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 [email protected], (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)[email protected]
Joshua Smith, Assistant Director(608)[email protected]
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 [email protected] [email protected](608) 262-9779 (608) 265-9664
Tom Reinders Jamie ErbsSenior Investment Analyst Financial Specialist [email protected] [email protected](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