Finance

Why We Do What We Do

Organizational Chart for Controller

What Are Our Goals?

Accurate financial transactions Compliance with donor, sponsor,

university, state, and federal rules Efficient transaction processing Best value procurement, while using

HUB vendors whenever possible Secure and user friendly financial

system

Accurate Financial Transactions

What does this mean? Correct account Appropriate cost center Correct vendor, address, invoice,

dates, and amount on vouchers Correct vendor and order information

on requisitions and PO’s Correct tax treatment Correct accounting treatment

Accurate Financial Transactions

Why is this important? Financial data is used by UH

management to make decisions Bad data leads to bad decisions

Financial data is evaluated for accuracy by internal and external auditors

Inaccurate data could mean loss of funding, fines, and bad publicity

Accurate Financial Transactions

Why is this important? Financial data is evaluated by

legislators, sponsors, and donors to determine if we are meeting our goals

Ensure the correct items are ordered Ensure vendors are paid correctly Ensure 1099-MISC, 1042S, and W-2

Forms are correct

Compliance with Donor, Sponsor, University, State, and Federal Rules

External Rules OMB Circular A-81 (supersedes most other circulars;

federal funds) US Treasury Regulations Texas Government Code Texas Constitution Texas Education Code Texas Administrative Code

External Rulemakers Federal Agencies that Sponsor Research Internal Revenue Service Texas Legislature Texas Comptroller’s Office Government Accounting Standards Board

Compliance with Donor, Sponsor, University, State, and Federal Rules

External Rules that Apply to Specific Funds State Funds (1xxx and some 7xxx)

eXpendit https://fmx.cpa.state.tx.us/fm/pubs/purchase/index.php Textravel

https://fmx.cpa.state.tx.us/fmx/travel/textravel/index.php General Appropriations Act (GAA) http://

www.lbb.state.tx.us/StateBudgetsGAA.aspx Legislative Budget Board Guidelines for Higher Education

Assistance Funds (HEAF) http://www.uh.edu/af/universityservices/policies/mapp/11/110201.pdf

Auxiliary Funds (3xxx) Auxiliaries, Athletics, and Alumni activities cannot be

supported by state appropriated funds (GAA, Article III) Athletics cannot purchase alcoholic beverages with any

funds and must follow NCAA guidelines (GAA, Article III)

Compliance with Donor, Sponsor, University, State, and Federal Rules

External Rules that Apply to Specific Funds Restricted Funds (4xxx)

Donor requirements for scholarships Donor requirements for endowment income

Sponsored Project Funds (5xxx) Sponsor requirements for research contracts and grants Federal regulations for federal grants

http://www.uh.edu/research/sponsored-projects/post-award/ Endowment and Loan Funds (6xxx) Donor requirements for endowment funds Bank requirements for loan funds

Agency Funds (9xxx) Owner of fund (not UH) determines how it is used Must meet minimal documentation standards

Compliance with Donor, Sponsor, University, State, and Federal Rules

Internal Rules UH System Board of Regents Policies

http://www.uhsystem.edu/board-of-regents/policies/index.php

UH System Administrative Memorandums (SAMs)

http://www.uh.edu/af/universityservices/policies/sam/index.htm

UH Manual of Administrative Policies and Procedures (MAPPs)

http://www.uh.edu/af/universityservices/policies/mapp/index.htm

Compliance with Donor, Sponsor, University, State, and Federal Rules

Institutional Compliance Program Identify external rules we must follow Determine the risk of not complying with

those rules Develop a plan to reduce the risk of

noncompliance Overview of Institutional Compliance

Program http://www.uh.edu/compliance/

Report suspected fraud and noncompliance at http://www.mysafecampus.com/

Efficient Transaction Processing

Workflow/Document Imaging in Finance System Faster approval Track transactions through approval process Discard paper copy when posted

P-Cards for Non-Travel Purchases $5K or Less Fewer employee reimbursements Fewer vouchers to pay vendors Update cost center/account in GCMS $3K limitation for federal funds

Travel Cards for Travel Purchases Less out-of-pocket cost for traveler Update cost center/account in GCMS

Employee Self-Service for AP Direct Deposit Enter/update bank information in PASS

Best Value Procurement While Using HUB Vendors Whenever Possible

Texas HUB Vendor Directory http://www2.cpa.state.tx.us/cmbl/cmbl

hub.html

Lists all HUB vendors in Texas See HUB search instructions

UH HUB Program http://www.uh.edu/hub/ Contact Purchasing for help in finding

a HUB vendor.

Secure and User Friendly Financial System

Finance System Security Request for UHS Finance System

Access (FS002) required for access by UH employees

http://www.uh.edu/finance/Forms/Access_Request/FinancialSystem.html

Secure and User Friendly Financial System

Finance System Security Password must be at least 8 characters

and contain at least 1 number, 1 letter, and 1 special character

Password must be changed each 60 days

Annual Secure Our Systems training must be completed by all employees

Secure and User Friendly Financial System

User Friendly (We Hope) Single sign-on for Finance, HR and

Student Systems, and PASS Workflow and document imaging Custom reports and public queries Verification worksheet to verify cost

center transactions Lookup AP payments and update direct

deposit information in PASS

Secure and User Friendly Financial System

PeopleSoft Design Finance, HR, and Student systems

share common fields so they can “talk” to each other

Enter data once and it can be reused Enter Requisition Copy to PO Copy to PO Voucher

Access via web 24/7

Procurement

Education Code State universities may purchase goods and services

by whatever method is deemed the best value for the institution (Section 51.9335) http://www.statutes.legis.state.tx.us/

Texas Administrative Code Utilize HUB vendors whenever possible (Title 34, Part

1, Chapter 20, Subchapter B) http://texreg.sos.state.tx.us/public/readtac$ext.viewtac

Texas Government Code Prohibits payments to persons and companies “on

hold” with the state (Section 403.055) http://www.statutes.legis.state.tx.us/

Texas Constitution Printing must be competitively bid (Article 16, Section

21) http://www.statutes.legis.state.tx.us/

Procurement

State fund rules eXpendit https://fmx.cpa.state.tx.us/fm/pubs/purchase/index.php

Federal fund rules OMB Circular A-81, etc.

http://www.uh.edu/research/sponsored-projects/post-award/ UH rules

PO purchases – MAPP 04.01.01 Voucher purchases – MAPP 04.01.03 P-Card purchases – MAPP 04.01.11 Contracts – MAPP 04.04.01A HEAF purchases – MAPP 11.02.01

Procurement

UH resources Procurement Rules Checklist Best Practices for Vendor Payments State Fund Procurement Restrictions P-Card and Travel Card Matrix P-Card Guidelines Vendor Hold Status http://www.uh.edu/finance/pages/Refer

ences.htm

Procurement

UH resources http://www.uh.edu/administration-finance/purchasing/ Addendum A: Vendor Selection Flowchart Addendum B: Pre-Approval Form for Requisitions Addendum C: Purchase Requisitions Exceeding

$100,000 Justification for Proprietary (Sole Source) Acquisition Buyer’s Checklist

Lab Animal Flowchart and Purchase Request Form http://www.uh.edu/finance/pages/forms.htm

Travel

TX Govt Code 660.007 (all funds) Minimize travel expenses; travel

arrangements must be cost effective IRS rules (all funds)

Publication 463, Travel, Entertainment, Gift, and Car Expenses http://www.irs.gov/

Accountable plan Documentation Business purpose

State fund rules Textravel

https://fmx.cpa.state.tx.us/fmx/travel/textravel/index.php

Travel

Federal fund rules OMB Circular A-21, etc.

http://www.uh.edu/research/sponsored-projects/post-award/

UH rules http://www.uh.edu/af/universityservices/policies/mapp/index.htm State fund travel – MAPP 04.02.01A Local fund travel – MAPP 04.02.01B Corporate Travel Card – MAPP 04.02.01C Student travel – MAPP 04.02.04 Travel Card – MAPP 04.02.05

Travel

UH resources Travel Voucher Checklist (for State

Fund, Local Fund, and Non-Overnight Transportation)

Mileage Reports Travel Accounts P-Card and Travel Card Matrix Travel Card Guidelines http://www.uh.edu/finance/pages/AP_Tr

avel.htm

Taxable Payments to Individuals

IRS rules Publication 15, Employer’s Tax Guide Publication 15A, Employer’s

Supplemental Tax Guide Publication 15B, Employer’s Tax Guide

to Fringe Benefits Publication 521, Moving Expenses

UH rules Taxable Fringe Benefits – SAM 03.D.06 Moving Expenses – MAPP 02.02.05

Taxable Payments to Individuals

UH resources Voucher Workflow Matrix for Scholarships and Tax-

Related Paymentshttp://www.uh.edu/finance/pages/References.htm

Exhibit A: Tax Treatment of Scholarships, Stipends, and Awards/Prizes/Gifts (SAM 03.D.06)http://www.uh.edu/af/universityservices/policies/sam/

Exhibit B: Taxable Payments or Reimbursements to Employeeshttp://www.uh.edu/finance/pages/forms.htm

Exhibit C: Most Frequent Taxable/Non-taxable Fringe Benefits (SAM 03.D.06)http://www.uh.edu/af/universityservices/policies/sam/

Addendum A: Authorization for Moving and Relocation Expenses (MAPP 02.02.05)

http://www.uh.edu/af/universityservices/policies/mapp/index.htm

Tax Exemption

Texas Sales and Use Tax Exemption Certificate http://www.uh.edu/finance/pages/tax_doc.htm

UH rules: MAPP 04.01.03 and P-Card Guidelines Do not pay sales tax to Texas vendors when paying by

voucher Employees are expected to present Certificate to

Texas vendors, except for business meals If vendor refuses Certificate, employee can be

reimbursed for full amount of tax (except fund 1 & 5) If employee does not present Certificate, employee

can be reimbursed up to $10 sales tax per transaction (except on fund 1 & 5)

If Texas vendor charges sales tax on P-Card, ask vendor to refund the sales tax to the P-Card

Tax Exemption

Texas Hotel Occupancy Tax Exemption Certificate http://www.uh.edu/finance/pages/tax_doc.htm

UH rules State Funds - MAPP 04.02.01A

Employee must present Certificate to Texas hotel and verify state portion of hotel occupancy tax (6%) is not charged

If hotel refuses Certificate, notify AP and employee can be reimbursed for tax

If employee does not present Certificate, he/she cannot be reimbursed for tax

Local Funds – MAPP 04.02.01B Employee is reimbursed for tax (except fund 5)

whether he/she presented Certificate or not; notify AP if hotel refuses certificate

Accounting

Federal Rules Government Accounting Standards Board (GASB)

Accounting Rules http://www.gasb.org/ UH Resources

Account List Fund Codes GL Journal Checklist (under GL Journal Workflow

Information) Fund Equity Transfers (under Transaction Processing) Service Center and Auxiliary Business Process Matrix

(under SC Voucher Workflow Information) http://www.uh.edu/finance/pages/References.htm

Fraud Prevention

Department Fraud Risk Survey Institutional Fraud Risk Survey Fraud Reporting Hotline

http://www.mysafecampus.com Fraud and Institutional Compliance

FAQs on the Web http://www.uh.edu/finance/

Fraud Prevention and Awareness Training

Code of Ethics Training