Auditing Materials Distribution Services (MDS) Accounts Procedure

Original Issuance Date: January 8, 2020

Last Revision Date: January 8, 2020

1. Purpose of Procedures

This procedure outlines the audit process for MDS account holders and their direct supervisors. The procedure needs to include proper documentation and supervisor approval of purchases through MDS (Shop@UW).

2. Responsible UW System Officer

Associate Vice President Finance

3. Definitions

MDS Account Holder: Individual who is listed on the account and making purchases through Shop@UW with a purchasing card or a direct invoice.

Supervisor: Individual responsible for approving the MDS account holder's time and leave forms, or an individual assigned supervisory review authority who is organizationally independent of the MDS account holder.

Supporting Documentation: Any record or information that verifies a purchase. This includes a packing list with shipping information, or itemized vendor receipt/invoice, or any correspondence that details the items purchased. Supporting documentation may also include business purchase for any purchase that is non-routine in nature, quantity or dollar amount.

4. Procedures

A. Frequency of Report

Each month MDS account holders and their direct supervisors will receive an email titled Monthly Shop@UW Report.

B. Verification of Purchases by MDS Account Holder

Reconcile MDS report to supporting documentation.

Attach supporting documentation to MDS report. If ordering for another department, include approval from the other department with the proper funding string.

Document business purpose, if the purchase in non-routine in nature, quantity, or dollar amount.

Submit MDS report, supporting documentation, and business purpose to supervisor. After supervisor verification (see below), MDS account holder will submit all of the above with supervisor approval to accountspayablelist@uwsa.edu.

C. Verification of Purchases by Supervisor

Supervisors will review and approve the transactions documented by either:

1.  A physical signature and date on the MDS report
2.  Electronic approval, via electronic signature on the MDS report or via email.

D. Verification of Purchases by Accounts Payable

Process UW System Financial Administration Accounts Payable Department will use to audit MDS reports:

1.  Run monthly MDS reports and reconcile to respective inter-unit journal (IUJ) produced by Shop@UW. Sign and date each report.
2.  Attach reconciled MDS report to IUJ in SFS.
3.  Reconcile MDS reports provided by each MDS account holder to monthly IUJ produced by Shop@UW.
4. Ensure supporting documentation and business purpose are attached for each purpose.
5. Ensure supervisor approved MDS reports and supporting documentation submitted within 60 days from the billing cycle end date.
6.  Electronically store MDS reports on FINSCAN server for audit and electronic storage for required retention period.

E. History

First approved: January 8, 2020