• Section 1 - Purpose and Scope
• Purpose
• Scope
• Process Map
• Section 2 - Process and Key Controls
• Access to the PMF
• Purpose for Creation or Reactivation of a Payee Record
• Timing of Payee Creation
• Probity Issues in Relation to a Payee to be Created or Reactivated in the PMF
• Employee Versus Contractor Issues
• Payment Terms
• Recording of Information in the PMF
• Communication with Payees
• Due Diligence when Engaging a Payee
• Section 3 - Key Requirements
• Section 4 - Roles, Responsibilities and Accountabilities
• Section 5 - Monitoring, Review and Assurance
• Section 6 - Recording and Reporting
• Recording
• Reporting
• Section 7 - Appendix
• Related Policies and Procedures 

Section 1 - Purpose and Scope

Purpose

(1) The purpose of this Procedure is to outline the mandatory requirements and processes relating to creation, reactivation and maintenance of payee records in UQ’s Payee Master File (PMF). The PMF is part of UQ’s financial management system.

(2) The PMF is a financial administration tool that holds information about payees, such as bank account and contact details, currency information etc, which is used in the processing of payments to the payee. For the purposes of this Procedure, ‘payee’ means an entity to be paid by UQ via electronic funds transfer (EFT) or wire transfer other than:

1. UQ staff entitlements and reimbursements;
2. Entities paid using UQ Corporate Card; and
3. Entities paid for things other than goods or services via EFT payment spreadsheet/s.

(3) For the purposes of this Procedure, the term ‘entity’ includes individuals.

Scope

(4) This Procedure covers the following activities and applies to everyone who is involved in these activities:

1. Creation of a new payee record in the PMF;
2. Reactivation of an inactive payee record in the PMF;
3. Maintenance of the PMF including:
   1. amendment of a payee record in the PMF;
   2. periodic review and maintenance (including deactivation) of payee records to ensure accuracy and integrity of the PMF.

(5) A UQ staff or student requesting creation or reactivation or maintenance of a payee record in the PMF is referred to as ‘payee record requestor’.

Process Map

(6) This Procedure includes the process map for creation, reactivation and amendment of a payee.

(7) The process map is owned and maintained by UQ Procurement and Payment Services. It provides additional, more detailed information and work instructions about the processes and requirements in relation to the creation, reactivation, and maintenance of a payee record in the PMF.

(8) Substantive updates to the process map will be reviewed and approved by the Associate Director, Procurement and Payment Services.

Section 2 - Process and Key Controls

Access to the PMF

(9) Access to create, reactivate and amend records in the PMF is restricted and managed by UQ Procurement and Payment Services.

Purpose for Creation or Reactivation of a Payee Record

(10) Before requesting the creation or reactivation of a payee record in the PMF, the payee record requestor must determine that the payments proposed to be made to the payee are:

1. considered reasonable by community standards; and
2. able to withstand public scrutiny; and
3. essential to furthering the official business of the University; and
4. in accordance with UQ policies.

(11) UQ Procurement and Payment Services may request additional information or clarification to support a payee record creation or reactivation.

Timing of Payee Creation

(12) After UQ enters into a commitment to a payee and it is determined that the payee will need to be paid via electronic funds transfer or wire transfer:

1. The payee record requestor must review the UQ Payee List to confirm whether the payee already exists in the PMF.         

(13) Where the payee does not already exist in the PMF: 

1. The payee record requestor should initiate the process to create a new payee in the PMF.
2. Good practice dictates that a payee record should be created in the PMF:
   1. after UQ enters into a contractual or other binding commitment to the payee, or before a purchase order can be issued to the payee, whichever is earlier; and
   2. before goods or services or the intent of the engagement is/are delivered by the payee; and
   3. before an invoice or similar request for payment is issued by the payee.

(14) Where a payee exists in the PMF but with different details from those required for payment or outlined in the contract with the payee:

1. The process for amendment of a payee record in the PMF must be followed.

(15) For example, where a payee exists with a USD currency in the PMF and the engagement with the payee requires invoicing in EURO currency.

Probity Issues in Relation to a Payee to be Created or Reactivated in the PMF

(16) Where there is a conflict of interest (including perceived bias) in relation to a payee proposed to be added or reactivated in the PMF, the payee record requestor and/or the payee must disclose this to UQ Procurement and Payment Services and provide confirmation and, if requested, evidence that those issues have been properly managed.

Employee Versus Contractor Issues

(17) Where a payee proposed to be added or reactivated in the PMF is being engaged to provide services to UQ (‘a contractor’), the payee record requestor must follow the process to confirm the tax status of the contractor as mandated by FBS Tax. Where an approval is required, the approval must be provided to UQ Procurement and Payment Services with the application for creation or reactivation of the payee record.

Payment Terms

(18) UQ's standard payment terms are 30 days net – this means a payee will be paid thirty days from the date of a correctly rendered invoice. Where variation to the standard payment terms is required, the payee record requestor must provide a justification to support the variation request.

Recording of Information in the PMF

(19) Information must be recorded in the PMF in a consistent manner to avoid payees being created under multiple names.

Communication with Payees

(20) All correspondence from existing payees in relation to their details in the PMF must be sent to the UQ Procurement and Payment Services team at vendors@uq.edu.au for managing.

(21) UQ does not complete credit applications, for example, requests for extension of credit. Requests from payees in relation to credit applications must be sent to the UQ Procurement and Payment Services team at vendors@uq.edu.au for managing.

Due Diligence when Engaging a Payee

(22) The UQ staff or student responsible for the transaction with the payee must conduct appropriate due diligence when engaging with a payee in line with UQ policies and procedures relevant to the proposed engagement. An active payee record in the PMF does not mean that the payee is approved for engagement/s with UQ. Each new engagement of a payee should be considered on its own merits. For example, a supplier of goods and services to UQ with a payee record in the PMF is not necessarily an approved or preferred supplier. UQ's Where to Buy Guide provides details of current approved supply arrangements.

Section 3 - Key Requirements

(23) Key requirements for the activities covered by this Procedure are listed in the table below.

(24) These requirements are designed to meet a standard set of circumstances. UQ Procurement and Payment Services may identify and require further or additional information and documentary evidence about a specific payee to properly action a particular request and/or to meet specific legislative or other governance requirements.

(25) Amendments to bank details of an existing payee will be subject to a formal independent review by UQ Procurement and Payment Services to confirm validity and correctness.

Section 4 - Roles, Responsibilities and Accountabilities

Section 5 - Monitoring, Review and Assurance

Section 6 - Recording and Reporting

Recording

(26) Records in relation to the PMF will be maintained in a UQ approved record keeping system and in accordance with UQ’s Information Management Policy and associated procedures.

Reporting

Section 7 - Appendix

Related Policies and Procedures 

(27) Related UQ policies and procedures:

1. Financial Governance Policy
2. Delegations Policy
3. Procurement Policy and Procurement Procedure
4. Information Management Policy
5. Cyber Security Policy
6. Conflict of Interest Policy