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Disbursements for Standard Procurements

Financial Affairs, Office of the Controller  |  Approved July 1, 2009

Purpose

Process payments for transactions that are subject to standard State procurement procedures (i.e. eUMB PUR01 transactions).

Applicability

UMB Operational Units (schools, departments, divisions) requesting payments for procurement transactions that are in compliance with State of Maryland and UMB policies and procedures.

Instructions

The following types of transactions are not covered under this Procedure:

• Miscellaneous Disbursements (eUMB PUR02 and e-Z Payment) 鈥� See Miscellaneous Disbursements Procedure.
• Working Fund 鈥� See Working Fund Procedure.
• Payments to Foreign Nationals 鈥� See Policy and Procedure for Payments to Foreign National Independent Contractors.
• Travel 鈥� See Travel Policy and Procedure.
• Food and Business Meals 鈥� See Food and Business Meals Procedure.

1. In accordance with the Md. STATE FINANCE AND PROCUREMENT Code Ann. 搂搂 15-103, all invoices received by the State must be paid within 30 days. In addition, under Title 21.07.01 of the State Procurement Regulations invoices must be received in the State of Maryland General Accounting Division (GAD) within 25 days after the date the invoice is received at UMB, or acceptance of the merchandise or services has been recorded, whichever is later.
2. Transactions considered unacceptable by GAD are prohibited. Examples include, but are not limited to, the following expenditures: alcohol, flowers and gifts, parking or moving violations, parties, and catered meetings that include only University employees.
3. The eUMB Financials System is used to enter requisitions and receipt of goods or services, and to process payments. UMB Systems Training and Tutorials are available through the MyUMB Enterprise Menu.
4. Payments are processed by GAD. Checks are mailed from GAD approximately 2-3 weeks after GAD receives the invoice and supporting documentation from Financial Services.

Invoice Processing

1. Vendors must send invoices directly to Financial Services 鈥� Accounts Payable (FS-AP) in accordance with the terms of the purchase order.
2. Invoices should be mailed to:
   
   Financial Services 鈥� Accounts
   Saratoga Building
   220 Arch Street, Room 02-121
   Baltimore, MD 21201
   Or email to:  AP_FinSvc@umaryland.edu
   
   
3. All invoices must be originals or copies that have been certified as originals.Invoices will be distributed to FS-AP personnel for processing in accordance with the distribution schedule found on the .
4. The description and dollar amount of the goods and/or services on the invoice will be compared to the description and amount on the purchase order and the receipt (if required) to ensure a match.
5. If an invoice amount does not agree with the purchase order and/or receipt (if required), a corrected invoice or receipt to match the purchase order may be needed. FS-AP will contact the Operational Unit to remedy discrepancies. However, FS-AP may process an invoice with a minor discrepancy (e.g. small variance in freight charges).
6. Invoice payments are posted in eUMB Financials using the chartstring designated on the purchase order.
7. Invoices are sent to GAD for timely payment to the vendor.
8. If an invoice is to be paid by a foreign wire transfer, .

Receipt Requirements

A receipt is an entry into eUMB Financials recognizing that goods and/or services have been received by the Operational Unit.

1. After goods or services are received, the Operational Unit must immediately enter the receipt into eUMB Financials.
2. Invoices equal to or greater than $5,000 cannot be paid until the receipt is entered into eUMB Financials. A three-way match is required: the quantity and/or amounts shown on the invoice, purchase order, and receipt must match. If the invoice, purchase order, and receipt do not match, FS-AP will contact the Operational Unit for corrective action.
3. Invoices less than $5,000 will be processed whether or not the receipt is entered into eUMB Financials.

Increases to Purchase Order Funding

1. Department personnel must ensure sufficient funding is available on a purchase order before making purchases.
2. Invoices received for processing in FS-AP that exceed the remaining balance on a purchase order cannot be processed.
   1. FS-AP notifies the Operational Unit if an invoice exceeds the amount remaining on the purchase order.
   2. After FS-AP notifies the Operational Unit, the Operational Unit can request an increase to the purchase order (鈥淐hange Order鈥�) by completing a requisition referencing the existing purchase order. A tutorial for completing a Change Order is available in the eUMB Systems Tutorials.
   3. Invoices are maintained in FS-AP for fifteen (15) days pending an increase in the purchase order. If after fifteen (15) days the Operational Unit has not initiated the increase, FS-AP will send the invoices to the Operational Unit for corrective action.

Discrepancies

1. Operational Units are required to notify FS-AP as soon as possible after a discrepancy in the invoicing process is discovered. The notification should include as much information as possible concerning the discrepancy.
2. FS-AP will work with the Operational Unit to resolve discrepancies and adjust the original chartstring charged. Overpayments cannot be credited to the Operational Unit until after a refund is received from the vendor.

Interest Payments to Vendors

1. In accordance with the Md. STATE FINANCE AND PROCUREMENT Code Ann. 搂搂 15-104, 15-105, and 15-222, vendors may be entitled to interest on late invoice payments if:
   1. The invoice is due and payable by law and written under the procurement contract; and
   2. The invoice remains unpaid more than 45 days after receipt of goods or services; and
   3. The vendor submits an invoice for the interest within 30 days after the date of the State鈥檚 check.
2. Interest begins to accrue on the 31st day from which payment was due.
3. Immediately contact FS-AP upon receipt of an invoice for interest.
4. Interest charges incurred due to late payments will be charged to the responsible Operational Unit. Generally, the Operational Unit charged on the corresponding invoice for goods and services is the responsible Operational Unit.

Failure to comply with this Procedure may result in disciplinary action and/or criminal action.

Exceptions to this Procedure must be approved in writing by the University Controller (UC) in Financial Services. All requests must be submitted to the UC using the available on the Financial Services website. The request must be signed/e-mailed by the Department Head or designee.

Questions? Contact the Disbursements Manager 410-706-2931.

RESPONSIBILITIES

Operational Units

• Immediately forward any invoices received in the Operational Unit to FS-AP. Notify vendors that invoices should be sent directly to FS-AP at the address listed above (hyperlink).
• Promptly enter receipt of goods or services into eUMB Financials.
• Promptly resolve discrepancies upon request from FS-AP.
• Immediately contact FS-AP upon receiving an invoice for interest. Interest is charged to the Operational Unit.

Financial Services 鈥� Disbursements and Financial Services 鈥� Accounts Payable

• Process payment vouchers in eUMB in accordance with State of Maryland requirements.
• Forward payment requests and documentation to GAD for payment processing.
• Promptly notify Operational Units to resolve discrepancies.

Strategic Sourcing and Acquisition Services

• Review eUMB PUR01s for appropriateness and compliance with State procurement procedures.
• Work with FS-AP and the Operational Unit when a change order is needed.

Additional Guidance:

• Navigation Path for PUR01 Tutorial:  eUMB Financials>Managing Requisitions>Creating a Requisition 鈥� PUR01
• Order
• Navigation Path for Change Order Tutorial:  eUMB Financials>Requisition Change Order Procedures>Increasing Quantity, Amount, or Inserting New Items on a Req.

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