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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