An Introduction to FAST TRACK

Report
Welcome to Fast Track
Training
Provided by BYU Purchasing
Douglas W. Buhler CPSM, C.P.M.
Part 1: Introduction & Overview
 Class Roll
 Handouts
 Sample Form
 Sample Category List
 Payment Tools Charts
 Independent Contractor Agreement
Template & Guidelines
 Associate Buyer Application
 Slides posted on
http://purchasing.byu.edu
Today’s Objectives
 To Review Payment Processes, with
emphasis on Fast Track, describing:
 What Fast Track is
 Why Fast Track Was Developed
 Who Can Use Fast Track
 What Can (and Can’t) Fast Track Be
Used For
Today’s Objectives
(cont.)
 Show you how to process a fast-track
requisition.
 Help you understand things you need to
be aware of as an Associate Buyer.
 Increase your understanding of what we
actually do in Purchasing—how and
when we can help you.
What is Fast Track?
 A Payment Method:
 Has Replaced Check Requisitions
 Has Replaced Independent Contractor
Check Requisitions
 An On-line Method, Replacing Preprinted Forms:
 On Purchasing’s Web Page
 Available Only to Associate Buyers
Payment Tools for Goods and Services
Purchase
Requisition
Over
$2,500
Do Not Negotiate with
Vendor. Use other
Payment Tools, or
Purchase Requisition
Under Purchasing COD Check
(Convenience Check)
Card
$2,500
Under
$500
•Goods or
Services
•Corporate
vendor who
will not
accept credit
card & will not
invoice BYU
(e.g Costco,
Sam’s Club)
•Penalty for
misuse
No Fast Track
category, or
greater than
$2,500
•Help needed
to locate the
vendor, good
or service
•Restricted
commodity
DO NOT
negotiate with
vendor in
advance of
submitting
requisition
Fast Track
•Services
within
approved
categories
•Purchasing
has already
established
vendor
•Any amount
•Goods less
than $2,500
where
Purchasing
Card cannot
be used
•Vendor
already
established
by
Purchasing
Y Expense
Travel
Reimbrsmnt
(including Corp.
Travel Card)
•Expenses
while in travel
status
Rarely
Over
$500
•Conference
registration
•Hosting
Business
Non-Travel
Reimbrsmnt
•Used only
when other
payment tools
were not
available at the
time of a True
Emergency
Penalty for
misuse.
Payment Tools for
Research Subjects, Royalties, Refunds, Academic
Note: Refunds pay back to customers amounts they paid to BYU.
Reimbursements pay others for items paid by them on behalf of BYU.
Temporary Petty
Cash Fund
Payments in cash to
individuals for:
•Research subjects who
must remain anonymous
College Controller
Requests and Approves
Payments are expected
to be small amounts (e.g.
$5, $10)
AP Upload
Payments to
individuals for:
•Royalties
•Refunds
•Research subjects
Payments expected to be
smaller amounts (e.g.
under $1,000)
Campus should try to
group uploads to 5 or
more people
Y Expense
Payments to
individuals for:
•Refunds
•Reimburse students for
their own academic
program costs
No dollar limitation
Travel Dept will audit all
such transactions
Fast Track
Payments to
Corporations for:
•Royalties
•Refunds
No dollar limitation
Purchasing Charge
 The policy we operate under states:
 “Goods and services are to be
acquired by or under the
direction of the Purchasing
Department.”
Why Fast Track?
Why Fast Track?
 Not every expenditure is a purchase of
Goods and Services.
 Purchasing’s staff is not large enough to
personally transact all purchases of
Goods and Services.
 Some purchases of Goods and Services
can be more effectively handled directly
by departments
History of Payments that
Don’t Involve Purchasing
 Originally check requisitions were
approved for five low-risk categories;
however, over the years the number of
categories expanded. This ultimately
created a reported $7.9 million of
unauthorized purchases in 2001.
 Use of Check Requisitions was not
“under the direction of Purchasing.”
Fast Track vs.
Check Requisitions
 Two controls that Check Requisitions lacked
keep Fast Track Requisition Purchases
“under the direction of Purchasing:”
1. Must be handled by trained “Associate Buyers”
 Associate Buyers are trained by Purchasing so
they can properly execute transactions as an
extension of Purchasing within their departments.
2. Fast Track is valid only for specific, limited
categories
Principles of Fast Track
Requisition Usage
 Fast Track Requisitions are approved by a trained
“Associate Buyer” and an Approver from your
department.
 Fast Track Requisitions are valid only for certain
categories that—
 Have lower risk
 Do not generally represent opportunities for
Purchasing to add value to the transaction.
 Commitments to Suppliers for Fast Track transactions
may be properly made by Associate Buyers without
involving Purchasing’s staff.
How to Become an
Associate Buyer
1) Attend this training Session.
(Monthly sessions like this are scheduled for others to attend).
2) Submit an Associate Buyer Application,
documenting approval from your department
to represent them as an Associate Buyer,
and your agreement operate in compliance
with Purchasing’s controls.
3) Your authorization will be activated by
Purchasing.
As an Associate Buyer
you will—
 See that University Policy is followed.
 See that those in your department who
make Agreements with Vendors and
Independent Contractors receive training
and follow University Policy.
 See that any Independent Contractor
Agreements are made and documented
before work begins—not after the fact.
What Can I Use Fast Track For?
 Everything in the Fast Track Codes List, including:
 Non-negotiable Services, Fees and other Payments.
 Independent Contractors that fit under one of the
Fast Track Codes (without a Dollar limitation).
 Independent Contractors where the contract is for
less than the “small dollar purchase” limit = $2,500.
 Purchases of Goods totaling less than $2,500 when
P-Cards are not accepted, and there is no value to
be added by Purchasing.
What Can’t I Use Fast Track For?
 Anything that does not fit a Fast Track
Category Code.
 Anything that can be paid with a Visa
Purchasing Card
 Any Reimbursement that should be made
through Y-Expense
 Anything that requires Purchasing to
make commitments or place the order.
Buying Through Purchasing?
 … to be acquired by or under the direction of
Purchasing…
 Purchasing Helps You by:
 Handling higher-value / higher-risk transactions that
are not eligible for Fast Track.
 Focusing on managing the highest value Supplier
Relationships—creating Agreements to govern
transactions whether they are done with a Purchase
Order, P-Card or Fast Track payment.
Which Process to Use?
 Q: Pay $800 to “Los Hermanos” musical
group (identified with the band leader’s
SSN), to provide entertainment at a
conference we are hosting.
Which Process to Use?
 Q: Pay $800 to “Los Hermanos” musical
group (identified with the band leader’s
SSN), to provide entertainment at a
conference we are hosting.
 A: Fast Track, category ICO 7929.
Which Process to Use?
 Q: Pay for Snow Removal Service at
Cougar Haven. (Paid to individual with
SSN, amount is $330.)
Which Process to Use?
 Q: Pay for Snow Removal Service at
Cougar Haven. (Paid to individual with
SSN, amount is $330.)
 A: Fast Track, category ICO 8993. Some
sort of attached Agreement should detail
expectations.
Which Process to Use?
 Q: Reimburse an employee’s purchase
of a rare book for the University
Collection. The book cost $780.
Which Process to Use?
 Q: Reimburse an employee’s purchase
of a rare book for the University
Collection. The book cost $780.
 A: Best process is to have bought from
the dealer with P-Card. As a reimbursement through Y Expense it would be
audited and require justification to avoid
a penalty.
Which Process to Use?
 Q: Pay a Publisher or book dealer for 20
copies of a book at $49.95 each (= $999)
Which Process to Use?
 Q: Pay a Publisher or book dealer for 20
copies of a book at $49.95 each (= $999)
 A: Purchase using P-Card. (If not a solesource you may want to have Purchasing
try to buy it wholesale, by sending us a
Purchase Requisition.)
Which Process to Use?
 Q: Reimburse a student for “gear”
purchased at Costco, in the amount of
$254.62.
Which Process to Use?
 Q: Reimburse a student for “gear”
purchased at Costco, in the amount of
$254.62.
 A: Can be done with Y Expense as a
Business Non-Travel reimbursement, but
will require justification. Should have
used C.O.D. Check to pay Costco
directly.
Which Process to Use?
 Q: Engage a clinician / adjudicator for a
Jazz Festival.
Which Process to Use?
 Q: Engage a clinician / adjudicator for a
Jazz Festival.
 A: Fast Track, category ICO 8000 (or
ICO 7929). Attach a Letter of Agreement
spelling out duties and expectations.
Which Process to Use?
 Q: Pay Prime Recordings $1540 in
License fees to record, manufacture and
distribute a copyrighted song on a
Compact Disc album we are producing.
Which Process to Use?
 Q: Pay Prime Recordings $1540 in
License fees to record, manufacture and
distribute a copyrighted song on a
Compact Disc album we are producing.
 A: Fast Track, category ROY 8999.
Which Process to Use?
 Q: Purchase two custom, exquisitely
made Presentation Gifts, totaling $4,318.
Which Process to Use?
 Q: Purchase two custom, exquisitely
made Presentation Gifts, totaling $4,318.
 A: Purchasing needs to handle this
transaction. Send us a Purchase
Requisition and work with us to get just
what you want.

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