Accounting Transactions (A) Expenditure Transfers (B) Creating New Funds and Organization (C) Changing Financial Manager

Expenditure Transfer  Purpose To provide a procedure to request an expenditure transfer from one organization (Budget Unit) to another organization (Budget Unit). Expenditure transfers are journal entries needed to reclassify expenditures that were recognized and reported correctly per documentation received and on- hand. Financial manager requests an expenditure transfer because the original documentation was submitted under the incorrect fund code and organization code, late awards, over charged expenditures, etc.

Expenditure Transfer Cont’d All requests to transfer expenditures from one FOAP to another should be submitted on the Expenditure Transfer Form (ET – BO8000) which can be obtained on the Business Office web page.

 Form is available at the Business Office web page.  Date – Indicate the date the item first appeared on the computer-generated (Banner Form - FGITRND).  Customer Organization (To) – Enter the fund, organization and account codes to be charged.  Provider Organization (From) – Enter the fund, organization and account codes originally charged.  Description – Provide purchase order number, check number, date of check, vendor name and invoice number.  Explanation Required – Describe why transfer is necessary, i.e., over expenditure, wrong account used, etc. Procedures

Procedures (Cont’d)  Amount – Enter the amount to be transferred.  Signature and date to certify acknowledgement between financial managers must be provided.  Submit Expenditure Transfer Form (ET) to the Business Office – General Accounting Department. Business Office follows accounting guidelines, State comptrollers guidelines, IRS guidelines, grants and contracts guidelines, internal control and professional ethics.

Business Office will approve or deny the request to transfer expenditures. Must provide a fund and organization code. The account code provided can not be a pool number. PO #, Checks #, Check Date and Vendor Name must be provided; otherwise, form will be returned for completion. Explanation must be provided to determine the approval or denial of an expenditure transfer. Signatures are required.

Request to Set Up a New Organization Organization Purpose needs to be provided

Request to Set Up a Fund Code Provide the Fund Purpose

Request to Change Financial Managers

INTERDEPARTMENTAL TRANSFERS (IDTs)

The Interdepartmental Transfer (IDT) form should be used only between College departments when a department providing services (provider) needs to bill the department receiving the services or materials (customer). These IDT forms are used by the Business Office as journal entries (IDT transactions) between the provider department and the customer department to record services or materials provided. WHAT IS THE PURPOSE OF AN IDT?

(continued) The provider department is responsible for following up on unpaid journal entries (IDT transactions). The provider and customer departments are responsible for keeping copies of all IDT forms submitted and reconciling them against their departmental monthly transaction reports. There are four types of IDTs: Expenditure Revenue Food Service Student Organization Food Service

Expenditure IDTs Examples: Xerox Copies (copier), Business Cards, Letterhead Paper & Envelopes, Postage, Name Plates, Exxon Card (Fuel) Department providing services is to obtain IDT form from STC Business Office web page. (BO-5300) PROCESS Provider department prepares and completes IDT form after good(s) and/or service(s) are provided to Customer Department. Provider Department Must Provide on IDT Form: Description of good(s) and service(s) Proper justification of IDT Type of services / goods provided PO # where goods were paid from Price, Invoice #, Vendor Name Include back up documentation Total amounts Signatures/approvals by FM Provider FOAP Codes ( Fund, Organization, Account, and Program Code ) Customer FOAP Codes ( Fund, Organization, Account, and Program Code ) Provider Dept. must then route IDT to Customer Dept. for Financial Manager signatures/approvals. Customer Department submits IDT form to Business Office – General Accounting within 3 days that goods/services were received and provided.

EXPENDITURE IDT FORM BO-5300

Revenue IDTs Examples: Conference Registration Fees PROCESS Provider Dept. must then route IDT to Customer Dept. for Financial Manager signatures/approvals. Customer Department submits IDT form to Business Office General Accounting within 3 days before conference is held. Provider department prepares and completes IDT form at least three (3) days before conference is held, and submits to Customer Department. Department providing services is to obtain IDT form from STC Business Office web page. (BO-5320) Provider Department Must Provide on IDT Form: Name of Conference to be held Justification of IDT Date, time, and place Name of employee(s) attending event/conference Registration fee per employee Total amounts Signatures/approvals by Financial Manager Backup documentation ( ex. flyer of event, brochure ) Provider FOAP Codes (Fund, Organization, Account, and Program Code) Customer FOAP (Fund, Organization, Account, and Program Code )

REVENUE IDT FORM BO-5320

Food Service IDTs - Quotes PROCESS The Food Service Dept. prepares a Food Quote Form by providing the following information: Contact person Invoice number Event date & time Event Place Menu – in detail Cost of meal(s) The Customer Department (the one needing services) s Patrick Woodin at Food Service Dept. to request a Food Quote The Customer Department MUST complete the purpose and justification and then return Food Quote to the Food Service Department. The Food Service Dept. s Food Quote to Customer Dept. After completed Food Quote is ACCEPTED, the Food Service Dept. will Food Quote to Business Office. Business Office will APPROVE the Purpose & Justification By returning the completed Food Quote form to Food Service Dept. it implies ACCEPTANCE to perform the stated services. If there are problems with the Justification and Purpose, Business Office will inform all Departments involved via . In addition, Allowable Expenditures Procedures for Food Purchases are available (see JAGNET employee)

Food Service IDTs PROCESS (cont’d) The Customer Department provides the following information on the IDT: Department Contact Person Phone & Fax Number Event Name Justification AND Purpose Event Date, Time & Location The Customer Department prepares the IDT within three (3) days of services rendered. (Form B O-5310) The Customer Department MUST also provide the following information on the IDT: Fund Code Organization Code Account Code Program Code Invoice Number Total Amounts Attach Original Food Quote The VP-FAS Office submits original IDT and Food Quote to the Cafeteria Director for approval then IDT is forwarded to the Business Office General Accounting for recording. The Customer Department Financial Manager approves IDT, then the IDT and Food Quote are forwarded to the Vice-President for FAS Office for invoice number and logging.

Food Service IDTs (Cont’d) Justification: 1.Must clearly state why the attendees are required to attend. 2.Why it is impractical for attendees to obtain the meal on their own time. 3.Explanation of why such services must be provided and why event must be held. Example: Meeting to discuss possible partnerships for students articulation agreements between STC and Texas A&M College of Nursing. Incorrect Justification Example: To provide breakfast…, to provide lunch for employees…, etc.

Food Service IDTs (Cont’d) Purpose: 1.Purpose must clearly state how meeting/event is beneficial to the individual. 2.Purpose must also clearly state how meeting/event is beneficial to the college. Example: Faculty/Staff will be obtaining a certificate on Managing Conflict in the Workplace (Training). NOTE: The justification and purpose cannot be the same explanation. The purpose or justification cannot be to provide meals or refreshments to the employees, students and/or guests attending the meeting/event. Other information that must be included with the IDT is: A formal written agenda identifying the topics to be discussed. A listing of the attendees and their respective department. The expected total cost of the meal.

FOOD SERVICE IDTs (Cont’d) FOOD PURCHASES With the exception of food purchased for travel, educational or laboratory purposes, the only funds which may be expended for food and/or beverages shall be from the Auxiliary Fund ( ex. A50007 – I&SP Focus Group ). Expenditures of these funds for such purposes must serve a legitimate public purpose or further the educational function of the College. Expense must be kept to a minimum. Preference must be given to College services.

FOOD SERVICE IDTs (Cont’d) UNALLOWABLE FOOD PURCHASES : Food celebrating employees personal events. ( e.g. birthdays, weddings, graduations, showers, welcome/farewell parties ) Non college-wide meals or refreshments for holiday celebrations. ( e.g. Thanksgiving, Christmas ) Meals or refreshments for department/division parties or entertainment. Meals or refreshments for department/division employee appreciation events. Further information can be located in the Business Office website under: Procedures & Forms –AA/FM Roundup – Allowable Expenditures

BO-5310 FOOD SERVICE IDT FORM

FOOD SERVICE FOOD QUOTE

FOOD SERVICE IDTs Example of detailed agenda attached with IDT. Also has listing of attendees.

STUDENT ORGANIZATION FOOD SERVICE IDT FORM BO-5330

DO’S Food Services Fuel Expenses Printing Services Postage / Overnight Mail Equipment Use ( copier machines ) Revenue for In-House Conferences ( ex. Bi-National Innovation Conference ) DONT’S Budget Transfers ( use Budget Transfers Form ) Correction of an Error ( Memo for Journal Entry ) To Make a Profit To Increase Budget Expenditure Transfers between Organizations ( use Expenditure Transfer Form ) Uses For Interdepartmental Transfer Form (IDTs)

Policy #5910 Acceptance of Gifts and Bequests The College may accept gifts and bequests of land, facilities, items of personal property such as books, equipment, training aids, money, stocks and bonds which may be converted into money, materials, or other items of value which may aid in the accomplishments of the mission of the College. Items received must have a current or foreseeable future use. The operation and maintenance cost for the gifts must be within current budgeted funds.

Policy #5910 Acceptance of Gifts and Bequests (continued)  The donor of gifts or bequests must specify the use for which the gift or bequest is intended. If the gift or bequest may be used at the discretion of the College for general purposes the donor should so state. Gifts or bequests of personal property such as books, equipment, training aids and livestock with unusual long term restrictions on their future use and ultimate disposition should not be accepted. The validity of donor restrictions will be determined at the lowest level of acceptance authority.

 The President may accept money or negotiable instruments for the establishment of endowment, agency, loan or scholarship funds. A letter of conveyance from the donor must be obtained stating the purpose for which the donation is to be used and in the case of money or negotiable instruments state how the principal and or income from the funds will be used. If unrestricted, it should be so stated.  A copy of the donation agreement or letter will be forwarded to and be retained on file by the comptroller. Where money or negotiable instruments are donated, notification of such funds will be forwarded to the comptroller for investments and administration. A permanent reference file of all such agreements and conveyances will be maintained in the designated office. Policy #5910 Acceptance of Gifts and Bequests (continued)

Procedures for Accepting Donations  The following forms must be completed by the department accepting the donation(s) : 1.Departmental Accounting Report of Donation Form (BO- 1500). 2.Donor’s Restrictions Form (BO-1500A). (If applicable) 3.Donation Disclosure Statement Form (BO-3900). 4.Appraisal Value Certification for any work of art or any donated item valued $5,000 or more. 5.Acknowledgment Letter (Thank-You letter to donor, prepared by department receiving donation).  All forms must be forwarded to the Office of the President. The President will sign Departmental Accounting Report of Donations form (BO-1500) & Donor’s Restriction form (BO-1500A) and acknowledgement letter, and send forms back to the department.

Procedures for Accepting Donations (continued)  The department receiving donation(s) mails out original disclosure statement form (BO-3900).  The Office of the President mails out the acknowledgement letter (thank-you letter) to the donor.  The original Report of Donations form (BO-1500) & Donor’s Restriction form (BO-1500A) and copies of Disclosure Statement and acknowledgment letter are sent to the business office for recording.  Copies are to be maintained by department accepting donation and the Office of the President.

Procedures for Tagging A Donated Item  The Business Office receives the Report of Donations Form (BO1500) signed by both the Financial Manager and President, along with backup documentation of the donated item.  Once the donation is reviewed and recorded in Banner, the Business Office will submit a copy of the signed forms (BO-1500 and BO-1500A) with backup to Shipping and Receiving.  Shipping and Receiving will then schedule accordingly to tag the donated item. Note: All capital items (value over $5,000 will be tagged by Shipping & Receiving. Examples of Donated Items Tagged: Furniture Computers & Computer Equipment Artwork Vehicles & Related Equipment

Donation Forms The three donation forms (BO-1500, BO-1500A, and BO-3900) are located in the business office website under business office forms.: BO Departmental Accounting Report of Donations BO-1500A – Donor’s Restriction BO Donation Disclosure Statement

Form BO-1500 Departmental Accounting Report of Donations

A restriction must be provided: Otherwise the donation would be used at the College’s discretion Form BO-1500A Donor’s Restriction Form

Form BO-3900 Donation Disclosure Statement Check only one. Normally, the College does not provide something in return for a donation

Thank You Letter

Fiscal Tips Submit completed documentation no later than Friday, September 16, 2016.

Questions ?