- Accounts Payable
Accounts Payable is responsible for overseeing payments to vendors for goods and services required by the University and processing refunds and reimbursements to vendors and employees to include providing accurate, dependable, and timely services to personnel involved in business related travel.
PROCEDURES and RESPONSIBILITIES
All invoices received that are tied to a purchase order must be processed following the procedures listed below.
· Once merchandise is received, immediately review the purchase order (PO) to determine if it is complete and if an equipment number is required.
· If a PO is incomplete, mark the items and indicate the quantity of the items. Make a photocopy of the PO and sign and date the copy and forward it to Accounts Payable.
· If a PO is complete, sign and date the yellow copy of the PO and forward to Accounts Payable.
· If the PO contains equipment, please contact the University Property Officer to obtain a DSU inventory number to be used for identification of equipment. Then record the equipment inventory number on the yellow copy of the PO and forward to Accounts Payable.
· If you receive an invoice, forward it to Accounts Payable. Original invoices are required for payment.
Overpayment of Purchase Order Items
The Accounts Payable Department is authorized to overpay a purchase order item with department head approval of an invoice if budget is sufficient and the overpayment is equal to or less than 10% or $100, whichever is less, and does not violate any purchasing limits. Overpayments that exceed budget or exceed the above limits must follow same authorization as the original requisition through purchasing.
Check Writing Cut-Off Date
Accounts Payable checks are generally written on Wednesday and Friday, and are usually mailed the same or next day.
Approved travel reimbursement requests that reach Accounts Payable department by 2:00 p.m. on Tuesday or Thursday will normally be written the next day unless there is a problem.
Other payment requests (approved receiving reports or requisitions) also received by 2:00 p.m. on Tuesday or Thursday will normally be written the next day unless there is a problem.
Please note these cut offs help us make timely payments to you and all our other vendors
- Agency Accounts
Delta State University acts as a custodian for independent organizations. Delta State University does not own these funds, but does have a responsibility to manage the funds properly. The university accepts these resources only when the funds will be used by the organization for activities consistent with or in support of the mission of the university.
Agency Funds: funds held by the university as custodian or fiscal agent for independent organizations. Agency funds are not owned by Delta State University and are accepted only when they help to fulfill the mission of the university. The accounts that track agency funds are assigned a fund code beginning with ‘7’.
Independent organization: an organization not legally part of the university that acts on its own behalf, is not controlled by the university, and could have a separate taxpayer identification number.
PROCEDURES and RESPONSIBILITIES
Delta State University acts as a custodian for certain resources provided by external independent organizations. Such resources are accepted only when the funds will be used by that independent organization for activities consistent with, or in support of, the mission of the university. The funds in Delta State’s general ledger where the resources are recorded are called agency funds and are coded with numbers beginning with ‘7’.
The university does not own the funds in an agency account; rather, the assets are owned by the independent organization and liabilities are its responsibility. All transactions in an agency account must be made on behalf of the independent organization. Therefore, although there is a fund set up on Delta State University’s general ledger, in the process of charging transactions to an agency fund, individuals cannot use Delta State’s tax-exempt status or hold themselves out as being part of, controlled by, or acting on behalf of the university.
Agency funds may be set up for:
· DSU student associations – funds deposited for recognized student organizations (i.e., annual dues)
· Certain student financial aid – funds deposited to provide scholarships and other aid to specific students enrolled in established degree programs of the university. The entities providing the funds have the sole discretion in designating the recipient and scholarship amount provided.
· Faculty or staff professional or academic organizations – funds deposited for faculty and staff organizations and activities
· Externally sponsored events, such as the MCTE Regional Convention
An independent organization that wishes to open an agency account in DSU’s general ledger should submit an Approval Request Form (see web address below for form) available in University Accounting. The form requests information about the nature of the independent organization, how and when it will be funded, who will be authorized to expend its funds, and other tax information. The completed form should be forwarded to University Accounting for approval and assignment of fund numbers
· Review Approval Request Form for new agency funds.
· Periodically review agency accounts, including reconciliations and relationship of the independent organization to the university.
Authorized Representative, Independent Organization
· Complete Approval Request Form and submit to University Accounting for approval.
· Explain to vendors the independent nature of the organization – that the organization is not a part of Delta State University
· Process transactions on behalf of independent organization
· Monitor balance in the agency fund prior to funds being depleted.
- American Recovery and Reinvestment Act
Delta State University receives American Recovery and Relief Act (ARRA) funds from the federal government and through direct appropriations from the state of Mississippi. It is the policy of Delta State University that all ARRA funds shall be subject to the same generally accepted accounting principles as found in the university’s accounting policies and procedures. All ARRA funds will be presented in the university’s financial statements prepared in accordance with the Government Accounting Standards Board (GASB) principles.
ARRA Funds: All funds received as part of the American Recovery and Relief Act.
PROCEDURES and RESPONSIBILITIES
The University Comptroller shall ensure that ARRA funds are deposited and expended in segregated funds and not commingled with other university funds. The Comptroller will also ensure that all 1512 reports and any other reports required by the federal or state government regarding ARRA funds are filed at the appropriate deadlines.
- Budget Transfers
In order to maintain the University’s fiscal integrity, each University department/division is responsible for administering its approved budget according to University guidelines.
Regular Full-Time: Employees who are regularly scheduled to work one-half time or more (50% time or greater) and whose positions are expected to be active for more than four and one-half months.
EEO6 Classification: seven categories of compensation set by the Equal Employment Opportunities Commission, as follows: 1) executive, administrative, and managerial; 2) faculty; 3) professional non-faculty; 4) clerical and secretarial; 5) technical and paraprofessional; 6) skilled crafts; 7) service/maintenance; and 8) students. Banner salaries and wages accounts are numbered to reflect EEO6 classification.
Salaries: amounts of fixed compensation paid regularly for services. Detail in accordance with EEO6 classification must be followed.
Wages: amounts of compensation for services paid according to contract on an hourly basis. Detail in accordance with EEO6 classification must be followed.
Travel: expenditures for official employee business travel. Major object is divided into sub accounts for in-state individual, out-of-state individual, in-state conference, out-of-state conference, in-state group (team), out-of-state group (team), and out-of-country travel.
Contractual Services: expenditure category encompassing all payments for services for grants, scholarships, and awards; communications and transportation; utilities; public information; rents; repairs and maintenance; professional fees (consultants); and other contractual services such as dues, subscriptions, and computer software.
Commodities: expenditures for tangible, expendible items including maintenance materials and supplies; printing and office supplies; equipment repair parts and supplies; professional and scientific supplies and materials; and other supplies and materials such as clothing, food for persons, seed and plants, and expendable equipment. This category also include merchandise purchased for resale by auxiliary departments.
Capital Outlay Other Than Equipment: expenditures for land, building project contractors, buildings, and library books and materials.
Capital Outlay Equipment: expenditures for capital equipment as defined by the State Property Office. Subcategories include office furniture and equipment; vehicles; medical equipment; data processing equipment; radio and television equipment; scientific equipment; and other equipment.
Transfers: funds categorized as mandatory (lease payments, matching agreements) or non-mandatory (transfers to other funds made at the discretion of the University).
Functions (Budget): The University budget is divided into functions—Instruction, Research, Public Service, Academic Support, Student Services, Institutional Support, Operation and Maintenance, and Scholarships and Fellowships.
PROCEDURES and RESPONSIBILITIES
Each University department or division is allotted a portion of the University budget in accordance with its needs established annually. The budget is divided into seven major object categories—salaries, wages and fringe benefits; travel; contractual services; commodities; capital outlay other than equipment; capital outlay equipment; and transfers. Departments are responsible for spending within the limits of each major object.
If unexpected expenses will cause a department to overspend a budget line item, the department must request a transfer as follows:
· Within Travel – Travel is budgeted as a total under account 7400. As travel monies are spent, they are posted to the proper account (i.e., hotel expenses for an out-of-state conference are posted to account 74310. Transfers are not needed within travel accounts.
· Within Contractual Services – The Contractual Services major object is budgeted by line item. A deficit in a line item must be covered by a transfer from another line item (i.e., a deficit in 75210 Postage could be covered by a transfer from 75230 Telephone Long Distance).
· Within Commodities – Commodities are budgeted as a total under account 7600. Similar to travel, commodities are posted to detail accounts as they are spent. Transfer are not needed within commodities accounts.
· Within Capital Outlay – Capital Outlay accounts are budget by line item and require budget transfers to cover line item deficits.
The above transfer requests within major objects may be accomplished by e-mail or memo to University Accounting.
Transfer requests to move budgeted funds from one major object to another (i.e., funds transferred from Commodities to cover a deficit in Travel) within a department or from one department to another should be made by e-mail or memo to the Director of University Accounting. Departmental budget transfers between functions (i.e., from Instruction to Academic Support) are not allowed.
· Spend within the limits of departmental budget
· Request budget transfers if line item deficits occur
University Accounting’s Responsibilities
· Monitor departmental requisitions to ensure funds are available
· Assist departments with budget information
· Process budget transfers
The purpose of the cashiering function in Student Business Services is to safeguard funds received on behalf of Delta State University and to ensure they are properly accounted for and receipted. Departments involved with this process are Student Business Services, University Accounting, and the University Police Department.
Cash deposits: Those deposits including cash and any cash medium, e.g. checks, money orders, cashiers checks, credit cards and/or traveler's checks
PROCEDURES and RESPONSIBILITIES
Cash deposits and receipts totaling $1,000 or more are to be receipted with Student Business Services on a daily basis. All deposits less than $1,000.00 are to be receipted with Student Business Services on a weekly basis. Except for the cash designated as petty cash, all cash and cash medium are to be receipted through Student Business Services. There are no exceptions. Each department is responsible for ensuring that proper documentation (pre-numbered receipts, cash register tapes, etc.) supports all cash medium transactions. All documentation is subject to audit and verification. All departments on Delta State University’s campus are required to request a police escort for any deposits over $250 in cash.
All cash and cash medium received on behalf of students for payment of tuition and fees, including continuing education courses, international travel courses, student organization memberships, or similar activities, should be deposited in the student’s account or a designated fund at Student Business Services. Individual faculty and/or administrators developing a course requiring international travel should contact Student Business Services for proper procedures. Individual faculty and/or administrators are not authorized to collect funds from students. The process of collecting funds from students is the responsibility of Student Business Services.
Third party checks, checks not made directly to Delta State University, will not be accepted. Exceptions will be handled through Student Business Services. Student Business Services is the only department that can cash a check. There is a limit on the amount that can be cashed per person per day. Any check returned to Delta State University because of insufficient funds or a denial to pay from the bank on which the check is drawn will be charged back to the student account or designated fund, including an insufficient check charge. The returned check can only be paid with a money order, cashier's check, or cash. The person writing the check will be notified within a 24 hour period that the check has been returned. The person writing the check will have thirty days from the date of the notification to reimburse Delta State University for the insufficient check. If the check is not paid in full, it will be turned over to Justice Court, the Attorney General or to a collection agency for collection depending upon the amount of the check and the status of the individual’s account with Delta State University.
- Investment Policy
The purpose of this policy is to provide efficient, ethical and consistent guidelines for the investment of Delta State University’s cash reserves. Cash reserves are defined as funds in the University’s accounts not required at that point in time to maintain adequate bank balances or to repay outstanding financial obligations.
- Principal – The prime objective of the investment program is to preserve principal.
- Liquidity – Adequate liquidity should be maintained to meet projected and unexpected cash needs. Adequate liquidity requires that an investment instrument can be sold on the secondary market without substantial loss of principal.
- Return – All reasonable efforts should be made to realize the highest return per investment dollar while minimizing risk and retaining liquidity.
- Risk – All risks, including custodial credit risk, interest rate risk, credit risk, concentration risk, and foreign currency risk should be taken into account in the investment of cash reserves.
Only those investments permissible under State of Mississippi law in Section 27-105-33 (1972) are allowable.
- Safekeeping – Whenever possible, investment securities purchased by Delta State will be “Book Entry” transactions and held in a custodian or safekeeping account in a state approved depository to protect against delivery failures and serve to concentrate investments in one location. No due bills will be accepted under any circumstances.
- Investment Manager – All cash will be invested in either the university’s bank depository or with the IHL selected investment manager, Trinity Capital Investors.
Income earned from investments made under this policy will be distributed on an annual basis to specific funds within the University based on the average daily claim to cash for each of these funds as a percentage of the total average claims to cash for the same period.
Delegation of Authority
The ultimate responsibility for the monitoring and supervision of the investment manager lies with the President of the University and designee, the Vice President for Finance and Administration. The Vice President for Finance and Administration and the Comptroller shall meet quarterly with the Investment Manager to set and review asset allocation guidelines, review performance, and set investment return goals for budgetary purposes.
Responsible Office and/or the Policy Owner: Finance and Administration
- IHL Investment Management Agreement, October 22, 1999
- Amendment to IHL Investment Management Agreement, November 6, 2002
- IHL Investment Policy 701.08
Policy Effective Date: January 9, 2012
Approval Date: January 9, 2012
- Petty Cash
Petty cash funds are provided to University departments to facilitate cash flow in departments that depend on a large amount of cash on hand to operate (i.e., Student Business Services’ Office, Library, Health Services). Departments with petty cash funds are expected to account for the funds according to purchasing guidelines.
Petty Cash: A petty cash fund is a small amount of cash used for day-to-day incidental purchases. Deductions from the fund are evidenced by vouchers
PROCEDURES and RESPONSIBILITIES
Petty cash funds are provided to University departments to facilitate cash flow in departments that depend on a large amount of cash on hand to operate (i.e., Student Business Services’ Office, Library, Health Services). The department head/chair is solely responsible for the fund—for maintaining the fund in a secure fashion (locked in a vault, drawer, or file cabinet), disbursing the funds; maintaining appropriate documentation for the disbursements; balancing the fund; and replenishing the fund as necessary.
State Audit Department regulations limit the amount of cash held in the Student Business Services’ Office except during registration and/or other occasions requiring excess cash. These unusual circumstances should be documented on the daily cash report.
Petty cash funds should not be used for cashing personal checks or third party checks, including Delta State University reimbursement checks.
Petty cash funds should not be used for purchasing items over $50. For such purchases, a purchase requisition should be completed, approved, and forwarded to the Purchasing Office for processing.
The amount of a department’s petty cash fund should be jointly determined by the department and University Accounting based on anticipated cash activity. The established fund amount as recorded in the general ledger should always equal the amount of petty cash plus related receipts on hand. For example, a $100 petty cash fund with $30 cash should have $70 of receipts to balance the fund.
Each fund disbursement should be supported by an original receipt, an approved purchase requisition, or a list of signatures of persons receiving cash. Weekly reports are logged and balanced in the Student Business Services’ Office. A receipt is returned to the department for its files.
All petty cash funds are subject to periodic audits by University Accounting and/or state auditors.
- Maintain petty cash fund in a secure place.
- Require appropriate documentation for disbursements.
- Balance the fund periodically.
- Replenish the fund as necessary.
University Accounting Responsibilities
- Establish the petty cash fund based on anticipated cash activity in the department.
- Audit the fund periodically
- Restricted Funds
Restricted funds are those that come from sources other than normal University operating funds and are provided to conduct specific projects or programs. Such grants are sponsored for research, public service, or educational service. The purpose of this policy is to provide guidance to project directors handling funds for grants. Federal grants for financial aid to students are not within the scope of this policy.
Restricted funds: account for current expenditures expended for operating purposes, but restricted by donors or other outside agencies as to the specific purpose for which they may be expended.
PROCEDURES and RESPONSIBILITIES
Grants and contracts are normally awarded to institutions rather than to the individuals responsible for the conduct of the programs. Thus, the institution assumes full legal responsibility for the programs and for fulfilling sponsoring agency requirements. The President of the University or his designee is the only individual authorized to sign award documents on behalf of the University, which commit the University to a grant program.
After a grant award is accepted by the University, the project director has prime responsibility for the conduct of the grant within the regulations of the sponsor and the University. In the areas where there is a difference between the grant agreement and University regulations, the more restrictive will apply. The financial administration of the grant is under the direction of the project director. The University Accounting office is responsible for determining that proper fiscal policies and procedures are followed in conformance with both University and sponsor requirements.
The primary responsibility for budget planning rests with the project director in consultation with the department chair or dean. University Accounting is available to assist in planning in areas concerning salaries and wages, indirect cost, and fringe benefits.
Upon acceptance of a fully-executed contract or grant award document, the project director should forward to the University Accounting office copies of the following documents: grant proposal, award letter, and approved budget. Upon receipt of this award package, University Accounting will assign a fund number and enter the budget into Banner. The project director is not authorized to incur any expense relating to a particular award before these steps have been accomplished.
Once the grant award has been received, all its terms and conditions must be followed explicitly. All expenditures must be required solely to accomplish the purpose of the award and should be based on the budget as approved by the granting agency and the conditions of the award. It is the project director’s responsibility to stay within the total authorized budget. Any budget deficits will normally be charged to the project director’s departmental operating budget.
Project funds must be expended in accordance with the award budget and time period. Thus, services and materials purchased cannot be charged to the project account if received prior to the grant-established starting date or after the ending date.
The University Accounting office will periodically transmit financial reports to the project director. These reports will indicate the detailed financial activity for the period, with cumulative totals for the University fiscal year. This information is also available on-line in Banner at any time. The project director should review these reports and alert the University Accounting office if errors occur.
Generally, the University Accounting office is responsible for reporting all official grant activity to the sponsoring agency. The project director will be required to review and concur with the final accounting statements prior to the submission of the final fiscal report to the agency.
Periodically it becomes necessary to revise a budget by shifting funds from one budget line item to another. All such budget revisions must conform to both the grant requirements and University policy. Once approval is obtained to rebudget, the University Accounting office will adjust the grant budget in Banner.
Proposals to secure outside funding must be prepared and submitted in accordance with University instructions and procedures. A detailed budget must be attached to the proposal at the time it is submitted through University channels for review, even if it is not a requirement of the sponsor.
Matching funds are the portion of the total project cost contributed by the University. All proposed matching must be identified when a proposal is submitted. Departments submitting proposals must have funds budgeted in their departmental operating budgets to support any direct costs that are not provided by the grant. Supporting documents for in-kind matching is the responsibility of the project director.
All University policies and procedures apply to restricted funds. University policies relating to procurement, travel, personnel, etc., must be followed unless otherwise specified by the grant/contract terms and conditions.
Indirect cost should be included in all budgets (except gifts, scholarships, and other student aid agreements) at the current approved University rate unless not allowed by the grant. Information on the current indirect cost rate may be obtained from the Institutional Grants Administrator or the University Accounting office.
Indirect cost recovered by the University will be reallocated as follows:
30 % to University Accounting
30% to Vice President
40% to Department
- Receive grant documents from project director.
- Set up budget in Banner according to the grant agreement.
- Approve all grant related requisitions based on budget narratives
- Periodically transmit financial reports to the project director.
- Report all official grant activity to the sponsoring agency.
- Forward grant proposal, award letter and approved budget to University Accounting.
- Expend project funds in accordance with the award budget and time period.
- Review periodic financial reports, reporting any errors to University Accounting.