Southern Methodist University Accounts Payable Department http www

Southern Methodist University Accounts Payable Department http: //www. smu. edu/Business. Finance/Controller/Accounts. Payable 1

Accounts Payable Department Directory Windy Epperson Manager (214)768 -2801 Epperson@smu. edu Elizabeth Reyes Lead AP Specialist D-I* (214)768 -2019 ereyes@smu. edu Mary Martinez R - W* (214)768 -3914 martinez@smu. edu Jackie Collins ABC, XYZ* (214)768 -2016 jacquelync@smu. edu Christtie Tovar J - Q* (214)768 -2542 ctovar@smu. edu Angela Hodges Imaging (214)768 -2015 alhodges@smu. edu * Requests are distributed by first Letter of Vendor Name 2

General Guidelines • Invoices are to be billed to Southern Methodist University; third party invoices will not be paid with University funds. • Payment requests are to have original signed signatures. • Financial Officers are requested to remit a list of names that have delegated authority to sign payment requests and who can also pick up checks. • Signatures are to be legible. Some schools and departments use a stamp that prints the individual's name, department and phone number for better identification. • Payment requests are to ideally have original back up documentation that confirms the requested payment is a legal liability of the University. Accounts Payable management must approve any exception. • Reimbursements must have backup that includes a detailed receipt of what was purchased. These should be submitted within 30 days of the date of purchase. • Please make sure any back up smaller than letter size paper is attached by tape to a letter size paper for scanning. 3

General Guidelines (continued) • For security purposes, please do not display SSN on the payment request. It is only required on the W 9 for a new payee. • Please include a contact phone number on all payment requests so that the A/P department personnel can contact someone in case of a problem. Some signatures are difficult to read. • Direct Deposit for Accounts Payable transactions are separate from the Payroll Department Direct Deposits and HIGHLY encouraged for all faculty, staff and students unless international. • Payments will not be made from statements that list past due invoices; original invoices are required. • All requests over $5, 000 need to have a Purchase Order number unless it is covered by contract. AP MUST be able to validate the contract was signed/approved by someone authorized to bind the University to a contract. 4

General Guidelines (continued) • • • My. SMU information does not translate to the AP/vendor modules in People. Soft. Any address changes should be sent to AP as well. University policy only permits payment of individual membership fees and dues to professional societies or other professional groups that are on the University’s approved list found on the Controller’s website. . Please be aware of the new payment request and wire transfer form. Please make sure your account, fund, org, and SMU ID are correct to avoid delay in processing. Vendor number is not required but is something that could delay the process of payment if not provided. Please provide if you know it. 5

Approvals • All contracts must be approved by legal, and signed by an officer of the University. • The President must approve all donations and they must be coded to subclass 11100. • Gifts to friends of the University must be approved by the President, a vice president, dean or athletic director and reviewed by the Vice President for Business and Finance staff to ensure appropriate tax treatment. • All charges to account number 82 XX must be approved by Asset Management. • All charges to a "G" project number must have Grant and Contract Accounting approval before payment can be made. 6

Approvals (continued) • Tax Compliance Department must approve all payments for relocations and club dues. • The President, applicable vice president, dean, or athletic director must approve floral arrangements and Sympathy cards. • Risk Management Department must approve all people transportation companies prior to payment. 7

Tax Considerations • Southern Methodist University is a Non-Profit Educational Institution and exempt from Sales and Use Tax in Texas, Colorado, Florida, Massachusetts, Mississippi, New York, Ohio, Tennessee, and New Mexico. Each state’s exemption certificate can be found on the Tax Compliance website. • For business purposes only SMU is exempt from Hotel Occupancy Tax for in-state hotel accommodations for Texas. Exemption applies to State tax only. • All entertainment expense including business meals must have documentation that lists the date, names of any individuals or groups attending, and states the business purpose. • First time payment requests for ANY vendor/individual must be accompanied by a W-9. The only exception is a current student or employee (in this case, please provide SMU ID number). • Do not pay individuals for services and then ask for reimbursement. This causes tax complications. • Payments for services to an individual, LLC, DBA, and LLP must have an approved Independent Contractor Form before financial commitment can be made to the individual or company. Payment will NOT be processed until approved and the request will be returned if presented to AP before approval. 8

Tax Considerations (continued) • Approvals on ICD’s are done by HR/Tax Department and should be sent there first before coming to Accounts Payable. A request cannot be processed without these approvals. • Proper documentation must be attached. • Payments to nonresident aliens and international persons must go through the Payroll Department before it comes to Accounts Payable for tax requirements. • Extra compensation to employees is to be paid by the Payroll Department. • Payments to individuals are to be made payable to the legal name, (as shown on the social security card), not to a nickname or alias. • Payments of awards to students do not require an IRS W -9 form however, you do need to include the SMU ID Number and home address on the check request. • Stipend payments are considered financial aid to currently enrolled SMU students and there is no backup documentation required. • Awards/prizes on Acct 6850 given to a student who is employed by SMU part-time or full-time must be submitted to Payroll as extra compensation. 9

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TRAVEL POLICY UPDATES • Same Day Travel Meals: Actual meals purchased while on business travel requiring an overnight stay may be reimbursed if adequate supporting documentation is provided. The cost of meals must be appropriate for an individual representing a not-forprofit institution. Meals purchased on same day travel which does not require an overnight stay will not be reimbursed unless the time away (from both home and office) is longer than 12 hours. Meals for same day travel exceeding 12 hours may be reimbursed if the travelers are away from home/office on business during the entire meal time but must be reported to Payroll Department to be added as a taxable income to the traveler. The financial officer for the traveler is responsible for reporting the reimbursement to the University's Tax Department for appropriate treatment. 12

What mileage qualifies for reimbursement? • The University allows mileage reimbursements for individuals who would use their vehicles for business travel. Mileage reimbursement is meant to cover only those miles incurred above and beyond the employees normal commute to his/her place of business, however, if the travel is not a scheduled workday, SMU will reimburse the full mileage. • Reimbursement requests should indicate the points of travel and the miles eligible for reimbursement. 13

AWARDS • When the individuals are enrolled at SMU and are awarded through Financial Aid, these payments are stipends (6840). The students have a tax reporting requirement, but SMU does not. • When the individuals are not currently enrolled at SMU, but receive a subsidy to help with their research, the payments should be considered a cash award (6850) and will be reported on a 1099 MISC as other income. 14

CHECK PICK UPS • Calls for pick ups are not allowed unless under certain circumstances, please contact A/P. • ALL travel expenses, advances, and/or reimbursements will be mailed if payee is NOT setup for direct depost…. NO EXCEPTIONS • If something needs to be included with a payment, please include it with your request along with instructions. It the payment includes an invoice number or other information that helps the vendor clearly identify the payment no attachment will be sent with the check unless there are specific reasons why. • Check pick up times are 2: 00 -4: 30 pm 15

Direct Deposit- Employee/Student • • Needs to have one of these items with A/P form: – Voided check: needs to have name, address, acct info. – Direct deposit Authorization from bank, which includes name, address, and acct info. – Direct deposit Authorization from bank (if there is no info but acct info) and a temporary check. *if this option is used, please write name and address in corner of check. * – Savings acct only- deposit slip. Person requesting direct deposit must be one of the account holders and one of the documents above must reflect that their name is on the account. If any of these items are missing, it will be returned if it can be determined who it should be sent back to, if not it will be shredded. Please hold direct deposit request for new vendors until a payment/travel request is ready to go with it. Any requests sent for new vendors without a payment/travel request will be returned or shredded. International students do not qualify for direct deposit Setting up direct deposit in Accounts Payable has to be done separately from set up in Payroll *Direct deposit is strongly encouraged for all who are eligible* 16

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http: //www. paymode-x. com/ 18

Outstanding Checks • We contact the department who initiated the payment • What we are looking for from you: - Is this payment still required? And would you like us to re-issue this check? If yes, please provide current address for payee If no, provide reason as to why this payment is no longer needed and check will be cancelled. - If this a payment that you can’t find a resolution for, please let us know and we can proceed with our process. - Our main concern is contacting the payees directly when the money is not owed by SMU. * Setting up direct deposit in house for staff/faculty/students or Paymode ACH for outside vendors will decrease future outstanding checks. This is strongly encouraged for those who are eligible. 19

Membership Approval • If an organization is not listed on the approved memberships list, it is not an approved membership. To add an organization to the approved memberships list, complete the membership approval form and forward to the designated approver for memberships for your area (Dean, VP, AD or President). Only complete the form if the organization is not listed on the approved memberships list. • Once approved, the form should be submitted with the Accounts Payable payment request. 20

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W-9 Form • Why do we need them? – The W-9 helps A/P identify payees as potential 1099 recipients or As exempt payees. – The W-9 provides a unique identifier (TIN/SS) for payee which reduces the potential risk of duplicates. – The W-9 provides AP with the correct legal name and mailing address of the payee. – The W-9 is needed for all new vendors or changes being made such as address or status change. – If payee is faculty/staff/student, the SMU ID# is required and W-9 is not necessary 22

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Wire Transfers • To send a wire transfer, you will need to include the following before submitting to Accounts Payable : 1. Wire transfer form 2. Payment request form 3. Invoice 4. W-8 or W-9 5. Any other supporting documents, ex. Foreign National Information Form, Visa etc. • Please put the wire transfer form on top of the request and back up. • The email address for Accounts Payable Administration and Support (apsupport@mail. smu. edu) is only used for wires and is part of a pilot program to be started at a later date. Please refer all questions directly to the appropriate A/P Specialist. 24

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Independent Contractor Determination • The University must correctly determine whether the individuals providing services are employees or independent contractors. The process will determine the business relationship between SMU and the person performing the services. • Departments must submit an Independent Contractor Determination (ICD) checklist for each tax year the independent contractor is engaged for services to expedite payment. • More information can be found on the HR website. 26

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Web Now • https: //adminimages. smu. edu/webnow/ • 07/2008 - We started scanning requests. • Imaging system will allow you to view your requests and print copies. • You can only view images submitted by your department. 30

When looking up a request, you have the option of how you want to filter your results. All Voucher numbers begin with 00 then the 6 digit number. All Vendor numbers are 10 #s in length beginning with zeros. It helps to use “contains” rather than “starts with” or “equal to” 31

After you enter your search criteria, your results will show. Double click the entry you want to open. 32

Your results will be displayed and you can then print or move through the pages. 33

Fraud Prevention Tips • Watch for blind invoices or solicitations that look like invoices. • Because SMU relies so heavily on documentation as the basis of valid information, be careful of forged documents. Make sure all reimbursements and purchases are accurate and necessary. • Requests are not to be approved by the payee or by someone related to the payee. • Be careful for fake websites pretending to be banks, government agencies or vendors. • Make sure to return to Accounts Payable ANY returned or uncashed checks to prevent someone from rewriting the checks. • Audit your department Q drive report for unauthorized charges. • Establish approval limits for department approvers. • Make sure your students are only granted access to things they need to perform their job in your department. • Randomly check your vendor information against employee information. 34

Accounts Payable Check Runs Payment cycles include: • CHECKS or paymode ACH: This payment cycle is ran early Monday morning and file is sent to the bank before lunch for payment on Wednesday. • CHECKS or paymode ACH: This payment cycle is also ran early Wednesday morning and the file is sent to the bank before lunch for payment on Friday • Direct Deposit (in-house ACH): This payment cycle is ran early Tuesday morning and file is sent to the bank before lunch for deposit to be made on Wednsday. • Direct Deposit (in-house ACH): This payment cycle is also ran early Thursday morning and file is sent to the bank before lunch for deposit to be made on Friday. There will be no payments processed on holidays if that holiday falls on a normal processing day or check delivery day (payment date). 35

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Accounts Payable Processing Schedule Processing time for check requests requiring prompt payment follows. Invoices and other payments are paid according to terms. University terms are net 30 days. (1): Documents received are date stamped and sorted by type of payment and alphabet. Utilities, Telephone, Cable, Freight, and Travel receive priority. (2): New Vendors, documents missing any information, documents that have erroneous coding (account, fund, org etc. ) or missing approvals are delayed until the vendor is added, and /or proper approvals obtained, and/or correct/missing information is supplied. (3): All items input and due by COB on Friday are included in Monday’s payment cycle for Wednesday payment. All items input and due by COB on Tuesday are included in Wednesday’s payment cycle for Friday payment. (4): Checks are mailed by Bank of America on the same date as the date of the check, Wednesdays and Fridays. 38

Our Purchasing Website contains all preferred providers for the University. 39

Accounts Payable Frequently Asked Questions • What is required for an invoice to be paid? All invoices must have a completed payment request and original backup documentation confirming the invoice is a legal liability of the University. • Will copies of backup documentation for payment suffice? No. Only original documentation will be accepted as backup for payment. Accounts Payable management must approve any exception. • Can I request payment of invoices billed to a third-party? No. Invoices are to be billed to Southern Methodist University. Third-party invoices will not be paid with university funds. • What is required for reimbursement of Meal and Entertainment expenses? All Meals/Entertainment expenses must be properly documented with the following to be reimbursed: -Original vendor receipt or credit card charge. -Business purpose and names of individuals involved. -Location and Date of event. -Appropriate approvals. 40

Accounts Payable Frequently Asked Questions (Continued) • Can I get reimbursed for purchases I make on behalf of the University? What is the dollar limit? Single full payments for locally purchased goods and materials not exceeding $5000 can be reimbursed by payment request. Procurements in excess of $5000 must be substantiated by a purchase order in advance of the financial commitment by the University. The Procurement Card (VISA charge card) gives selected employees the ability to charge small dollar purchases eliminating requisitions, check requests and petty cash reimbursements. This gives each department greater convenience, control and flexibility in purchasing. • Can I be reimbursed for same day travel meals? Actual meals purchased while on business travel requiring an overnight stay may be reimbursed; if adequate supporting documentation is provided. The cost of meals must be appropriate for an individual representing a not-for-profit institution. Meals purchased on same day travel which does not require an overnight stay will not be reimbursed unless the time away (from both home and office) is longer than 12 hours. Meals for same day travel exceeding 12 hours may be reimbursed if the traveler(s) are away from home/office on business during the entire meal time but must be reported to Payroll Department to be added as a taxable income to the traveler. The financial officer for the traveler is responsible for reporting the reimbursement to the University's Tax Department for appropriate treatment. . • Our department is having a Christmas party. Will the University reimburse expenses associated with it? Awards banquets and holiday and social celebrations may be paid from University funds if the celebration is primarily for students or is for the entire University community and is approved by the authorized parties. Office social events and celebrations for select groups of faculty and staff may not be paid from University funds unless an exception to policy is authorized by the President or vicepresident. 41

Accounts Payable Frequently Asked Questions (Continued) • What is the school policy regarding gifts to friends of the University? Gifts to friends of the University are permitted when a legitimate business reason for the gift exists (e. g. , custom, appreciation) and the transaction is approved by the President, a vice president, athletic director or a dean. Gifts may be reportable and must be reviewed by Vice President for Business and Finance staff prior to being made to ensure appropriate tax treatment. • Can University funds be used for staff morale-building events such as retreats and staff gatherings? Employee cultivation events such as retreats, staff gatherings (i. e. , meals, outings, etc. ) or other events to build morale, build group development, or show appreciation may be paid from University funds only if approved by the President, vice-president, athletic director or dean. • Can University funds be used to purchase flowers and cards for celebration of birthdays, holidays, etc. or as expression of sympathy? Use of University funds to pay for decorations, floral arrangements and greeting cards for holiday occasions, sympathy, and celebration of birthdays, births, graduation and other accomplishments is not permitted except as described in University Policy 13. 5. • Can University funds be used for donations to charitable organizations or not-for-profits? University Policy precludes the use of University funds, regardless of their source, for donations of any kind, including donations to non-profit or charitable organizations or to other causes. However, the President may permit exceptions to this policy if it's determined that participation in an event will promote the relationship between the University and the community. Occasionally there are business reasons for expenses that may incidentally involve making charitable contributions. For instance, some portion of the cost of tables or seats at community sponsored events that University representatives attend for fundraising or community involvement may be considered a contribution. These tables and other nominal charitable contributions to other institutions may be made if there is a business reason for the expense and the exception is approved by the President or a vice president of the University. 42

Accounts Payable Frequently Asked Questions (Continued) • What is required for faculty and staff awards/recognition? All faculty and staff awards and/or recognition must be approved by the President or vice-president and reviewed by the Office of the Vice President for Business and Finance or designee prior to making the award to ensure appropriate tax treatment. Student awards in addition to financial aid must be approved by the manager fiscally responsible for the budget account to which the expense will be charged and reviewed by the Vice President for Business and Finance or designee for proper tax treatment. • What tax considerations should we be aware of? -Southern Methodist University is a Non-Profit Educational Institution and exempt from Texas Sales and Use Tax for supply purchases pursuant to the exempt purpose of the University. -Hotel Occupancy Tax Exemption Certificates should be completed and submitted for in-state hotel accommodations. -First time invoices for services: payable to individuals, doctors, dentists, lawyers or other professional organizations must have an IRS form number W-9 attached. -The Payroll Department is responsible for all payments to international persons, ensuring the University is in compliance with tax requirements. -Payments to individuals are to be made payable to the legal name, (as shown on the social security card), not to a nickname or alias. -Payments for services to an individual, LLC, DBA and LLP must have an approved Independent Contractor Determination Form (ICD) attached to the payment request before financial commitment can be made. -Extra compensation to employees is to be paid by the Payroll Department. 43

Accounts Payable Frequently Asked Questions (Continued) • What is the Independent Contractor Determination Form and what do I do with it? INDEPENDENT CONTRACTOR FORM Payments may sometimes require extra documentation effectuated by the Independent Contractor form henceforth referred to as the ICD. Make note that the general rule in determining the status of using the ICD is that an individual is an independent contractor (IC) if the company for the services are performed has a right to control (or direct) the result of the work and not the means and methods of accomplishing the result. Existing SMU employees may be ICs; however, they must be paid through Payroll, not through Accounts Payable. • Guidelines for Determining an ICD No, I do NOT need an ICD if: -The suffixal “INC” or “Inc” is used. -Employer Identification Number (EIN) usually starts with the number “ 75”. -Research study participants -Fellowships/Stipends—monies for tuition only. Absolutely no services can be tied to it. This means no teaching, no grading papers and no research. -Royalties -Products—examples like rentals of tables, purchase of merchandise and printing of brochure/event programs. Yes, I need an ICD if: -Any individual, company or consultant performing services (or work) for SMU. -W-9 Classifications—if any of the following boxes are checked on the W-9: Individual/Sole Proprietor, LLC, DBA, or LLP. -Reimbursement of services—faculty or staff asking to be reimbursed for paying of a service (e. g. transcription service). Faculty/Staff must complete the checklist and W-9. -Some common examples: Presenters, Honorariums, Musicians, Graders, Designing or creating sculptures, brochures, websites or writing. Also included is engraving, polishing, repairing, general contractor, and massaging consultant. 44

Accounts Payable Frequently Asked Questions (Continued) • Can an SMU employee/student pay someone for services out of their own pocket? The Department of Human Resources and Office of Tax Compliance agree than an employee/student should not pay for services. The request for reimbursement will result in taxable income to the faculty/student member. The faculty/student member will need to submit an Independent Contractor Determination Form (ICD) and W-9. For further questions please contact the Department of Human Resources. • What if a student provided the service to SMU? The ICD procedure would apply to the student. If the student is an employee as well, then this would become extra compensation and would need to be processed through Payroll. Same process would apply to a regular faculty/staff member. • How do I request entertainment expense reimbursement particularly if I lost the receipt? When requesting an entertainment expense reimbursement, attach the receipts to the Request for Entertainment Expense Reimbursement form found on the AP website under forms. The elements to be proved with respect to expenditure for entertainment are: A. Time. Date of entertainment. B. Place. Name, if any, address or location, and designation of type of entertainment, such as dinner or theater, if such information is not apparent from the designation or activity. C. Amount of each separate expenditure for entertainment. D. Business purpose. Business reason for the entertainment or nature of business benefit derived or expected to be derived as a result of the entertainment. E. Business relationship. Occupation or other information relating to the person or persons entertained, including name, title, or other designation, sufficient to establish business relationship to SMU. • If you are missing a receipt you must fill out the Missing Receipt form (also found on the Accounts Payable website) for those expenses less than $75. You will need to obtain the missing receipt or evidence of the expense as the IRS does not allow reimbursement for expenses greater than $75 with a missing receipt form. 45

Accounts Payable Frequently Asked Questions (Continued) • What is required for memberships? To add a new organization to the approved membership list, complete the membership approval form and forward to the designated approver for memberships for your area (Dean, VP, AD, or President). Only complete the form if the organization is not listed on the approved memberships list. • Why is a W-8 required on foreign entities? Reporting requirements differ from U. S. entities. The Form W-8 is required to establish that the vendor is a non-US entity and to allow SMU to assess its withholding requirements. • How to send a Wire Transfer? To send a wire transfer, you will need to include the following before submitting to Accounts Payable : 1. Wire transfer form 2. Payment request form 3. Invoice 4. W-8 or W-9 5. Any other supporting documents, ex. Foreign National Information Form, Visa etc. 46