· To establish the best practices so that the School of Medicine Departments/Centers/Institutes are managing the procurement processes effectively and consistently.
POLICY STATEMENT
· Financial Policy Manual: 2300 Procurement/Disbursement
http://www.finance.upenn.edu/fpm/2300/
· Financial Policy Manual: 2308 Competitive Bidding
http://www.finance.upenn.edu/fpm/2300/2300_pdf/2308.pdf
WHO SHOULD KNOW THIS PROCEDURE
· Deans
· Center and Institute Directors
· Department Chairs
· School of Medicine Administration
· School of Medicine Faculty/Investigators
· Business Administrators/Dept. Administration
· Office of Research Support Services
· Acquisition Services
· Travel
· Accounts Payable
PURCHASE ORDERS:
General Instructions/Information
· Purchase orders with an aggregate value of $5,000 or more are
subject to the Competitive Bidding Policy (Policy 2308).
http://www.finance.upenn.edu/fpm/2300/2300_pdf/2308.pdf
· All contracts must be forwarded to Acquisition Services for signature.
· Subcontracts must follow established guidelines.
http://www.upenn.edu/researchservices/spmanual/subcontracts.html
Procedures
· Complete department Purchase Order Requisition (POR) or other
internal request form.
· Have POR approved by PI or designees, electronic or physical
signature, identifying appropriate source of funds.
· Verify that expenses are allowable according to Penn and funding
source policy.
· FinMIS authorized user enters order within 1 business day.
· Once order has been entered verify account combination; verify
document, check funds.
· Record system generated PO number on POR.
· If advisory warning is received DO NOT process order. Notify
requester/BA to resolve issue.
· Approve, reserve or reserve and forward, as approval authority
allows.
· Retain and match POR with appropriate documentation (ideally,
this would include a signed packing slip indicating receipt of goods).
· Monthly, reconcile orders with FinMIS reports.
· File POR with documentation in permanent account file.
RECEIPTS:
General Instructions
· A PO is automatically marked "Receipt Required" when
the total PO amount is over the competitive bid limit of $5,000.
· Receipts are entered by the department upon satisfactory delivery
of goods and/or services.
· The system places invoices on hold if receipt is required and
receipt has not been entered.
· The buyer is notified of this invoice hold via email.
Procedures
· Verify satisfactory delivery of goods/services
· Enter a receipt in FinMIS for the quantity received
· Mark receipt # on POR
· File in account file
BEN PAYS - HOLD NOTIFICATION:
General Instructions/Information
· If an invoice is outside defined tolerances the invoice will
automatically be placed on hold and an email will be sent to notify the
buyer each time a new item transitions into their working folder. Reminder
email is sent every Monday morning if invoices remain in your working
folder.
· Types of Holds
- Maximum total amount hold-Total invoice line is > total PO line by $25 or more
- Quantity ordered hold-Quantity billed on invoice is >10% of quantity
order on PO
- Items not ordered hold-Items billed on invoice, but not ordered on
PO
- Quantity received hold-Created when any invoice is received for a
PO that exceeds $5,000, and no receipt has been entered in FinMIS for
items invoiced
- Finally closed PO hold-Hold is not viewable in MarkView. Invoice is
imaged, but can't be matched to referenced PO. AP clerk with email buyer
directly for resolution
- PO buckslip hold-AP rejects Hold Resolution Sticky Note
- Multiple holds-Invoice and PO has several problems listed above
Procedure
· Upon receipt of an email notification that an invoice is on hold
enter your PO Invoice Working Folder and determine the type of hold.
· View the invoice image and compare it to the original PO to determine
the course of action.
| PO Hold Type | Approve Invoice | Cancel Invoice |
| Quantity Ordered Hold | Place PO Creator Approved Stamp on invoice image | Apply Hold Resolution Sticky Note with detailed reason |
| Maximum Total Amount Hold | Place PO Creator Approved Stamp on invoice image | Apply Hold Resolution Sticky Note with detailed reason |
| Items Not Order Hold | Place PO Creator Approved Stamp on invoice image | Apply Hold Resolution Sticky Note with detailed reason |
| PO Buckslip Hold | Place PO Creator Approved Stamp on invoice image | Apply Hold Resolution Sticky Note with detailed reason addressing PO Buckslip appropriately |
| Multiple Holds | Place PO Creator Approved Stamp on invoice image. If one of the holds is a qty. rec. hold, log on to FinMIS and enter receipts. | Apply Hold Resolution Sticky Note with detailed reason |
| Quantity Receipts Hold | Log on to FinMIS process receipts | Apply Hold Resolution Sticky Note with detailed reason |
| Finally Closed PO Hold | Review email message sent by Accounts Payable and respond accordingly |
PROCARD:
General Instructions/Information:
· The Procurement Credit Card (ProCard) is a Mastercard credit
card issued by Bank One for the purpose of purchasing goods and services
that directly benefit Penn.
· Cardholder is responsible and accountable for complying with
M/C and Penn regulations. See Acquisition Services commodity matrix at
http://www.purchasing.upenn.edu/commodities/matrix_a_d.asp
for more information.
· The cardholder is the only authorized user of the card.
· There is a $1,000 limit per transaction and $5,000 limit per
month.
· There is a limit of 25 transactions per day and 800 transactions
per month.
Procedure:
· Have request approved by PI or designee electronically or physical
signature, identifying appropriate source of funds.
· Submit order request to cardholder.
· Verify that expenses are allowable according to Penn and funding
source policy.
· Cardholder places order.
· Document confirmation number if applicable.
· Weekly run FinMIS 508 unposted journal report with responsible
org and description (Pro Card debits).
· Weekly review unposted Pro Card journals and change from default
account to the appropriate account combination.
· Attach all documentation to ProCard statement. Also, file an
additional copy of the transaction in the appropriate account file.
· Cardholder and supervisor must sign statements.
C FORMS:
General Instructions
· C368 - Used to request reimbursement of expenses for human subjects,
consultant/honorarium fees, payment to an individual for business related
expenses and pay only vendors.
· C12 - required for all individuals with the status of Independent
Contractor.
· C1-Travel reimbursement
· C1A - Entertainment Reimbursement
· If a vendor accepts a Mastercard (procard) but the department
does not use their procard, Accounts Payable (A/P) will use the A/P procard
and journal the expense to the department account combination given on
the C-Form
· If the vendor does not accept Mastercard, or a purchase order,
A/P will pay the vendor with a check
Procedures
· Obtain form from Comptroller's website.
· Complete form; verify account combination, check for appropriate
documentation.
· Have form approved by PI or designee, electronic or physical
signature, identifying appropriate source of funds.
· Forward to individual with TACard authority to emboss.
· Verify C-form is completed appropriately, account combination
is accurate, funding is available and allowable, and documentation is
appropriate.
· TAC, sign, copy, and forward originals to Accounts Payable.
· File completed copy in account file.
TAC CARD:
General Instructions
· The Transaction Authorization Card (TACard) is used to validate
A/P C-forms, and Bookstore and Computer Connection requisitions, PennCard
ID Requests and other forms as required.
· TACards improve internal control over cash disbursements, link
authority and responsibility for expenditures, and provide schools/centers
and departments/centers/institutes with the ability to re-delegate disbursement
authority in a more realistic manner which will provide sufficient operating
flexibility in the decentralized University operating environment.
TRAVEL:
General Instructions
· Review Penn Travel Policy and grant and contract restrictions.
http://www.finance.upenn.edu/vpfinance/fpm/2350/index.shtml
· The American Express Corporate Card is used for purchasing airline
tickets, making car or hotel reservations, entertaining on behalf of Penn,
or other business-related expenses. By using the American Express Corporate
Card, the Travel Office can obtain detailed information on Penn travel
patterns, which assists in negotiating discounts with airlines, hotels
and car rental companies.
Procedure
· Complete the department's travel request form in advance, indicating
where, when and business purpose of trip.
· Have request approved by PI or designee electronically or physical
signature, identifying appropriate source of funds.
· Confirm travel expense is allowable and funding is available.
· Airline/train tickets are purchased through American Express
Travel unless better price is obtained.
· American Express faxes itinerary to TAC cardholder.
· Confirm itinerary with traveler.
· TAC and return via fax for ticketing.
· File in account file.
· Traveler submits a signed C-1 with original receipts within three
weeks of return.
· Review expenses for compliance with University and Sponsor guidelines.
· If there is an issue with the expenses submitted, resolve with
traveler and either remove or justify. Proceed with process.
· If all expenses are allowable, TAC, sign, copy, and forward to
the Travel office with all original documents.
· If entertainment expenses are included, complete C-1A. Documentation
showing business purpose must be attached. Please note that in most cases
this is an unallowable charge to grants and contracts.
· Keep copy in account file.
CONTACTS
· Departmental Business Administrators
· Department Chair
· Office of Research Support Services
· Research Services
· Acquisition Services
· Travel
· Accounts Payable
FORMS AND ATTACHMENTS
Acquisition Services
http://www.purchasing.upenn.edu/training/overview/default.asp
Purchasing Overview:
http://www.purchasing.upenn.edu/training/overview/default.asp
FinMIS Reference Manual
http://www.finance.upenn.edu/ben/
Accounts Payable Information
http://www.finance.upenn.edu/comptroller/disbursements/accts_payable/index.shtml
Forms
http://www.finance.upenn.edu/comptroller/Forms/forms.shtml
Travel
http://www.finance.upenn.edu/comptroller/travel/general/index.shtml
