May 19, 2010. 8:30Continental Breakfast 9:00UW System Structure 9:30Overview of Selected...

May 19, 2010

8:30 Continental Breakfast 9:00 UW System Structure 9:30 Overview of Selected

Policies/Constraints 10:00 Financial Administration 10:30 Stretch Break 10:45 Financial Administration (cont.) 11:45 Lunch (Capitol B)

12:45 Administrative Services 1:00 Safety and Loss Prevention 1:45 Procurement 2:45 Stretch Break 3:00 Operations Review and Audit 3:30 Trust Funds 4:00 Concluding Remarks 4:15 Adjourn

Created by the merger of the former University of Wisconsin and the former Wisconsin State Universities (October 1971)

Governed by Chapter 36, Wisconsin Statutes Governed by 18 member Board of Regents

◦ 16 members appointed by the Governor◦ 2 ex-officio members (DPI and WTCS)◦ 14 of 16 have staggered 7 year terms◦ 2 of 16 are students with 2 year terms

UW System President (Kevin Reilly) 2 Senior Vice Presidents

◦ Academic Affairs (Rebecca Martin)◦ Administration and Fiscal Affairs (Tom Anderes)

1 Vice President (Debbie Durcan) Associate, Assistant Vice Presidents, Directors 14 Chancellors

◦ 13 Degree granting institutions◦ 13 Two Year Colleges & State-wide Extension (72 counties and

3 tribal nations)

Department of Administration◦ State Budget Office (Dave Schmiedicke, Bob Hanle, Dennis

Rhodes)◦ State Bureau of Procurement (Helen McCain)◦ State Controller’s Office (Steve Censky, Jeff Anderson)◦ State Risk Management (Rollie Boeding)

Legislature◦ Legislative Audit Bureau (Jan Mueller)◦ Legislative Fiscal Bureau (Bob Lang, Dave Loppnow, Emily

Pope)

Enrollment: More than 178,000 Degrees Granted: 33,000

Annual Budget: $4.75 Billion State Funding: $1.14 Billion Tuition Funding: $1.05 Billion Gifts, Grants, Contracts: $1.44 Billion

Annual Economic Impact $10 Billion/Year

Board of Regents: Regent Policy Documents (RPD) http://www.uwsa.edu/bor/policies/rpd/

UW System: Financial and Administrative Policies (FAP) http://www.uwsa.edu/fadmin/fap.htm

13-3 Authorization to Sign Documents 15-1 Distance Education Pricing Principles 20-19 Criminal Background Check Policy 31-13 Investment and Social Responsibility 32-7 Student Involvement in Differential

Tuition Initiatives

F31 Personal Services Payments F36 Travel Regulations F43 Financial Management of Auxiliary Operations F44 Tuition and Fee Policies for Credit Instruction F46 Prizes, Awards and Gifts F50 Segregated University Fees

G15 Student Services Funding G18 Student FICA Exemptions G29 Special Course Fees G36 College Courses in High Schools G38 Child Care Centers

Mission StatementThe Office of Financial Administration has the primary responsibility for the fiscal integrity of the University of Wisconsin System. It is expected to provide a financial environment that is secure, encourages the accomplishment of academic missions, provides timely and accurate information, and assists all levels of management in making prudent financial decisions.

Financial Administration is organized around the following five service categories:

◦ System wide Accounting and Budget Control – Ginger Hintz◦ Shared Financial System Operations Management – Dwan Schuck ◦ Financial and Administrative Policy Development –Terri Gill◦ Financial Analysis and Reporting - Vacant◦ System Administration Accounting and Budget Control –Laurie

Grams

UWSA Controller ◦ Facilitates information flow to/from Campus Controllers

Buffer between Department of Administration and Campuses on Accounting Issues◦ Interaction with State Budget Office ◦ Interaction with State Controller’s Office

Owner of the Chart of Accounts Responsible for reconciling SFS to WISMART Responsible for University Banking

Institution SFS UW Budget / Wismart

Madison UWMSN AMilwaukee UWMIL BEau Claire UWEAU CGreen Bay UWGBY DLa Crosse UWLAC EOshkosh UWOSH FParkside UWPKS GPlatteville UWPLT HRiver Falls UWRVF JStevens Point UWSTP KStout UWSTO LSuperior UWSUP MWhitewater UWWTW NColleges UWCOL RExtension UWEXT TSystem Administration UWADM WSystem-Wide UWSYS Y

All Business Units are

assigned an alpha character

for identification and coding purposes.

Chart of Accounts http://www.uwsa.edu/fadmin/sfs/chrtacct.htm

Full funding string includes:◦ Business Unit – Fund – DeptID – Program Code – ProjectID –

Account – Subclass (used for Building #)

Example◦ UWADM-350-281000-1-2172

Categories and Types ◦ Categories

GPR – General Purpose Revenue PR – Program Revenue PRF – Program Revenue Federal SEG – Segregated Revenue

◦ Types Annual Continuing Sum-Sufficient Biennial

Carryover or Lapse?◦ Annual – unless program revenue, funds which are not

encumbered or expended lapse at the end of each fiscal year◦ Continuing – balances remaining at the end of the fiscal year

are available for expenditure in future years◦ Sum-Sufficient – expenditures are allowable up to the amount

necessary to accomplish the purpose for which the appropriation was made

◦ Biennial – unless program revenue, funds which are not encumbered or expended lapse at the end of the biennium

Allotment

UW Campuses

Allotments cannot be overspent without DOA approval

◦ Approval is given in the form of an allotment increase

◦ Exception - PR-continuing allotment increases are automatically approved

◦ Transfers between classes may be restricted

UW Campuses

SFS – Official Accounting Records

of UW System

WISMART – Official Accounting Records of the State of Wisconsin (DOA)

Daily Interface

Reconciliation

All receipts deposited into local campus

deposit account

Zero Balance Account (ZBA)

State Statute 20.906 [1] requires all collections be deposited in the Wisconsin State Treasury within one week.

Campus Vendors

UW System Controllership UW System Controllership

Questions?Questions?

Shared Financial System (SFS)◦ SFS Governance◦ SFS Team

Production Support Development

HRS Retrofit/Interface◦ SFS Change Management

Senior Vice President for Admin. University of Wisconsin System

(Tom Anderes)

SFS Leadership Team

Common Systems Review Group

SFS Managers Group

SFS Advisory Committee

Supply Steering Committee

SFS Executive Committee

SFS Project Mgmt. Office

SFS Financial Administration Roles◦ Production Support and Maintenance

Monitoring production processes Troubleshooting end user and system errors Ongoing care and feeding of the system Recurring operations

◦ Development Active participation in new system/module implementation Identification of user requirements Functional lead in design, development, and unit testing Lead role in integration testing Manage roll out to end user community

◦ SFS-HRS Retrofit

SFS-HRS Retrofit◦ Overall structure◦ Roles and responsibilities

Engagement Directors Program Managers Site Leaders

Executive SponsorGlen Nelson, UWSA

Engagement DirectorsDwan Schuck, UWSA

Carol Block, DoIT

Program ManagersKatie Chase, DoIT

Cara Grib, Huron ConsultingSite Leaders

TechnicalSecurityBatch SchedulingInfrastructure

GLPayrollGLTuition RemissionDOA

AP/EXAP Vendor Trailer ChecksAP TaxesExpense

GrantsGrantsECRTCost Share

ReportingWISDMReports

Engagement Directors

◦ Review and communicate project status

◦ Campus interaction

◦ Review new functionality / changes to business processes

◦ Allocate resources

Program Managers

◦ Prepare and manage project plan, timeline and budget

◦ Monitor progress on the project plan and tasks and communicate to all stakeholders on a regular scheduled basis

◦ Support the project team in all project efforts

◦ Review final deliverables

◦ Produce statistics

Site Leaders◦ Advocate campus needs and viewpoints to the project team◦ Provide leadership to site ◦ Communicate project details to respective campus ◦ Facilitate training ◦ Work with subject matter experts along with functional and

technical staff ◦ Facilitate testing ◦ Ensure the necessary testing, prototyping and piloting tasks

are completed, according to the agreed upon timelines and deadlines, and that related documentation is complete and accurate for the site

SFS Executive Group

SFS Leadership Group

SFS Managers Group

SFS Change Manager

WISDM / Data Mart Evaluation Team

SFS Evaluation Team

Grants Suite

PMO Office

Travel

PMO Office

RELATED PROJECTS

PMO Strategic

Project

DoIT Technical

SFS Team/PM

SFS Core Financials

PMO Office

Change Requestorse.g. Purchasing Manager

ControllerSFS Advisory GroupResearch Admin AccountantApplication Developer

. . .

Make improvements while maintaining stable, supportable system

Give consideration to individual campus initiatives

Systematically manage, track and document change requests

Communicate change requests and make visible to all impacted parties

Use of delivered PeopleSoft functionality is implicit unless compelling justification can be made. Each proposed SFS Change Request to delivered PeopleSoft functionality is considered based on the following decision criteria:

Strategic Alignment Regulations, Legislation, and Mandates Functionality Impact and Technical Design Impact Security Impact Production Support Impact Funding (e.g., cost savings) Upgrade Impact PeopleSoft Support Time Constraints Alternative Solutions

Shared Financial System

Questions?

Financial Policies◦ http://www.uwsa.edu/fadmin/finad.htm◦ Financial Administration◦ Academic Administration◦ Information Technology◦ Procurement / Risk Management◦ Tuitions and Fees◦ Other

Travel Policies and Reimbursement Rates◦ http://www.uwsa.edu/fadmin/fppp/fppp36.htm

Travel Contracts◦ Car Rental

http://www.uwsa.edu/fadmin/fppp/fppp36c.htm◦ Lodging

http://www.uwsa.edu/fadmin/fppp/fppp36e.htm◦ Airfare

Brick and Mortar Online

http://portals.foxworldtravel.com/University Cliqbook self-booking tool Must register at https://my.uwsa.edu/

Miscellaneous Travel ◦ Sales Tax Exemption

http://www.uwsa.edu/fadmin/fppp/fppp36i.htm◦ Traveler’s Reference Guide

Reimbursement rates and receipts http://www.uwsa.edu/fadmin/travpub.htm

◦ Travel warnings, baggage fees, currency converters, etc. http://portals.foxworldtravel.com/University

◦ Relocation http://www.uwsa.edu/fadmin/fppp/fppp19.htm

Reimbursement instructions and forms ◦ http://www.uwsa.edu/fadmin/fppp/fppp3624.htm

Complete Expense Report (Excel form)◦ http://www.uwsa.edu/fadmin/travpub.htm

For UW-Madison, the paper based expense reporting system has been replaced with the implementation of the PeopleSoft Expense Management module of SFS which incorporates electronic signature and paperless workflow.

User submits request to supervisor Campus business office reviews for policy and procedural

compliance◦ Meal & lodging costs over the allowed policy maximums◦ Reimbursement claimed for costs that should have been paid directly by the

University◦ Absence of UW business purpose for incurring reimbursable costs◦ Missing or incomplete required receipts or supporting documentation◦ Food and refreshments for meetings do not included required agenda,

justifications or other supporting documentation Payment

◦ Paper Check◦ Direct deposit (Madison only)

Travel Card◦ http://www.uwsa.edu/fadmin/usbank/usbank.htm◦ Individual Liability◦ Issue based on individual’s credit rating◦ Charges must be paid in full within 60 days◦ US Bank limits vendors

Purchasing Card◦ http://www.uwsa.edu/fadmin/Purchasing%20Cards.htm◦ Corporate liability◦ Campus liability not individual◦ Access Online

Manage applications Card expenditures Transaction funding Reporting

◦ US Bank limits vendors

Visa Card issued by US Bank◦ UW business expenses only◦ Individual purchases up to $5,000

Campus may approve lower limits Limitation on vendor categories and commodities Best practice for making low dollar purchases Allows employees to obtain supplies and equipment much more

quickly and reduces the number of purchase orders and requisitions Provides cost savings through consolidated payment (biweekly

payments to US Bank covering each campus’ purchasing card transactions versus individual vendor invoices)

◦ Authorized for travel costs airfare, lodging, conference registrations may reduce out-of-pocket costs for UW System traveler

The Purchasing Card is not:◦ For personal purchases◦ A means to avoid appropriate procurement or payment

procedures◦ A card to access cash, cash equivalents or credit◦ A right of employment◦ For reimbursable meal costs (use your Travel Card)◦ For tax (1099) reportable services

Process◦ Delegated purchasing authority◦ Supervisor approval required to obtain card◦ Training required◦ Receipts and supporting documentation◦ Bi-weekly reconciliation◦ Campus Purchasing Card Program Administrator

Financial and Administrative Policy Financial and Administrative Policy DevelopmentDevelopment

Questions?Questions?

Financial Reporting unit is responsible for:◦ Compiling the annual financial report◦ Providing grants management expertise◦ Construction accounting◦ IRS tax compliance and reporting◦ Various cost studies and financial analysis◦ Primary interface with the Legislative Audit Bureau for

financial audits

CAFR◦ State Comprehensive Annual Financial Report

ftp://doaftp04.doa.state.wi.us/doadocs/2009CAFR_Linked.pdf

◦ UW is a major enterprise fund of the State of Wisconsin and included in the CAFR (page 46)

Annual Financial Report◦ http://www.uwsa.edu/fadmin/finrep/afr.htm◦ Available in total and by campus◦ Audited by Legislative Audit Bureau

Integrated Postsecondary Education Data System (IPEDS)◦ Primary source of data on colleges, universities, and technical

and vocational postsecondary institutions in the United States◦ UW System is required to complete because we receive Federal

financial aid funds◦ Completed for each campus

Grants Management

◦ Coordinates Single Audit A-133

◦ Develops and negotiates Facilities and Administration (F&A) Rates

◦ Develops extramural fringe benefit rates

◦ Liaison with campuses and Federal Relations staff

Capital purchasing◦ Processes purchase orders and invoices for capital projects◦ Liaison between Division of State Facilities (DSF) and campus

Debt Service◦ Calculation of amortization schedules◦ Coordinates payments from campuses to State DOA

Tax Compliance and Reporting

◦ Co-Chair UW System Tax Compliance Group

◦ Unrelated Business Income Tax (UBIT)

◦ Tax Intercept Program

◦ IRS Form 1098, 1099 and 1042S reporting

◦ Other Tax Topics

Financial ReportingFinancial Reporting

Questions?Questions?

Procurement and Safety and Loss

Providing procurement and safety and loss services and guidance to the UW Institutions so they can teach, conduct research and provide outreach to the State and world

Bureau of Procurement Bureau of State Risk Management Minority Business Office Bureau of Enterprise Fleet

Directors of Procurement and OSLP serve on the state wide councils with other state agencies –◦ Risk Management Executive Council (RMEC)◦ Interagency Procurement Council (IPC)◦ Theses councils develop policy and address statewide risk

management and procurement issues

Governor approves every vehicle bought by the State There are strict caps on the number of vehicles the

State is allowed to own DOA centrally purchases vehicles Campuses must turn in a “qualifying vehicle” in order

to buy a new one Campuses can lease a vehicle, with DOA approval, such

as the Chancellor’s vehicle

Department of Commerce certifies Minority, Women Owned and Veteran Owned businesses (MBE’s)

State statutes direct a 5% goal of spending with MBEs DOA’s MBE Coordinator works with state agencies to

identify spending opportunities and to report actual expenditures

UWS Listserves: ◦ Risk Managers◦ Health and Safety◦ Workers Compensation◦ Purchasing

Semi-annual Face to Face Conferences◦ Risk Managers◦ Purchasing

Administrative Services http://www.uwsa.edu/finance/divadmin

Office of Procurement http://www.uwsa.edu/proc/

Office of Safety and Loss http://www.uwsa.edu/oslp/

It is the goal of the UW System to provide a safe and healthful higher education environment for faculty, staff, students and persons utilizing UW System programs and facilities

Proactive loss prevention, health, safety and environmental management

Quality claims management

Protection of UW System assets, both physical and financial

The Office of Safety and Loss Prevention (OSLP) is responsible for providing support services to the campuses in the areas of risk management, occupational safety, environmental affairs and worker’s compensation

Like any multinational corporation the UW System has many manufacturing processes…

Foundries Fabrication Farms Laboratories Art studios Chemical Biological Nuclear

“…as well as” student and faculty based exposures…

Study abroad Student organizations Experiential learning

Dept. of Commerce regulates employee safety for Wisconsin’s public sector – s. 101.055 WI Statutes

Campus staff provide primary responsibility for safety program management

OSLP provides consultation and technical expertise on employee training, recordkeeping, written programs, accident investigations, industrial hygiene surveys, regulatory code assistance, hazard prevention guidance, etc.

Heavily governed by state and federal laws

UW System laboratories, art studios and physical plants generate wastes governed by these rules

Other environmental issues include radioactive waste, air toxics, wastewater rules, special and universal wastes including biohazards and electronic scrap

UW System is delegated by Department of Administration to manage worker’s compensation.

Governed by Chapter 102 WI Statutes OSLP staff determine compensability, direct and

implement medical case mgmt., and oversee dispute resolution

Adjust 1200 claims/year Annual premium of $5M

s.895.46 WI Statutes s.893.82 WI Statutes Liability protection is afforded to all agents, officers

and employees of the University while operating within the scope of their employment or agency

Auto General Civil Rights Environmental Employment Practices Professional Annual Premium of $2M – General Liability and

Medical Malpractice

Contract review for insurance requirements including hold harmless and indemnification language

Development of master affiliation agreements for student internships

Advice on student organizations Fleet and driving issues Sponsored camps and clinics

s. 20.865 WI Statutes s. 16.865 WI Statutes Asset management of building contents including

libraries and special collections, foreign property, and business interruption

UW System is 70% of the State’s Total Insured Value

State of Wisconsin:$17,553,852,358

UW System:$12,175,540,217

Annual Premium: $4.4M

Property, Liability (including medical malpractice) and Worker’s Compensation – self insured through the State of Wisconsin

Excess coverage for Property and Liability UW System purchases separate policies for machinery

and boiler, crime, broadcaster’s liability, camps/clinics, special events, contractual, study abroad, nuclear, and student health insurance

Student Health International Risks Experiential Learning Sustainability Emergency Management/Security Enterprise Risk Management (ERM)

Review legal and process framework for State Purchasing under Ch. 16 and 36 WI Statutes

Review socio-economic programs

Introduce Vendornet

Review resources available

Five person shop Develop and negotiate system-wide contracts in IT, individual

Auxiliary contracts (Bookstores and Food service) for comprehensive campuses

Serve multiple customers on campuses: Campus Purchasing, CIO’s-IT staff, Librarians, and Auxiliary Directors

Help campuses navigate the state procurement process in order to buy the goods and services they need to operate

Help campuses buy the goods and services they need Guide purchasing process in accordance with laws, codes,

policies, and procedures Lead official sealed bid and request for proposal processes Ensure solicitations are open and fair, specifications are not

restrictive, end user needs are met Are aware of and enforce use of mandatory state contracts Report to DOA/ Legislature Keep records

The goal of procurement is to get the right: Product Process Price Quantity Time Place

Competition

Consistency

Integrity

Openness

I am a steward of state, federal or student funds, I want to buy goods and services in compliance with

the laws of Wisconsin, I want to inspire public confidence by following open

and transparent process, I want to ensure the vendor community open and fair

competition, I am liable and can be sued. (Ch. 16.77(2)) WI Statutes

Agencies and the UW System together purchased $1,055,497,397 of goods and services in FY08.

General Purchasing under §16.75, Wis. Stats. Total Spend Total % MBE Spend MBE %

University of Wisconsin 440,647,762 42% 7,736,922 2%

Health and Family Services 144,971,116 14% 4,727,277 3%

Corrections 135,264,607 13% 2,578,677 2%

Administration 73,261,776 7% 4,219,403 6%

Transportation 55,684,452 5% 3,050,895 5%

Natural Resources 39,486,198 4% 831,025 2%

Revenue 31,278,639 3% 1,177,811 4%

Public Instruction 28,673,347 3% 57,632 0%

Workforce Development 25,615,020 2% 2,203,592 9%

Other 66,790,131 6% 2,847,545 4%

Total 1,041,673,048 100% 29,430,779 3%

UWMSN 255,644,697 58%UWMIL 35,497,414 8%UWSTO 18,206,062 4%UWSTP 16,532,955 4%UWLAC 15,548,063 4%UWWTW 12,756,270 3%UWOSH 12,335,746 3%UWRVF 12,074,153 3%UWEAU 11,227,931 3%UWPLT 10,365,126 2%UWSYS 8,959,984 2%UWGBY 8,270,305 2%UWCOL 6,548,160 1%UWPKS 5,964,551 1%UWEXT 5,939,145 1%UWSUP 3,066,505 1%UWADM 1,720,696 0%Total 440,657,762 100%

Act in accordance with the Ethical Code of Conduct (Ch. 19.41)

Do not use your public position for personal gain (ER-MRS-24.04) (PRO-D-8)

Practice heightened awareness

Accept gifts, food, promotional material or anything of value from vendors

Use state computers for conducting personal business Write non-business or personal letters on state

stationery Make personal long-distance phone calls on state

telephones Accept speaking fees or honoraria for personal gain if it

is related to your official duties Endorse vendors’ products or services

State employees are subject to criminal and civil sanctions for ethics violations◦ Fines between $100 and $5000 ◦ County jail up to one year◦ Possible disciplinary action, including suspension or

termination of employment

Similar ordinances may exist at local levels

State laws govern state purchases◦ Statutes◦ Administrative Codes Ch.5-11 and 50

Place authority and responsibility for state purchases in the Department of Administration (DOA) – Ch. 16

DOA established State Bureau of Procurement (SBOP) to implement

State Procurement Manual defines Policy and Procedures

Board of Regents has authority under Ch.36

Permit the delegation of some purchases to some state agencies and institutions

Establish competitive bidding as the preferred method

Chapter 36 gives the Board of Regents authority to obtain goods and services to fulfill their statutory mission

Limited use of this authority Academic Support Services Agreement (ASSA’s) If competition exists, we will follow competitive

procurement process

Some services provided by independent contractors represent special talents needed by the UW System on a temporary basis to fulfill its missions of instruction, research and public service.

If the service is a unique, noncompetitive activity supporting instruction/research/public service, it will be considered an Academic Support Service.

If the cost of the service will be greater than or equal to $5,000, an Academic Support Services Agreement (ASSA) must be executed and approved by a contracting officer of the institution prior to commencement of the service to certify that the competitive purchasing process need not be used.

An ASSA must be executed regardless of the payment method utilized. An ASSA may also be executed in connection with contracts for services under

$5,000. Authority to sign ASSAs may be delegated in writing by the

President/Chancellor. ASSAs $5,000 or greater must be reported to the University of Wisconsin

System Vice President for Finance in accordance with Regent Resolution 7548.

Can bid goods up to any amount Can bid services up to $25,000 Can request proposals up to $25,000 Can justify sole source procurements up to $25,000

VendorNet is a resource to:

◦ Interface with vendors◦ Access procurement information◦ Download required forms◦ Search bids and contracts ◦ Create bidders lists◦ Post bids and contracts◦ Perform other critical tasks

Without a login, you can access content on the ‘General Procurement Information’ page

Contact the VendorNet Information Center for a login authorization form to create an account for yourself as purchasing staff or for program area staff:

◦ “State Agency Operations” login for viewing more info, downloading forms, and creating and maintaining bid and contract announcements

◦ “View Only” login for viewing more info and downloading forms only

The State Procurement Manual is a reference on the process for purchasing goods and services and which forms to use.

Levels of Bidding

Foster competition through a simplified process◦ Best judgment◦ Simplified Bid◦ Official Sealed Bid

At least 3 But as many as practical Open advertising fulfills requirement

Request for BidRequest for ProposalSole Source

$5,000 or less Can make the purchase from the vendor of choice Bids may be taken if prudent Services require written bids - RFB’s Does NOT apply to mandatory contract items

$5,000 < X < $25,000 Three quotes - can be telephone, verbal, catalog,

written Services require written bids - RFB’s Document on bid form Award to lowest responsible bidder

Over $25,000 Written request for bid Written response from vendors Stated bid opening time Public opening Legal notice – Public Notice System Protest / appeals language when services*

Know desired outcome but not approach Mandatory and/or desirable Evaluate on other factors (technical expertise,

experience, financial soundness) Evaluation committee awards points - cost only a

portion (20-40%) Award to vendor with highest point total not

necessarily lowest cost

Services procured through Request for Bid or Proposal require (Act 89):

◦ Cost Benefit Analysis (CBA) (PRO-I-15)

◦ Continued Appropriateness (PRO-I-15)

◦ Union Notification (PRO-I-9)

◦ Protest and Appeal (PRO-I-13, PRO-C-5 and PRO-C-12)

Some goods and services or processes differ from standard procurements and process. Examples include:

Goods/Services Legal services Printing Vehicles Telecomm Equipment Travel

Process Sole source Emergency procurements Grants Non-procurement transactions Interagency purchases

Good, Service Involve Process & Approval

Legal Services Purchasing Staff RPA – DOA, Governor

Printing Print Manager Bid only – Ch. 35

Vehicles Fleet Manager - buyDOA - lease >30 days

Form 3016, GovernorJustification, DOA

Telecomm. Equipment

Telecomm. Manager TSSR if off contract and > $10,000

Travel Travel Coordinator Depends on need

Sole Source Purchasing Staff < $25K del/SBOP/Gov> $25K SBOP/Gov

Emergency Procurements (PRO-C-3) ◦ Are defined by threat to public health, safety or welfare; or

exists by Governor’s proclamation◦ Write justification within 72 hours including:

the nature of threat the call for unforeseeable immediate action why need can’t be met by procurement process and the steps taken to obtain competition

◦ Purchases over $25,000 require approval by SBOP and DOA Secretary

Grants & Other Non-procurements (PRO-C-32)

◦ Grants are transfers of things of value to a recipient for purpose of support or stimulation rather than to acquire goods or services which directly benefit the state. Exemptions require SBOP and DOA Secretary approval or as Ch. 36

◦ Non-procurement transactions are payments made pursuant to statute when only one provider is statutorily permissible and the rate of reimbursement is set by statute

◦ Interagency purchases between Wisconsin state agencies are not procurement transactions

If what you need is on a mandatory contract, you will buy from the contract (PRO-B-1)

SBOP’s centralized purchasing acts in the best interest of the state to aggregate spend, leverage price, and standardize contracts for commonly used products across agencies and campuses

Mandatory contracts (10-, 14-, 15-, 18-, 20- series) include goods and services from SBOP statewide/ enterprise contracts, work centers, and Badger State Industries (BSI)

Is what I need available on an existing contract or directly from another government entity?◦ Statewide/Enterprise Contracts (11-series)◦ Piggybacking is the use of a contract from another Wisconsin state

agency (PRO-D-29)◦ Collective Purchasing (Consortium) is the use of contract from

another state or federal government and requires SBOP approval (PRO-D-25)

◦ Inter-governmental Purchasing is purchasing directly from the federal, state, or municipal governments (except GSA contracts and other non-competitive bid contracts) (PRO-C-25)

You may use a Purchasing Card (P-card) to pay for purchases under $5,000 through best judgment

PRO-E-23 outlines roles and responsibilities for an agency or campus administrator’s P-card program management and cardholder’s use and training

Program administrators may request SBOP approval to use the P-card as payment for purchases over $5,000 through simplified bid, request for bid/proposal

Competition does not exist Prior process may dictate (software compatibility) Best interest of the State as determined by State over $25k

– requires Governor’s approval Waivers usually for intrinsic value, emergency, bidding not

possible, or substantial time pressure

The State of Wisconsin has a 5% goal and a 5% price preference (§16.75(3m)(b)) for certified MBE’s

Agencies apply the 5% preference as outlined in PRO-D-1 and submit activity tracking reports to DOA

For more program info, visit the DOA webpages at http://www.doa.state.wi.us/section.asp?linkid=113&locid=0 or contact Keith.Broadnax@Wisconsin.gov, (608) 267-3293

Search for a minority business by industry at http://www.commerce.state.wi.us/php/mbeod/sic_result_page.php

BSI is the Dept. of Corrections vocational and work skills development program

State law requires agencies and campuses to ◦ Write, to the extent possible, specifications to permit

purchase of good or service from BSI◦ Purchase from BSI if price is comparable

See PRO-C-33 for more detailed process information

Examples of current mandatory contracts include furniture and signage

The State Use program supports certified work centers that offer training and job opportunities to individuals with severe disabilities per §16.752

Agencies must purchase from a work center if the good or service meets specification and is at fair market value (e.g. mail, lawn, or janitorial services)

You must purchase from work center mandatory enterprise 14-series contracts (e.g. clothing, mops, brooms, pens, pencils, food, crates, pallets, first aid kits, toothpaste, and vinyl floor mats)

See http://www.stateuseprogram.wisconsin.gov/ and PRO-K Work Centers for more information

UW-Madison MDS◦ The MDS Web Ordering System allows customers to order

from MDS and all the Prime Vendors at one time, through one web site

◦ Items that can be ordered are computers, lab supplies, maintenance supplies and office supplies

◦ More information can be found at:http://www.bussvc.wisc.edu/mds/howbuy.html

Pay properly submitted invoices within 30 days of receipt or pay interest (PRO-E-6)◦ Invoice must be received at address indicated on the purchase

order◦ Goods or services must be received or performed satisfactorily

Notice of Good Faith Dispute stops the clock

Interest paid out is covered by agency budget and annually reported to the legislature

The Procurement office is there to help Visit our website at: http://www.uwsa.edu/proc/ New initiatives on the horizon

◦ Supply project - vendor management◦ Improved website◦ On-line training

Remember…..

Presenter’s 1st concern

“…responsible for providing objective review and analysis to assure that University of Wisconsin programs, policies, and practices are conducted in accordance with state law and Board of Regents policy. The Office helps ensure University operations are proper, efficient, and effective.”

Report to the UW System Vice President for Finance Dotted line to UW System President and Board of

Regents Formal audit/review reports typically presented to the

Business, Finance, and Audit Committee Relationship with institutional auditors

Gain understanding of risks/issues through multiple sources

Conduct risk analysis of identified policies, issues, or programs

Share draft plan with and receive input from UW System management and institutional management

Present to Board of Regents Maintain flexibility for internal projects

Project overview or scope memo◦ Background data◦ Specific purpose◦ Project methodology

Fieldwork◦ Campus visits or interviews

Draft reports for institutional review◦ Comment period

Textbooks costs UW-sponsored camps & clinics Prior learning assessments Student evaluation of instruction Division III athletic departments Internal reviews

◦ Fund 402◦ Academic staff job security

Committee or support work

Considered to be UW System’s external auditors for annual financial and federal compliance audits

May perform additional financial and program reviews requested by the Legislature

Institutional involvement may vary

http://www.legis.state.wi.us/lab/

As soon as there is any indication of actual or suspected theft, embezzlement or falsification of documents:◦ The discovering party should immediately notify the Unit Business

Officer, who should immediately notify the Chancellor and the System Vice President and Trust Officer.

◦ The System Internal Auditor, in cooperation with appropriate institution officials designated by the Chancellor, will investigate the matter and determine if audit assistance is needed.

◦ Following a full investigation, determination will be made by the System Internal Auditor, the General Counsel's Office and institutional officials of whether to notify the Department of Justice.

Julie Gordon, Director(608)263-4395jgordon@uwsa.edu

Joshua Smith, Assistant Director(608)263-4396jmsmith@uwsa.edu

Core Functions

Provide for the administration, record-keeping and investment of endowment and other investable funds entrusted to the Board of Regents (BOR) of the UW System

Mission

Provide the BOR with the support, information and analyses they require to fulfill their responsibilities as fiduciaries/trustees

Provide excellent (valuable, timely, accurate & efficient) products & services to our internal and external “customers,” primarily Trust Funds account holders and donors◦ Products/services include investment vehicles, investment counseling,

transaction processing, record-keeping, and the dissemination of useful information and data

Office Staffing

Douglas Hoerr, CFA – Director and Assistant Trust Officer Thomas Reinders – Senior Investment Analyst Debra Morgan – Senior Accountant Jamie Erbs – Financial Specialist 3 (half-time)

Trustees & Other UWSA Officers

BOR – Business, Finance, and Audit Committee Deborah Durcan – V.P for Finance and Trust Officer Patricia Brady – General Counsel and Assistant Trust Officer

External (directly to TF)

Primarily “bequests” (estate gifts via wills or trusts) Other individual & corporate gifts (including matching dollars) where stipulate:

◦ “endowment”◦ “invest FBO program…”

Documents name:◦ UW System or Board of Regents of the UW System◦ any UW institution or unit

Documents do not name an affiliated UW foundation:◦ UW foundations are separate legal entities◦ if a bequest does not name a foundation, it cannot go to a foundation

UW Trust Funds is also available if:◦ a campus does not have a foundation (e.g., UW-Extension)◦ a donor does not want to give through a foundation

Internal (indirectly to TF)

Transfers for “temporary investment” of other gifts/grants/contracts where sponsor/donor stipulates:◦ “invest FBO sponsored program or related activities…”◦ investable amount is ≥ to $5,000 (UW Madison - $50,000)

“Temporary” TF account established, but:◦ an associated account remains at RSP (e.g., in Fund 133, 233, 144)◦ funds for expenditures must be transferred back to RSP account

Basically, UW-Madison’s RSP policies/practices

Monies transferred in from foundations are not transferrable to Trust Funds

Endowment (E) – donor/sponsor restricts use of “principal”

Designated Endowment (DE) – Board of Regents restricts use of “principal” (bequests ≥ $250,000, where donor silent)

Quasi-Endowment (QE) – no restriction on use of “principal;” all monies expendable

149

Three distinct funds/pools for different investment time horizons:

◦ Income Fund (161) – earnings/interest distribution from all Funds are posted to the Income Fund to provide dollars for current spending; also, QEs can be partially or wholly invested here; time horizon ~ 2 years or less

◦ Intermediate Term Fund (162-IT) – QEs can be partially or wholly invested in IT; also, unspent earnings from prior fiscal years within Income Fund transferred to IT annually; time horizon ~ 2-7 years

◦ Long Term Fund (162-LT) – E/DEs must be wholly invested in LT; also, QEs can be partially or wholly invested in LT; time horizon ~ 7+ years

Funds are unitized pools invested in various underlying funds and separate accounts (private “mutual funds”)

150

Target Asset Allocations

Long Term Fund – a very diverse portfolio of asset classes categorized as “growth and high-yielding” (~55%), “event-risk and deflation hedges” (~20%), “real assets and inflation-hedges” (~25%); valued quarterly

Intermediate Fund – intermediate-term bonds (~75%), large-cap stocks (~15%), alternatives (~10%); valued quarterly

Income Fund – invested 100% in short-term money market instruments (SWIB’s “State Investment Fund);” valued daily

Grantham, Mayo, van Otterloo (GMO)

UBS Global Asset Management

J.P. Morgan Investment Management

Adams Street Partners

300 North Capital

Seix Advisors

Applied Security Analysis Program

Russell Mid-Cap ETF (iShares)

Russell 2000 Growth ETF (iShares)

Reams Asset Management

Applied Security Analysis Program

Seix Advisors

Lehman TIPS ETF (iShares)

S&P 500 ETF (iShares)

MSCI EAFE ETF (iShares)

Donor/individual investment accounts◦ 1,502 “parent” accounts◦ 1,238 “child” or sub-accounts (more on these later)

Assets (as of December 31, 2009):Income Fund $ 46.8 millionIT Fund 75.6 million LT Fund 304.5 millionUW Trust Funds Total $ 426.9 million

UWSA - Office of Trust Funds Investment Performance Results (periods ending December 31, 2009)

1 Year 3 Years 5 Years 10 Years Income Fund 0.5% 2.7% 3.3% 3.1%T-Bill (30-day) 0.1% 2.0% 2.7% 2.7%

Intermediate Term Fund 15.9% 6.8% 5.3% 6.1%Lehman Intermediate Aggregate 6.5% 6.1% 5.0% 6.1%S&P 500 26.5% -5.6% 0.4% 3.1%

Long Term Fund 22.4% 1.5% 6.3% 5.3%70/30 Benchmark 22.5% -1.5% 2.8% 1.8%CPI + Spending Rate + Expenses 7.7% 7.1% 7.4% 7.4%Peer Median 19.4% -1.2% 3.8% 3.5%Peer Ranking: Percentile 36th 10th 7th 22nd

For External Funds (directly to TF)

All original gift documents should come to TF Office Director works with estate/donor reps to secure gift Director coordinates with benefiting campus/unit:

◦ letter to Chancellor (or System President for UW System gifts), copying unit heads

◦ provides gift information (including donor terms); asks for further direction where appropriate

TF Office opens new investment account◦ on SunGard (TF record-keeping system) and SFS◦ “new account notification” e-mailed to benefiting unit giving details (e.g.,

UDDS, program/activity coding, investment direction…) TF Office maintains all donor documents

For Internal Funds (indirectly to TF)

Route the following to TF Office:◦ letter describing reasons for transfer and “deposit/gift routing/T-form”:

note associated RSP account number indicated investment direction (or call for help) attach check Dean’s approval/signature

◦ copy of relevant gift/grant/sponsor stipulation, re: investment TF Office opens new investment account (same as on prior slide) RSP (or other originating unit) periodically requests transfers to associated RSP

account for expending RSP (or other originating unit) maintains all donor/sponsor/grantor documents

and is entirely responsible for proper administration

Purpose and Limitations

Generally, used only for large, endowed “parent” accounts that are:◦ discretionary or multi-purpose (e.g., UWMSN-Hilldale Fund - 0488)◦ for named Chairs or professorships (e.g., UWMSN - Dr. Robert Turrell

Professorship Fund-1814)◦ for research (e.g., UWMIL-Uihlein Trust Funds-1084)

Generally, only “income” from a parent account is transferred to sub◦ earnings on sub wrap back to parent

Expenditures from sub must conform to parent terms/conditions where applicable

Establishing Sub-Accounts

Route the following to TF Office:◦ letter of request, describing purpose, parameters, “budget transfer” amount,

begin/end dates◦ Dean’s approval/signature

TF Office opens new sub-account and initiates money transfer from parent

Terms/Conditions Donor-imposed terms/conditions:

◦ upon written request from donor◦ upon court approval if purpose deemed “unlawful, impracticable, impossible to achieve,

or wasteful” (UPMIFA) ◦ changes/modifications must still be “consistent with the charitable purposes expressed in

the gift document”◦ for smaller (less than $75,000), older (greater than 20 years) funds, upon 60 days’ notice

to Attorney General (with above limitation) Insitution/unit-imposed terms/conditions:

◦ upon written request from Dean or Chancellor

Account Coding Upon written request from department head Changes cannot be inconsistent with terms/conditions

Investment Direction Upon written request from department head Generally involves only QEs Can call for help

Investment Income/Earnings Distributions:

All flow back to Income Fund (161) for spending purposes◦ all actual earnings on Income Fund and IT Fund balances◦ for LT (“endowment”) Fund: 4% per year of moving 3-year average Fund

market value (1% per quarter)

Balances Available Depend on Account Type:

For all accounts, Income Fund (161) balances are available for immediate spending ◦ all expenses are to be charged to 161

For all accounts, Intermediate Term Fund (162-IT) balances are available ◦ but can only be liquidated to cash and transferred to Income (161) at quarter-

ends◦ values can fluctuate

For QEs only, Long Term Fund (162-LT) balances are also available◦ same cautions here as for IT

PAL (“Portfolio Account Link”)

Access via TF web-site: www.uwsa.edu/tfunds/ Accesses SunGard account record-keeping database View all balances: Income Cash (161), Intermediate Term (162-IT), Long Term (162-LT)

◦ IT and LT balances/market values are as of prior quarter-end View transaction activity:

◦ 24 months available◦ transactions include internal investment-related activity, not just

expenditures/payments Can download data to Excel

WISDM

View only Income Cash Fund (161) balances Best way to view expenditure activity (PAL shows other activity) “Actual Cash” balance should equal Income Cash Fund on PAL (except for daily timing

issues)

Go to www.uwsa.edu/tfunds/:

“Account Balances and Transactions” (PAL access – see appendix in hand-out material)

“Account Terms, Conditions and Coding” (see appendix in material) “Investments”, etc.

Charge directly to TF 161 account:◦ ensure expenditure complies with account terms/conditions◦ complete proper form (PIR, TER, non-salary payment transfer with invoice)◦ note Fund 161, and the 7-character account/project being charged (e.g., 1611576

or PJR21EW)◦ no “transfers” to campus accounts required as with foundations

Payments will be made if:◦ sufficient available funds exist◦ conforms to pre-audit guidelines◦ complies with account terms/conditions

verified by TF office on post-audit basis

Campuses/departments can conduct only expenditures on TF accounts◦ all revenues of any kind can only be conducted by/through TF Office

Other Policies/Practices

Pending account for new bequests “IT sweep” of unspent Income Cash Fund balances Overdraft coverage policy

◦ “Danger Will Robinson!” Compliance with laws/statutes, including UPMIFA

◦ “underwater endowments” “Socially Responsible Investment” (SRI) efforts Performance benchmarking (NCSE, Big 10, TUCS)

Fees Assessed to Trust Funds

Internal TF Office costs: ~0.10% Investment management-related costs: ~0.68% (LT and IT Funds)

TF: A Capable “Investment Office”

TF Office stands ready to invest other UW monies!

Contact Information:

Doug Hoerr Debi MorganDirector Senior Accountantdhoerr@uwsa.edu dmorgan@uwsa.edu(608) 262-9779 (608) 265-9664

Tom Reinders Jamie ErbsSenior Investment Analyst Financial Specialist 3treinders@uwsa.edu jerbs@uwsa.edu(608) 265-4174 (608) 262-7480

How to Get Account Info Via PAL

Go to TF website: www.uwsa.edu/tfunds

Go to “Customer Corner”:◦ click on “Account Balance and Transactions” link

At User ID prompt, type in (lower case):◦ UW_ _ _ (3 letter campus code, e.g., MSN) – allows access to all campus

accounts◦ to be more selective, type in first 2 digits of UDDS, or entire UDDS (e.g., MSN48

for all L&S accounts)

At Password prompt, type in “trust” (lower case)

Click on Login button

How to Get Account Info Via PAL (cont.)

To pull up desired account, either:

◦ click on drop-down arrow under Account (upper left-hand of screen), click on desired account number click on Go! Button

◦ or, click on Find More link, and: enter core 4-digit account code (e.g., 1574, 21FH) at Search Text prompt click on Find button account number and name will come up below click on the account number itself

UWMSN should use this approach – too many accounts for a drop-down menu

How to View Account Terms/Conditions/Coding

Go to TF website: www.uwsa.edu/tfunds

Go to “Customer Corner”: ◦ click on “Account Terms, Conditions, and Coding” link◦ enter core 4-digit account code (e.g., 1574, 21FH) at Enter 4 digit account

number prompt ◦ click on Find this Account button

UW SYSTEM’SGROWTH AGENDA FOR WISCONSIN

Lots of Rules

Lots of Regulation

Lots of Resources Available

CORE GOALMore jobs

CORE GOALMore jobs

CORE GOALMore graduates

CORE GOALMore graduates

Foundational ActivityCompetitive UW

workforce

Foundational ActivityCompetitive UW

workforce

7,700

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26Base Year2008-09

Cumulative Additional Grads 80,000

0

10,000

20,000

30,000

40,000

50,000

05/0

6

06/0

7

07/0

8

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

13/1

4

14/1

5

15/1

6

16/1

7

17/1

8

18/1

9

19/2

0

20/2

1

21/2

2

22/2

3

23/2

4

24/2

5

25/2

6

Associate Bachelor's Graduate or Professional

Actual Goal

7,700

Cumulative Additional Associate & Bachelor’s by 2025-26

UW-Platteville 4,350

UW-River Falls 5,600

UW-Stevens Point 3,700

UW-Stout 4,350

UW-Superior 1,700

UW-Whitewater 4,000

UW Colleges 11,700

Cumulative Additional Associate & Bachelor’s by 2025-26

UW System 80,000

Cumulative Additional Associate & Bachelor’s by 2025-26

UW-Eau Claire 6,750

UW-Green Bay 5,650

UW-La Crosse 4,600

UW-Madison 4,950

UW-Milwaukee 14,050

UW-Oshkosh 7,500

UW-Parkside 1,100

Remaining Questions?

Please Complete the Evaluation Form at:

http://uwsystemadmin.qualtrics.com/SE?SID=SV_e8oMrvhmW84UwpC&SVID