Accounts Payable

What We Do Accounts Payable makes payments to the university’s vendors while ensuring compliance with IRS regulations, Board of Regents regulations, and University policies. AP/Travel Website: http://www.uaa.alaska.edu/budfin/aptravel/index.cfm Questions: srbraniff@uaa.alaska.edu 786-1491

The AP Process

How does AP get involved? The AP Process Department enters requisition into Banner for goods or services. Procurement creates a purchase order from the requisition. How does AP get involved?

The AP Process Once the PO is created AP doesn’t know it exists unless one of the following three things happens: 1) AP receives a physical copy of the PO from Procurement 2) AP receives an invoice from a vendor 3) AP is contacted by a department There isn’t an electronic mechanism notifying AP that a PO exists. Check on your encumbrances! If something hasn’t been paid out and you think it should have been contact AP.

What Banner Screens Can I Check? FOIDOCH- shows all of the documents tied together FGIENCD- shows all of the activity on an encumbrance FGIOENC- shows all of your open encumbrances for a given fund/org FAIVNDH- shows all of the payment history for a particular vendor

The AP Process Three things are needed in order for AP to issue a payment. 1) A purchase order 2) An invoice 3) An approval to pay from an authorized signer -Who is an authorized signer?

Rep/Non-Rep

Rep/Non-Rep It’s short-hand for Representational and Non-representational. Okay…so what does it mean?? These are the Board of Regents regulations (BOR 05.02.07) concerning entertainment-type expenses. All of these expenses should be documented with a rep/non-rep form, which can be found on the AP/Travel website.

Non-Representational Expenses Considered for a bona fide business purpose There are four categories: Events which are traditional or ceremonial in nature (such as receptions for commencements, students, faculty, or employee award ceremonies); Hosting advisory councils, boards, governance functions, and fundraising events; Sponsoring work sessions where participants are required to work through a meal period or the majority of participants are on travel status for the university; or Providing instructional, research and public services programs.

Non-Representational Expenses Should be charged to a non-representational account (3008, 3018, 4008, or 4018) These transactions only require approval by the account manager (fiscal manager vs Dean or Director)

Representational Expenses Representational expenses include discretionary business charges which are generally not allowable under normal procurement procedures, such as entertainment-type expenses, office decorations, and coffee, refreshments, and foodstuffs provided to employees. Representational accounts, which are established by the Chancellor’s office, are authorized for bona fide university expenses, will only be charged to authorized accounts, and require strict compliance with documentation standards.

Representational Expenses Representational Expenses are subject not only to the requirements of this regulation, but also to considerations of public perception and the appearance of impropriety In accordance with IRS regulations, entertainment expenses which are not adequately documented or are determined not to be “ordinary and necessary” business expenses may be included in the income of the individual incurring such expenses Unless reimbursements or expenditures for entertainment-type expenses are made under an “Accountable Plan”, such reimbursements will be subject to federal income tax withholding and must be included on the recipient’s Form W-2.

Representational Expenses “Ordinary and Necessary”- An “ordinary” expense is an expense of a type which is customary and usual in the individual’s field of business, trade, or profession. A “necessary” expense is an expense which is appropriate and helpful to the conduct of such business. “Accountable Plan”- An Accountable Plan is an arrangement which requires the employee to adequately account to the employer

Gifts Include awards and tokens of appreciation or recognition to students, employees, dignitaries, community leaders, visitors, guests and other associates and may be based on achievement, service to the university, cultural traditions or contributions to the mission, purposes or goals of the university or its community. BOR 05.02.07F

Gifts If value is less than $25 it falls under non-rep (4008/4018) and can use general funding or restricted funding as allowable. Complete rep/non-rep form, identify recipient. If value is more than $25 but less than $100 it falls under rep (8115) and has to come out of non-public funding sources, such as agency funds or restricted funds. Complete rep/non-rep form, identify recipient.

Must have VC Admin Services approval. Gifts If value is $100 or more it falls under rep (8115) and has to come out of non-public funding sources, such as agency funds or restricted funds. Complete rep/non-rep form. Identify recipient. Must have VC Admin Services approval.

Prizes and Awards Prizes and awards for competitive events, random drawings or marketing items are not included in this regulation. Use account code 8210 for non-employees. TSDF for Prizes and Awards form.

Employee Reimbursements and Direct Pay Forms

Employee Reimbursement Forms Should never be used for travel expenses Should always include a rep/non-rep form for rep/non-rep expenses Employees are encouraged to sign up for direct deposit through their UAOnline account (completely separate process from payroll direct deposit) Procard or Procurement process should be used, if possible

Employee Reimbursement Forms If using grant funding and a sensitive account code is being used it should be sent to Grants & Contracts for an approval before it is sent to AP Fiscal personnel should be reviewing FGIBAVL to make sure there is enough available budget before they send these forms to AP (or G&C) for processing.

Direct Pay Forms Form to be used in limited situations Most commonly used to reimburse students or non-employees for purchases made that have a university business purpose, process payments for refunds that aren’t student account related, change fund requests, disbursements to the UA Foundation Send to Grants & Contracts for an approval if it is using a sensitive account code

Non-Resident Alien Tax

Non-Resident Alien Tax Contact Sara Braniff in AP anytime your department is considering bringing a foreign national to UAA Contact Sara Braniff in AP anytime you want to purchase services or commodities from a foreign vendor Very IMPORTANT we obtain the correct information from a foreign national that we would like to compensate for services or travel

Non-Resident Alien Tax Failure to obtain the correct documentation from a foreign national can result in tax penalties for your department GLACIER is an online non-resident alien tax compliance system. Implemented November 1st. In the process of creating new forms for the non-resident alien tax process for AP payments.

Travel

Travel Authorization Form Must be completed and approved before any travel is booked! If any personal time is being added on to a business trip an airfare comparison must be done and printed the same day the airfare is booked. Department travel card should not be used if there is any personal time involved. Should always include back-up documentation supporting trip purpose.

Per Diem Meal per diem begins from the time you leave your home or work to the time you return home or work. Divided into 4 quarters. Per diem rates can be found on the GSA website, which a link to can be found on the AP/Travel website. Per diem for entire State of Alaska is $52 per day. Same day per diem issue- IRS says it is taxable. Exceptions to standard reimbursement must be approved by Travel Administrator.

Car Rentals Must be approved on TA. Nothing larger than a mid-size can be rented, unless it is pre-approved on TA by Travel Administrator. Dean/Directors responsibility to ensure the traveler has met the safe driver requirements as required by Risk Management.

Travel Cards Two types of travel cards: 1)Department Travel Card- for airfare only! 2) Individual Travel Card- for travelers to use for lodging and while in travel status. No bearing on an individuals credit. Responsibility of cardholder to pay this bill each month. TERs will be processed before the bill arrives.

Travel Expense Report Traveler should complete it within 15 days of returning.