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20 Νοε 2013 (πριν από 3 χρόνια και 7 μήνες)

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Heather J. Haberaecker, PhD

Executive
Assistant Vice President for Business
& Finance


Kevin
T. Fair
, Interim Director of Purchasing

YOUR BUSINESS AND FINANCE
RESPONSIBILITIES


WHO IS OBFS?


The Office of Business and Financial Services
(OBFS)
serves the University community on all
three
campuses


Primary Offices:

»
Accounting & Financial Reporting



»
Budget
Operations & Financial
Services*

»
Business Development Services (Revenue Contracts
)*

»
Business
Information
Systems

»
Capital
Programs & Real Estate Services

»
Grants &
Contracts*

»
Purchasing*

»
Student Financial Services

»
Training
& Communication

»
University Payables



»
University
Payroll & Benefits

»
University
Sourcing





2

* Campus based

Customer
Service

Compliance


Many people view us as the
compliance

arm of the
University
but we believe great customer service and
compliance can peacefully co
-
exist

WHO IS OBFS?

3

OBFS MISSION & VISION


OBFS will provide business and financial
management services of exceptional quality in
the most cost effective manner to support the
research, teaching, public service, and
economic development missions of the
University of
Illinois


In collaboration with our customers, we will
provide innovative business and financial
services to the University
community

4

BEST PRACTICES



DEVELOP A PARTNERSHIP


Build a partnership between the Department
Chair and Business Manager


Review financial status


Segregation of duties



Empower your department business manager
to facilitate business transactions on your
behalf


Reduce administrative burden on faculty

5

BEST PRACTICES
-

SEGREGATION OF DUTIES


Understand the importance of segregation of duties
in business and financial matters from
day one; i.e.
how not to be in the headlines.


Segregation of duties means that
no one person
can initiate, process, record and reconcile
transactions and take physical custody of
assets/equipment.


Segregation of duties is
adequate when no one
person can misappropriate assets or improperly
record or account for transactions without
reasonable assurance of detection by another
person.


Have your staff take University Audit’s
Risk
Assessment Survey

to determine adequacy at:

http
://
www.audits.uillinois.edu/cms/one.aspx?portalI
d=1201536&pageId=1202200


6

Reviewer

Approver

GETTING STARTED



WHAT YOU NEED TO KNOW
ABOUT PURCHASING


Purchasing is the office on campus
designated to
procure Commodities, Equipment, and Services
above designated dollar levels to
support the
mission of the
University


Office Purpose:


Provide quality customer service and consultation to
departments to assist them in procuring goods and
services in the most cost effective manner possible.


Ensure
compliance with the Illinois Procurement
Code, Higher Education Procurement Rules, &
State and Federal
Regulations and the integrity of
the purchasing process


7

TYPES OF PURCHASES


General Services, Commodities and Equipment


Computers; Copiers; Furniture; Printing; Lab
,

Janitorial
and
Office Supplies


Software Licenses


Regardless of the dollar amount, licenses are usually
formal contracts that need to be submitted with a CARF


Hotel and Catering Arrangements


Regardless of the dollar amount, many hotels use a
contract that needs to be submitted with a CARF


Healthcare Related


Medical and Surgical Supplies; Blood; Organs; Patient
Billing; Pharmaceuticals


Professional and Artistic Services



Accountants; Consultants;
Medical
Professionals;
Graphic
Design;
Web
Design


8

WAYS OF PURCHASING

9

iBuy


An online punch
-
out catalog and
requisition system for purchasing goods
and services

Banner


A system for requesting goods and
services through the Purchasing Office

P
-
Card


A credit card used to simplify University
-
authorized small dollar purchases and the
payment and tracking of those purchases

T
-
Card


A charge card that is used to reimburse
the cost of qualified travel expenses,
business meals, catering and other
miscellaneous charges.

AUTHORIZED BID LIMITS &
APPROVAL LEVELS

State
Bid Limits


$
54,600
and over for General Services,
Equipment and Commodities


$20,000 and over for Professional
and Artistic
Services

Board of Trustees Approval
Levels


$
1,000,000
and over within a
fiscal year for
Professional
and Artistic Services
, General
Services, Equipment and
Commodities

State Procurement and Chief Procurement Officers


Involved in all procurement above state bid
limits throughout the process and have final
approval

10

PROCUREMENT TIMELINE FOR
PURCHASES ABOVE BID LIMIT

11

**
Add two months for those items requiring BOT approval ($1 mil. or more in a FY
)

BOT


Board of Trustees

SPO


State Purchasing Officer

CPO


Chief Procurement Officer for Higher Education

PPB


Procurement Policy Board

BUY

Type of
Purchases

Est.
Solicitation
Time**

SPO / CPO

PPB

Standard
University
Contract

3
rd

Party
Contract

Sole

Source

1


2

Months

N/A

30 Days

2


4 Weeks

1
-

3 Months

RFP

2
-

6 Months

15
-

30 Days

30 Days

2
-

4 Weeks

1
-

3 Months

Sealed

Bid

1
-

3 Months

15
-

30 Days

30 Days

2
-

4 Weeks

1
-

3 Months

BENEFITS OF iBUY CATALOG

vs. BANNER/P
-
CARD

12

Benefits include
:


No
Purchasing approval unless
with a contract
vendor
over $100,000 or
a non
-
catalog
order over $
5,000


No bidding requirements


No SPO/CPO or PPB approvals


Faster turnaround
times


Fewer
potential compliance problems than with a P
-
Card
since there are no order logs and reconciliations required


Better pricing than through use of P
-
Card due to volume
discounts

The benefits to
Purchasing

include:


Freeing up staff time to work on larger projects that save
UIC big $’s vs. spending time processing low dollar
transactions


PURCHASING REMINDERS

DO’s

DON’Ts


Plan ahead


Have staff develop
detailed
scope
of
work
/
specifications


Involve Purchasing early
in the process


Encourage
MAFBE
participation



Engage in non
-

conforming
purchases/amounts above
bid limits


Divide large purchases
into
a series of smaller
purchases


Avoid contracts involving
conflicts of interest (e.g.
issuing a purchase contract
to an employee owned
business)


Don’t have faculty or staff
sign
any contract, license,
proposal, order
confirmation, agreement



13

GETTING STARTED (cont.)



WHAT YOU NEED TO KNOW

14

1.
Signed contracts need to be in place before work
begins

2.
Only the University Comptroller, or approved
delegates, has the authority to sign
agreements/contracts for the University.

3.
The
University’s
Property Insurance
program is
subject to a
high
deductible of $500,000 per
occurrence. By electing to insure contents and/or
provide business interruption, insures a unit can
“buy
-
down” the deductible to $25,000 per
occurrence
by contacting the University Office of
Risk Management
(UORM)

GETTING STARTED (cont.)



WHAT YOU NEED TO KNOW

4.
The Office of Real Estate Services needs to be
involved in the development and execution of
all leases

5.
State or University rules limit reimbursement
amounts for hotels, meals, airfare and business
meals

6.
All surplus / scrap equipment must go to the
UIC surplus warehouse


15

COMMON PITFALLS TO AVOID


Having unit/department faculty or staff sign
contracts. It is non
-
enforceable and
the
individual
is potentially liable for payment


Not terminating an employee on
time resulting
in an
overpayment and unnecessary
collection efforts


Charging unallowable and unrelated costs to
a grant



16


Negotiating your
own
real estate deal
(no matter
how well you know the landlord
).


Selling department equipment
. All equipment is
owned by the State of Illinois


Assuming any
personal purchases made
by an
employee with a P
-
Card
are a mistake
. Have
departmental checks and balances in place.


17

COMMON PITFALLS TO AVOID

KEY RESOURCES

FOR SUCCESS


The Business Manager is your
BIGGEST

asset


Meet monthly to review pertinent reports to
understand the status of your accounts and
whether transactions are appropriate


Encourage your faculty to go through your
business manager for all business transactions


New business managers and staff should be
encouraged to attend training opportunities


OBFS can help you select new business staff
( as
a search
committee member
)

18

QUESTIONS