an introduction to asu business processes. total funding sources $1.96 billion

An Introduction to ASU Business Processes

Total Funding Sources $1.96 billion

Tuiti

on &

Fees

Net

Stat

e In

vest

men

t

Grant

s and

Con

tract

s

Auxili

ary

Ente

rpris

es

Finan

cial A

id G

rant

s

Sale

s & S

ervi

ces

Priv

ate

& Cap

ital G

ifts

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$896.9

$329.0 $308.9

$140.5$106.9 $106.1

$74.1

ASU FY 2014 Funding Sources

Dollars in Millions

Total Funding Uses $1.86 billion

Inst

ruct

ion,

Aca

dem

ic &

Stu

dent

Sup

port

Organ

ized

Res

earc

h & P

ublic

Ser

vice

Depre

ciat

ion

& Inte

rest

on

Debt

Inst

itutio

nal S

uppo

rt

Auxili

ary

Opera

tions

Scho

lars

hip

& Fel

lowsh

ips

Opera

tion

& Mai

nten

ance

of P

lant

$0$100$200$300$400$500$600$700$800$900

$1,000 $915.3

$275.9$174.6 $136.3 $130.6 $127.5 $98.9

ASU FY 2014 Funding Uses

Dollars in Millions

All University Departments must follow ASU Policy and Procedures

Headline Test Rule

• The Arizona Auditor General performs the financial audit for the University.

• The University is audited in accordance to GAAP, GASB and University policy.

• In order to fulfill ASU’s fiduciary requirements, every disbursement transaction must clearly document the Public Purpose if not readily apparent by the nature of the transaction.

• Each financial transaction should be able to stand alone during an audit, or contain the correct references. Appropriate documentation is essential.

Public Purpose Served

Public Funds

There must be a documented public purpose for each transaction. The public purpose documents the benefits to the university.

No Gifts, Contributions or Loaning of Public Funds

Conflict of Interest

Financial ControlsASU

Michael Kingery, Assistant Director, Financial Controls Purchasing Cards

Travel & Travel Cards

Financial Controls - whatwe do: {

Departmental Reviews

Cash Handling

Purchasing Cards

Financial Controls Workshop

Purchasing Cards:

What you need to know

Intended for small $ general purchases

Should not be used for travel expenses

Fingerprints & online training completion required

Timely secondary reviews of transactions – key control

University-wide purchasing card reviews

Business purpose & prohibited transactions

Travel & Travel Cards:

What you need to know

Travel Policy:

- Mileage & per diem (lodging/meal) rates

- No receipts needed for per diem meals

- Defensive driving class for rental cars

Travel Cards:

- Should be used only for travel expenses

- No alcohol on travel card

- No entertainment expenses except for business meals

- Should not be used when not in travel status

Contacts for Financial Co

ntrols

Contacts for Travel

Purchases, Payments and

Reimbursements Processes &

Policies

Financial Services

Lily Tram, Director

Purchases { University Procurement Code

Authority to Contract

Purchasing Process

University Procurement Code

Authority to Contract:

Who can authorize the purchase

Chief Procurement Officer

Delegation to Purchasing & Business Services staff

Contract Signature Authority (PUR 202)

Purchasing Process:

Which process for your purchase

Internal Purchase Orders (PO) & Quick Turnaround Forms

Requisitions (RX) – External and Blanket Orders

Purchasing Card – Small $ general purchases

Payment Vouchers – Purchases not requiring a purchase

order

Reimbursements{ Employee Reimbursements

Business Meals

Policies/Resources

Employee Reimbursements:

What you need to know

Accountable Plan Rules

Substantiation of Expenses

Types of Employee Reimbursements

Accountable Plan Rules

• Employee must have paid/incurred expenses while performing services as an employee of ASU

• Employee required to account to ASU for the expenses within a reasonable period of time (generally 7-60 days of when paid/incurred)

Substantiation of Expenses

• Amount of expense

• Time and place

• Public purpose

• Business relationship

Types of Expense Reimbursements

• Travel expenses

• Business meals, food and related expenses

• Moving expenses

• Other expenses

Business Meals, Food and Related Expenses :

What you need to know

Types of expenses for business meals, food and related expenses:

• Business meals

• Receptions, banquets, and luncheons

• Food and refreshments at conferences, workshops, and seminars

• Food and refreshment supplies

Business meals, food and related expenses policy:

• Business Meals, Food and Related Expense Form is required for each reimbursement/payment

• $40 per person threshold (requires additional approval)

• Gratuity not to exceed 20%

• No external party present, clearly justify expense

o

Policies and Resources

Where to find polices:

• FIN Manual• PUR Manual

Where to find helpful resources:

• Financial Services website (https://cfo.asu.edu/fs)• Purchasing website (https://cfo.asu.edu/purchasing)

– Purchasing Procedure Guide• Best practices• Forms

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Tax ServicesASU

Rachel Golliet, Associate DirectorTax Management

What we do: {

Independent Contractor Determinations

Sales & Use tax

International employee support & Glacier

Moving Expense Reimbursements

International payments

Independent Contractors:

What you need to know

Tax services approves all independent contractors.

This approval should happen prior to services

beginning.

If the contractor will be paid in excess of $10,000 in a

calendar year ASU’s purchasing department may have

to get involved.

Who will not be approved:

- Current employees (very few exceptions)

- Recent employees being brought back to complete

the same job duties

- Professors of record or ones teaching for-credit

courses

Who does not need to get approval:

- Speakers or guest lecturers that will be teaching for less than 2 weeks

- Expense reimbursements only- no income or honorarium payment

- Cumulative payments less than $600 in a calendar year

How to get approval:

1. Have the independent contractor fill out the Employee/Independent Contractor

Determination Checklist.

2. Send to Mail Code: Fax to (480) 965-2625. Please do not send through email as the form

asks for social security numbers.

3. Tax will review and contact with any questions. Once signed it will be returned. Department

will need to attach this approved checklist to any payments being made from ASU

accounts.

Sales and Use Tax:

What you need to know

ASU is not a tax exempt entity!

Common Exemptions:

- Lab/research equipment

- Services

- Books purchased for the library

- Separately stated shipping/freight

In order to not pay tax on a purchase the department

will need to fill out a AZ5000 form listing the exemption

code. For help on if a purchase is tax exempt please

reach out to ASU tax services.

International Employment & Glacier:

What you need to know

Every International employee, Faculty, Staff or Student

needs to complete a Glacier record.

Also, any international students receiving a scholarship

in excess of tuition or fees will need to complete a

Glacier record.

Completing this record, as well as submitting the

required documents to Tax Services will ensure that

ASU stays in compliance with USCIS guidelines. It will

also allow the individual to elect to take advantage of

any tax treaties or other tax benefits that their status

may provide.

Tax Contactshttps://cfo.asu.edu/fs-tax-management