Finance Process Document - Expense Claims and Payment

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REVISION HISTORY Rev.. Date Description Responsible 1.0 Aug 2007/2011 Original Final Version Approved Niall Doyle (MAPS Irl Ltd.)/Margaret Dillon 2.0 Jan 2015 Revised structure of documents in line with new template for 2014/5 QMS review. Patrick Greaney/Teresa Langan Introduction This document details the processes associated with the Section and is required to manage the University s Staff and External Expense payments. It outlines the support and services supplied to the customers. There are a number of sub processes that are required to perform this function. They main sub processes are: EXP01.0 Expense Claims Process (Online Claims) EXP01.1 Expense Claim Process (Manual Claims) EXP02.0 Payments Process EXP03.0 Advance Expense Claims EXP04.0 Maintain Customer Database EXP05.0 Reporting EXP06.0 Customer Services PURPOSE To ensure Expense processing is carried out in an efficient and timely manner and complies with University policy and procedures. RESPONSIBILITY The Expense Section within the Accounts Payable Office is responsible for this process. DOCUMENTATION User guide document is available on the shared training documentation folder at \\iota\finance\training\trainingdocumentation This folder contains User Guides specifically written for the Finance Users and Online Customers detailed and quick reference guides of the Agresso system at the University of Limerick. PD-EXP-006 Finance Department Page 1 of 8 Version 2

RECORDS Refer to UL s Records Management and Retention Policy. All records are maintained on our Agresso Financial System. Finance adheres to the University s records management and retention policy. PROCESS VERIFICATION Monthly controls are performed based on waiting times of claims and Advances Outstanding Evaluation of all Expense process effectiveness is carried out internally through self-assessment and customer feedback reviews. Evaluation is also carried out via the annual external auditing process by PWC. Procedures The sub-processes below are used in performing the expenses function. Each process is defined in a descriptive format and also some flowcharts. EXP01 Claims Process (Online) Expense Claim is processed online by originator. It is submitted to workflow for approval with Employee Section of Finance Dept being the final approver. (Print-out of expenses delivered with original receipts for Research CCs). administrator checks all expenses awaiting final approval and validates claims. If claim complies with UL policies and guidelines and there are no queries, the claim is approved and processed. If there is a query, the claim is rejected with receipts query and returned directly to the originator through workflow. Dataload with Authorisation Forms (SLAs) are received by e-mail from Departments and uploaded through Batch Input. EXP01.1 Claims Process (Manual) Printed Expense Claim Form for n University Staff with original receipts delivered for n-university staff to Section of Finance Department. Claim manually checked and validated. If approved it is entered through Agresso Human Recourses/Posting travel invoices or supplier invoice posting screen. Queries passed back to originator if not approved. Batch Catering Invoices are delivered periodically; details checked to Summary Sheet, queries are passed to Catering companies, when approved invoices are processed. EXP02 Expense Payment Process Run Bank Details report. Check IBAN/BIC is present for all payments, check names, amounts etc. Run Agresso payment proposal, check number of payments and totals agree. Confirm payments on Agresso, Expense Administrator and Financial Manager approve and sign Remittance Confirmation. Signed report is given to Payment Process Operator to generate Bank File. Bank file is uploaded through Ulster Bank PD-EXP-006 Finance Department Page 2 of 8 Version 2

Bankline and sent for processing. Once file is approved by Ulster bank remittances advices are sent via email to customers. EXP03 Advance Expense Claims Employee submits Expense Claim Form for n University Staff (advance) to Section. Claim is validated 80% of amount requested is approved. Payment processed via manual Expense Claims process. Claims complete with receipts are entered online after Trip is complete. EXP04 Maintain Staff Database Employee details are recorded within the Employee database within the HR module of Agresso. The Expense administrator ensures employee records are kept up-to-date by entering any changes notified, e.g. Bank Details. This database needs to be maintained and new records created as required. Customer fills out a Bank Details form with the following information:- Staff number (if an Employee of UL) Name Address Bank details Bank Details are validated (IBAN Checker) The customer record is created/updated on the Agresso Human Resources Personnel Record. EXP05 Reporting/Controls Aged Creditor Reports are run monthly and checked as a control against the employee creditor records/transactions. Outstanding Advance reports are also printed and followed up. This is a work in progress. Outstanding claims are monitored to ensure they are followed up before the waiting time exceeds 28 days. EXP06 Customer Services The employee expenses administrator deals with queries raised by phone / email - Expense administrator resolves query - If unable to due to system issue or other Dept issue, raises with relevant 3rd party. - Reverts back to Originator - Issue resolved - Query/resolution knowledge base is built up - Manager carries out trend analysis on customer services PD-EXP-006 Finance Department Page 3 of 8 Version 2

EXP01 Expense Claims Process (Online Claims) Source Documents Section Outputs Staff Expense Claims arrive via online system - Travel & Subsistence Manage the Expense system WorkFlows: check if anything is stuck in the system, - If WF task need to be approved by substitute approvers Rejected in WF and sent back to originator Validation Checklist - Receipts - Mileage* - Payment Type (EFT) Validation Checks: - Ensure Claim complies with the University Expense Policy * Mileage is maintained/validated on Irish Travel 3 rates approved by Revenue depending on engine cc Ready for processing. Ready to be picked up in payment runs PD-EXP-006 Finance Department Page 4 of 8 Version 2

EXP01.1 Claims Process (Manual) Source Documents Section Outputs Mail arrives into Employee Section - Catering Invoices - Expense Forms (non University claims form) Post is - Opened - Sorted - Stamped - Dated Returned to originating Source with standard note Validation Checklist - Receipts - Mileage* - Cost Centre - Addresses - Approval Level - Correct ID - New Supplier Set-Up - Payment Type? Validation Checks: - Ensure Claim complies with the University Expense Policy * Mileage is maintained/validated on Irish Travel 3 rates approved by Revenue depending on engine cc - If claim is a foreign currency payment method is FT and included in Fexco payment run Ready for processing. Financial Accountant approves/signs for claims > 1500 Enter on the system Ready to be picked up in either / AP payment runs PD-EXP-006 Finance Department Page 5 of 8 Version 2

EXP02 Payments Processing Source Documents Section Outputs Run Report Bank Details Due for Check Amount/Bank Details/Description Run payment proposal validate total, number of payments Run Remittance Confirmation Report validate number of payments and total agree to proposal Confirmation Report printed signed by Expense Administrator and checked and Countersigned by Financial Manager Pass to Payments Process Operator to create Ulster Bank.xml payment file for processing [Segregation of Duties] Expense Administrator collects.xml bank file for upload through Ulster Bank Online System Number of payments and totals validated before upload Ulster Bank Confirmation of payment approval printed and filed Run Agresso EFT: Produce & Email remittance Advices Report Remittance sent to Customer via email (printed and posted if no email) PD-EXP-006 Finance Department Page 6 of 8 Version 2

EXP03 Advance Expense Claims Source Documents Section Outputs Employee submits Advance Form to Finance Validation Checklist - Cost Centre - Addresses - Approval Level - Correct ID - New Supplier Set-Up - Budget - Payment Type - Supporting Docs Funds given to Employee via system payment method(80%) After trip Receipts submitted online through w/f to Section Validation Check is carried out - Original receipts(research) - Approved Validation Checks: - Ensure Claim complies with the University Expense Policy * Mileage is maintained/validated on Irish Travel 3 rates approved by Revenue depending on engine cc - If claim is a foreign currency payment method is FT and included in Fexco payment run Include in Expense Payment Run Every 3 months => reminder sent to staff on incomplete paperwork Employee receives balance of expenses outstanding Claim submitted On Line Mgr contacts claimant / head of dept PD-EXP-006 Finance Department Page 7 of 8 Version 2

EXP06 Customer Services - Recommended Inputs Section Outputs Issue / Query identified Query logged / filed by Expense Administrator in email folder / hard copy folder / telephone call Source E-mail / Telephone Issues Resolved Originator Revert to Originator with resolution Issue resolved Escalate to 3 rd party for help Query Database updated with query types and information Build up Frequently Asked Questions knowledge base type queries/resolutions knowledge base Customer services trend analysis done by Manager of Section customer services Trends Analysis PD-EXP-006 Finance Department Page 8 of 8 Version 2