Wisconsin School of BusinessFinancial

Management Overview

Financial Management Office

Overview, Roles, & Responsibilities

June 2014

Topics

• FMO Team Members (Team Member Responsibilities Link)

• What Does The FMO Do?

• Financial Overview • Financial Overview Model• What is a Funding String?• State Funds• Unified Budget• Financial Reporting (Coming Soon!)

• Transaction Types & Best Practices• Purchasing Authority (and Best Practices)• Electronics/Software Purchase Approvals • Travel (and Best Practices)• E-Reimbursement (and Best Practices)• Guided Expense Tool Intro• Procurement Cards (and Best Practices)• Direct Payments to vendors (DPs)/Payments To Individuals (PIRs) (and Best Practices)• Grant and Grad School Funding Administration (and Best Practices)• Capital Inventory• Shop@UW• Cost Transfers and Documentation• Shared Purpose and Partial Payment Expenses• UW Foundation (and Best Practices)• Graduation Expenses

• Miscellaneous Reminders/Updates

FMO Team Members

Name Position Area E-mail

Jim WalkerAssistant Dean – Director of Financial Management

FMO jwalker@bus.wisc.edu

Joseph Sidley Accountant – Senior FMO jsidley@bus.wisc.edu

Lisa Learish Accountant – Senior FMO llearish@bus.wisc.edu

John Wolf Accountant – Journey FMO jwolf@bus.wisc.edu

Jenny Yuan Financial Specialist 3 FMO jyuan@bus.wisc.edu

Kelly Young Financial Specialist 3 FMO kyoung@bus.wisc.edu

Vacant Financial Specialist 3 FMO

Gina Srenaski Financial Specialist 3Executive Education

(Fluno Center)gsrenaski@exed.wisc.ed

u

Go to Contacts & Responsibilities Page for Individual Team Member Responsibilities

What Does The FMO Do?• Responsible for processing, approving, and auditing, over $65

million in payments on purchase orders, p-card transactions, direct payments to vendors, payments to individuals, expense reports, check requests, gift deposits, etc., on over 450 accounts, for more than 700 employees, non-employees, and vendors.

• The FMO is also responsible for financial analysis/reporting for Departments, Centers, and the Dean’s Office; campus budgets; financial-aid; year-end closing; monthly reconciliations; internal billings; fund monitoring; PCI Compliance; and providing assistance for all financial-related inquiries.

• We work hard to continuously provide process improvements, through designing, building, implementing, and providing feedback on new tools, guides, etc., for internal processes/initiatives, as well as campus-wide initiatives.

Wisconsin School of Business

Financial Structure

StateWISDM:

https://authhub.wisconsin.edu/?app=WISDM

Funding: Account-Fund-Dept ID-Program-Project

Fiscal Year: 7/1-6/30

P-CardDP/PIR

POs & InvoicesCost Transfers

Sales Credit DepositsVendor Refunds

UW FoundationUW Campus Access: http://www.supportuw.org/

Funds: 12 (Expendable), 32 (Endowment)

Fiscal Year: 1/1-12/31

Gift DepositsCheck Requests

e-Reimbursement

Financial Overview

What is a Funding String?

3100-233-122000-4-PRJ47BB

Account-Fund-DeptID-Program-Project4 digits-3 digits-12XXXX-0-9 or R-7 digits

http://www.bussvc.wisc.edu/acct/coding.html

State Funds*Regardless of the source of the funds, once transferred to the state side, all expenditures must follow state policies and procedures (even if it is only $1)

Funds Description

101 General Program Operations – Educational Programs (GPR Appropriation)

104 General Program Operations – Extension Programs (GPR Appropriation)

131 Academic Student Fees

133 Non-Federal Grants and Contracts

135 Funding from the Wisconsin Alumni Research Foundation (WARF)

136 General Operations Receipts Received for Programs

144 Federal Grants and Contracts

185 Center for Urban Land Economics Research Sponsorships

233 Gift funds (Revenue directly from UW Foundation Accounts)*Note: Once the money is in a 233, it must follow State policies

Unified Budget

In 2013, the Wisconsin School of Business implemented the first-ever unified budget. This is an annual process completed by all departments, centers, and areas across the school.

During this process, each area is asked to forecast recurring expenses, and budget for new initiatives and events for the upcoming year. Once each unit has developed their proposed budget, they must submit them to the FMO for review and approval.

Timeline

Late December Budget Process Launches

Late December-End of January

Budget development by units; FMO assisting as requested

End of January Submissions due

End of January to Mid-February Review by FMO, Dean’s Office

Mid-February to Mid-March

Budget review meetings between units, Dean’s Office,

FMO

End of March WSB FY Budget finalized

Financial Reporting

The Financial Reporting Tool is currently undergoing testing and will be available by

August 1, 2014!Stay Tuned!

Purchasing Authority

The Wisconsin School of Business does not currently have Delegated Purchasing Authority

• All agreements/contracts (for any dollar amount), etc. (including Revenue and PA agreements), must be signed by official, delegated individuals.• Forward all requests to the FMO, for proper routing and

processing

• All expenses > $5,000 must be paid via a Purchase Order (PO)

• No Serial Purchasing

References:

Delegation: http://www.bussvc.wisc.edu/purch/delegation.html

Purchasing Services: http://www.bussvc.wisc.edu/purch/purch.html

Best Practices: Purchasing• Contracts

• All agreements/contracts, except WSB – Conference Services contracts, must be processed through the FMO, regardless of amount. Complete the “Contract & Purchase Order Request Form” and attach supporting documentation and/or vendor bids

• Processing Time varies, depending on complexity of the request. Allow at least 2-3 weeks for typical contracts (note that some contracts may take longer to process, so please submit with as much lead time as possible)

• Purchasing – Total Cost between $5,000-$50,000• Obtain at least 3 competing, simplified bids (including the quote from the vendor of choice) from different vendors

• Standardize the format and wording, in which requests for bids are sent to vendors

• Allow at least 3-4 weeks for processing

• Complete the “Contract & Purchase Order Request Form” and attach supporting documentation and/or vendor bids

• Purchasing – Total Cost over $50,000• Before contacting any vendors, please work with Jenny in the FMO, to determine the best way to proceed (if an Official Sealed

Bid is required, Purchasing Services will be directly involved as well)

• Allow no less than 6-8 weeks for processing

• Complete the “Contract & Purchase Order Request Form” and attach supporting documentation and/or vendor bids

• Group Trips• Start planning at least 9-12 months in advance (but no less than 6 months). Meet with Jenny in advance of planning (also

review the “Financial Guide to Group Trips” booklet and complete the “Group Travel Authorization Request Form” and the Contract & Purchase Order Request Form, on the FMO website, under Group Travel)

**The FMO is working to develop an online submission and tracking system for contract and purchasing requests. We hope to make it available sometime in 2014.

Electronics/Software Purchase Approvals• Please obtain pre-approval from ITS before purchasing Electronics, Software,

and Hardware items

• Submit Electronic Equipment and Software Purchase requests (i.e. software licenses, boxed software, monitors, tablets, etc.), to the Information Technology Solutions (ITS) Department, through the following link: https://app.smartsheet.com/b/form?EQBCT=225dc652d3534d89bfb1d564f9a1d8c0• Requests for small, miscellaneous items, such as keyboards, mice, etc., may be

submitted to ITS by e-mail, through: support@bus.wisc.edu

• Please Note: The UW has enterprise licenses for some software programs, so please check with ITS, BEFORE purchasing any software. Some software is also available to UW employees (for personal use), at greatly reduced pricing or free-of-charge.

• Purchases made without ITS approval may delay reimbursement (if purchased using personal funds) while post-approval is reviewed and may result in item not being reimbursable

• Pre-Approval from ITS prevents unnecessary purchases (i.e. If the school already has the item needed or is able to obtain at a greatly reduced cost) & ensures proper tracking of University Property

Travel• Fox World Travel (FWT) is the UW’s contracted travel agency for domestic,

international, and group travel**• To book individual airfare online, use Concur, the contracted self-booking tool . To access

Concur, log-in through UW System’s TravelWIse website at: http://web.uwsa.edu/travel/login/

• Requires NetID to log in to TravelWIse and a separate Concur log-in to access the booking tool

• To work directly with a travel agent at Fox World Travel, call FWT at 920-230-6467 or toll-free at 866-230-8787 (higher booking fees apply)

• All UW-Madison employees, students and authorized agents of the university must be approved by UW-Madison Risk Management prior to operating a vehicle for university business, regardless of whether a personal, Fleet, DOA or rental vehicle is used

**The UW’s purchasing card (P-Card) and the UW’s personal-liability Corporate Card may only be used through the contract vendor. Individual airfare booked through non-contract vendors (online or travel agency), may not be pre-paid using the P-Card, or reimbursed prior to the trip

Best Practices: Travel

• Book flights as early as possible to ensure low-cost tickets• Flights

• Cost comparisons for flights REQUIRED for the following:• Indirect routing / extra stops for personal reasons:  Allowable provided there are no additional costs incurred.

• Departing from and/or returning to an alternate city: Allowable provided the fare is more cost effective for the UW, including parking, mileage, meals, additional overnight stays, etc.

• Departing earlier/returning later than business requires: Allowable a day late if it results in a substantial savings in airfare to offset the extra costs of the room, meals, etc.

• Be aware of lodging, meal, and tip maximums

• Be aware of receipt requirements. When in doubt, keep your receipt!

References:

• WSB Travel Checklist: https://wiki.doit.wisc.edu/confluence/x/R7OdB

• Travel Policies: http://www.bussvc.wisc.edu/acct/policy/travel/trpol.html

Travel and Expense Reimbursements

• e-Reimbursement is UW’s Web-Based Travel and Expense Reimbursement System• Reimburses UW Employees (all travel and expenses), non-employees (travel only), and

newly hired relocating employees (travel and relocation expenses)

• Use the Guided Expense Tool (GET) to submit expense reports, whenever possible

• If non-UW Employee, must complete a Non-Employee Profile Setup Request Form and submit form to: fmomailbox@bus.wisc.edu

• Reimbursement from State and/or UW Foundation Funds

• Legitimate business purposes required for all reimbursements

References:

• Non-Employee Setup Request Form: http://www.bussvc.wisc.edu/acct/forms.html#NonEmployeeProfileSetup

Best Practices: Travel and Expense Reimbursements

• ALWAYS include agendas with your receipt package (if applicable)

• ALWAYS verify the default funding (Accounting Default)

• ALWAYS submit receipt packets in a timely fashion and if you’re not sure if a receipt is needed, submit it anyway

• ALWAYS follow up with your departmental/center approver to advise them that a report has been submitted for their approval

• Enter all expenses related to a trip in one report (even prepaid expenses)

• For each business trip/conference, always account for these 3 expense types:• Transportation/Airfare

• Lodging

• Registration Fee

• If combining receipts into one expense line, please show calculations

• Provide itemized receipts with proof of payment

• If a meal(s) is provided by airline/event/lodging, no further claim is allowed for that meal

• Additional information and reminders are provided in the travel checklist, available on the FMO Website

Guided Expense Tool (GET) Intro What is the Guided Expense Tool (GET)?

The Guided Expense Tool is a user-friendly alternative to entering expense reimbursements directly into the e-Reimbursement system. The development of the tool is a result of feedback obtained from campus users by the APR Traveler Team. Expense reports entered into the Guided Expense Tool will feed into e-Reimbursement where the approval process will occur.

Unique benefits for GET users:

Guided navigation through the expense entry process

Built in wizards for selecting funding and mileage rates

Receipt and documentation requirement identifiers

Quick access to UW – Madison policy

  

Can I enter My Corporate Card transactions in GET and will the University still send the payment to US Bank on my behalf?

Yes, you will be able to manually enter My Corporate Card transactions into GET. Approved transactions indicated as Corp Card will be paid to US Bank on your behalf. Note: You are not yet able to import your My Wallet transactions as you do in e-Reimbursement.

 

What types of transactions can NOT be submitted using GET?

Group Travel

Cash Advances

Relocation expenses

Procurement Card (P-Card)

• Two week cycle

• All in-state purchases are tax exempt

• For hosted group meals, must adhere to state maximums and provide the following: meal forms, participant lists, and itemized receipts

• Must complete the Designated User Agreement Form if others are using your card

• Routine P-Card audits performed

• Usually limited to 1 Card per Dept./Center

• Alternatives: Corporate Card, Personal Credit Card and the Foundation

• Site Managers: Kelly Young & Jenny Yuan

References:

P-Card: http://www.bussvc.wisc.edu/acct/purchcd/index.html

Meals: http://www.bussvc.wisc.edu/acct/policy/travel/meals.html

FMO Website: http://www.bus.wisc.edu/financial-management-office/

A Visa card issued by US Bank, assigned to a specific UW employee and tied to University funding. The card is intended for low-dollar best judgment purchases that are to be paid directly by the University.

Best Practices: P-Card

• Bold all edits to funding strings (No Italics or other fonts)

• If split funding, put the funding strings on 2 separate lines

• Attach all receipts/documentation and cross-reference receipts to P-Card Statements (number each expense on the statement & note the same number on the matching receipt)

• Indicate the business purpose of each expense (Who, What, Where, When, Why)• Ask yourself: Could an auditor understand what you bought and why?

• Obtain the appropriate signatures

• Call vendors for errors, disputes, returns, or credits

• Route to Site Manager to audit & edit

DPs and PIRs

Direct Payments (DPs): Used to make payments from University-Administered Funds to vendors

Payments to Individuals (PIRs): Used to make non-travel payments from University-Administered funds to individuals (non-UW employees)

• Prepared electronically through the Payment Request web entry system

• Excel Forms no longer accepted

• Amounts may not exceed $5,000

• Determine if a W-9 is required. If it is, check WISDM to determine if vendor W-9 is already on file

• PIRs are for taxable expenses payable to non-UW employees only (to reimburse travel only expenses to a non-employee, use the e-Reimbursement System)

References: DP/PIR: http://www.bussvc.wisc.edu/acct/forms.html

W-9 Required: http://www.bussvc.wisc.edu/acct/tax/1099tax.pdf

Business Services ‘How To’: http://www.bussvc.wisc.edu/howto/HowMain.html

Best Practices: DPs & PIRs

• When you’re not paying an invoice in full:• Show your calculations

• Share how you have paid or plan on paying for the remainder

• Maximum tip/gratuity is 15%

• If paying a portion through foundation, it’s best to submit both payment requests to the FMO together

• If paying through foundation remember these limits:• Meal limit is $75 per day (in combination with state limits)

• Wine limit is $40 per bottle (included in meal limit)

• Maximum tip/gratuity is 20%

Grant & Grad School Funding Administration

Research at UW-Madison is conducted under the highest ethical and legal standards. A variety of resources is

available to help researchers adhere to those standards

• Grant and Contract Funding, administered by the Office of Research and Sponsored Programs (RSP), come from extramurally sponsored programs, in two forms:

• Federal Grant and Contract Funding (144)

• Non-Federal Grant and Contract Funding (133)

• Graduate School Funding comes from the Wisconsin Alumni Research Foundation (WARF), founded in 1925. WARF is the private, non-profit patent and licensing organization for the University of Wisconsin-Madison. “135” Funds are from the Graduate School.

Best Practices: Grant & Graduate School Funding Administration• Keep an eye out for new funding opportunities

• Be mindful of deadlines to submit proposals

• Careful budget preparation is essential to a successful research project

• As a PI, know the various regulatory and financial research compliance requirements for your project

• Effort Reporting is a federal policy and is not new. It is essential for PIs to report effort in an accurate and timely manner.

• Recent aggressive federal audits have resulted in multi-million dollar fines at research universities, for inaccurate effort reporting

Resources:

• In the Wisconsin School of Business:

• Associate Dean for Research – Russ Coff: rcoff@bus.wisc.edu

• Pre-Award – Phil Miller (Assistant Dean): pjmiller@bus.wisc.edu

• Effort Reporting – Belle Heberling (Assistant Director): bheberling@bus.wisc.edu

• Post-Award – Jenny Yuan (Financial Specialist): jyuan@bus.wisc.edu

• Research and Sponsored Programs (RSP): https://www.rsp.wisc.edu/

• Graduate School – Research Funding: http://grad.wisc.edu/resfunding/

• Graduate School – Research Policy & Compliance: http://grad.wisc.edu/respolcomp/

• Coming soon: Grant & Grad School Funding Resource Webpage on the FMO Website!

Capital Inventory

• The Wisconsin School of Business has over 150 assets, valued at approximately $1.5 million• In late 2013/early 2014, an audit conducted by

an external third-party company, was completed to help us catalog our various assets• The UW updated its asset management system

to improve the monitoring and tracking of various inventory throughout the University• Capital inventory includes items where the full

acquisition price is $5,000 or more

Shop@UW• Shop@UW is the University’s eCommerce marketplace for a variety of products (including office

supplies, electronics, toner, etc.), through state contracts with a number of vendors.

• Products are offered through one central ePortal and at contracted prices

• Items such as office supplies are often delivered the next day (in-stock items)

• Monthly billing occurs directly through account set up for your department/center

• Ability to edit funding source (UW-Administered Funds/Accounts only), before transactions post to WISDM, through the PAT Tool

• Each department within the Business School has an established account

• For new department/center administrators, please contact Jenny to request access to existing account/re-set passwords

• For new faculty, academic staff, etc., please contact your department/center administrator to request office supplies, etc.

• All computer/electronics purchases are to be requested through the Information Technology Solutions (ITS) Department. For purchase requests, complete ITS’s online Purchase Justification Form. For requests for school-supplied toner, misc. items such as computer mice, keyboards, etc., e-mail ITS at: support@bus.wisc.edu

• All furniture/chair purchases are to be requested through the Building Services Department, through their Building Service Request webpage

Cost Transfers and Documentation

• Web-based Cost Transfer Workflow Tool (https://ct.wisc.edu/)

• Paper forms no longer accepted

• Capability to add comments or attach documentation to the electronic transfer request

• Once submitted, the tool routes the request to the FMO

• Transfers post overnight after approval

• Please make sure to submit support documentation for all cost transfers (salary and non-salary)• Examples of documentation include:

• For p-card cost transfers: copy of statement, etc.

• For expense reports: copy of report’s cover sheet, etc.

• Please also make sure to provide a detailed justification/purpose for the transfer (including why transfer was necessary)• Justifications stating “charged to wrong fund”, “fund not available at time of purchase”, or

“moving expense to correct fund” are usually not sufficient, and require additional clarification

Shared Purpose and Partial Payment Expenses• Shared Purpose Expenses (Personal/Business Expenses): Reminder

that personal expenses are not reimbursable and also can not be paid for using the P-Card, Shop@UW (MDS), etc.

• If an expense has a personal and business purpose, the expense(s) must be paid using personal funds and may be reimbursed, if cost comparisons are submitted with the request (if applicable)

• Please check with the FMO prior to purchasing such items, to determine if there is sufficient Business purpose for reimbursement

• Partial Payment Expenses: For any expense where the UW will only be paying for a portion of the total cost, costs must be paid using personal funds and a request submitted to reimburse the UW portion

• i.e. UW paying for $250 of a $500 plane ticket

• Travel expenses for students may not be reimbursed until after the travel has occurred

UW Foundation

UW Foundation: The UW Foundation is an independent, nonprofit, tax-exempt Wisconsin corporation. They are the official fundraising and gift-receiving organization for UW.

Check Request Forms: Requests payment from Foundation accounts. Check Requests can intiate payments to vendors or transfers to 233 WISDM accounts.

Gift Deposit Forms: Indicate which fund the donation should be deposited into on the form.

•12 Accounts: Expendable (Current or Sweep Account)

•32 Accounts: Endowment (Long Term & Invested)

•View accounts, donor information and transaction reports in UWF Campus Access

•Interest is posted on a quarterly basis

•Foundation Accounts fund 233 WISDM Gift Accounts

•In general, follow these spending rules:•Spend from the “12” account if you have only a “12” account

•Spend from the “32” account if your “12” account is set up to transfer gifts to the “32” account

•You can spend from either account if you maintain funds in both your “12” and “32” accounts

References:Expense Guidelines: http://www.supportuw.org/campus-partners/using-gifts/expenditure-guidelines/

Campus Access: http://www3.supportuw.org/ca/uwfcaaps.nsf/

RSP Transfer Form: http://www.rsp.wisc.edu/forms/Gift/basic_form.cfm

Best Practices: UW Foundation

• Gift Deposits:• Submit all gift deposits and checks directly to Jonathan Wolf or Joe

Sidley (Do not leave checks in mailboxes)

• Check Requests: • Ensure the funds are being spent as the donor intended

• Check the fund balance before submitting the requests

• Provide a business purpose (i.e. who, what, where, when, why)

• Any expense that can be paid for by the University should be paid through the University. If necessary, split the expenses between the State and Foundation

• Paying students or employees directly for services rendered or awards/scholarships is not allowed

• Transfers to 233 accounts should occur 3 times per year (January, June and September)

Graduation Expenses

• Note that the majority of Graduation/Commencement Expenses are NOT payable/reimbursable on the state side (i.e. costs for parties, graduation day expenses, etc.)• Some Graduation expenses may be

payable/reimbursable through UW Foundation• Please check with FMO staff to confirm if expenses are payable/

reimbursable, PRIOR to incurring expenses

Miscellaneous Announcements, Reminders, & Updates• Advertising and Promotional Purchases must go through and/or be pre-

approved by IMC

• Urgent requests, checks, cash, must be handed to a team member. Please do not leave in mailboxes, etc.

• Purchases made for use by a UW Institution, in the State of Wisconsin are tax exempt. The tax exempt certificate is available on the accounting services website. Tax Exempt Wallet Cards are available by request, for UW employees, through the FMO office. The UW is also exempt in a few other states. Check the UW Travel Wise portal for additional information on what is exempt in each state.

• Tax-Exempt Wallet Cards are available for UW employees, to use while traveling or purchasing goods and services in Wisconsin, while on UW business (ask an FMO team member for details)

• Questions, Comments, Suggestions? Contact the FMO: fmomailbox@bus.wisc.edu