The Budget Manager Resource Guide is published by the Accounting & Budget Services department and is intended for use by faculty and staff who have university budget management, financial administration, disbursement (bill paying), accounting, or other financial record keeping responsibilities. We have organized this resource guide with the goal of providing guidance to budget managers and administrative support staff about managing and spending the university budgets for which they are responsible. Please review the Table of Contents on the preceding page, for a summary of the topics included.

1. When you have questions or need more information

Contact information in this resource guide: at the end of each section you will find contact information for the staff in Accounting & Budget Services and other departments who can answer questions about the topics covered in that section.

Accounting & Budget Services Web Site: visit our web site at http://www2.ups.edu/accounting_budget_services, where you can find:

· Hours and locations for the Accounting & Budget Services office & staff

· Directory of services offered by Accounting & Budget Services

· Staff directory for Accounting & Budget Services

· Online purchase order information

· Policy & procedure information published by Accounting & Budget Services

· Financial reports & downloadable forms published by Accounting & Budget Services

· Resources for Budget Managers (you can download the most up to date version of this resource guide from this page)

· Resources for faculty and students with research or study grants

Not sure who to contact? Please contact the Accounting & Budget Services front desk by calling x3224 or the Associate Vice President for Accounting & Budget Services for a referral.

Other resources provided by Accounting & Budget Services:

· Accounting & Budget Services staff are happy to meet one-on-one with budget managers and/or their administrative support staff to answer questions and provide additional guidance, as needed.

· Accounting & Budget Services does provide periodic group training for faculty and staff. Group training is most typically offered when new financial systems are implemented and/or as part of the Faculty and Staff Professional Development Conference sponsored by Human Resources.

2. Report Corrections to This Guide or Missing Information

Please help Accounting & Budget Services improve this Resource Guide. If you find an error or believe the information in this Guide could be enhanced or expanded, please tell us about it by sending an e-mail to the Accounting Operations Coordinator.

3. University Finance 101 - Understanding Accounting at Puget Sound

Education & General and Auxiliary Funds

Focus of the Budget Task Force
Funds used to carry out our core business of enrolling and educating students, and the auxiliary functions that support that core business;
Funds for housing, food services, bookstore
Funds budgeted each year and regularly reviewed throughout
Unrestricted resources from several major sources:

Tuition, Housing & Food, Endowment Earnings, Annual Gifts, Bookstore Purchases

Designated Funds

· Unrestricted funds set aside for specific purposes, with the approval of the university’s Board of Trustees

· Source of funds may be from unrestricted gifts, the operating budget, or other unrestricted sources

· Funds often carry forward beyond one fiscal year

· Examples of specific purposes approved for designated funds include: curriculum development, contingencies or reserve funds, faculty start up or travel funds, faculty research or enrichment grants, investment, including quasi-endowment, program development, purchase or construction of fixed assets, student research grants

· Often referred to as “carryover funds”

Restricted Funds

Funds provided by external donors and restricted by those donors to specific purposes

Government agency
Corporation
Foundation
Individual

Usually provided in response to specific proposal
Funds often carry forward beyond one fiscal year
Also often referred to as “carryover funds”

Endowment Funds

True Endowment: the donor specifies that the principal of the gift is to be invested in perpetuity with only earnings used for specified or unspecified purposes
Quasi Endowment: The Board of Trustees designates funds to be invested for a specific purpose or length of time. This designation may be reversed at any time
Term Endowment: Donor specifies funds to be invested for a specific period of time, after which principal and earnings may be expended for specified or non specified purpose

Plant Funds

Plant funds are used to account for the construction and major maintenance of the physical plant of the UPS; all buildings, land, playing fields, and major equipment
These facilities constitute assets of UPS with borrowed funds used to construct or renew them constituting offsetting liabilities
Since facilities and equipment age and must be replaced, they are depreciated over time according to set formulas
Sources of funds for plant construction and renewal: donations, transfers from E & G and Auxiliary Funds, reserve funds, borrowed funds

Loan Funds

Loan funds are used principally to account for funds used to provide loans to students
Sources of funds: federal, gifts, or institutional resources

Example: Perkins Loan Fund

Agency Funds

Agency funds are those funds belonging faculty, staff, and student organizations that the university holds as custodian
The organizations deposit money with the university for safe-keeping and then withdraws funds as necessary for activities
University acts as a bank
University does not own Agency Funds

Life Income Funds

Life income funds are charitable giving arrangements, often arranged through a trust, in which the donor donates funds to the university but retains some benefit from the earnings of that gift through some designated period of time. The beneficiary of that gift then receives the funds.
Also called deferred giving agreements or split-interest agreements
University might also be the trustee of the fund

4. The University’s Budget (Fiscal) Year

Budget year and fiscal year are used interchangeably and refer to the same year. The university’s budget/fiscal year is different from the calendar year.

Prior to September 1, 2002, the university operated on a budget or fiscal year of September through August. In February 2002, the Board of Trustees approved changing the university’s budget/fiscal year from September through August to July through June. The change was effective July 1, 2003. The 10-month period of September 1, 2002 through June 30, 2003, was a transition fiscal year to the new fiscal year cycle.

Because the fiscal year crosses calendar years, it is commonly referred to as the XXXX-XX fiscal year. Examples: The 2002-03 fiscal year = September 1, 2002 through June 30, 2003. The 2003-04 fiscal year = July 1, 2003 through June 30, 2004.

The fiscal year may also be referred to by a single year, which indicates the year in which it ends. Examples: The 2003 fiscal year is the same as 2002-03 and is the fiscal year ended June 30, 2003. The 2004 fiscal year is the same as 2003-04 and is the fiscal year ended June 30, 2004.

Beginning with fiscal year 2003-04, financial reporting to the Board of Trustees included operating budget variance reports prepared in the late fall (November), in the early spring (February/March), and after fiscal year end (July). See Section D.3, beginning on page 24, for more information about budget managers’ role in preparing the periodic budget variance reports for the Board.

External financial reports (e.g. the university’s audited financial statements, the informational tax return filed with the Internal Revenue Service, and other financial reports) are typically prepared annually, based on the fiscal year.

5. Budget Manager Fiscal Responsibilities

1. The financial strength of a university shows in many ways. Certainly one indicator is the ability and ongoing commitment to operate within budget. Puget Sound has demonstrated this ability and commitment for many years. This success is a direct result of the due care and fiscal responsibility exercised by budget managers.

Each division of the university has established specific responsibilities and processes for budget management and oversight. In general the responsibilities of budget managers may include:

Submitting budget requests to their division vice president, associate vice president, or other designated director for consideration and inclusion in the division budget request to the BTF.

After the Board of Trustees has approved the annual operating budget recommended by the President, Accounting & Budget Services will provide budget managers with detail budget worksheets. Budget managers are asked to complete the worksheets (assign budget amounts to individual accounts within specified indexes) and return them by the requested due date. Accounting & Budget Services uses this information to “load” the annual operating budget into the Banner Finance (budget and accounting) system.

Approving purchases (online purchase orders), and invoices and other disbursement requests for payment.

Monitoring and routinely (at least monthly) reviewing the status of their budgets, to help ensure that financial transactions are recorded timely and accurately. Requests for corrections, questions, or other requests for assistance should be submitted to Accounting & Budget Services as they are identified.

Reporting budget variance projections to the applicable Division Vice President. Variance projections are provided to the President and Board of Trustees in the fall (November), spring (March), and at fiscal year end (July). The Accounting & Budget Services office coordinates budget variance reporting activities and budget managers are asked to submit their budget variance projections to their division vice president and a designated member of the Accounting & Budget Services team (specific procedures vary by division). Guidelines and due dates are provided to budget managers in October, February, and May. See section D.3 on pages 24-26 in this guide for more information about budget variance reporting.

Submitting accurate and timely information to Accounting & Budget Services and other departments that is needed to ensure the recording of financial transactions in the appropriate fiscal year. This is important throughout the year and especially at the end of the budget/fiscal year (June – July).

6. Contact Information for Budget Managers

Questions about the adequacy of your budget or unexpected budget pressures:
*Division:*
§ Academic	Associate Academic Dean
§ Admissions	Vice President for Enrollment
§ Student Affairs	Vice President/Dean of Students
§ University Relations	Vice President for University Relations (vpour@ups.edu) and Dir. for Parent Programs and Community Relations
§ Finance & Administration	Vice President for Finance and Administration or it may be more appropriate to inform your Director or Associate VP, who reports directly to the VP for Finance.

Questions about coding operating budget entries or quarterly budget variance projections:
*Operating budgets:*
§ President	Accounting Operations Coordinator
§ Academic
§ Admissions
§ Student Affairs
§ University Relations	Senior Accountant
§ Finance & Administration (except Facilities Services, Bookstore, Dining & Conference Services, and Copy Services)	Accounting Operations Coordinator
§ Facilities Services – E&G Depts	Senior Accountant/Analyst
§ Facilities Services – Auxiliary Depts	Associate VP for Business Services reviews the projections and then submits a combined Auxiliary projection to the Senior Accountant
§ Bookstore
§ Dining & Conference Services
§ Copy Services
*Other budgets:*
§ Salary, wage, and benefit entries (payroll/compensation)	Payroll Supervisor or Payroll Specialist
§ Federal research grants	Senior Accountant
§ Faculty enrichment & student research grants	Senior Accountant/Analyst
§ Faculty travel funds	Accounting Operations Coordinator
§ Donor gift funds	Senior Accountant or Senior Accountant/Analyst
§ Expendable endowment funds	Senior Accountant

Not sure who to contact? Please contact the Accounting & Budget Services front desk by calling x3224 or the Associate Vice President for Accounting & Budget Services for a referral.

Please visit the Accounting & Budget Services department web site at: http://www2.ups.edu/accounting_budget_services for more information and resources for budget managers.

Section B – Establishing the Budget

1. The University’s Budget Process – The Budget Task Force

Because the operating budget is a document that reflects the university's planning, Puget Sound has relied for many years on an unusually comprehensive process in developing that budget. Specifically, an advisory committee to the President, the Budget Task Force, reviews proposals from across the institution and recommends a budget to the President, who, after her or his review and action, makes a recommendation to the Board of Trustees. The Budget Task Force consists of two faculty members, two students, two staff members, the Vice President for Finance and Administration, and the Academic Vice President, who serves as the Budget Task Force chair.

The Budget Task Force is charged with weighing competing requests and recommending to the President those ongoing additions to the base budget which most forward Puget Sound's mission. The proposed operating budget recommends such key variables as tuition, student fees, increases in the faculty and staff compensation pool, and student financial aid. The budget also reflects other revenues and expenses.

Members of the Budget Task Force are charged with representing the best interests of the university as a whole rather than the interests of any constituent group. All their discussions are to be confidential.

Budget Task Force Membership:

Academic Vice President, Chair

Vice President for Finance and Administration

Two Students. Each student normally serves a two-year term, one student being new each year. Students apply for membership on the task force by interviewing for the position with the ASUPS President. The ASUPS President then submits two or three recommendations to the university President who selects the new member.

Two Faculty. The faculty member of the Board of Trustees Finance & Facilities Committee (appointed by the Board Chair on recommendation of the Faculty Senate Executive Committee in consultation with the Academic Vice President and the President) serves a simultaneous three-year appointment to the Budget Task Force. The second faculty member normally is the Past Chair of Faculty Senate, who serves a two-year term.

Two Staff. Each staff member serves a two-year term with one staff member being new each year. The Staff Senate Chair submits two or three recommendations to the President who selects each new member.

Budget Task Force Process and Timetable:

The Budget Task Force begins meeting in September or October, reviewing the current year budget and long-range financial planning goals of the university. These long-range goals for enrollment, student financial aid, faculty and staff compensation, and tuition are the key element in the budget process and were developed in 1986 by an ad-hoc trustee committee composed of trustees, faculty, students, and staff.

As the fall term proceeds, any and all members or committees of the campus community are invited to submit requests or opinions to the Budget Task Force. This generally takes the form of written communication, but could be a presentation to the Budget Task Force at one of its meetings. The campus community is informed of these deliberations through the ASUPS "Tattler," the "Open Line" for faculty and staff, an occasional article in the "Trail" (student newspaper), and special invitations to ASUPS executives and university Vice Presidents.

Groups or committees that regularly or occasionally make requests or recommendations to the Budget Task Force would include: ASUPS Executives, Faculty Salary Committee, Staff Salary Committee, Library Committee, Information Technology, Academic Vice President, Vice President for Enrollment, Financial Aid, Dean of Students, University Relations, Business & Finance, and Human Resources.

Once all have had an opportunity to meet with the Budget Task Force or have their material received by the committee, the information is assembled into budget alternatives. The Budget Task Force generally requires the balance of the fall term to come to a recommendation, which it then presents to the President. Formal votes rarely occur. Minority opinions seldom arise. Generally, a broad consensus is developed and agreed to by all members of the Budget Task Force before a recommendation is made to the President.

The President has the opportunity to review all material submitted to the Budget Task Force and can, of course, change any recommendation made by the committee. Once that review has occurred, the Budget Task Force reviews its recommendation with the ASUPS Senate, the Faculty Senate, and the Staff Senate near the beginning of the spring semester. All students, faculty, and staff are welcome at these presentations. A ten-day to two-week comment period occurs before the February Board of Trustees meeting where final action must take place. During this two-week period, any group, committee, or individual of the campus community may write to the President expressing their opinion on any element of the proposed budget.

The President reviews his or her recommended budget with the Finance & Facilities Committee of the Board of Trustees. Final action is made by the Board of Trustees.

2. Budget Organization & Coding

What is FOAPAL? = The Chart of Accounts

Ø A chart of accounts is a numbering system for recording, tracking, classifying, and reporting on financial (budget and actual) transactions

Ø Puget Sound’s chart of accounts is referred to as FOAPAL, which stands for: Fund/Organization/Account/Program/Activity/Location

Ø FOAPAL structure:

XXXXXX. XXXX. XXXXX. XX. XXXXXX. XXXXX

Fund. Organization. Account. Program. Activity. Location

Where the X’s = numbers or in some cases, alpha characters

----------Optional----------

Fund

Organization

Account

Program

Activity

Location

Uniquely identifies all fund groups & funds

Assets, Liabilities, Net Assets, Revenues, Operating & Capital Expenses, Transfers

NACUBO Function: used for external financial reporting*

Selective use - tracks department events or projects

Location of fixed assets (not currently used by Puget Sound)

Index

Puget Sound uses a “short cut” to three of the FOAPAL elements, the fund, organization, and program codes. This “short cut” is referred to as the Index.

Index = the “FOP” part of “FOAPAL” = a six digit number or number/alpha character combination

For department operating/capital budgets, the Index = the Organization code preceded by two zeroes – 00xxxx (example: 004332 = Accounting & Budget Services)

For designated and restricted (carryover) funds, the Index = the Fund Number (examples: 152xxx = a specific department travel fund or BNxxxx = a specific Burlington Northern faculty enrichment grant fund)

__________________________________

*Program codes:

00 – Revenue	50 – Student Services
10 – Instructional	60 – Institutional Support
20 – Research	70 – Physical Plant Operation
30 – Public Service	80 – Student Financial Aid
40 – Academic Support	90 – Auxiliary Enterprises

Section C – Spending Your Budget

Online purchase order system:

On July 1, 2002, Accounting & Budget Services, in partnership with the Office of Information Services, implemented online purchase orders (PO’s) using the Banner Purchasing System. Online PO’s have automated the creation of purchase orders and have made it possible to encumber purchases/budgets. This section contains information about the online PO system, including information about training and support. For general information about the purpose, benefits, and use of online PO’s at Puget Sound, please refer to the Online Purchase Order FAQ document located on the Accounting & Budget Services web site at:

http://www2.ups.edu/accounting_budget_services/Online_POs.htm

Purchasing policies:

In conjunction with introducing online purchase orders to the campus, the university is establishing formal purchasing and disbursement policies. The new policies will include, among other things, guidelines for when purchase orders are required and the approval authority structure for disbursements. The campus community will be informed when the purchasing and disbursement policies are finalized. Once the new policies are in place, Accounting & Budget Services will review and update the procedures contained in this resource guide to reflect the published policies. Until then, Accounting & Budget Services is using the following procedures for verifying purchasing and disbursement authority and processing purchase orders and disbursements. These procedures are similar to those we have used for several years, with just a few modifications. Accounting & Budget Services also posts financial related policies and procedures on its web site at: http://www2.ups.edu/accounting_budget_services/Policies_Procedures.htm.

1. Authorization to approve purchases and expenditures:

Division Vice Presidents (the Associate Academic Dean for the Academic Division) have the authority to grant the budget manager role, purchase order approval, and disbursement authority to the department heads/chairs, managers, faculty, and staff within their divisions. Accounting & Budget Services collects and maintains this information.

The general guidelines for establishing budget, purchasing, and disbursement approval authority are as follows:

(1) The division vice president identifies a budget manager for each index (FOAPAL fund or operating organization/department) in her/his division by sending an e-mail to the Accounting Operations Coordinator. The division vice president should also notify the Accounting Operations Coordinator when a budget manager in his/her division changes.

(2) The budget manager of each index will automatically have online purchase order (PO) creation, online PO approval (subject to academic division capital purchase limits), and disbursement (invoice) approval authority. The budget manager will also have access to his/her indexes via the Budget Administration Web application (Budget Admin Web).

(3) A budget manager may delegate online PO creation authority and Budget Admin Web viewing privileges for his/her indexes to other faculty or staff as appropriate and necessary. This is done by sending an e-mail to the Accounting Operations Coordinator. The Accounting Operations Coordinator should also be notified (via e-mail) by the budget manager of all changes in PO creation authority. Note: POs under $500 do not require an electronic approval in the system.

(4) A budget manager may delegate PO approval (subject to the academic division capital purchase limits) and disbursement (invoice) approval authority for his/her indexes to other faculty or staff with his/her division vice president’s approval. The division vice president’s approval should accompany the request that is e-mailed to the Accounting Operations Coordinator.

(5) A system generated message requesting that a Sample Signature form be completed and forwarded to Accounting & Budget Services is sent to an individual granted disbursement authority.

(6) When a new index is requested by a budget manager or otherwise established, Accounting & Budget Services will request the information identified above.

2. When to use online purchase orders

Capital purchases:

A purchase order created and approved in the Banner Online Purchasing system is needed for all capital purchases (e.g. furniture, equipment, or computer accounts in the 71xxx range of accounts).

Approval limits for Academic division capital purchases:

The Academic division has set the capital purchasing approval queue limit at $499 for academic department chairs. Online PO’s for capital purchases of $500 or more will be routed through the electronic approval queues, first to the department chair, and then to staff in the Associate Deans’ office. Associate Deans’ staff will verify that the academic department has an approved capital budget for the specific items in the PO and will provide final electronic approval. The approved PO will be converted to a .PDF file by a process run by Accounting & Budget Services staff and will be returned via e-mail to the e-mail address that was indicated on the Banner PO form. Please see the important note about online PO training and urgent PO creation on page 17.

Computer and network hardware, software, and peripherals:

If you are ordering computer and networking hardware, software or related peripherals, you will want to contact the Purchasing Coordinator in the Office of Information Services (OIS) (x2866 or ois@ups.edu). The Purchasing Coordinator will provide you with specific order information (or a referral to another member of the OIS team), to ensure that your purchase is supportable by OIS. The PO can either be created by you or it can be created by the Purchasing Coordinator in OIS and routed to you for approval through the on-line approval process.

Other purchases that may need a PO:

A PO should also be used for high dollar operating expenses, when a vendor requires one, when you want to clarify items ordered and related prices, and/or when you would like the purchase reflected as a budget encumbrance (e.g. budget reservation). Almost all university PO’s are now created and approved using the Banner Online PO system. A small number of departments do not use the Banner Online PO system because they have computer systems that generate POs and it would be a duplication of effort to create a PO in the Banner system. These departments include: Library, Facilities Services (for FAMIS system purchases), Dining Services, and the Bookstore. Note: When Facilities Services purchases goods or services at the request of another department (i.e. as a result of a work order request), Facilities Services will use an Online PO. The Office of Information Services (OIS) also uses Online POs when initiating purchases at the request of other departments. The requesting department’s budget manager is expected to use the Online PO system (Banner) to approve the purchase order. Please see the important note about online PO training and urgent PO creation below.

Important notes:

v Urgent PO creation:

If you have an urgent need for a PO and you are temporarily unable to use the Banner Online PO system, the Purchasing Coordinator in the Office of Information Services (OIS) is available to assist you with urgent PO creation. There are two steps to the urgent PO creation process:

(1) First, you will want to e-mail your urgent PO creation request to the Purchasing Coordinator at ois@ups.edu. Please be sure that you are either the budget manager or have purchasing approval authority for the index that is charged.

(2) Second, the Senior Accountant/Analyst or the Associate Vice President for Accounting & Budget Services, may need to electronically approve the PO on your behalf. Your e-mail to the Purchasing Coordinator will provide the appropriate written authorization for the Associate Vice President for Accounting & Budget Services or the Senior Accountant/Analyst to do this, provided you are either the budget manager or have purchasing authority for the index that is charged. The Purchasing Coordinator or you can forward the e-mail to the Administrative Secretary for Business Services, and this person will coordinate with either the Senior Accountant/Analyst or Associate Vice President for Accounting & Budget Services (whoever is more readily available) to approve the PO.

v “Out of Office” PO Approval:

When you are planning to be out of the office or otherwise unavailable to approve Purchase Orders in the Banner Online PO System and you anticipate you may have urgent POs that will need approval, please make arrangements for your supervising Director (or the person with financial oversight for your division, such as the Associate Academic Dean or Division Vice President) to request the urgent PO be approved. He/she can do this by sending an e-mail to the Administrative Secretary for Business Services, asking for the specific urgent PO to be approved in the Banner system. The Administrative Secretary for Business Services will coordinate with either the Senior Accountant/Analyst or Associate Vice President for Accounting & Budget Services to approve the PO.

v Training for online PO creation and approval is available in one of five ways:

Download an Online PO Creation and Approval Manual from the Accounting & Budget Services Web Site at http://www2.ups.edu/accounting_budget_services/Online_POs.htm.

(1) Access the Online PO Creation Tutorial on the Accounting & Budget Services Web Site at: http://www2.ups.edu/accounting_budget_services/Online_POs.htm. This is an interactive tutorial that will walk you through the basics of creating a purchase order in the Banner system.

(2) Accounting & Budget Services provides periodic group training for faculty and staff. Group training is generally offered as part of the Faculty and Staff Professional Development Conference sponsored by Human Resources, which is typically in January. Group training may also be offered when major system upgrades are implemented.

(3) The Purchasing Coordinator in OIS (Office of Information Services) is available to assist new online PO system users with limited training or question answering (x2866 or ois@ups.edu).

(4) For all other Online Purchase Order questions, please contact the Administrative Secretary for Business Services for assistance or a referral.

3. Payments to Vendors

When you have bills (invoices, receipts, etc.) ready for payment, you will generally use one of three methods to approve them for payment. Note: the budget manager(s) or individual(s) with disbursement authority for the index(es) charged must be the one to approve bills for payment.

A. Procedure for using the disbursement stamp to approve payment of invoices:

(1) All university departments should have a disbursement stamp. This stamp is used to approve vendor invoices, statements, and contracts for payment[1].

(2) Locate a clear space on your vendor invoice to place your stamp. Even using the back of the invoice will work just fine.

(3) If there is no clear space on the front or back of the vendor invoice, stamp any other blank paper, which is big enough for the stamp. If you need to do this, please staple (do not paperclip) the stamped paper to the back of the invoice. (Most of the information the AP staff need to reference is included on the face of the invoice by your vendor.)

(4) In the event that the AP staff receives the vendor invoice and it is then forwarded on to your department for processing, the AP staff will make every effort to not use up the space you may need for your disbursement stamp.

(5) We ask that the AP staff and the department staff not use their stamps on the vendor remittance copies and/or coupons. AP does have a commitment to return remittance copies and/or coupons to your vendors.

(6) Complete the necessary fields on the disbursement stamp, including the signature and date lines. Please see below for an example of the disbursement stamp.

(7) Send the invoice to Accounts Payable at CMB 1042 or Jones 018. Accounts payable will process the expenditure and pay the vendor.

Example of the disbursement stamp:

Highlight PO Number on Invoice or List Here

Final Payment / Close PO? Yes c No c Fiscal Year

US Mail unless otherwise indicated here

Indicate FOAPAL if No PO or Different from PO FOAPAL:

	Index		Account		Activity	Amount
1		.		.
2		.		.
3		.		.

Disbursement Request Description:

1
2
3

Budget Administrator: In signing I acknowledge the receipt of goods, any changes to

the FOAPAL(s), and approve payment of this invoice for the amount indicated.

Signature Date

The disbursement stamp can be used whenever possible, to approve vendor invoices, statements, or contracts. You may find instances where the Disbursement Stamp is not the best way to transact your business with AP. Please see items B and C, below, for additional ideas/procedures for approving bills for payment. You and your team will be the best judge of which will work best in each instance.

B. Procedure for using a copy of the purchase order (PO) to approve payment of invoices:

(1) You will still need to submit your PO copy when: (there may be other instances):

· Paying on a PO where the invoice is a partial payment on the PO. This is necessary because you will need to indicate for the AP staff which items (commodities) on your PO are being cleared.

· Paying a specific dollar amount on a commodity with a split FOAPAL. ($2,000 should be charged to one FOAPAL and the balance to the other.) This can be done with the stamp, but may be easier with the PO copy.

(2) Attach a copy of the PO to the original vendor invoice (invoice on top and PO underneath).

(3) Indicate on the PO that the goods or services were received (if not all items have been received, please indicate which ones have been received), the date received, and sign, to approve payment of the invoice. Only approve payment for those items received.

(4) Place a letter “F” to the right of each line item on the PO, to indicate the items that are included on the attached invoice. This indicates that the PO line item was “filled” and can be “closed” in the Accounts Payable/Purchasing system.

(5) Send the PO and invoice to Accounts Payable. Accounts payable will process the expenditure and pay the vendor.

Please note: It is very important that invoices are matched and referenced to PO’s, using the steps outlined in both sections A and B, above, so they can be closed in the system when filled/completed. If invoices are not properly referenced to related PO’s, your budget will reflect both the open budget encumbrance (PO) and the paid invoice (actual expense). This will result in inaccurate budget variance (available budget) information.

C. Procedure for using the disbursement request form:

(1) Expense reimbursements to faculty, staff, or students are typical examples of when it is appropriate to use a disbursement request form.

(2) Complete a disbursement request form and attach the expense summary form with original receipts, advance processing form, or other supporting documents, as applicable. Send to Accounts Payable for processing the expenditure and paying the vendor.

(3) You can download the disbursement request form, expense summary form, and advance processing form from the Accounting & Budget Services web pages at: http://www2.ups.edu/accounting_budget_services/Forms.htm. Time saving tip: the forms open in Excel. You can save the forms on your local or share drive, by using the “File, Save As,” command. This will allow you to fill in and save information that will be the same each time you complete the form.

Contact information:

If you have questions about processing invoices and/or disbursement request forms, please contact the Accounts Payable Specialists in the Accounts Payable office.

4. Typical Disbursement Coding:

Ø Operating/capital budgets = 00xxxx.xxxxx = Index (00+department #).Account

Ø Designated & restricted funds = xxxxxx.xxxxx = Index (fund #).Account

Selecting an Account:

Ø When coding transactions, select an account that best describes the transaction. You can view the revenue and expense section of the chart of accounts (FOAPALs) from the Budget Administration Web application by clicking on the “FOAPAL” link located on the left side of the top navigational bar. See section D of this resource guide for information on this Budget Administration Web application.

Ø You may also access the chart of accounts (FOAPALs) by using FOAPAL Search. This look-up tool provides an easy way to search the Banner Chart of Accounts for a Fund, Organization, Account, Program, or Activity code. This tool can be accessed from the Banner Tools menu item on your Cascade Menu.

Ø Since most of your transactions will be expenditures, you will most likely choose an account that begins with a 7xxxx. If you select an account other than that, you will want to understand the reason and implications.

5. Campus Services and Related Recharges

When you utilize certain campus services your department will be “billed” via an electronic recharge process. This includes the Bookstore, Catering/Dining, Conference, Copying, Facilities, Mail, Printing, and Telephone Services.

The process to initiate services in each of these areas varies. Each department can more fully explain their procedures. The basics are covered below.

Section A – Introduction