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An Introduction to FAST TRACK - BYU Purchasing and Travel

VIEWS: 1 PAGES: 34

									Welcome to Fast Track
      Training

  Provided by BYU Purchasing

   Douglas W. Buhler CPSM, C.P.M.
Part 1: Introduction & Overview

              § Class Roll
              § Handouts
  § Sample Form
  § Sample Category List
  § Payment Tools Charts
  § Independent Contractor Agreement
      Template & Guidelines
  § Associate Buyer Application
          § Slides posted on
        http://purchasing.byu.edu
   Today’s Objectives

§ To Review Payment Processes, with
  emphasis on Fast Track, describing:
  § What Fast Track is
  § Why Fast Track Was Developed
  § Who Can Use Fast Track
  § What Can (and Can’t) Fast Track Be
    Used For
Today’s Objectives              (cont.)

§ Show you how to process a fast-track
  requisition.
§ Help you understand things you need to
  be aware of as an Associate Buyer.
§ Increase your understanding of what we
  actually do in Purchasing—how and
  when we can help you.
   What is Fast Track?

§ A Payment Method:
  § Has Replaced Check Requisitions
  § Has Replaced Independent Contractor
    Check Requisitions
§ An On-line Method, Replacing Pre-
  printed Forms:
  § On Purchasing’s Web Page
  § Available Only to Associate Buyers
    Payment Tools for Goods and Services
Over                                       Purchase       Fast Track    Y Expense
$2,500                                    Requisition     •Services       Travel
                                                          within        Reimbrsmnt
          Do Not Negotiate with                           approved      (including Corp.
                                         No Fast Track
           Vendor. Use other             category, or
                                                          categories      Travel Card)
           Payment Tools, or                              •Purchasing                        Rarely
                                         greater than
                                                          has already   •Expenses
          Purchase Requisition           $2,500
                                                          established   while in travel       Over
                                                          vendor        status               $500
                                         •Help needed
                                                          •Any amount
                                         to locate the
                                                                        •Conference
Under Purchasing COD Check               vendor, good     •Goods less
                                                                        registration
         Card    (Convenience Check)     or service       than $2,500
$2,500                                                    where
                       •Corporate                                       •Hosting
Under                                    •Restricted      Purchasing                        Business
          •Goods or    vendor who
                                         commodity        Card cannot                      Non-Travel
$500      Services     will not
                                                          be used
                       accept credit                                                       Reimbrsmnt
                                         DO NOT                                              •Used only
                       card & will not
                                         negotiate with   •Vendor                            when other
                       invoice BYU                                                         payment tools
                                         vendor in        already
                       (e.g Costco,                                                           were not
                                         advance of       established
                       Sam’s Club)                                                         available at the
                                         submitting       by                               time of a True
                                         requisition      Purchasing                         Emergency
                       •Penalty for
                       misuse                                                                Penalty for
                                                                                              misuse.
                         Payment Tools for
  Research Subjects, Royalties, Refunds, Academic Reimbursements
      Note: Refunds pay back to customers amounts they paid to BYU.
    Reimbursements pay others for items paid by them on behalf of BYU.


 Temporary Petty                 AP Upload                 Y Expense                    Fast Track
   Cash Fund
                            Payments to               Payments to                  Payments to
Payments in cash to         individuals for:          individuals for:             Corporations for:
individuals for:            •Royalties                •Refunds                     •Royalties
•Research subjects who      •Refunds                  •Reimburse students for      •Refunds
must remain anonymous       •Research subjects        their own academic
                                                      program costs                No dollar limitation
College Controller          Payments expected to be
Requests and Approves       smaller amounts (e.g.     No dollar limitation
                            under $1,000)
Payments are expected                                 Travel Dept will audit all
to be small amounts (e.g.   Campus should try to      such transactions
$5, $10)                    group uploads to 5 or
                            more people
   Purchasing Charge
§ The policy we operate under states:

§ “Goods and services are to be
  acquired by or under the
  direction of the Purchasing
  Department.”
Why Fast Track?
      Why Fast Track?

§ Not every expenditure is a purchase of
  Goods and Services.
§ Purchasing’s staff is not large enough to
  personally transact all purchases of
  Goods and Services.
§ Some purchases of Goods and Services
  can be more effectively handled directly
  by departments
History of Payments that
Don’t Involve Purchasing
§ Originally check requisitions were
  approved for five low-risk categories;
  however, over the years the number of
  categories expanded. This ultimately
  created a reported $7.9 million of
  unauthorized purchases in 2001.
§ Use of Check Requisitions was not
  “under the direction of Purchasing.”
     Fast Track vs.
   Check Requisitions
§ Two controls that Check Requisitions lacked
  keep Fast Track Requisition Purchases
  “under the direction of Purchasing:”
  1. Must be handled by trained “Associate Buyers”
     § Associate Buyers are trained by Purchasing so
       they can properly execute transactions as an
       extension of Purchasing within their departments.
  2. Fast Track is valid only for specific, limited
    categories
Principles of Fast Track
   Requisition Usage
§ Fast Track Requisitions are approved by a trained
  “Associate Buyer” and an Approver from your
  department.
§ Fast Track Requisitions are valid only for certain
  categories that—
      § Have lower risk
      § Do not generally represent opportunities for
        Purchasing to add value to the transaction.
§ Commitments to Suppliers for Fast Track transactions
  may be properly made by Associate Buyers without
  involving Purchasing’s staff.
    How to Become an
     Associate Buyer
1) Attend this training Session.
   (Monthly sessions like this are scheduled for others to attend).
2) Submit an Associate Buyer Application,
   documenting approval from your department
   to represent them as an Associate Buyer, and
   your agreement operate in compliance with
   Purchasing’s controls.
3) Your authorization will be activated by
   Purchasing.
As an Associate Buyer
      you will—
§ See that University Policy is followed.
§ See that those in your department who
  make Agreements with Vendors and
  Independent Contractors receive training
  and follow University Policy.
§ See that any Independent Contractor
  Agreements are made and documented
  before work begins—not after the fact.
What Can I Use Fast Track For?
 § Everything in the Fast Track Codes List, including:
    § Non-negotiable Services, Fees and other Payments.
    § Independent Contractors that fit under one of the
      Fast Track Codes (without a Dollar limitation).
    § Independent Contractors where the contract is for
      less than the “small dollar purchase” limit = $2,500.
    § Purchases of Goods totaling less than $2,500 when
      P-Cards are not accepted, and there is no value to
      be added by Purchasing.
What Can’t I Use Fast Track For?

§ Anything that does not fit a Fast Track
  Category Code.
§ Anything that can be paid with a Visa
  Purchasing Card
§ Any Reimbursement that should be made
  through Y-Expense
§ Anything that requires Purchasing to
  make commitments or place the order.
Buying Through Purchasing?
§ … to be acquired by or under the direction of
  Purchasing…
§ Purchasing Helps You by:
  § Handling higher-value / higher-risk transactions that
    are not eligible for Fast Track.
  § Focusing on managing the highest value Supplier
    Relationships—creating Agreements to govern
    transactions whether they are done with a Purchase
    Order, P-Card or Fast Track payment.
Which Process to Use?

 § Q: Pay $800 to “Los Hermanos” musical
   group (identified with the band leader’s
   SSN), to provide entertainment at a
   conference we are hosting.
Which Process to Use?

 § Q: Pay $800 to “Los Hermanos” musical
   group (identified with the band leader’s
   SSN), to provide entertainment at a
   conference we are hosting.
 § A: Fast Track, category ICO 7929.
Which Process to Use?

 § Q: Pay for Snow Removal Service at
   Cougar Haven. (Paid to individual with
   SSN, amount is $330.)
Which Process to Use?

 § Q: Pay for Snow Removal Service at
   Cougar Haven. (Paid to individual with
   SSN, amount is $330.)
 § A: Fast Track, category ICO 8993. Some
   sort of attached Agreement should detail
   expectations.
Which Process to Use?

 § Q: Reimburse an employee’s purchase
   of a rare book for the University Collection.
   The book cost $780.
Which Process to Use?

 § Q: Reimburse an employee’s purchase
   of a rare book for the University Collection.
   The book cost $780.
 § A: Best process is to have bought from
   the dealer with P-Card. As a reimburse-
   ment through Y Expense it would be
   audited and require justification to avoid
   a penalty.
Which Process to Use?

 § Q: Pay a Publisher or book dealer for 20
   copies of a book at $49.95 each (= $999)
Which Process to Use?

 § Q: Pay a Publisher or book dealer for 20
   copies of a book at $49.95 each (= $999)
 § A: Purchase using P-Card. (If not a sole-
   source you may want to have Purchasing
   try to buy it wholesale, by sending us a
   Purchase Requisition.)
Which Process to Use?

 § Q: Reimburse a student for “gear”
   purchased at Costco, in the amount of
   $254.62.
Which Process to Use?

 § Q: Reimburse a student for “gear”
   purchased at Costco, in the amount of
   $254.62.
 § A: Can be done with Y Expense as a
   Business Non-Travel reimbursement, but
   will require justification. Should have
   used C.O.D. Check to pay Costco
   directly.
Which Process to Use?

 § Q: Engage a clinician / adjudicator for a
   Jazz Festival.
Which Process to Use?

 § Q: Engage a clinician / adjudicator for a
   Jazz Festival.
 § A: Fast Track, category ICO 8000 (or
   ICO 7929). Attach a Letter of Agreement
   spelling out duties and expectations.
Which Process to Use?

 § Q: Pay Prime Recordings $1540 in
   License fees to record, manufacture and
   distribute a copyrighted song on a
   Compact Disc album we are producing.
Which Process to Use?

 § Q: Pay Prime Recordings $1540 in
   License fees to record, manufacture and
   distribute a copyrighted song on a
   Compact Disc album we are producing.
 § A: Fast Track, category ROY 8999.
Which Process to Use?

 § Q: Purchase two custom, exquisitely
   made Presentation Gifts, totaling $4,318.
Which Process to Use?

 § Q: Purchase two custom, exquisitely
   made Presentation Gifts, totaling $4,318.
 § A: Purchasing needs to handle this
   transaction. Send us a Purchase
   Requisition and work with us to get just
   what you want.

								
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