18th Annual “How To”… Session Business Office 18th Annual “How To”… Session “Meet us at the Movies”

INTERDEPARTMENTAL TRANSFERS (IDTs)

What is the purpose of an IDT? 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

Provider Department MUST Expenditure IDTs Examples: Xerox Copies (copier), Business Cards, Letterhead Paper & Envelopes, Postage, Name Plates, Exxon Card (Fuel) PROCESS: Department providing services obtains IDT form from STC Business Office web page. (BO-5300) Provider department prepares and completes IDT form after good(s) and/or service(s) are provided to Customer Department. Provider Department MUST Disclose on IDT Form: Description of good(s) and/or 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 Provider signatures by FM Provider FOAP Codes (Fund, Organization, Account, and Program Code) Customer FOAP Codes Customer Department submits IDT form to Business Office within 3 days that goods/services were received and provided. Provider Dept. must then route IDT to Customer Dept. for Financial Manager signatures/approvals.

BO-5300 Expenditures IDT Form Top Part Bottom Part

Provider Department MUST Revenue IDTs Examples: In-House Conferences (Registration Fees) – ex. Binational Conference, Child Development Conferences Department providing services obtains IDT form from STC Business Office web page. (BO-5320) Provider department prepares and completes IDT form at least three (3) days before conference is held, and submits to Customer Department. Provider Department MUST Disclose IDT Form: Name of conference to be held Proper justification of IDT Date, time and place of conference Name of employee(s) attending event/conference Registration fee per employee Include back up documentation (ex. Registration forms) Total amounts Provider signatures by FM Provider FOAP Codes (Fund, Organization, Account, and Program Code) Customer FOAP Codes PROCESS: Customer Department submits IDT form to Business Office within 3 days before conference is held. Provider Dept. must then route IDT to Customer Dept. for Financial Manager signatures/approvals.

BO-5320 Revenue IDT Form Top Part Bottom Part

Food Service IDTs & Food Quotes PROCESS: The Customer Department (the one needing services) emails Maria Christina Garcia at VP-FAS Office to request a Food Quote. Please email (mgarcia_0535@southtexascollege.edu) and CC Nancy Cantu Ozuna and/or Victoria Lopez. Contact Phone: (956) 872-3558 The VP-FAS Office prepares a Food Quote Form by providing the following information: Contact person Invoice number Date, place and time of event Menu – in detail Cost per meal(s) & total cost The VP-FAS Office emails Food Quote to Customer Dept. The Customer Department MUST complete the purpose and justification information, and then return Food Quote to VP-FAS Office If there are problems with the Justification and Purpose, Business Office will inform all Departments involved via email. Note – Allowable Expenditures Procedures for Food Purchases are available (see JAGNET online account) Business Office will APPROVE the Purpose & Justification (Alma Church) After completed Food Quote is ACCEPTED, the VP-FAS Office Will email Food Quote to Business Office By returning the completed Food Quote form to VP-FAS Office it implies ACCEPTANCE to perform and provide the stated services

Food Service IDTs & Food Quotes PROCESS: (Continued) The Customer Department Prepares the IDT within three (3) days of services rendered. The Customer Department provides the following information on the IDT form: Dept. name & organization number Contact person & phone number Event name, date, time & location Justification AND Purpose The Customer Department MUST also provide the following information on the IDT form: IDT form: Fund, Organization, Account and Program Codes (FOAP) Invoice Number Total Amounts Attach original food quote After the VP-FAS Office approves & signs the original IDT & food quote, they will forward all paperwork to the Business Office – General Accounting Dept. for recording on Banner. The Customer Department’s Financial Manager approves & signs the IDT, then forwards both the IDT & food quote to the VP-FAS Office for approval, invoice number and logging.

Food Service IDTs Justification: Must clearly state why the attendees are required to attend. Why it is impractical for attendees to obtain the meal on their own time. Explanation of why such services must be provided and why event must be held. Correct 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 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 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 Food Purchases: (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) Each campus has their own auxiliary organization. Please make sure the IDT contains the correct code. Pecan A40101 Technology A40102 Mid-Valley A40103 Starr Co. A40104 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 Unallowable Food Purchases: (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. (see JagNet online account for Allowable & Unallowable Purchases) Further information can be located in the Business Office website under: Procedures & Forms –AA/FM Roundup – Allowable Expenditures http://finance.southtexascollege.edu/businessoffice/aa_roundup.html

BO-5310 Food Service IDT Form Top Part Bottom Part

Food Service Food Quote

Example of detailed agenda attached with IDT. Food Service IDTs (continued) Example of detailed agenda attached with IDT.

Student Organization Food Service IDT Form BO-5330 Student Organization Food Service IDT Form Top Part Bottom Part

Uses for IDT Forms DO’S DONT’S Food services Fuel expenses Printing services Postage / Overnight Mail Equipment ese (copier machines) Revenue for In-House Conferences (ex. Child Development Conference) DONT’S Budget Transfers (use Budget Transfer Form) Correction of an error (submit Memo for Journal Entry) To make a profit To increase budget Expenditure transfers between organizations

General Accounting Donations

Section D – Donation, Chapter 5 Donation Procedures: Section D – Donation, Chapter 5 The purpose is to set forth STC policies and procedures related to accepting and processing all gifts. South Texas College seeks to only accept those gifts that have a reasonable expectation of ultimately benefiting the mission of the College. Gifts are defined as follows: gratuitous transfers of any kind of property, real or personal, which may be contributed for any restricted or unrestricted purpose by donors. There are several types of donations that include: cash, land, furniture, equipment, historical treasures, works of art, collections, etc.

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.

Policy #5910 Acceptance of Gifts and Bequests (continued) 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.

Policy #5910 Acceptance of Gifts and Bequests (continued) 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.

Procedures for Accepting Donations The following forms must be completed by the department accepting the donation(s) : BO-1500 Departmental Accounting Report of Donation Form BO-1500A Donor’s Restrictions BO-3900 Donation Disclosure Statement Form Acknowledgment Letter (Thank-You Letter) to donor BO-1500 is to be completed and approved prior to acceptance of the donated item(s) and/or property. The top section of the form requires the donor’s and recipient’s information such as: donor and recipient name, title, company name, address, telephone number, and department accepting the donation. The middle section requires the source, purpose and value of the gift. The bottom section requires the signatures of the financial manager receiving the donation and signature of the College’s President (and if applicable the Board of Trustees approval).

Procedures for Accepting Donations (continued) Complete BO-1500A Donor’s Restrictions form if donated item is valued at $5,000 or more. This form specifies the restrictions on how to spend and/or use the donated item. BO-3900 Donation Disclosure Statement must be completed for every individual item donated. This form describes the items donated. It does not include the dollar value of the item(s) donated. The fair market value of the item(s) donated shall only be disclosed if there is an exchange transaction. An Acknowledgement Letter (Thank-You Letter) shall be prepared, signed, and mailed by the Office of the President. The department receiving the donation may create and send an acknowledgement letter as well with the department’s letterhead. Only the description of the item(s) donated shall be disclosed in the letter.

Procedures for Accepting Donations (continued) The original Report of Donations form (BO-1500) and Donor’s Restrictions form (BO-1500A), along with copies of the Donation Disclosure Statement form (BO-3900) 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.

Additional Procedures for Donation of Real & Personal Property, Works of Art and Collections The cost of any appraisals will be the responsibility of the donor. Legal and ethical requirements prohibit the College from appraising gifts. This protects both the donor and the College. Such appraisals are to be conducted by certified, independent appraisers and the cost shall be the donor’s responsibility. All appraisals of real and donated property contributed to the College shall be done in accordance with IRS Publication 561, “Determining the Value of Donated Property.”

Posting & Reconciliation of Donation Transactions Cash (currency) donations will be accepted only at the Cashier’s Office. Payroll Deduction Donation set-up shall be handled by the Office of Human Resources. Karina Garza, Benefits & Payroll Manager (956) 872-3804 kgarza36@southtexascollege.edu Scholarship donations received for a particular student will be handled by the Business Office Accounts Receivable Department. These types of donations are considered third-party transactions. Donation forms posting to general ledger and reconciliation responsibilities are: Donated cash (checks & credit cards) is deposited and posted to GL by Cashier’s Office or GL Accounting Assistant. Donated tangible gifts (equipment, vehicles) a journal entry is prepared by the GL Accounting Specialist.

Procedures for Tagging Donated Item(s) The Business Office receives the Report of Donations Form (BO1500) signed by both the Financial Manager and College President, along with backup documentation of the donated item. Once the donation is reviewed and recorded in Banner (through a journal entry), the Business Office will submit a copy of Form BO-1500 and BO-1500A along with backup documentation to Shipping and Receiving Department. Graciela Barajas, Distribution Services Specialist (956) 872-2787 gbarajas@southtexascollege.edu 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 Available Online The following donation forms can be located online in the Business Office webpage: BO-1500 Departmental Accounting Report of Donations Form https://finance.southtexascollege.edu/businessoffice/forms/BO-1500.pdf BO-1500A Donor’s Restriction Form https://finance.southtexascollege.edu/businessoffice/forms/BO-1500A.pdf BO-3900 Donation Disclosure Statement Form https://finance.southtexascollege.edu/businessoffice/forms/BO-3900.pdf

BO-1500 Departmental Accounting Report of Donations Form

BO-1500A Donor’s Restrictions Form

BO-3900 Donation Disclosure Statement

Acknowledgement Letter (Thank You Letter)

Accounting Transactions

Accounting Transactions Expenditure Transfers Creating New Funds and Organization Changing Financial Manager

Expenditure Transfers

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.

Procedures 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 (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 Must provide a fund and organization code. The account code provided can not be a pool number. Signatures are required.

Creating New Funds and Organizations (B) Creating New Funds and Organizations

Request to Set Up a New Organization South Texas College Request to Set Up A New Organization   ORGANIZATION NAME: ORG CODE: EFFECTIVE DATE: (BUSINESS OFFICE USE ONLY) ORGANIZATION PURPOSE: FINANCIAL MANAGER: JOB TITLE: DIVISION/DEPARTMENT: TELEPHONE: E-MAIL: VICE PRESIDENT: Purpose: (Please Check One) CODE INSTRUCTION 1005 Agriculture 1010 Arch. & Precision Production Trades 1015 Biology, Physical Science, & Science Tech 1020 Bus. Mgmt., Marketing, & Adm. Services 1025 Career Pilot 1030 Communications 1035 Computer & Information Sciences 1040 Construction Trades 1045 Consumer & Homemaking Education 1050 Engineering 1055 Engineering Related 1060 English Lang. Literature, Phil. & Interdisc 1065 Foreign Languages 1070 Health Occup. - Associate Degree Nursing 1075 Health Occup. - Dental Hygiene 1080 Health Occup. - Other 1085 Health Occup. - Respiratory Therapy 1090 Health Occupation - Vocational Nursing 1095 Mathematics 1100 Mechanics & Repairers - Automotive 1105 Mechanics & Repairers - Diesel 1110 Mechanics & Repairers - Electronics 1115 Physical Education and Fitness 1120 Protective Services and Public Admin. 1125 Psychology, Social Sciences, and History 1130 Visual & Performing Arts 1135 Non-State Funded 1140 Instruction Allowed 1150 Instruction - Other OTHER 2000 Research 3000 Public Service 4400 Academic Support 5000 Student Services 6900 Institutional Support 7600 Physical Plant 8000 Scholarships 9000 Auxiliary Services 9850 Agency Accounts Requested By (Print Name) Date Financial Manager (Signature) Vice President (Signature) Business Office Use ONLY Fund Code: Fund Type: Predecessor Fund Code: Program Code: Processed By Business Office: Date: Organization Purpose needs to be provided Request to Set Up a New Organization

Request to Set Up a Fund Code Provide the Fund Purpose

CHANGING FINANCIAL MANAGERS

Request to Change Financial Managers

Monetary and non-monetary contributions to the College Setting and changes to banner accounts Services and material provided between departments

Anabel Garza, Accounting Specialist Alex Cespedes, Accountant Contact Information: Alma Church, Accounting Group Manager Email: achurch@southtexascollege.edu Phone: (956) 872-4616 Anabel Garza, Accounting Specialist Email: magarza1@southtexascollege.edu Phone: (956) 872-4662 Alex Cespedes, Accountant Email: acespedes_5228@southtexascollege.edu Phone: (956) 872-4665 Questions??