PAYROLL AND PAYABLES DIVISION ACCOUNTS PAYABLE DEPARTMENT The is responsible for examining all accounts, claims and demands against the University of Georgia and for making payment of all of the University s legally incurred obligations for materials and services other than payrolls. The department ensures that payments are made and documented in compliance with University policies and procedures. The also is responsible for maintaining records in compliance with federal and state regulations and submitting reports to federal and state agencies. Summary of Major Accomplishments During Fiscal Year 2009, the disbursed $663,313,250 in expenditures. The department processed 255,707 invoices, issued 137,721 check payments and initiated 513 wire transfers and 593 ACH transfers. The electronic check request system is being used virtually campus-wide. The departments using the system are reporting time savings and are pleased with the ability to track their check requests as they proceed along the approval path. The electronic check request system also helps to prevent processing delays because it performs edits on the input data prior to submittal of the request. These edits are designed to eliminate errors and omissions that may delay the payment process. The new system electronically routes the check request and supporting documentation for approval through pre-established channels to Accounts Payable for review and payment. Staff from the issuing department may query the system from their personal computers to determine the status of their check requests, a feature that saves time for the Accounts Payable staff due to the reduction in the number of phone inquiries. The s assistant manager personally enrolled in the Internal Revenue Service s (IRS) Taxpayer Identification Number Matching Program during the year. The IRS s site security is necessarily extreme, and access is temporarily revoked when several consecutive incorrect TINs are submitted to the IRS concurrently. The manager had previously enrolled with the IRS, and this redundancy will allow the department to continue verifying TIN numbers if the manager s access should be temporarily revoked. The IRS vigorously encourages participation in this program, and it is considered a best practice that is being adopted by progressive accounts payable organizations. During the year the department implemented the statewide contract for intra-state auto rental with Enterprise Rent-a-Car. The new contract brought cost savings to University departments and offered a popular direct billing payment option. This option enables the traveler to lease a vehicle without incurring an expenditure of personal funds that requires paperwork and processing of a reimbursement after the event. F-51
During the year, the department spent extensive time planning and implementing the SciQuest Procure-to-Pay (P2P) system, and this project also consumed most of the department s programming support during the year. A major requirement of the P2P system is the creation of a new unified vendor database that Accounts Payable and Procurement will share. Application Development and Data Management (ADDM) staff worked diligently with Accounts Payable and Procurement to create the custom system, and it is currently being populated with higher use vendors. The unified vendor database utilizes new and additional procedures designed to significantly strengthen the vendor set-up and validation process. Stringent IRS requirements, business best practices and the need to provide more comprehensive vendor information to the Department of Administrative Services (DOAS) are the major factors requiring these changes. The new procedures will: require all vendors to complete IRS form W-9 and a vendor characteristic profile before they are created in the system; require that one person generate the vendor file and a second person review and approve the vendor before it is released into the system; and use the Internal Revenue Service s Taxpayer Identification Number (TIN) Matching Program to confirm each vendor s TIN. Summary of FY 2010 Goals As the development phase of the P2P system draws to a close, programming (ADDM) resources have become available to accomplish several system enhancements. The most anticipated program upgrade will enhance the electronic check request. On occasion a check request expenditure is split among multiple accounts, each with a different budgetary approval authority. During this year, ADDM staff will enhance the program logic to enable multiple approvals on a check request. This improvement will eliminate the final programmatic hurdle to enabling the electronic check request to be fully adopted by all campus units. The department staff also continue to work with ADDM to complete the online travel authority request system, which will greatly add value to the electronic check request system. Travelers will be able to complete the travel authority online and then file the travel expense statement using information already input during the travel authority process. This new system will simplify the process and reduce the amount of time required to reimburse travelers for expenses. The system should reduce errors in the process by performing edits on the input data and should help to eliminate returned forms resulting from insufficient funds being available in accounts used for the travel. Accounts Payable, cooperating with Procurement, will continue to populate the unified vendor database, refine and coordinate new procedures for establishing vendors, and begin using the new database. New policies and procedures will continue to be designed and refined to strengthen the vendor set-up and validation process. F-52
The department anticipates that the implementation of the unified vendor database will permit the establishment of significant internal control enhancements that will aid in increasing the use of electronic payments. Making electronic vendor payments is increasingly becoming a vendor preference and a best practice for progressive accounts payable departments. Although it will require a robust control structure, electronic payments can offer a degree of fraud protection for the University and the vendor. Additional advantages include decreased postage expenses, decreased lost check queries and reissues, and decreased liability for Unclaimed Property. Statistical Information The following schedules contain statistical information presenting the results of the operation of the Accounts Payable office during the past year. The financial charts provide comparative data broken down into various categories to assist in analyzing the payments processed by the University. Exhibit A Vendor Analysis Summary Exhibit B Summary of Payment Activity Exhibit C Summary of Effort Exhibit D Comparative Report of Disbursements Exhibit E Increase or Decrease in Comparative Disbursements Exhibit F Schedule of Electronic Payments Exhibit G Summary of Encumbrance Documents Exhibit H Summary of Paper Check Requests Processed Exhibit I Summary of Travel Expenditures Organization Chart F-53
EXHIBIT A The University of Georgia Vendor Analysis Summary Fiscal Year End June 30, 2009 FY 2009 FY 2008 Category Current TYD Current TYD Change Expenditures Company $585,963,522 $591,904,882 -$5,941,360 Library $4,275,491 $4,173,873 $101,618 Individuals $21,236,761 $23,168,895 -$1,932,134 Stipends $3,273,864 $5,642,967 -$2,369,103 Trust Dept $48,563,612 $48,233,529 $330,083 $663,313,250 $673,124,146 -$9,810,896 Invoices Company 151,482 152,522 -$1,040 Library 3,972 2,281 $1,691 Individuals 59,647 71,430 -$11,783 Stipends 10,881 17,032 -$6,151 Trust Dept 29,725 44,135 -$14,410 255,707 287,400-31,693 Checks Company 59,668 62,185 -$2,517 Library 1,628 1,834 -$206 Individuals 44,512 52,076 -$7,564 Stipends 8,876 14,831 -$5,955 Trust Dept 23,037 34,759 -$11,722 137,721 165,685-27,964 Vendors Company 11,482 12,565 -$1,083 Library 448 410 $38 Individuals 14,154 16,125 -$1,971 Stipends 8,876 14,826 -$5,950 Trust Dept 23,029 34,743 -$11,714 57,989 78,669-20,680 F-54
Summary of Payment Activity EXHIBIT B # Net # Category Payments Amount Invoices Company 59,668 $585,963,522 151,482 Library 1,628 $4,275,491 3,972 Individual 44,512 $21,236,761 59,647 Stipend 8,876 $3,273,864 10,881 Student Financial Aid 23,037 $48,563,612 29,725 TOTALS 137,721 $663,313,250 255,707 EXHIBIT C Summary of Effort # Payments Check Amount # Invoices # Vendors # Checks Check $ # Invoices Companies 59,668 $585,963,522 151,482 11,482 43% 88% 59% Individuals 44,512 $21,236,761 59,647 14,154 32% 3% 23% Stipends 8,876 $3,273,864 10,881 8,876 6% 0% 4% Full Effort * 113,056 $610,474,147 222,010 34,512 82% 92% 87% Trust Dept. 23,037 $48,563,612 29,725 23,029 17% 7% 11% Library 1,628 $4,275,491 3,972 448 1% 1% 2% Delegated ** 24,665 52,839,103 33,697 23,477 18% 8% 13% TOTAL 137,721 $663,313,250 255,707 57,989 100% 100% 100% * Full Effort - indicates that Accounts Payable has audited the invoice, authorized payment of the invoice and processed the payment for mailing ** Delegated Effort - indicates that Accounts Payable has printed the check and processed the payment for mailing F-55
EXHIBIT D Comparative Report of Disbursements For the Years Ended June 30, 2008 and June 30, 2009 Fiscal Year 2009 # Checks Check Amount # Invoices # Vendors # Checks Check $ # Invoices Companies 59,668 $585,963,522 151,482 11,482 43% 88% 59% Individuals 44,512 $21,236,761 59,647 14,154 32% 3% 23% Stipends 8,876 $3,273,864 10,881 8,876 6% 0% 4% Full Effort * 113,056 $610,474,147 222,010 34,512 82% 92% 87% Trust Dept. 23,037 $48,563,612 29,725 23,029 17% 7% 12% Library 1,628 $4,275,491 3,972 448 1% 1% 2% Delegated ** 24,665 52,839,103 33,697 23,477 18% 8% 13% TOTAL 137,721 $663,313,250 255,707 57,989 100% 100% 100% * Full Effort - indicates that Accounts Payable has audited the invoice, authorized payment of the invoice and processed the payment for mailing ** Delegated Effort - indicates that Accounts Payable has printed the check and processed the payment for mailing Fiscal Year 2008 # Checks Check Amount # Invoices # Vendors # Checks Check $ # Invoices Companies 62,185 $591,904,882 152,522 12,565 38% 88% 53% Individuals 52,076 $23,168,895 71,430 16,125 31% 3% 25% Stipends 14,831 $5,642,967 17,032 14,826 9% 1% 6% Full Effort * 129,092 $620,716,744 240,984 43,516 78% 92% 84% Trust Dept. 34,759 $48,233,529 44,135 34,743 21% 7% 15% Library 1,834 $4,173,873 2,281 410 1% 1% 1% Delegated ** 36,593 52,407,402 46,416 35,153 22% 8% 16% TOTAL 165,685 $673,124,146 287,400 78,669 100% 100% 100% * Full Effort - indicates that Accounts Payable has audited the invoice, authorized payment of the invoice and processed the payment for mailing ** Delegated Effort - indicates that Accounts Payable has printed the check and processed the payment for mailing F-56
EXHIBIT E Increase or Decrease in Comparative Disbursements For the Years Ended June 30, 2008 and June 30, 2009 # Checks Check Amount # Invoices # Vendors Companies -2,517 -$5,941,360-1,040-1,083 Individuals -7,564 -$1,932,134-11,783-1,971 Stipends -5,955 -$2,369,103-6,151-5,950 Full Effort * -16,036 -$10,242,597-18,974-9,004 Trust Dept. -11,722 $330,083-14,410-11,714 Library -206 $101,618 1,691 38 Delegated ** -11,928 $431,701-12,719-11,676 TOTAL -27,964 -$9,810,896-31,693-20,680 * Full Effort - indicates that Accounts Payable has audited the invoice, authorized payment of the invoice and processed payment for mailing ** Delegated Effort - indicates that Accounts Payable has printed the check and processed the payment for mailing EXHIBIT F Schedule of Electronic Payments July August September October November December January February March April May June Month Direct Dollars Wire Dollars ACH Dollars Deposits Processed Transfers Processed Payments Processed 2713 $1,703,030 39 $713,291 45 $14,700,843 2881 $1,677,487 29 $1,119,729 49 $14,176,872 2669 $1,478,326 30 $774,569 55 $14,609,935 2767 $1,535,086 39 $493,259 36 $11,108,587 2533 $1,120,066 22 $414,301 74 $16,208,058 2484 $1,158,094 52 $601,381 50 $15,014,569 2083 $937,963 31 $1,556,781 64 $15,476,186 2396 $1,056,595 36 $518,361 43 $12,270,711 2529 $1,183,585 46 $1,509,769 32 $12,261,210 2888 $1,369,650 65 $1,856,794 59 $15,298,731 2831 $1,296,804 70 $2,194,416 48 $15,636,426 2842 $1,479,557 54 $1,248,354 38 $13,643,535 Total 31,616 $15,996,243 513 $13,001,005 593 $170,405,663 F-57
EXHIBIT G Summary of Encumbrance Documents Encumbrances Processed During Document FY 2009 Purchase Requests 7,490 Field Purchase Orders 65,632 Travel Authorities 31,140 EXHIBIT H Summary of Paper Check Requests Processed FY 2009 FY 2008 Month Current YTD Prior YTD July 1,795 1,498 August 1,399 1,632 September 1,254 1,274 October 1,580 2,111 November 1,111 3,016 December 1,163 1,980 January 934 2,377 February 1,014 2,353 March 1,289 2,115 April 1,563 2,023 May 1,130 2,735 June 1,097 2,223 Totals 15,329 25,337 F-58
EXHIBIT I Summary of Travel Expenditures FY 2009 FY 2009 FY 2008 FY 2008 Inc/Dec Inc/Dec Month Documents Expended Documents Expended Documents Expended July 3304 $ 1,215,167.00 2501 $ 819,980.00 803 $ 395,187.00 August 3414 $ 1,121,104.00 4145 $ 1,247,303.00 (731) $ (126,199.00) September 3063 $ 883,926.00 3392 $ 971,959.00 (329) $ (88,033.00) October 3870 $ 1,075,204.00 4023 $ 1,045,826.00 (153) $ 29,378.00 November 3099 $ 852,979.00 5074 $ 1,481,778.00 (1,975) $ (628,799.00) December 3122 $ 818,698.00 3477 $ 933,945.00 (355) $ (115,247.00) January 2516 $ 719,835.00 3424 $ 963,117.00 (908) $ (243,282.00) February 2845 $ 794,619.00 3598 $ 884,149.00 (753) $ (89,530.00) March 2750 $ 729,874.00 4234 $ 1,126,627.00 (1,484) $ (396,753.00) April 4344 $ 1,268,133.00 4207 $ 1,375,973.00 137 $ (107,840.00) May 3442 $ 1,039,013.00 5664 $ 1,753,232.00 (2,222) $ (714,219.00) June 4823 $ 1,894,125.00 5881 $ 2,547,673.00 (1,058) $ (653,548.00) Totals 40,592 $12,412,677 49620 $ 15,151,562.00 (9,028) $ (2,738,885.00) F-59
ACCOUNTS PAYABLE DEPARTMENT ORGANIZATION CHART Associate Controller Robert McGee Manager George Moore Assistant Manager & T&E Supervisor Jennifer Collins Senior Accountant Andre Simmons Administrative Associate II Kim Collins Administrative Assistant Caitlin Griffin F-60 Purchase Order Supervisor Brian Ellis Check Request Supervisor Patricia Sims Accountant Roswell Lawrence Administrative Assistant II Teresa Martinez David Manley Associate Accountant Sarah Garner Karen Grubbs Associate Accountant Leslie Caldwell Kathleen Green Joy Miller Vacant Associate Accountant Dustin McDaniel Sue Clayton Jameelah Jones Westley Bargo Accountant Sarah Bell Carol Kainz Katie Witcher Penny Day Ashley Moore Accounting Technician Vacant