Financial Process and Procedures Research Management Centre IIUM

Financial Process and Procedures Research Management Centre IIUM

RESEARCH FINANCIAL ACTIVITY Purchasing • Approval Authority • Procurement • Quotation • Purchase Order Advancement Payment • Miscellaneous • Travelling • Reconciliation • Claims • Suppliers / Vendors

Direct Purchase PURCHASE Quotations Tender

Direct Purchase Vs Quotations TYPE OF PROCUREMENT DIRECT PURCHASE QUOTATION Amount Up to RM 20, 000 RM 20, 001 – RM 500, 000 Suppliers / Vendors Registered with IIUM Mechanism Procurement Form Proposal No. of Quotation One (1) At least five (5) IT related items Recommendation from ITD 1. Principal Researcher 1. Head of Department / Head of Research 2. Dean of RMC 1. Quotation 1. 5 quotation 2. Letter invitation for quotation (if less than 5 quotations) 3. Tender quotation form 4. Integrity pact form 1. Dean RMC (RM 20, 000) 2. Director RMC Kuantan (< RM 15, 000) 3. Other Dep. Dean (< RM 10, 000) 1. Rector & Exec. Finance Director (RM 20, 001 – RM 200, 000) 2. Chairman SFC & Rector Attachment Approval

PURCHASING – Documents to be Submitted

Quotation Direct Purchase Kuliyah • Get quotation from supplier Kuliyah ITD • Prepare complete Procurement Form • Get recommendation for IT items RMC • Get approval from Dean / Dep. Dean of RMC • Key-in system / prepare for Purchase Order (PO) RMC • Send PO to suppliers Kuliyah ITD RMC FD Rector RMC • Get 5 quotations from suppliers • Prepare complete proposal and attachment • Get recommendation from HOD / HOR • Get recommendation for IT items • Get recommendation from Dean RMC • Get approval from Exec. Finance Director • Get approval from Rector • Key-in system / prepare for PO / send PO

PURCHASING – Other matters Do not split purchase requisition from the same supplier/vendor Quotations sent by vendors must be in a sealed envelops before the specified deadline and opened by Quotation Opening Committee (at least 3 person including 1 finance rep). Sole distributers – attach with support letter from manufacturer Supplier registration – liaise with Purchasing Unit, Finance Division Virement of allocation – liaise with Research Unit, RMC

Miscellaneous ADVANCEMENT Travelling

ADVANCEMENT – Miscellaneous Get recommendation from Dep. Dean (Postgraduate & Research) / Head of Research (HOR) / Head of Department (HOD) Maximum amount is RM 10, 000 Require to submit receipts for prior advancement taken at least 70% before request new advancement Not allow for the purpose of Research Assistant (RA) salary / purchasing of assets / travelling Shall be reconciled of total amount within 6 months from date of disbursement

ADVANCEMENT – Travelling Complete application forms received one month prior the travel date. Amount of advancement based on grade entitlement Only for food allowance and hotel based on MSD circulars Shall be reconciled within 14 days after arrival at Malaysia

ADVANCEMENT – Process and procedures Miscellaneous • Prepare the complete Miscellaneous Advancement Form Kuliyah • Get recommendation from HOD / HOR Kuliyah RMC • Get approval from Dean / Dep. Dean of RMC • Key-in system / prepare for Payment Voucher FD • Review and advice bank for payment Bank • Transfer directly to Researcher’s account Travelling Kuliyah • Get complete approval for travelling Kuliyah • Prepare the complete Travelling Advancement Form RMC • Get approval from Dean / Dep. Dean of RMC • Key-in system / prepare for Payment voucher FD • Review and advice bank for payment Bank • Transfer directly to Researcher’s account

Suppliers / Vendors PAYMENT Research Exp. Claim Travelling Claim

PAYMENT – Suppliers / Vendors Goods received / services provided • Received in good conditions • Quantity and specification as Purchase Order (PO) • Acknowledged by receivers on Delivery Order (DO) Invoices / bills • Review and verify to ensure price / amount is accurate against Purchase Order (PO) / Quotation

PAYMENT – Claims Original receipts only Sort receipts according to Research Financial Vote Certify on the form according to related votes Travelling claims follow entitlement rate based on MSD circular Travelling for Official Duties / Seminar or Courses Use separate form for Travelling and Other Expenses Claim Total claims shall be reconciled against ADVANCEMENT taken (if any)

PAYMENT – Research Financial Vote RESEARCH VOTE TYPE DESCRIPTION 11000 Research Assistant Honorarium for RA 22000 Transportation of Goods delivery – road & other transportation 23000 Communication and Utilities Mail & courier / Telephone 24000 Rental Ship / boat & other rental 26000 Supply of Raw Materials for Repair & Maintenance Electrical / Computer maintenance & repair 27000 @ 26000 28000 Research Materials & Supplies (Vote 26000 is for E-science project only) Maintenance and Minor Repair Services Office stationery Journal & periodicals (books, journal, publication fee) Disposable science supply Research material supplies Computer software and license (renew license existing software, new software below) Scientific equipment maintenance & repair Civil maintenance & repair (small renovation, install partition)

PAYMENT – Research Vote RESEARCH VOTE 29000 35000 TYPE DESCRIPTION Honorarium Entertainment (refreshment) Professional Services & Other Printing (photocopy) Services Patent Scientific & research services (printing, hospitality) Others services/data analysis Professional membership Inventory / Scientific equipment Office furniture / equipment Server Equipment Software Av equipment Computer

Claim Entitlement for Official Duties Food Allowance Daily Allowance • 24 hours or more • Not allowable if provided by the Organizer • If meals not provided • Breakfast- 20% • Lunch - 40% • Dinner - 40% • more than 8 hours but less than 24 hours • 50 % of meal allowance Hotel / Lodging Allowance Flight / Mileage Claims

Travelling Claims Miscellaneous Exp. Mileage Claim • Official phone, fax or postage charges • Laundry expenses supported by receipt for not less than 3 days stay • Airport tax supported by receipt • Excess baggage for official items; supported by receipt • Parking, toll or ferry charges supported by receipt • Need to use airplane or train unless: • Distance is less than 240 km • Officer has to discharge duties at several places within the journey • It is considered important for the officer to use his own vehicle • Officer has to bring others for the official duty

Travelling Claims 14 days after arrival Departure and Arrival Date and Time must be clearly stated on the claim form Food, Hotel or Lodging allowances are paid according to official duties entitlement Original Receipts must be attached together with the claim form( if any) Total claims shall be reconciled against ADVANCEMENT taken (if any) Claim form must be sign by claimant, HOD and approved by the Dean/Deputy Dean RMC

Obstacle in RMC Financial Process Incomplete document / proposal (approval / recommendation ITD / quotation / integrity pact) Goods deliver prior issuance of Purchase Order Unregistered Supplier/Vendor with IIUM Receipts are not properly arranged according to vote Invoices are not surrender to RMC Communication breakdown Insufficient of Research Budget