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Financial Operations
Web Problem? Email Kana Horvath |
Office
of Financial Operations Policies and Procedures Overview Check Hold Policy (New) The year-end procedures for handling transactions processed through the Office of Disbursements (New) Travel Regulation Policies and Procedures Highlights of Revisions to the Statewide Travel Regulations (New) Georgia State University Travel Advance Policy & Procedures New Mileage Reimbursement Rate (Effective 4/01/2008) Processing Issues and Other Frequent Errors Related to Travel Expense Statements (New) Procedure for Renting a Motor Vehicle Value Added Tax (VAT) Refund Procedures Payments to Non-Resident Aliens (Note:You will need Adobe Acobat Reader to view this file, if you don't have it, please click here to download your Free copy.) Account Codes and Descriptions for Payments to Non-Resident Aliens
Office of Financial Operations Overview The Office of Financial Operations is responsible for examining accounts, claims, and demands against the University, and for making payment of the University's legally incurred obligations for materials and services other than payrolls. The Office of Financial Operations is responsible for the timely payment of vendors. The Office of Financial Operations monitors transactions for compliance with applicable state and federal laws and prepares disbursement transaction reports. While the Office of Financial Operations writes all payroll checks, the Office of Human Resources is responsible for substantially all other payroll functions. No payments are
to be made unless there is money in the Treasury legally allocated for
such payments, and until the Office of Financial Operations has been
presented with supporting documents and invoices which have been reviewed
and found to be correct. SUBSECTION
23-10 ACCOUNTS PAYABLE Subsection 23-10 Accounts Payable Policy and Procedures Policy
23-10-10.1 Advance Payments and Discounts
Policy 23-10-10.1 If advance payment is required under the terms of the purchase due to the vendor requiring prepayment; the "Purchase Requisition" form (Appendix 20-4) should be accompanied by either an invoice, an order form from the vendor, or other price supporting documentation. Also, in those cases where a conference registration fee must be paid in advance, the registration form should be submitted with a "Registration Fee Payment Request" form (Appendix 20-5). For a detailed explanation of travel advance procedures, refer to the Travel Regulations Section 22-40 of this manual.
Policy 23-10-11.1 Discount terms offered by suppliers for prompt payment are a consideration in the awarding of purchase authorizations. Over a period of time, such terms result in substantial savings for the University; however, payments cannot be remitted without a properly executed receiving report. Therefore, it is imperative that receiving reports be processed by the departments immediately after satisfactory receipt of the merchandise. The receiving report, when submitted to the Central Receiving Department, should reflect the actual date that the merchandise was received rather than the date that the receiving report was signed by the department. Central Receiving will subsequently forward a copy of the receiving report to the Disbursements Office. Timely submission of the receiving report will enable the Disbursements Office to make payments promptly and realize the allowable cash discounts. It is to the department's advantage that the discounts be taken, in as much as the reduced payment is the amount that is charged to the department's account. (See Business Services Procedure 32-20-11.1P for more information on the receiving report.)
Policy 23-10-12.1 The University can pay institutional memberships and dues only if they are in the name of the University or if the membership is transferable if in the name of the employee. Memberships in the name of individual persons which are not transferable cannot be paid or reimbursed. An invoice for an
institutional membership or dues must be accompanied by a "Request For
Payment of Non-Personal Service Item" form (Appendix 20-6). All
other memberships must be approved by the appropriate department official
such as the Department Chair or Project Director. Payments for individual memberships in professional organizations may be made provided that the sole purpose is to obtain a reduced cost for professional journals. These journals must become the property of the University and not the individual in whose name the membership is made. The journals must pertain to the mission of the department from which payment is made. Payment of memberships from outside grant funds must be approved by the granting agency prior to payment. Payment for such memberships should be made by submitting a "Request For Payment of Non-Personal Service Item" form (Appendix 20-6). The request must be approved by the appropriate department official such as the Department Chair or Project Director. Policy
23-10-13.1 In accordance with instructions from the State Department of Audits, obligations charged to non-restricted accounts and recorded as accounts payable at June 30 must be considered on an individual basis during an ensuing fiscal year. The Disbursements Office is responsible for maintaining University accounts payable recorded at June 30 of each year. This responsibility includes reconciling the accounts and making appropriate disposition of any variance in amounts recorded as an obligation and amounts required to liquidate the obligation.
Procedure 23-10-13.1P At the end of each fiscal year, firm obligations of the University (i.e., purchase orders, shipping releases, contracts) that are chargeable to unrestricted funds are recorded as an expenditure to the department's account and as an account payable. The amount charged to the department may be an amount different from the amount required to liquidate the obligation in the succeeding fiscal year. This may be due to discounts, freight charges, or because the University had not been notified by State Purchasing as of June 30 as to the exact amount for which a purchase order was issued. For an obligation that is liquidated for more than the amount charged to the department's account as of June 30, this excess amount will be charged to the department's account during the fiscal year in which the obligation is liquidated. For an obligation that is liquidated for less than the amount charged to the department's account as of June 30, the balance in the payable account that was established for this obligation will be credited to surplus. Each obligation is handled on an individual item basis.
Procedure 23-10-14.1P Payments to vendors can be made only on the basis of an approved Purchase Order, Non-Personal Services Item form, or an approved Consultant's Contract which is documented by a Fee for Services form or Consulting Agreement Approval form, all of which constitute valid authorization for payment. In cases of Purchase Orders, a three way match system is utilized before payment is rendered. The Purchase Requisition, the Purchase Order and the vendor's invoice are compared for accuracy. For all other payment types, a two-way match of the originating document (i.e. Non-Personal form, Fee for Services form) are matched with the vendor's or consultant's invoice. To preclude duplication of payment, the University pays on the basis of original invoices rather than statements. If the vendor does not, in its normal course of business, produce an original invoice, a machine produced billing is acceptable provided an explanatory statement is attached to the billing. The third document required before payment can be rendered in the case of goods is the Receiving Report on which the requisitioning department and Central Receiving acknowledge that the material described on the Purchase Order, Non-Personal form, etc. have been received and that they conform with all terms of the original order. Each department should formulate an internal procedure within the department whereby Receiving Reports flow in a timely and routine manner to the Central Receiving Department. The Receiving Report is to be forwarded to the Disbursements Office promptly on the satisfactory receipt of all items described thereon that are received directly by the department from the supplier. Receiving Reports for equipment or other goods, that have been received directly by Central Receiving, should be forwarded directly to Disbursements Office. The Receiving Report copy should not be used to affect payment for incomplete deliveries unless proper approval is obtained from the Purchasing Department. Often a vendor will back order or partially ship an order. When this occurs, the Central Receiving Department cannot release the final Receiving Report until the order is received as complete. However, this does not preclude the Disbursements Office from making a partial payment on the invoice as long as proper approval is given by the Purchasing Department. Such approval may be in the form of a memo from the Purchasing Department. Substitutions, receipt of damaged or incomplete materials, or over- and/or under-shipments should be referred to the Purchasing Department for reconcilement with the vendor after receipt of the receiving report by the Central Receiving Department. Claims against freight companies for material damaged in transit should be referred to Central Receiving. Any Receiving Report involving a discrepancy which is forwarded to the Purchasing Department should have the discrepancy clearly indicated thereon, showing the actual quantity received and the condition of the shipment.
Procedure 23-10-15.1P On State Purchase Orders or Georgia State Field Purchase Orders, the vendor is to send invoices directly to the Disbursements Office. The invoice is held until it can be matched with a receiving report forwarded by the Central Receiving Department. Despite these instructions, departments will occasionally receive invoices or freight bills directly from a vendor. Such invoices should be transmitted promptly to the Disbursements Office. If the invoice or freight bill received by the department is not identifiable to a Purchase Order, such information should be recorded thereon by the department prior to transmittal to the Disbursements Office.
Procedure 23-10-16.1P University incoming shipments originated by Purchase Orders should have freight prepaid by the vendor. In cases where the purchase request was made on a Non-Personal Services Item form or by the Purchase Card, the purchaser should have the vendor include freight as part of their invoice price so that the vendor can ship the merchandise prepaid. Even though the Purchase Order may indicate that the merchandise is to be shipped prepaid, if it is shipped collect and the department accepts the shipment, the freight bill becomes a legal obligation of the University. While a deduction may be made from the vendor's invoice prior to payment, this does not relieve the University of the liability to the freight carrier. Shipments are sometimes received collect whereas the freight should have been paid by the vendor regardless of how the purchase request originated.(i.e. purchase order, purchase card). In such cases, the University may accept such shipments since the Disbursements Office has a procedure to deduct the freight payment from the vendor's invoice. However, when accepting collect shipments the department should ensure that the freight bill reflect the following information before forwarding the bill to Disbursements: (1) Georgia State University; (2) the department's name; (3) the account name; (4) the account number to be charged; and (5) the signature of the person shipping and/or receiving the merchandise. To insure that all
applicable deductions are made when collect shipments are accepted that
should
Procedure 23-10-17.1P University Accounts
Payable checks are processed daily. Unless otherwise indicated
on the check request, a check will be mailed to the payee at the address
shown thereon. Upon request, checks will be held in the Disbursements
Office for pickup by the payee or his designated representative. Normally
a check request that is received in the Disbursements Office by 11:00
a.m. will be processed for payment within three (3) to five (5) working
days. The Disbursements Office is responsible for answering inquiries from vendors regarding the status of unpaid purchase authorizations and for reviewing monthly account statements received from vendors. These responsibilities, which are most important in maintaining and promoting satisfactory credit standings with suppliers, frequently require the cooperation of departmental representatives in identifying purchases, in determining status and location of materials or documents, and in preparing documents for payment. Vendor statements, duplicate invoices and vendor inquiries received by departments should be forwarded promptly to the Disbursements Office. The Disbursements Office will, in turn, correspond directly with the vendor to satisfy the inquiry.
Procedure 23-10-19.1P On receipt of the appropriate authorization from the University Cashier, the Disbursements Office will issue a check payable to the custodian of the petty cash fund or to the University Cashier. In such circumstances the custodian of the fund will pick up their check directly from the University Cashier. Documentation required for reimbursement of petty cash funds is included in the Student Accounts section of this manual.
Procedure 23-10-20.1P After the department has initiated a Purchase Requisition and a Field Purchase Order has been issued by the Purchasing Department, the Disbursements Office will match the invoice to the Purchase Order and then prepare a check from the information recorded on the Field Purchase Order and/or the contract. If the agreement
is canceled or modified, the department should notify the Purchasing
Department which will subsequently notify the Disbursements Office of
the cancellation and that no further payments will be made. Likewise,
a change order will be issued. No payments will be made unless
a current contract has been processed and a Field Purchase Order has
been issued for the current period. If a contract is to be continued,
it is imperative that a Purchase Request be submitted. Next, a
Field Purchase Order must be issued immediately upon termination of
an existing contract to prevent delay in payment to the vendor.
Renewal of leases for land and buildings will be initiated by the Real
Estate Planning and Rentals Office in sufficient time prior to expiration
of existing leases to obtain necessary approvals in order to exercise
existing options or to negotiate a new lease and to obtain applicable
approval by the Board of Regents and the Attorney General. Upon
receipt of an invoice for leased equipment or a service contract from
the vendor by the Disbursements Office, the invoice will be processed
for payment. Payment of gasoline credit card billings are made as follows: A. After the
State or Company Credit Card has been assigned to a department, the
Purchasing Department forwards a listing to the Disbursements Office
which contains all current card numbers and authorized vehicles by department. SUBSECTION
23-20 EXPENDITURE CONTROL EXPENDITURE CONTROL POLICIES AND PROCEDURES Subsection 23-20 Expenditure Control Policies and Procedures Policy
23-20-10.1 Overview The Disbursements Office reviews the propriety of requests for departmental expenditures. The Accounting Services Office and the Grants and Contracts Office determine fund availability, code encumbrance and expenditure documents, encumber purchase request documents and travel authorizations, and review the propriety of expenditure requests. The Disbursement Office audits and approves for payment requests for travel reimbursement and billings from local travel agencies.
Policy 23-20-11.1 To ensure compliance with the Federal Fair Labor Standards Act, regulations of the Internal Revenue Service, and laws of the State of Georgia, the University will purchase services from employees only through the payroll system. Any payment to faculty or professional staff over the approved annual rate must be made as extra compensation and meet the requirements set forth in the Payroll Section (Section 63-00) of this manual (see Appendix 20-7 for extra compensation approval form).
Procedure 23-20-12.1P Employee verification is an essential element in payroll procedures. It is important that each employee examine the "Statement of Payroll Payments and Deductions" attached to his/her payroll check to verify the accuracy of deductions and payment. Any questionable items should be reported immediately to the departmental payroll representative.
Policy 23-20-13.1 Purchases made on Purchase Requests, State Purchase Orders, as well as other purchases, leases, and rentals of materials or supplies made on Field Purchase Orders will be encumbered against the accounts of the budgetary units requisitioning the materials, goods, or services. Physical plant work orders chargeable to departments and plant fund accounts will be encumbered. Travel authorizations for travel on official University business will be encumbered. The encumbering of a Purchase Order, lease, or rental will be recorded for the lesser of the entire amount of the purchase Order, lease, or rental, or for the amount of the Purchase Order, lease or rental that is applicable to the current fiscal year. Amounts that are applicable to the subsequent fiscal year will be encumbered at the beginning of that year. A request to cancel an encumbered order should be made to the Purchasing Department which will send a Field Purchase Order Correction to the Accounting Services Office or the Grants and Contracts Office based on the office which originally encumbered the funds.
Procedure 23-20-13.1P An encumbrance is a commitment of funds for specific anticipated expenditures which is recorded in the financial records of the University. The encumbrance system is designed to ensure that funds will be readily available for expenditure for a given purpose when payment is required. In addition, the system assists departments in maintaining control of funds for which they are responsible. The University utilizes an encumbrance system in which requests for travel authorizations, purchase requests, Purchase Orders and contracts, and Field Purchase Orders are encumbered. The encumbrance reflects the amount applicable to the current fiscal year. An encumbrance is established at the time a purchase authorization, travel authorization or consultant authorization is approved. Effect of year-end encumbrances on budgeted funds: In accordance with State regulations, Board of Regents policy and University policy, unexpended funds except for restricted funds, agency funds, and auxiliary services funds will lapse at the close of a fiscal year unless properly encumbered. Travel. Requests for reimbursement of travel expenses that are to be charged to an expiring fiscal year must be received in the Accounting Services Office or Grants and Contracts Office prior to June 30. Travel Authorizations will not be encumbered to the expiring fiscal year nor will they be recorded against departmental accounts as of June 30. These authorizations will reappear as a travel encumbrance in July of the next fiscal year. Operating Supplies and Equipment. Purchase requests for operating supplies and equipment which are fully processed (covered by Purchase Order or Field Purchase Order) and encumbered prior to the cutoff date announced by Business Services will be encumbered against and paid from available funds in the expiring budget. If for some legitimate reason, final payment exceeds original encumbrance the excess will be charged to the current year's budget. Orders for rentals, leases, maintenance agreements, etc., which involve periodic payments (monthly, quarterly) will be encumbered only for the amount applicable to the current fiscal year. The balance will be encumbered in the next fiscal year. Indefinite blanket orders charged to general accounts expire on or before June 30. Purchase orders and shipping releases issued after the cutoff date will be encumbered against the budget of the next fiscal year. Restricted accounts. Balances in restricted accounts at year-end will be brought forward.
Policy 23-20-14.1 Purchase requests are reviewed by Accounting Services or Grants and Contracts to ensure that sufficient funds are available in the account to cover the encumbrance before the request is forwarded for procurement action. Check requests are reviewed for sufficient balance at the time the check request is submitted. If either balance is not sufficient, the request will denied. If the balance in the account is not sufficient to cover the expenditure, the issuing department will be contacted and the request either held or returned to the department until a sufficient balance exists in the account. The expenditure is checked as to the balance available for each major object of expenditure (i.e., travel, operating expense, equipment, student aid. Annual estimates of expenditures in each major object should be budgeted as early as possible to facilitate processing.
Policy 23-20-15.1 An account, in which the encumbrances and expenditure exceed the amount budgeted, is sometimes caused by a direct charge, journal vouchers, or other entries which are not reviewed for fund availability. When an account has a deficit balance, subsequent encumbrances and expenditures will be rejected. Moreover, when an account has a deficit balance, prompt attention should be given to immediately remedy the situation by the department responsible for the deficit balance. A budget amendment should be processed, or if an incorrect charge is detected, a journal entry should be requested.
Policy 23-20-16.1 Registration fees
for participation in workshops, seminars or conferences which an employee
Policy 23-20-18.1 Specialized training may be authorized when directly related to an employee's job. If training is authorized, the following requirements must be met: 1. Employee
is on payroll during time of training and remains an employee after
training Reimbursement may be made to the employee who attended and paid for the training or the University will pay the vendor directly after completion of the individual's training. Attach a paid receipt or invoice along with the certification letter along with a completed "Registration Fee Payment Request" form (Appendix 20-5) or "Request For Payment of Non-Personal Service Item" form (see Appendix 20-6). In the case of continuing education classes offered by the University, the Departmental charge card may be used if prepayment is not made by the employee.
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