U-Wide Contract Administrative Fee Collection

1. Generate Report
In June and in January, the Executive Secretary will provide a list of contract vendors who are required to pay the administrative fee. This is used to issue letters to all vendors owing an administrative fee. Letters are faxed, e-mailed, or mailed. The letter requests the fee and a usage report.
2. Receiving Administrative Fee Check
When the checks (and the reports) are received, the Office Manager checks the total amount in the report and verifies whether the check amount matches 0.5% of the total sales amount. If the difference is less than a dollar, don't take any action. If more than a dollar, let the Buyer who handles that category know about the discrepancy and he/she will deal with the vendor to get the difference. Keep the report in "Pending" until the dispute is resolved. If the admin fee amount is correct, do the following:
• Mark the vendor in the master list as "Paid" (preferably with red ink)
• Key in the details of this payment in a spreadsheet
• Key in the check information in the checklog
• Place the "PAID" rubberstamp on the Report
• Place the Bank & Budget information rubberstamp on the endorsement side of the check.
• Keep the report in a folder (this will stay in this folder until the collection of that particular half is over)
• Give the check to the Executive Secretary to issue a Cash Receipt (CR). Follow check deposit policy for the frequency of deposit.
When the checks are deposited, make a copy of the Cash Receipt (CR) form, highlight the administrative fee deposit item (it is possible that one CR may have more than one category of deposit) and keep it in a folder along with the reports until the final report about the fee collection is prepared. This is needed to reconcile the vendor fee collection log being maintained in the database.
3. Default Vendors
By the last week of August (for the first half) and February (for the second half), prepare a list of defaulting vendors (those who didn't pay) and give it to the Furniture/Printing Buyer, who in turn will have reminder letters issued with the help of the other buyers.
Prepare the defaulter list every month and give it to the Furniture/Printing Buyer.
4. Final Report
By December (for the first half) and by June (for the second half) , final tallying will be done and a report be prepared and submitted to the Director.
While preparing the report, you have to reconcile the total fee collected according to the collection log and the Cash Receipt Voucher totals.
5. Usage Report
Separate reports are received from the vendor according to specific categories belonging to a particular buyer. Forward to the appropriate buyer.
6. Miscellaneous
Be prepared to provide more reports (of different sorts) to Director, if necessary.
Keep all the documents for each half separately in an accordion file, duly labeled, for future references and/or an audit.
*Total Sales means all sales related to the specific contract, including, sales to all University destinations, state and political subdivisions and State Colleges (MNSCU).