ALL OF THE FOLLOWING INFORMATION HAS BEEN COMPILED (EDITED OR - - PowerPoint PPT Presentation

 ALL OF THE FOLLOWING

INFORMATION HAS BEEN COMPILED (EDITED OR SHORTEN TO FIT FOR PRESENTATION AND TIME RESTRAINTS) FROM THE OU POLICY MANUAL LOCATED ON OU WEBPAGE.

Oakwood University Gail Caldwell and Trevor Johnson August 1 & 2, 2012

PURPOSE STATEMENT:

To support quality Christian education by providing students, staff, faculty, vendors, board members or out-side sources with efficient service and accurate financial data in a timely manner for administrative decision making or reporting.

 Policy or Procedures are guided by the

following requiring entities:

 FASB –Financial Accounting Standards Board-GAAP –

Generally Accepted Accounting Principles

 GASB –FAR – A-133 Requirement  IRS  NAD Auditing Standards  OU Board of Trustees  OU President’s Council  OU Accounting Internal Control

Accounting Department Who’s doing what?

Gail Caldwell, Controller gcaldwell@oakwood.edu

• Approves all incoming purchase requisitions

and campus leave forms

• Approves budget transfers and all payroll

adjustments, etc.

• Handle all questions related to budget

management.

• Financial Surveys
• Add New Accounts

Trevor Johnson, Chief Accountant trjohnson@oakwood.edu

• Accounts for all financial recording
• Approve all journal and invoices
• Financial Reporting
• Update Budget Transfer
• Account/Budget Query

Laketia Chapman, Jr. Accountant – A/P lchapman@oakwood.edu

• Process all checks (including Federal and A/P)
• Log, Mail & File All Checks
• Void, reprocess, or back-out invoice
• Input Invoices

Compton Brathwaite, StaffAccountant brathwaite@oakwood.edu

• Title IV process & reconciliation
• Salary, Fringe recovery of Federal grants
• Federal Cash receipts (Fed, Marc, & Restr.)
• Fixed Assets Custodian

Cheryl Sullivan, Payroll Manager csullivan@oakwood.edu

• Payroll Custodian
• W-2

• Kerry Joseph, Federal Accountant

kjoseph@oakwood.edu

• Verify all federal requisitions (including

campus leaves)

• Process Federal Travel Reports
• Federal, Grants & Contracts questions
• Federal Quarterly reports
• Federal Reconciliations, Title III

Deborah Taylor, General Accountant dtaylor@oakwood.edu

• Interdepartmental Charges
• Journal entries, Account corrections
• GC, OC Academy and White Estates invoices
• G/L Permission and Approver Set-up
• Bank Wires, Stop-payment, Banking (General)
• Deferred Charges & Recurring charges

Colesh Thompkins (Temporary), Jr. Accountant- A/P @oakwood.edu

• Process all PO invoices (except Physical Plant

and Library Dept),

• Sales Tax
• AMEX,
• Add Vendors
• 1099

Doris Collie, Staff Accountant dcollie@oakwood.edu

• Process utilities, contracts or lease
• Process PO invoices for Physical Plant and

Library

• Payroll Assistance
• Process all employee’s time

Cecil Spence, Staff Accountant cspence@oakwood.edu

• Payroll Deduction Invoices and payments
• Other Bank Reconciliations
• Quarterly 941 Reporting

Chris McNish, Clerk/Help Desk cmcnish@oakwood.edu

• Process all requisitions to invoices
• Distribute checks
• Travel and Cash advance payment Custodian
• Requisition Help desk and Trainer
• Add new Vendors (from W-9 Form, only)

 Budget Policy and Control  Travel  RPA  General Accounting Procedures  Money Collection  Petty Cash  Gift Cards

BUDGETING PROCESS

The Oakwood University fiscal year runs from July 1 to June 30, and an annual budget is developed which clearly identifies income and

• expenses. Each cost center follows a budgeting

process which allows input from faculty and staff.

The following timetables are used in developing the University budget.

• 1. October: Budget assumptions are determined by the President and the Vice President

for Financial Affairs and presented to the President’s Council for approval and subsequently presented to the Finance Committee and the Board of Trustees for approval at their October/November meeting. Budget assumptions categories are as follows:



Number of full-time enrolled students



Dormitory capacities and rates



Tuition rates



Board rates



Cost-of-living increases for salaries (as voted by the NAD at year-end meetings)



Travel allowances (as voted by the NAD at year-end meetings)

• 2. December 15: The Vice President for Financial Affairs initiates the budgeting process

by sending salary information to each administrative officer separated by cost center (department). The salary information consists of the present pay rate, proposed pay rates based on the cost-of-living increase voted by the Board of Trustees at its fall meeting, and the proposed annual salary amount based on the proposed pay rates. Department directors are asked to review this data and submit freezes and/or additional staff with supporting documentation.

• 3. January 15: Administrative officers return the salary data to the Vice President for

Financial Affairs for review by the President.

• 4. January 31: A budget worksheet is distributed to the administrative officers for their

respective departments. Limits to use for increases in general expenses. Any other information or instruction which would be required by department directors to develop budgets

• 5. February 28: Department directors are to obtain input from their staffs and use the

data provided to prepare a budget proposal by line item to their administrative

• fficer in time for submission to the Vice President for Financial Affairs by this
• date. The administrative officers determine their process for involvement in

development of their respective departmental budget proposals.

• 6. March: The President and the Vice President for Financial Affairs meet with each

administrative officer during the month of March to review, evaluate, and negotiate his/her proposed budgets. Department directors may be requested to meet along with their administrative officer to provide additional information as needed.

• 7. March 31: A final balanced budget is completed for

presentation to the Finance Committee and the Board

• f Trustees. Preparations are made for faculty and staff

contracts, subject to final approval by the Board of Trustees.

• 8. April: A final budget is presented to the Board of

Trustees for approval.

• 9. The Vice President for Financial Affairs presents the

current financial position, with comparisons of action pertaining to the budget.

• 10. Employment contracts for faculty and staff are

prepared and ready for distribution by June 1.

BUDGET REPORTS AND CONTROL

1.

Reports are available to department directors generally by the fifteenth of the following month. Department directors develop and follow their own budget review process. (Available on EX Jenzebar or MyOakwood) 2. A report of negative budget variances is to be prepared by each department director and submitted to their respective administrative officer by the twentieth of the following month for review and approval. The report of negative budget variances requires determination of the reason for and corrective action of the negative variance. (See Example available on-line Accounting Website) 3. Administrative officers are to submit a report of negative budget variances for their division to the Vice President for Financial Affairs by the twenty-fifth of the following month. 4. The Vice President for Financial Affairs is to submit a summary report of negative budget variances for all divisions to the President by the thirtieth of the following month.

5. The Vice President for Financial Affairs gives a financial report to the President’s Council on its last meeting of each month (generally the fourth Wednesday). 6. The Vice President for Financial Affairs gives a financial report to the faculty during their business meeting once each quarter. 7. The Vice President for Financial Affairs presents the current financial position, with comparisons of actual amounts and budgeted amounts, at each executive committee, finance committee, and Board of Trustees’ meeting throughout the year.

MyOakwood Budget Demo Negative Variance Sample

(Instructions on Accounting Web Page)

Budget Transfers

(Located on Other Transactions Form)

It is the policy of the Oakwood University to reimburse employees who travel at the request

• f the University for reasonable and necessary

expenses incurred while traveling on authorized University business.

Travel Authorization

• A. Travel Authorization. A Travel

Authorization form (Campus Leave) is required for all reimbursable travel including institution and grant travel. The Campus Leave form is completed before the Trip is taken and before travel arrangements are finalized. (See instructions for creating a Campus Leave/Expense Report in EX)

B.

Expense Reports

General steps for turning in travel reports:

• 1. Travel reports are due in the Accounting Office within seven working days following an

employee's trip. Retrieve report from the Accounting Report Form Menu on Webpage. 2. Travel reports should be filled out completely and all original receipts should be attached. Attach on-line to requisition when applicable for reimbursement. 3. Travel reports should not be turned in without the following signatures or it will result in a delay on reimbursements: employee, department head, and division head. To expedite the reimbursement, create a requisition for a check (CK) for the amount of the reimbursement from the travel report.

• 4. Employees should allow a week to ten days for any reimbursements (due to the volume
• f reports being submitted).

5. Any reimbursement to the school must be paid and receipted with the cashier, and the

• riginal receipt should be attached to the travel report before submitting to the

Accounting Distribution Office. No money should be turned into Distribution Center at any time.

• C. Per Diem. The per diem includes all charges for meals, gratuities to

restaurant employees, and laundry where allowable. The current per diem regulations are: *Per diem is $41 * No per diem allowance will be paid for a trip of less than six hours. * For a trip greater than six hours but less than twenty three hours, a meal allowance of $20.50 (receipts are required) will be paid. * For an overnight trip, $41 per day will be paid. * When all meals are provided by others (persons or organizations) per diem is $13.00 (fully entertained) * Pre-authorized (by Vice President) Family per diem is $57.00 If an employee does not wish to receive the per diem (in full or partial) he/she must state in writing that they voluntarily forfeit the per diem due them.

• D. Privately Owned Vehicles. Mileage in lieu of actual transportation expenses may be

reimbursed per mile at the rate of $.39 per mile.

• E. Receipts. Receipts should be obtained whenever possible for any travel expenses, but are

required for all registration fees, air fare, rail and bus fare, gasoline and oil purchases for rental vehicles, and for any other expense greater than $10. If car rental and gas receipts are lost for trips where the rented car was driven for more than 60 miles, then the mileage rate may (with Unit VP=s and Financial VP=s approval) be claimed in lieu of rental reimbursement.

• F. Early Departure or Late Returns. A memo is required to justify an employee leaving on an

early travel date or returning late. The justification should document the reduction in the total travel costs.

• G. Hotel Expenses. Hotel expenses should be broken down on a per-day basis. The amount

should include the room charge plus any applicable room taxes and should not include any telephone, meal, or parking expenses. The University does not reimburse expenses for movie

• rentals. If two employees share a hotel room, each employee should record 2 of the cost on

his/her travel report. The employee who paid for the room should attach the original receipt to his/her travel report. The other employee should attach a copy of the hotel receipt with an explanation that a room was shared and that the original receipt is with the other employee's travel report. If a non-employee shares a room, the employee will be reimbursed for the single room rate only.

• H. Air, Rail or Bus Fares. Tickets purchased by the individual cannot be reimbursed until the trip

is completed. A receipt from the airline (versus a credit card slip) is required.

• I. Other Allowable Expenses. The following are allowed for reimbursement:

* Baggage charges for baggage in excess of the weight carried free by common carriers are allowable if such excess is used exclusively for official

• business. Storage and handling charges may also be allowed under the same

conditions. * Gratuities. Tips to taxi drivers, and/or housekeepers are allowable when deemed by administration to be reasonable and necessary. Gratuities claimed as travel expenses should be consistent with levels generally accepted, taking into account geographical location, types of services provided, and any special circumstances. (limit $20.00 per trip) * Porterage. Reasonable expenses for baggage handling services are allowable for delivery to or from a common carrier and delivery to or from a lodging

• accommodation. (limit $20.00 per trip)

Other Allowable Expenses, con’t.

* Registration Fees. The payment of registration fees, which are required as admittance fees for participation in meetings are allowable. Meals included as part of the registration fee may not be claimed separately. Organizational membership dues, as distinguished from registration fees, shall not be processed for payment as travel. * Telephone and Facsimile. Expenses for necessary official telephone and facsimile services are allowable. Whenever possible, telephone calls to an activity's central office shall be made by direct dial. (limit $20.00 per trip) * Airport parking for Huntsville Airport is reimbursed up to the rate of $8.00 per day for a maximum of $50.00 per trip. * Hotel parking is reimbursed up to the rate of $30.00 per day for a maximum of $210.00 per trip.

• J. Non-Allowable Expenses for Travel.

The following (not all inclusive) are not allowed for reimbursement: * Miscellaneous supplies * Alcoholic beverages * Personal phone calls * Unauthorized entertainment and hospitality expenses * Items without receipts * Unauthorized spending (books, gifts, etc.) * Payment of mileage rate when renting a car (If you drive a car, you can receive either the mileage rate or reimbursement for gas, not both. If you rent a car, the original receipt for gas and car rental should be turned in for reimbursement only.) * Items that are not included on the Campus Leave form. * Unauthorized trips

Requisition, Purchasing, & Accounts Payable (RPA) Management Policies Each department head and each Vice President must duly authorize each purchase that is:

• within the guidelines of our University’s mission and Departmental plan
• within the available funds budgeted
• reasonable and necessary

B. Each department head is responsible for supervision of departmental funds. He/She will be accountable for any delegation of approval.

• C. Approval of expenditures is as follows: the Department Head, Vice President,

Controller, V.P. of Finance (in excess of $7,500), President (in excess of $10,000). Authorization of all expenditures must be given by the Controller before any purchase. D. Approved Purchased Orders will be process for payment by Accounts Payable when merchandise and invoice are received.

Requisition, Purchasing, & Accounts Payable (RPA) Management Policies, con’t.

F. Payment request to small businesses, independent contractors/self-employed workers not on the Oakwood University payroll must include a completed W-9 form for vendor identification and for IRS 1099 Form specification. G. Advance payments are cash disbursements that will only be made for travel, construction contractors or vendors who do not accept O.C. purchase orders; authorization from the Controller.

• H. Petty Cash allotment is $100.00 per department.

I. Any purchase that is $5,000 or more must attach three (3) bids (including the one requisitioned) to the Request for Purchase Order (RP) and sent to Distribution for the Controller Approval. J. Any Renovations or Maintenance projects costing $2,500 or more must be inspected by Physical Plant Department (approved personnel) before submitting request for the Final payment. (Attach Physical Plant Authorization Form to the requisition.)

RPA PROCEDURES Located in Financial Affairs Policy Manual and on Accounting Web Page

General Accounting transaction will follow the same Approval process as RPA, but it will be process on an "Other Transaction Form" and not On-line. Additional Compensation for Oakwood staff, faculty or student, of any amount, must be process using the HR - “Personnel Requisition”- for faculty and staff or OSE- “Work Contract” for student. Payment will be combined with the payee’s payroll check. All student payments must be process through Office of Student Employment. Budget Transfers are processed using the “Other Transaction” Form. Accounting will create budget transfers, monthly. If the transfer is made between two (2) different funds (01 to 02, 02 to 06, etc.) then a “Requisition for Check” should be created for process and approval. Departmental charges must be posted on a monthly basis. This information should be received in the Accounting Office on the twentieth (20) of the month. Each charge must be supported by an appropriate document (e.g., meter reading, telephone bills, etc.). Departments submitting interdepartmental charges are: Campus Communication, Computer Center, Graphix, Mailroom, Physical Plant, Transportation. Interdepartmental purchases or transactions are services rendered by O.C. department for another O.C. department. The department that receives the service will complete the "Other Transaction"

• form. Minimum information needed: Department, date, account to charge and account number to

record revenue, amount, signatures and supporting document for transaction.

Miscellaneous request such as duplicating charges, account adjustments or corrections or other JE must complete “Other Transaction” Form located at Purchasing. Petty Cash allotment is $100.00. Complete “Other Transactions” Form with account number, amount, signatures and description

• f purchases; drop-off original at Accounting Distribution. Pink

copy will be returned to Department after Controller approval. Bring pink copy to Cashier for Petty Cash. Original receipts or invoices are returned to the Petty Cash custodian within five (5) business days of purchase. No petty cash is issued to departments with outstanding receipts. Petty cash purchases/requisitions not authorized or approved are personal purchases. Do not use Petty Cash funds to compensate any person for services, gift or appreciation.

Strong internal controls for money collection are necessary to prevent mishandling of University funds and are designed to safeguard and protect employees from inappropriate charges of mishandling funds by defining their responsibilities in the cash handling process.

Guidelines for Establishment: A cash collection point is defined as a department or

• ther entity that handles cash on a regular basis.

Casual cash collections are not recognized as cash collection points, they must follow the same cash handling policies and procedures that apply to the cash collection points. Cash collection points requires the Approval by the Vice President of Financial Affairs (See list of requirements to be included)

Required procedures for cash collection points include the following: Accounting for cash as it is received. Adequate separation of duties which includes money collecting, depositing and reconciling. Proper pre-numbered receipts given for any money received. Approval of any voided money receipts by department chair/director. Deposit of money promptly at the University Bursar’s Office into an authorized University account. Reconciliation of validated Receipt Transmittal Forms to supporting documentation and to the account summary in EX . Approval by the Vice President for Financial Affairs of any changes in money handling procedures. Proper safeguarding of money.

Depositing Money Collected

 A calculator tape of the checks should be included with

the checks bundled together.

 The appropriate account number(s) and sub-code(s)

must be included on the Receipt Transmittal Form.

 Someone not involved with collecting the cash,

• pening the mail or reconciling the deposit must

prepare the deposit.

 The deposit must be delivered to the Bursar’s Office.

(Sample Cash Daily Tally)

Exceptions The Controller’s Office must approve exceptions to these procedures. For example, in cases where there is not enough staff available to maintain complete separation of duties, an alternate process to safeguard University funds must be established and approved by the Controller’s Office. Requests for exceptions to these procedures must be submitted to the Controller’s Office in writing.

Petty Cash allotment is $100.00. Complete “Other Transactions” Form with account number, amount, signatures and description of purchases then drop-off

• riginal at Accounting Distribution. Pink copy will be

returned to Department after Controller approval. Bring pink copy to Cashier for petty cash. Original receipts or invoices are returned to the petty cash custodian within five (5) business days of purchase. No petty cash is issued to departments with outstanding receipts. Petty cash purchases/requisitions not authorized or approved are personal purchases.

Do not use Petty Cash funds to compensate any person for services, gift or appreciation.

Gift cards/gift certificates may not exceed Twenty-five dollars ($25), unless approved by the President and/or the unit Vice President. Gift cards/gift certificates may be purchased for awards or recognition programs such as retirement events, employee recognition events, birthdays, holidays, anniversaries, length of service, and other events as determined by the President and/or unit Vice President. Purchased gift cards/certificates should generally not be convertible to cash (this would probably eliminate - Amex, Visa, Walmart, MC, Discover, etc.).

No federal or state funds may be used to purchase gift cards/certificates. Gift cards/gift certificates may not be used as a form of honoraria for employees. Gift cards should not be used to reward past or future

• performance. These types of payments must

be processed through the payroll system.

A signed "Authorization (Purchase Order) for the Purchase of Gift Cards/Gift Certificates" is required PRIOR to purchasing gift cards or certificates. This authorization is for a single intended purpose only – (i.e.: a specific study, a specific event, etc.) and must be specified in the "Detailed Description of Intended Purpose for Items Purchased" section on the form. It is recommended to limit the number of gift cards purchased at one time so that the disbursement documentation is more manageable. If the original intended purpose or intended vendor changes, a new authorization form must be completed. (See Policy for the included information on the requisition)

 Departmental Documentation

• 1. Proof of original purchase and authorization

form must be kept on file with the appropriate method of payment. The receipt must show the individual gift card numbers purchased.

• 2. A Gift Card/Gift Certificate Disbursement Log

is required to record the dispensing of all gift cards purchased - even if only one card is purchased for

• ne individual. Instructions for maintaining the

log are as follows: (See Policy Manual or Accounting Webpage for details) Gift Disbursement Log Example

HANDOUTS QUESTION AND ANSWERING

 http://www.oakwood.edu/academics/institu

tional-effectiveness/administrative-policy- manual

 Accounting Office Webpage