financial policy and procedures

8/20/2019 Financial Policy and Procedures

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Financial Policy and Procedures

Accounts Payable

All departments are responsible for establishing and approving their invoices for payment, whilethe Business Office disburses payments.

The department ordering the service or product is responsible for making invoices.

• The individual ordering the item is responsible for validating the

invoice accuracy as the ordered items are received.

• The individual approving invoices has implied approval for $500. (The amount is

scheduled to be raised to $1,000 in the future.) nvoice amounts greater than the impliedapproval amount re!uire higher level approvals. This secondary approval security featureis not fi"ed. # department may tighten or loosen this security feature based on its onneeds. The department is responsible for understanding and applying this range ofapproval options. %or e"ample, if the secretary has been given the ability to inputinvoices or &'s and management has not established themselves in the approval chainabove the secretary, the department has, in essence, delegated full approval authority tothe secretary.

Accounts Receivable

Accounts receivable are processed on the Banner Student Information System (SIS). he!ashier"s Office bill and records all payments made on accounts, which reduce the affectedoutstanding accounts receivable balance.

• The usiness 'ffice has the responsibility for collecting on accounts receivable. *hould

the accounts receivable be uncollectible,

• The bad debt ill be charged back to the department hich established the accounts

receivable.

• 'regon Tech normally establishes accounts receivable for tuition, room, board, and other

student charges. +epartments ith a large billing volume (i.e. ookstore, *tudent ealth*ervice, -ibrary, and ecreation %itness) enter their charges directly into **. Theusiness 'ffice performs this billing function for the remaining departments.

• Tuition and fees are due hen registering, and generally must be paid by the end of the

first eek of each term. f this is not done, a payment plan (revolving charge) is available



if at least one/third of the amount due is paid. nder this option interest and servicecharges are incurred.

• #ccounts receivable is closely linked to cash receipts refer to Cash Receipts for

additional information.

Cash Receipts

he Business Office is responsible for the receipt and timely collection of money owed to the!ompany. he following criteria should be adhered to when processing cash receipts.

• 2ash receipts (including cash and checks) must be deposited ithin 34 hours.

• The overnight retention of receipts ithin the department is strongly discouraged. Timelyand accurate deposits reduce the risk of losing or misplacing receipts, ma"imies interestearnings and creates a clear audit trail.

• #ll gifts, grants and other receipts should be made payable to the company and be

transmitted to the usiness 'ffice. +o not accept receipts containing restrictive language before you contact the usiness 'ffice.

• -ogs and records of cash receipts, gifts and revenue should be maintained and be

compared to the %* accounting system by an individual not responsible for the cashreceipting process.

• &etty cash funds are generally discouraged. n their place, procurement cards are

encouraged and may be obtained by contacting the usiness 'ffice. *hould petty cashfunds be re!uired, they may be re!uested from the +irector of usiness #ffairs.

• &ermanent or temporary change funds may be re!uested from the usiness 'ffice.

Payroll

he #ayroll office has the responsibilty to ensure that Oregon ech employees are promptly and

accurately paid. #ayroll disbursements represent the single largest e$pense category at Oregonech. herefore, administrators must remain vigilant about payroll issues.

&ayday is the last orking day of the month. 6mployees are strongly encouraged to re!uest thattheir paychecks be electronically deposited to bank (direct deposit). *alary advances are permitted in emergency situations only.

#dministrators play a key role in the payroll process. This role includes7



• 6nsuring that ne employees are promptly and accurately entered into the payroll system

• 8erifying that employees are paid at the correct rate

• 6nsuring that terminated employees are promptly removed from the active payroll system

Purchasing

Our purchasing policy is to obtain all services, supplies, materials and e%uipment at the lowestcost consistent with those standards of %uality, performance, service, and availablility which will

best meet Oregon ech&s needs. In addition, it is the intent of this policy to promote competitive

purchasing practices to 'eep costs at a minimum and to give interested vendors an e%ual

opportunity to supply goods and services.

&lease refer to the 'regon Tech &urchasing at a 9lance 9uide for procurement threshholds, link

belo.

Travel

:e reimburse employees for e"penses hile traveling on official ork.

Travel expenses will be reimbursed provided the trip is approved in advance by CEO.

Transportation e"penses incurred hile traveling on official business may be reimbursed. Thetransportation e"pense ill only be reimbursed if the receipts of the e"pense are provided.&ersonal e"penses, such as private vehicle repair and maintenance, may not. The folloing

e"penses may be reimbursed or paid directly7

• &rivate/vehicle mileage alloance

• 2ommon carrier fare

• ;ecessary fees for a ta"i, shuttle service, or rental vehicle

• &arking and garage fees

<eal e"pense ill not be provided.

Month and Year End Cutoffs

To ensure the timely processing of transactions and to facilitate the timely preparation anddistribution of financial and management reports, it is necessary to specify dates by hich payment documents and =ournal entries must be processed if they are to be included in thecurrent periods report.



&urchases

o <ay 15 is the last day to prepare purchase orders for the current year. f the goods

bought are to be received by >une ?0, the end of the fiscal year, a current year

&urchase 'rder must be used. f goods are to be received >uly 1 or after, and it isafter >une 15, use the ne"t fiscal year on the &urchase 'rder.

o f the goods ordered on purchase orders cut on current fiscal year funds, are not

received by the end of the fiscal year, the purchase order needs to be closed outand a ne purchase order generated on the ne"t fiscal years funds.

&ayment Transactions

•

o +irect &ay re!uests and invoices related to purchase orders ill be included in the previous months balances if they are received and processed by the fifth of thene"t month.

2ash eceipts

•

o 2ash receipts should be in the 2ashiers 'ffice by noon on the last day of the

month to ensure that they ill be included in the current month financial activity.

>ournal 6ntries

•

o >ournal entries or re!uests for =ournal entries hich ad=ust balances for the

previous month must be received in the usiness 'ffice by the 5th day of themonth if they are to be included in the previous months processing.

o >ournal entries or re!uests for =ournal entries ad=usting balances at month end

must be received in the usiness 'ffice by the 5th of ne"t month.

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