Finance
Why We Do What We Do
Organizational Chart for Controller
What Are Our Goals?
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Accurate financial transactions
Compliance with donor, sponsor,
university, state, and federal rules
Efficient transaction processing
Best value procurement, while
using HUB vendors whenever
possible
Secure and user friendly financial
system
Accurate Financial Transactions
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What does this mean?
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Correct account
Appropriate cost center
Correct vendor, address, invoice,
dates, and amount on vouchers
Correct vendor and order information
on requisitions and PO’s
Correct tax treatment
Correct accounting treatment
Accurate Financial Transactions
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Why is this important?
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Financial data is used by UH
management to make decisions
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Bad data leads to bad decisions
Financial data is evaluated for
accuracy by internal and external
auditors
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Inaccurate data could mean loss of
funding, fines, and bad publicity
Accurate Financial Transactions
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Why is this important?
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Financial data is evaluated by
legislators, sponsors, and donors to
determine if we are meeting our goals
Ensure the correct items are ordered
Ensure vendors are paid correctly
Ensure 1099-MISC, 1042S, and W-2
Forms are correct
Compliance with Donor, Sponsor,
University, State, and Federal Rules
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External Rules
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OMB Circular A-81 (supersedes most other circulars;
federal funds)
US Treasury Regulations
Texas Government Code
Texas Constitution
Texas Education Code
Texas Administrative Code
External Rulemakers
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Federal Agencies that Sponsor Research
Internal Revenue Service
Texas Legislature
Texas Comptroller’s Office
Government Accounting Standards Board
Compliance with Donor, Sponsor,
University, State, and Federal Rules
External Rules that Apply to Specific Funds
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State Funds (1xxx and some 7xxx)
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eXpendit
https://fmx.cpa.state.tx.us/fm/pubs/purchase/index.php
Textravel
https://fmx.cpa.state.tx.us/fmx/travel/textravel/index.php
General Appropriations Act (GAA)
http://www.lbb.state.tx.us/StateBudgetsGAA.aspx
Legislative Budget Board Guidelines for Higher Education
Assistance Funds (HEAF)
http://www.uh.edu/af/universityservices/policies/mapp/11/
110201.pdf
Auxiliary Funds (3xxx)
Auxiliaries, Athletics, and Alumni activities cannot be
supported by state appropriated funds (GAA, Article III)
Athletics cannot purchase alcoholic beverages with any
funds and must follow NCAA guidelines (GAA, Article III)
Compliance with Donor, Sponsor,
University, State, and Federal Rules
External Rules that Apply to Specific Funds
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Restricted Funds (4xxx)
Donor requirements for scholarships
 Donor requirements for endowment income
Sponsored Project Funds (5xxx)
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Sponsor requirements for research contracts and grants
Federal regulations for federal grants
http://www.uh.edu/research/sponsored-projects/postaward/
Endowment and Loan Funds (6xxx)
Donor requirements for endowment funds
Bank requirements for loan funds
Agency Funds (9xxx)
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Owner of fund (not UH) determines how it is used
Must meet minimal documentation standards
Compliance with Donor, Sponsor,
University, State, and Federal Rules
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Internal Rules
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UH System Board of Regents Policies
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UH System Administrative Memorandums
(SAMs)
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http://www.uhsystem.edu/board-ofregents/policies/index.php
http://www.uh.edu/af/universityservices/policies/s
am/index.htm
UH Manual of Administrative Policies and
Procedures (MAPPs)
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http://www.uh.edu/af/universityservices/policies/
mapp/index.htm
Compliance with Donor, Sponsor,
University, State, and Federal Rules
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Institutional Compliance Program
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Identify external rules we must follow
Determine the risk of not complying with
those rules
Develop a plan to reduce the risk of
noncompliance
Overview of Institutional Compliance
Program
http://www.uh.edu/compliance/
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Report suspected fraud and noncompliance
at http://www.mysafecampus.com/
Efficient Transaction Processing
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Workflow/Document Imaging in Finance System
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P-Cards for Non-Travel Purchases $5K or Less
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Fewer employee reimbursements
Fewer vouchers to pay vendors
Update cost center/account in GCMS
$3K limitation for federal funds
Travel Cards for Travel Purchases
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Faster approval
Track transactions through approval process
Discard paper copy when posted
Less out-of-pocket cost for traveler
Update cost center/account in GCMS
Employee Self-Service for AP Direct Deposit
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Enter/update bank information in PASS
Best Value Procurement While Using
HUB Vendors Whenever Possible
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Texas HUB Vendor Directory
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http://www2.cpa.state.tx.us/cmbl/cm
blhub.html
Lists all HUB vendors in Texas
See HUB search instructions
UH HUB Program
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http://www.uh.edu/hub/
Contact Purchasing for help in finding
a HUB vendor.
Secure and User Friendly Financial
System
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Finance System Security
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Request for UHS Finance System
Access (FS002) required for access by
UH employees
http://www.uh.edu/finance/Forms/Acc
ess_Request/FinancialSystem.html
Secure and User Friendly Financial
System
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Finance System Security
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Password must be at least 8
characters and contain at least 1
number, 1 letter, and 1 special
character
Password must be changed each 60
days
Annual Secure Our Systems training
must be completed by all employees
Secure and User Friendly Financial
System
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User Friendly (We Hope)
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Single sign-on for Finance, HR and
Student Systems, and PASS
Workflow and document imaging
Custom reports and public queries
Verification worksheet to verify cost
center transactions
Lookup AP payments and update
direct deposit information in PASS
Secure and User Friendly Financial
System
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PeopleSoft Design
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Finance, HR, and Student systems
share common fields so they can
“talk” to each other
Enter data once and it can be reused
Enter Requisition
 Copy to PO
 Copy to PO Voucher
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Access via web 24/7
Procurement
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Education Code
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State universities may purchase goods and services
by whatever method is deemed the best value for the
institution (Section 51.9335)
http://www.statutes.legis.state.tx.us/
Texas Administrative Code
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Utilize HUB vendors whenever possible (Title 34, Part
1, Chapter 20, Subchapter B)
http://texreg.sos.state.tx.us/public/readtac$ext.viewtac
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Texas Government Code
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Prohibits payments to persons and companies “on
hold” with the state (Section 403.055)
http://www.statutes.legis.state.tx.us/
Texas Constitution
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Printing must be competitively bid (Article 16, Section
21) http://www.statutes.legis.state.tx.us/
Procurement
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State fund rules
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eXpendit
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https://fmx.cpa.state.tx.us/fm/pubs/purchase/index.php
Federal fund rules
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OMB Circular A-81, etc.
http://www.uh.edu/research/sponsored-projects/postaward/
UH rules
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PO purchases – MAPP 04.01.01
Voucher purchases – MAPP 04.01.03
P-Card purchases – MAPP 04.01.11
Contracts – MAPP 04.04.01A
HEAF purchases – MAPP 11.02.01
Procurement
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UH resources
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Procurement Rules Checklist
Best Practices for Vendor Payments
State Fund Procurement Restrictions
P-Card and Travel Card Matrix
P-Card Guidelines
Vendor Hold Status
http://www.uh.edu/finance/pages/Ref
erences.htm
Procurement
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UH resources
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http://www.uh.edu/administrationfinance/purchasing/
Addendum A: Vendor Selection Flowchart
Addendum B: Pre-Approval Form for Requisitions
Addendum C: Purchase Requisitions Exceeding
$100,000
Justification for Proprietary (Sole Source) Acquisition
Buyer’s Checklist
Lab Animal Flowchart and Purchase Request Form
http://www.uh.edu/finance/pages/forms.htm
Travel
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TX Govt Code 660.007 (all funds)
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Minimize travel expenses; travel
arrangements must be cost effective
IRS rules (all funds)
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Publication 463, Travel, Entertainment, Gift,
and Car Expenses http://www.irs.gov/
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Accountable plan
Documentation
Business purpose
State fund rules
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Textravel
https://fmx.cpa.state.tx.us/fmx/travel/text
ravel/index.php
Travel
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Federal fund rules
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OMB Circular A-21, etc.
http://www.uh.edu/research/sponsoredprojects/post-award/
UH rules
http://www.uh.edu/af/universityservices/policies/mapp/in
dex.htm
 State fund travel – MAPP 04.02.01A
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Local fund travel – MAPP 04.02.01B
Corporate Travel Card – MAPP 04.02.01C
Student travel – MAPP 04.02.04
Travel Card – MAPP 04.02.05
Travel
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UH resources
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Travel Voucher Checklist (for State
Fund, Local Fund, and Non-Overnight
Transportation)
Mileage Reports
Travel Accounts
P-Card and Travel Card Matrix
Travel Card Guidelines
http://www.uh.edu/finance/pages/AP_
Travel.htm
Taxable Payments to Individuals
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IRS rules
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Publication 15, Employer’s Tax Guide
Publication 15A, Employer’s
Supplemental Tax Guide
Publication 15B, Employer’s Tax Guide
to Fringe Benefits
Publication 521, Moving Expenses
UH rules
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Taxable Fringe Benefits – SAM
03.D.06
Moving Expenses – MAPP 02.02.05
Taxable Payments to Individuals
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UH resources
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Voucher Workflow Matrix for Scholarships and TaxRelated Payments
http://www.uh.edu/finance/pages/References.htm
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Exhibit A: Tax Treatment of Scholarships, Stipends,
and Awards/Prizes/Gifts (SAM 03.D.06)
http://www.uh.edu/af/universityservices/policies/sam/
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Exhibit B: Taxable Payments or Reimbursements to
Employees
http://www.uh.edu/finance/pages/forms.htm
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Exhibit C: Most Frequent Taxable/Non-taxable Fringe
Benefits (SAM 03.D.06)
http://www.uh.edu/af/universityservices/policies/sam/
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Addendum A: Authorization for Moving and Relocation
Expenses (MAPP 02.02.05)
http://www.uh.edu/af/universityservices/policies/mapp/index.htm
Tax Exemption
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Texas Sales and Use Tax Exemption Certificate
http://www.uh.edu/finance/pages/tax_doc.htm
UH rules: MAPP 04.01.03 and P-Card Guidelines
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Do not pay sales tax to Texas vendors when paying by
voucher
Employees are expected to present Certificate to
Texas vendors, except for business meals
If vendor refuses Certificate, employee can be
reimbursed for full amount of tax (except fund 1 & 5)
If employee does not present Certificate, employee
can be reimbursed up to $10 sales tax per transaction
(except on fund 1 & 5)
If Texas vendor charges sales tax on P-Card, ask
vendor to refund the sales tax to the P-Card
Tax Exemption
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Texas Hotel Occupancy Tax Exemption
Certificate
http://www.uh.edu/finance/pages/tax_doc.htm
UH rules
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State Funds - MAPP 04.02.01A
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Employee must present Certificate to Texas hotel and
verify state portion of hotel occupancy tax (6%) is
not charged
If hotel refuses Certificate, notify AP and employee
can be reimbursed for tax
If employee does not present Certificate, he/she
cannot be reimbursed for tax
Local Funds – MAPP 04.02.01B
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Employee is reimbursed for tax (except fund 5)
whether he/she presented Certificate or not; notify
AP if hotel refuses certificate
Accounting
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Federal Rules
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Government Accounting Standards Board (GASB)
Accounting Rules http://www.gasb.org/
UH Resources
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Account List
Fund Codes
GL Journal Checklist (under GL Journal Workflow
Information)
Fund Equity Transfers (under Transaction Processing)
Service Center and Auxiliary Business Process Matrix
(under SC Voucher Workflow Information)
http://www.uh.edu/finance/pages/References.htm
Fraud Prevention
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Department Fraud Risk Survey
Institutional Fraud Risk Survey
Fraud Reporting Hotline
http://www.mysafecampus.com
Fraud and Institutional Compliance
FAQs on the Web
http://www.uh.edu/finance/
Fraud Prevention and Awareness
Training
Code of Ethics Training