are other than speaking engagements or performances