PAYROLL, PAYABLES AND EXPENDITURES DIVISION EXPENDITURE CONTROL DEPARTMENT

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1 PAYROLL, PAYABLES AND EXPENDITURES DIVISION Summary of Major Accomplishments The Expenditure Control Department consists of two functional areas, the Payroll Section and the Encumbrance and Disbursement Section. During FY2003 the Payroll Section processed more than 85,000 payroll vouchers, while the Encumbrance and Disbursements Section processed approximately 200,000 payments and employee travel documents. A major accomplishment during the year was the complete installation of the paperless payroll voucher system for monthly and academic pay types. The system now includes more than 3,200 accounts that are set up to be processed electronically. The Department Manager and Payroll Supervisor conducted numerous training classes during the year to train campus personnel on the operation of the new system. The Internal Audit Department conducted a review of the system and stated that the implementation of the electronic voucher system was one of the best implementations of a new program for the campus that they had seen. The new system eliminated the manual processing of paper vouchers entirely for the completed pay types, and performs the numerous mundane arithmetical calculations that accompanied them. Several positions in the Department now work extensively on the maintenance of the system and assisting various departmental payroll representatives. The Department further streamlined the processing of employee travel reimbursements by eliminating the involvement of the Control and Data Input Department. In the past, Expenditure Control audited reimbursement requests and routed the approved payment forms to the Accounts Payable Department. Accounts Payable then batched the forms, calculated and recorded control totals, and submitted the forms to Information Systems Scheduling, where the data was keyed into the payment system. With some minor programming changes, the Department began to directly input the data into the payment system. Employees now receive their travel reimbursements approximately three days earlier on average than with the previous method. The Department also pays travel agencies in a more expedient manner since the change in the input process. As the Department processes more than 35,000 travel reimbursement requests per year, this improvement represents a major accomplishment. The Department Manager conducted various training seminars during the year to familiarize and assist various campus personnel with the University s accounting system and policies and procedures. Summary of Goals The Department s primary goal for the upcoming fiscal year is to complete the installation of the electronic payroll voucher system. The salaried bi-weekly payroll and the hourly bi-weekly payroll remain to be implemented. Various departments are C-210

2 currently testing the salaried bi-weekly payroll electronic vouchers, with approximately 25 accounts online. The Department Manager and the Payroll Supervisor will begin to assist and train departmental payroll representatives with the new pay type once the testing phase is completed. The Department plans to begin direct input of all commitments and obligations for purchase order encumbrances. Currently, the Information Systems Scheduling Department inputs all purchase requests and purchase orders into the financial accounting system based on batches prepared by Expenditure Control. This process is slow and requires more handling than should be necessary, and the Department believes that direct input will be much more efficient and accurate. The Encumbrance and Disbursement Section has begun testing the new procedure and implementation should begin soon. The Department is also working with Accounts Payable to maximize the benefits of the new digital imaging workflow process system, and is working with the system vendor to develop a new work process by which all purchase orders will electronically flow directly to Expenditure Control for encumbering. This process will reduce handling and further speed up the encumbrance process. The Department continues to plan for an electronic check request system and an electronic travel system. The Administrative Information Systems staff possess the technology and expertise to develop these systems in a manner similar to that utilized in the electronic voucher system, but the staff are overwhelmed with other projects and have been unable to work on these. The proposed systems would be very similar in design and function. University staff would initiate the electronic check request via a web-based form. The system would perform various edits on input information and require corrections prior to allowing submission of the form. The system would also provide information prompts and give warnings when warranted based on input values. The electronic form would flow through approval levels as needed and the system would use to notify approvers of needed actions. The s would include a link that would take the reviewer to the appropriate form. The approved electronic form would flow to Expenditure Control for final review, and the staff would release it into the accounting system. The system would track all documents and interested parties could inquire the system to check the status of their form. The system would also retain accurate electronic records to provide comprehensive accountability of all transactions. The travel system would work similarly to the check request system with the primary difference being the need for an electronic travel approval form. This form would be the initial point of data entry for the traveler and all data would flow automatically to the reimbursement form when the traveler completes the trip and is ready to be reimbursed. These two efforts would represent a tremendous step forward in the effort to streamline business processes and remove paper from the office. C-211

3 SUMMARY OF ENCUMBRANCE DOCUMENTS PROCESSED EXHIBIT A Source Documents Number of Documents per Month Amount per month Purchase Requests 38,953 3,246 $142,762,452 $11,896,871 State Purchase Orders 1 $956,600 Field Purchase Orders 38,950 3,246 $139,359,789 $11,613,316 Travel Authorities (Out of State) 11, $9,703,357 $802,613 TOTAL 89,522 7,460 $292,782,198 $24,312,800 Documents per Day - 344

4 SCHEDULE OF CHECK REQUESTS PROCESSED EXHIBIT B Month July 6,431 5,531 5,731 4,993 August 4,955 7,049 6,528 6,461 September 6,597 5,806 5,771 5,053 October 5,655 6,202 5,929 7,482 November 5,116 6,473 6,535 5,377 December 4,892 3,967 4,338 4,674 January 5,296 5,702 6,524 5,806 February 5,759 6,146 5,800 5,955 March 7,471 7,901 6,327 6,246 April 5,841 6,499 6,422 6,009 May 6,603 8,593 8,015 7,673 June 6,857 5,959 6,187 5,929 TOTAL 71,473 75,828 74,107 71,658 per Month for FY ,972

5 SUMMARY OF PAYROLL DOCUMENTS PROCESSED EXHIBIT C Payroll Payroll Vouchers per Month Time Detail Records per month Monthly 28,514 2, ,261 9,355 Academic/Summer School 6, ,436 4,203 Salaried 22,019 1,835 82,212 6,821 Hourly 28,328 2, ,373 11,281 TOTAL 85,384 7, ,282 31,660

6 REPORT OF TRAVEL EXPENDITURES EXHIBIT D University Travel Reimbursement Increase/(-)Decrease FY02 vs. FY Amount % July $582,845 $541,246 1,754 1,886 ($41,599) (7) August $1,206,608 $1,144,440 3,251 3,181 ($62,168) (5) September $909,397 $856,014 2,627 2,612 ($53,383) (6) October $762,492 $1,021,086 2,984 3,476 $258, November $947,267 $787,465 3,510 2,641 ($159,802) (17) December $569,150 $748,163 2,062 2,623 $179, January $674,903 $609,528 2,579 2,359 ($65,375) (10) February $724,551 $720,425 2,800 2,681 ($4,126) (1) March $734,303 $732,646 2,793 2,730 ($1,657) 0 April $1,019,824 $794,404 3,384 2,886 ($225,420) (22) May $1,279,033 $1,322,171 4,202 4,193 $43,138 3 June $1,659,365 $1,483,212 5,409 4,427 ($176,153) (11) TOTAL $11,069,738 $10,760,800 37,355 35,695 ($308,938) (3) per Working Day - 211

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