SECTION M: FINANCIAL DOCUMENTS

I. Overview

Financial Documents are the official forms for the College, used to support financial

transactions, and are used on a College-wide basis. Once a form has been recommended or an

existing form has been revised, the following sign-off must take place before the form is released

for bid or printing:

Vice President originating request

Executive Director Data Services

Assistant Treasurer

General Counsel

Director Internal Auditing

College Affirmative Action Officer

State Board of Accounts (if applicable)

State Board of Accounts approval is required on all forms and reports used to support financial

transactions. (I.C. 5-11-1-2 and 5-11-1-6). For further information, the Indiana Code may be

referenced at http://www.state.in.us/legislative/ic/code.

The Vice President for Finance/Treasurer, or designee, should make the determination as to

which forms require such approval and institute the appropriate communications.

NOTE: Refer to FMM, Section H, Travel Authorization for travel related information.

II. Signature Card

The Financial Documents Processing and Retrieval Department staff and regional business office

staff will review for proper employee signatures on all appropriate financial documents

submitted to those departments.

1. Delegation to authorize purchases below $10,000 must be made on a signature

card. The signature card must include the designated employee's signature and must be

authorized by the following:

Department Supervisor/Director

Executive Director of Finance

Executive Dean

Vice President/Chancellor

Vice President for Finance/Treasurer (Central Office staff only)

2. A Vice President's signature is not required on the purchase order check request copy when

payment of $15,000 or above is being made if the signature is on the original purchase order.

3. The purchase order check request that has a material variance greater of 10% or $1000

between the invoice amount and the purchase order amount must be approved at

the authorization level outlined in Section J: Purchasing, corresponding to the total

invoiced amount for the purchase order.

4. The Executive Director of Finance is responsible for maintaining regionally approved

signature cards. The Financial Documents Processing and Retrieval Department is responsible

for maintaining Central Office approved signature cards.

III. Journal Entry

Rationale

The Journal Entry is used to record changes in the accounts of the accounting system. These

entries may be of four kinds: (1) adjusting entries, (2) correcting entries, (3) facilitating entries,

and (4) entries designed to reclassify trial balance items.

Adjusting entries are required because it is impractical to record some changes on a day-to-day

basis.

Correcting entries are necessary to correct errors discovered in the account balances. While this

is not the place to consider auditing procedures, it may be well to emphasize that they correctly

represent the actual facts with respect to assets, liabilities, revenue, and expense.

Facilitating entries may be necessary in order to record data from a subsidiary ledger into

the general ledger. Sometimes it is practical to record all of a particular expense in a single

account, whereas actually the amount should be allocated.

One of the most useful purposes of the Journal Entry is to permit reclassification of items shown

on the trial balance that have changed due to time.

Procedure

1. The business office, in order to correct their financial figures so that their data correctly

represents the actual facts, must initiate the request by preparing a Journal Entry. The Central

Office financial staff usually prepares adjusting, facilitating, and reclassification entries.

2. The Journal Entry form must include the following:

a. The titles of the accounts to be debited (charged for expenditures) indicating the fund

and account descriptions followed by the amount.

b. The titles of the accounts credited indicating the fund and account

descriptions followed by the amount.

c. Each account and amount must be identified by its ten-digit account number.

d. The explanation and justification of the entry must be appended at the end. Emphasis

is placed on the necessity of including in the explanation reference to document

numbers and dates, as well as a clear statement of the reason for the entry, and if

applicable, the name of the sponsored program to which the entry applies.

e. Supporting documentation must be attached. Photocopies of check vouchers with

check numbers, State Board resolutions, purchase orders or other financial schedules

or data will suffice for adjusting, correcting or reclassification entries. However, the

original documentation necessitating the need for an original entry must be attached,

if available.

f. The explanation, justification, and supporting papers are to be sufficiently thorough to

provide a complete reason for the entry. The documentation must be adequate so "a

person with basic accounting knowledge" can understand the journal entry. For

example: entries to record void checks should include original check number, reason

for voiding the check, and replacement check number and date, if available.

g. The preparer/Executive Director of Finance must sign and date the request.

h. Distribution of copies needs to be indicated.

3. The College uses a double entry fund accounting system whereby each debit must have an

offsetting credit, whether it is in the same fund.

4. The pink copy of the Journal Entry form is to be filed in an "open file" by the originator to be

edited to the weekly (FBW091) or monthly Report of Transactions (FBM092) for the

verification of processing.

5. The white (original) and yellow copies of the Journal Entry form, with adequate supporting

documents, are to be forwarded to the Financial Documents Processing and Retrieval

Department.

6. The Financial Documents Processing and Retrieval Department date stamps all Journal Entry

forms upon receipt, assigns the document numbers, and routes them to the financial staff

responsible for the affected fund's activity. If more than one fund is affected, the Journal Entry

form goes to the financial staff responsible for the affected fund with the highest fund number.

7. The financial staff responsible for the affected fund's activity reviews the Journal Entry form

for accounting accuracy as defined in items 2a through 2f above. The financial staff responsible

for the affected fund's activity may make minor corrective changes to the Journal Entry form to

ensure proper recording. Some changes may require a phone call to the originator. In some

cases, the document may be returned to the originator for correction after the Financial

Documents Processing and Retrieval Department voids the assigned number.

8. The financial staff responsible for the affected fund's activity then approves the posting of the

Journal Entry form by signing the area designated "Posted By." An exception to this is an entry

affecting fund balance must be reviewed and approved by the Assistant Treasurer.

9. Financial Documents Processing and Retrieval Department reviews the Journal Entry form for

necessary signatures, initials and processes. Rejected items will be returned to the financial staff

responsible for the entry for appropriate action.

10. The yellow copy is returned to the originator. The white copy is filed by document number

by the Financial Documents Processing and Retrieval Department in ascending numerical

sequence.

IV. Cash Receipts Form

Rationale

The Cash Receipts Form (CRF) is used to record the day's receipts. The Cash Receipts

Form must be accompanied by receipts and bank deposit tickets providing evidence for

proper identification of funds received.

1. Receipts are required to be deposited and recorded daily.

2. The Cash Receipts Form must include the following:

a. Document Reference Number: Individual CRF number. The Region

identification number is the first two digits. The next five are regionally assigned

ascending numbers starting at the beginning of each fiscal year, July 1.

b. Depositing Department: The department that performed the bank deposit and

is responsible for receipts.

c. Location: Region Name/Site

d. Date of Deposit: Validated date on deposit ticket. One date per document is

entered on-line.

e. Bank Number: Two-position regional bank number.

f. Source and Description: Description of monies collected and their source using

the descriptions of account attributes.

g. Account Number: Ten-digit account number applicable to written description.

h. Credit Amount: Amounts collected by item. Amounts collected in the same

revenue account from identical source may be totaled.

i. Cash Overage/Cash Shortage: Dollar amount of overage or shortage based

on documented receipts.

j. Prepared By: Individual preparing the form.

k. Approved By: Authorized signature. (Vice President/Chancellor, Executive

Director of Finance, or appropriate designee.)

l. Totals reconciliation: The amount of deposits recorded on the deposit tickets, the

total of the Register Clearing Reports and manual receipts, the total of amounts

recorded in the revenue accounts, the total of amounts deposited in the bank

account, and the total of checks, currency, silver, and charge cards must all be

equal.

m. Cash Register Transaction From/To: Period of time from/to that cash register

tapes are being maintained.

n. Manual Receipts From/To: Period of time from/to that manual receipts are

being maintained.

3. Student fee receipt tickets must be used in numerical sequence with all voids/canceled

receipts recorded on the face of the Cash Receipts Form.

4. The sequence of daily deposits should agree with the sequence of Cash Receipts Forms.

5. Adequate supporting documentation providing evidence of deposit and revenue must be

attached to the form to include cash register tapes, Cashiers Summary Reports, and

handwritten receipts.

6. A copy of the Cash Receipts Form is to be kept and filed in an "open file" to be edited to

the weekly (FBW091) or monthly Report of Transactions (FBM092) for verification of

processing.

A cash overage or shortage is defined as the difference between the recorded business (cash

register tapes, Cashier's Summary Reports, or handwritten receipts) for a time period as

compared to total of actual cash on hand, checks received, credit sales, for that same time

period. All cash overages or shortages must be recorded on the face of the CRF to be reviewed

and approved by supervisory personnel. All CRF's which contain a cash overage or shortage

must have the approval of either the Vice President/Chancellor, Executive Dean, or Executive

Director of Finance before the CRF is processed in the accounting system.

A copy of all cash over/shorts in excess of $25 must be sent to the Internal Audit

Department. Any cash over/short in excess of $250 must be reported immediately to the Vice

President for Finance/Treasurer (designee is Assistant Treasurer) for review and approval. The

CRF should be processed.

Record the ending grand total for the day (if available) from each cash register tape on the CRF

or supporting documentation.

If the cash register provides a breakdown of cash, checks, and/or credit sales, the Executive

Director of Finance or designee should compare the breakdown amounts of the cash, checks,

and/or credit sales on the cash register tapes and the Cashiers Summary Report(s) and handwrites

to those same amounts on the deposit slip. For example: total cash on the register tape should

equal total cash on the deposit slip; the total amount of checks on the register tape should

equal the same on the deposit slip. If the totals do not agree, the reason should be

documented.

Cash Register Transactions/Manual Receipts: All void transactions should be reviewed and

initialed at the time the void occurs by both the employee making the void and a supervisor. If

the supervisor is unavailable, an employee independent of the employee voiding the transaction

should review and initial. At sites where it may not be possible to receive independent approval

at the time the transaction is taking place, supervisory personnel must review the supporting

documentation to the extent necessary to satisfy him/herself that all voids were reported and

considered adequately explained. The customer's sales receipt (cash register/manual receipt)

should always be included as supporting documentation for the void. All void transaction

numbers and amounts should be listed on that day's Cash Receipts Form for management

review. All copies of voided receipts (cash register/manual receipt) must be retained and clearly

indicated as void on all copies.

PLEASE NOTE: The volume and amount of daily voids and discrepancies should be routinely

reviewed by management personnel.

V. Purchase Requisition/Check Voucher

The Purchase Requisition/Check Voucher form is to be used for two purposes, as a Purchase

Requisition and also as a Check Voucher, depending upon the need. The proper portion of the

form should be completed for the purpose intended.

A. Purchase Requisition

Rationale

The Purchase Requisition portion of the form must be the first step in the purchasing process

and is required to be completed to obtain approval for all purchases before a purchase is made,

and a purchase order is issued.

Procedure

1. Purchase Requisition portion of the form includes the following:

a. Suggested Vendor (source of supply): Full name and address of supplier

recommended. Vendor changes will be made if applicable.

b. Vendor (assigned by Business Office or Purchasing): Full name and address

of vendor assigned.

c. Purchase Order No.:Number of the authorized purchase order document to which

the requisition applies.

d. FOB: options

Vendor pays freight

College pays freight - 3109 account

e. Terms: Conditions under which payment will be made. Known discounts should

be indicated to ensure savings.

f. Delivery: Expected delivery date to receive goods or services as provided

by vendor.

g. Department Name/Deliver To: Department completing the requisition or for

whom the requisition is being produced, and the name, building, room number

to deliver order.

h. Vendor #: Eleven-digit identifier for specified vendor.

i. Line No./Quantity/Unit/Description/Unit Price and Total

j. Grant/Contract Name and Grant/Contract No.: Full name and number of grants

or contracts. Where appropriate, CVTE/CHE grant and item number should be

placed in the description area.

k. Special Instructions: Any special requirement surrounding the requisition.

l. Date Required: Date the goods and services are required. Allow for sufficient

lead time.

m. Requested By/Date: Signature of requester and date signed. (Required)

n. Signatures/Date: (required) Authorized personnel to sign the Purchase

Requisition portion of the form may be department head, Business Office, Vice

President/Chancellor, Budget Office, and Purchasing. All purchase requisitions

must be signed in accordance with expenditure level authorization (reference

FMM Section J) prior to purchase. Any signature designations must be made in

writing by the appropriate Vice President/Chancellor.

Items may not be requested and approved by the same individual. Purchase requisitions must be

approved at management level above the requisitioner.

2. Distribution of Purchase Requisition/Check Voucher Form

When the form is used for the purpose of a Purchase Requisition, it is suggested that the

Purchase Requisition/Check Voucher form be distributed in the following manner:

a. The requisitioner/originator retains the pink copy of the form in a follow-up file.

b. The white and yellow copies will be submitted to the Business Office

for processing. All material requisitioned will be researched by the Business Office to

ensure the available discounts are taken and all possible savings are secured. A change of

vendor may be made if applicable. The Business Office retains the white copy of the

form. The yellow copy is returned to the requisitioner/ originator as an indication that the

form has been approved.

B. Check Voucher

Rationale

The Purchase Requisition/Check Voucher form is also to be used to pay for goods or services

delivered to the College which are not procured through the Purchase Order process. The Check

Voucher portion of the form can be used for payments below $3,000.

The Purchase Requisition portion of the form must be completed, properly approved, signed and

dated, prior to the Check Voucher portion of the form being completed. The Business Office or

Purchasing, which receives the form and invoice, will prepare or process the Check Voucher

portion of the form to initiate payment.

Procedure

1. Purchase Requisition portion of the form includes the following:

item b. Vendor Name of vendor/individual to whom the check will be made payable, and the

address where the check will be mailed. Payee's social security number or tax identification

number (if payment is to an individual).

item h. Vendor #: A unique eleven-position identifying number for a vendor.

item h-1. Voucher #: A seven-digit number uniquely identifying a voucher. The first two digits

is the location identification number. The next five are location-assigned ascending numbers,

starting at the beginning of each fiscal year on July 1.

item i.

Account #: Ten-digit account where payment will be charged.

Invoice No.: Invoice number supplied by or created by invoice.

Description: Brief description of transaction.

Invoice date: Date of the invoice.

Due Date: Use with discount processing when appropriate.

Amount: Amount due to vendor.

Discount Amount/Type: Amount or percent of discount. Use decimals. Indicate type of

discount ($ = dollar, % = percent).

item k. Grant/Contract Name and Grant/Contract No.: Required if payment is to be made

against grant or contract accounts.

item o. Signatures/Date: (required)

2. Adequate supporting documentation providing evidence of payee, what was purchased, and

amount due must be attached to the form, i.e. original invoice, signed letters, bills, etc., or a valid

Claim Voucher. (Fax copies and photocopies may be used as substitutes for original

receipts..) In order to reduce the risk of duplicate payments, it is required to review payments

already made to assure that the invoice has not been previously paid. Vendor invoices should be

date-stamped upon receipt.

3. A copy of the Check Voucher is to be filed in an "open file" to be edited to the weekly

(FBW091) or monthly Report of Transactions (FBM092) for verification of processing.

4. Distribution of Purchase Requisition/Check Voucher Form When the form is used for the

purpose of a Check Voucher, it is suggested that the Purchase Requisition/Check Voucher form

be distributed in the following manner:

a. The originator retains the pink copy of the form in a follow-up file.

b. The white and yellow copies will be submitted to the Business Office

for processing. The Business Office retains the white copy of the

form. The yellow copy is returned to the originator as an indication that the form

has been processed.

C. Hand Write Vendor Check

Rationale

Occasionally, a check must be processed as an exception to the normal Check Voucher

procedure by issuing a handwritten check. Complete the Check Voucher portion only of the

Purchase Requisition/Check Voucher form, as shown on Exhibit D3.

Procedure

The originator of the transaction completes the Check Voucher portion of the Purchase

Requisition/Check Voucher form with the following information:

item b. Name of vendor/individual to whom the check will be made payable, and the address

where the check will be mailed. Payee's social security number or tax identification number (if

payment is to an individual).

item h. Vendor #: A unique eleven-position identifying number for a vendor.

item h 1. Voucher #: Central Office enters a seven-digit number uniquely identifying a voucher.

The first two digits is the location identification number. The next five are location-assigned

ascending numbers, starting at the beginning of each fiscal year on July 1.

item i.

Account #: Ten-digit account where payment will be charged.

Invoice No.: Invoice number supplied by or created by invoice.

Description: Brief description of transaction.

Invoice date: Date of the invoice.

Due Date: Use with discount processing when appropriate.

Amount: Amount due to vendor.

Item l. Special Instructions ? If the check should be returned to a specific person or area, these

instructions must be written in the description area.

2. When the form is completed, the preparer must obtain "handwrite" approval from the

Assistant Treasurer. The approval must be written in the area under Description.

3. Once the Check Voucher portion of the form is approved, the white and yellow copies, along

with the original invoice, are sent to the Financial Document Processing and Retrieval

Department. The form is date stamped as received, a voucher number is assigned, and a check is

typed.

4. The check is verified by appropriate supervisory personnel, signed, sealed, and hand-delivered

to the requesting person.

5. A session sheet is attached and the document information is entered into the accounting

system. Once the document information is entered into the accounting system and the input

verified, the yellow copy will be returned to the department that originated the form, confirming

processing.

VI. Purchase Order

Rationale

A Purchase Order is a document authorizing a vendor to deliver described merchandise,

materials, or services at a specified price. Upon acceptance by a vendor, a Purchase Order

becomes a contract. A Purchase Order is used to encumber (set aside) necessary funds to cover

an anticipated expenditure, document receipt of goods and/or services, and to initiate payment(s).

Purchase orders must be issued for all purchases of $3,000 and above. There may be occasions

when issuance of a purchase order is necessary for purchases of $3,000 or less. For example, a

vendor may require a copy of a purchase order or a purchase order number before an order is

filled, regardless of cost. Another example may be where a Region considers it important to

encumber the expenditure for budgetary purposes.

All lease purchases, service and rental agreements, construction contracts, professional services,

and other financial commitments (excluding faculty agreements) should be attached to and

encumbered by a Purchase Order.

Procedure

1. The Purchase Order form authorizing a vendor to deliver merchandise, materials, or services

at a specified price must include the following:

a. Date: Date of Purchase Order.

b. Vendor No.: Eleven-digit vendor number beginning with V and ending with zero. At

time of payment, the vendor number may change due to the invoice showing an address

for remittance other than the ordering address.

c. To: Vendor name and ordering address.

d. Region PO Number Reference: Two-digit regional reference followed by pre-printed

four-digit number.

e. Ship To: Location to which order is to be shipped.

f. Ship To/ATTN: Individual responsible for accepting delivery.

g. Invoice To/ATTN: Accounts payable personnel responsible for payment.

h. Line No.: Line item of goods that corresponds to the item on the approved CVTE/ CHE

project equipment list as applicable.

i. Class Code: Fixed Asset code identifying type of item(s) being purchased.

j. Quantity, Unit, Description, Unit price, and Total

k. Quoted prices and other information such as terms.

l. Grant/Contract Name and Grant/Contract No.: Full name and number of special grant

or contract.

m. Sales Tax Exemption No.: Last four numbers associated with the State Sales

Tax Exemption number, unique to each Region.

n. Authorized Signature: Purchase authorization - see Section J, Authorization

of Contracts, and Authorization of Expenditures. For items for resale, see Authorization

of Expenditures in Bookstore Purchasing. If the Chancellor has already signed the

purchase requisition, he/she need not sign the purchase order given there is not a material

variance between the purchase requisition and the purchase order. A material variance

occurs when the purchase order amount exceeds the purchase requisition amount by a

material amount. A material amount is defined as the greater of 10% of the original

purchase requisition amount or $1,000. The reason for the material variance must be

attached to the (gold) check request copy of the Purchase Order.

2. The vendor (white) copy of the Purchase Order is to be mailed to the vendor. The

business office may make exceptions for blanket purchase orders and confirming orders.

Account number

Description

Amount of encumbrance

3. The business office (yellow) and check request (goldenrod) copies of the Purchase Order

are to be retained by the initiating College business office and filed in an accounts

payable "open file". This will allow the business office to edit Purchase Orders filed in

the "open file" to the Open Commitment report and to match with vendor invoices upon

receipt. The shipping/receiving copy (green) of the Purchase Order will be supplied to

the receiving clerk for verification of the merchandise received.

4. Once the goods or services have been received in acceptable condition by the Region, the

receiving clerk should indicate receipt on the shipping/receiving copy of the Purchase

Order, and submit the copy and packing slip to the business office. If a packing slip is

not provided, the Certificate of Missing Documentation form should be attached. The

form is available in the forms page of the College's intranet. If the Region has a central

receiving point, then the Purchase Order should also indicate the inventory tag number

placed on the item. The business office will match the receiving copy to the Purchase

Order copies retained in the "open file".

5. If the merchandise or service has been received and the vendor invoice has not been

received within a reasonable length of time (no more than thirty (30) days), the business

office should notify the vendor to send the invoice directly to the business office to

expedite payment.

6. The business office accounts payable "open file" is used to determine if a vendor invoice

is applicable to a Purchase Order. When applicable, the vendor invoice must be matched

with the check request copy of the Purchase Order for payment processing.

7. The Open Commitment report is by Purchase Order number sequence. All Purchase

Orders three (3) months and older should be reviewed for delivery of merchandise or

submittal of invoice and check request copy of Purchase Order for payment.

A. Correcting an account number or encumbered amount after purchase order issuance

1. Encumbrances can be modified regionally through the College financial accounting system

using debit/credit indicators in conjunction with dollar values (not equal to original value if to be

debited) or can be canceled if dollar value equals original encumbrance when using debit/credit

indicator.

2. All encumbrance transactions to be modified must be reviewed by the Executive Director of

Finance or designee.

B. Check Request Document

Rationale

The check request copy of the Purchase Order is used to pay for goods or services delivered to

the College which were procured through the Purchase Order process. The check request

copy (goldenrod) alone is not adequate to substantiate payment. The check request copy must

be accompanied by adequate supporting documentation providing evidence of payee, amount

due, the goods or services procured, and the proper account numbers to be charged.

Procedure - Partial or Final Payment

1. Vendor invoices should be date stamped upon receipt.

2. The check request copy of the Purchase Order form must include the following:

a. Voucher No.: Seven-digit number assigned by Region. First two digits

identify Region.

b. Transaction Code: for regular payment, 9 for a separate check.

c. Invoice number: supplied by or created for invoice.

d. Date of invoice and payment due date: from vendor invoice.

e. Gross amount: from vendor invoice.

f. Identify if payment is partial or final.

g. Identify discount amount (dollar or percent): allowed by vendor if terms are

met.

h. Authorized signature(s) and date(s) for payment. The Vice President's or

designee's signature will suffice for authorization of payment unless:

There is a variance between invoice amount and Purchase Order amount which

causes the total purchase to exceed the original level of authorization. See

Purchasing, Section J, N 5-c. "Material Variance Between Invoice and Purchase

Order Amount.

3. Adequate supporting documentation providing evidence of payee, what was purchased,

and amount due must be attached to the check request copy. Definition of adequate

supporting documentation is originals of invoices, signed letters, bills, etc. Fax copies

and photocopies may be used as substitutes for original receipts. If any of the

supporting documentation is missing, the Certificate of Missing Documentation form

should be completed and attached. The form is available in the forms page of the

College's intranet. In order to reduce the risk of duplicate payments, it is required to

review payments already made to assure that the invoice has not been previously paid.

Vendor invoices should be date-stamped upon receipt.

4. Partial payment requests are accepted in accordance with the following steps:

a. Photocopy of check request copy must be attached to vendor invoice with

partial payment code identified.

b. Each partial payment must be recorded on the business office copy of the

Purchase Order, or on an attachment, so that payment history is recorded for

future reference.

c. For final payment, the original check request and invoice must be

presented. Final payment must also be recorded on the business office copy

of the Purchase Order retained by the business office in the "open file".

5. The partial or final payment of the Purchase Order should be kept in an "open file" to

be edited to the weekly (FBW091) or monthly Report of Transactions (FBM092) for

verification of processing.

C. Cancellation of a Purchase Order

Cancellation of a Purchase Order must be made by the College location initiating the Purchase

Order. Cancellation of an executed Purchase Order must be substantiated by a letter to the

vendor explaining in full the reason for cancellation. Copies of the letter should be retained by

the business office and attached to both the business office copy and the check request copy of

the Purchase Order. The word CANCELLATION must be written on all copies of the Purchase

Order held by the business office. All copies and supportive letters are filed in strict Purchase

Order number sequence in a separate file identified as "Purchase Order Cancellations".

VI. Revolving Fund Reimbursement Voucher

Rationale

The Revolving Fund Reimbursement Voucher is used to reimburse the fund custodian for goods

or services delivered to the College which were paid by issuing a revolving fund check. These

reimbursements should be processed at least weekly. A Revolving Fund Reimburse- ment

Voucher alone is not adequate to justify reimbursement. A Revolving Fund Reimburse- ment

Voucher must be accompanied by adequate supporting documentation providing evidence of

payees, amount due, the goods or services paid for, and the proper account numbers to be

charged. The revolving fund may be used for payments up to $300. Exceptions may be made

for "non-reimbursable" checks such as a Stafford loan where the revolving fund balance is not

reduced since an offsetting deposit is made. Often exceptions for unusual circumstances may be

made upon approval by the DRBA or Executive Dean. See Section E, Authorized Bank

Accounts.

Procedure

Revolving fund checks may not be used for employee education reimbursements. Payment to a

nonemployee, which requires reporting to the Internal Revenue Service at the end of the calendar

year, should not be made by a revolving fund check. The Purchase Order or Check Voucher

should be used for all such nonemployee payments which will require a Form 1099 sent to the

Internal Revenue Service. See Section J, Purchasing, 5-d, "Payments to Nonemployees for

Services Provided to the College".

1. The custodian who needs his/her revolving fund reimbursed must prepare a Revolving Fund

Reimbursement Voucher to initiate the reimbursement. Revolving fund reimbursements should

be processed at least weekly.

2. The Revolving Fund Reimbursement Voucher must include the following:

a. Vendor number and date of form

b. Voucher No.: A seven-digit number uniquely identifying the document. The first two

digits is the location identification number. The next five are location assigned

ascending numbers starting at the beginning of each fiscal year, July 1.

c. Account/Amount: Account number and amount charged to that account.

d. Date: The date payments were made.

e. Paid To: To whom the payments were made.

f. Check No.: The check number on which payment was made listed in

numerical sequence with all checks accounted for.

g. Explanation: An explanation of items of which reimbursement is requested.

h. Amount: The amount of each revolving fund check written.

i. Total: The total amount of request.

j. Authorized signature, Date, Region: The revolving fund reimbursement authorization,

date of signature, and College location.

3. Adequate supporting documentation providing evidence of payee, what was purchased, and

amount due must be attached to the reimbursement voucher (placed inside a manila envelope):

originals of invoices, signed letters, bills, paid receipts, and check copies or photocopies of

checks.

4. All supporting documentation must be attached to its revolving fund check copy. The ten-digit

account number should be recorded on the attached Purchase Requisition or on the face of the

invoice.

5. All revolving fund checks must be listed on the face of the manila envelope in (check)

numerical sequence. Voided and canceled checks must also be reported in the numerical

sequence even though no reimbursement is claimed.

6. Documentation should be organized in revolving fund check number sequence within the

manila envelope.

7. Petty cash receipts should be placed in a smaller size envelope with revolving fund check

copy, or attached and placed within its proper sequence with the other documentation.

8. The total dollar amount of documentation within the envelope, the total amount recorded

against the expenditure accounts, the total of all disbursements listed by check number, and the

amount requested for reimbursement to the revolving fund must all be equal to each other prior

to submitting the voucher for processing.

9. The Revolving Fund Reimbursement Voucher is to be retained in the business office "open

file" for editing to the weekly (FBW091) or monthly Report of Transactions (FBM092) for

verification of processing.

VII. Budget Transfer Request

Rationale

The Budget Transfer Request is used in adjusting, correcting, or entering budgetary data after the

beginning of a new fiscal year. Revenue budgetary funds are transferred from one account to

another by debiting the account from which the funds are coming and crediting the account

which receives the funds. The reverse is true in expenditure accounts. Since the budget/

accounting system at Ivy Tech Community College of Indiana is a double-entry system, it is

necessary to have offsetting budget accounts. When new budgetary funds are received, the

revenue budget for that particular area is credited and the revenue budget offset account for the

fund group is debited. The reverse is true for the expense budget. Reference Budgeting, Section

B, for details. Operation revenue accounts are not to be revised regionally. Other accounts may

be transferred on-line by the Regions; however, these transfers must be documented by a Budget

Transfer Request to be kept on file at the regional location for audit reference.

Procedure

1. Processing a Budget Transfer Request form must include the following:

a. Fiscal year of transfer and formal name of fund to/from which budgets are

transferred.

b. Screen Input: Data required by College accounting system to process transaction.

c. Accounting system transaction codes to process transfer budget information.

d. Account numbers to be transferred to/from.

e. Formal description of each account.

f. Amount to be transferred (debit/credit).

g. Summary totals of debit(s) and credit(s).

h. Specific reason for the transfer request. This section must be completed for

clarity, control, and future audit reference.

i. Region name, authorized signature and date.

j. Authorized Central Office signature and date, if applicable.

VIII. Credit Memo

Rationale

The Credit Memo form is used for entering credit memo transactions. A Credit Memo is issued

by the vendor and represents credit for goods that were returned. Credit Memos are used by the

accounting system to offset voucher payments. Credit Memos are entered for the following:

1. If applicable, the Credit Memo should be entered to the accounting system and utilized

against future purchases.

Where additional purchases applicable toward a Credit Memo are not anticipated within four

months and the vendor is infrequently contacted, the business office should return the Credit

Memo with a request for a check refund.

2. Travel advances

Advances are entered into the accounting system as prepaid travel which enables the system to

track and apply the advances as a credit against the employee's Travel Voucher. This process

records the outstanding amount of the advance and assures the advance amount is deducted from

the final payment.

3. Void revolving fund checks

The next reimbursement check will be adjusted by the Credit Memo amount, enabling the

revolving fund account to be adjusted to the authorized amount, and a credit to the respective

expense account.

For additional details, see Purchasing, Section J, Other Purchasing Considerations (N-5-

b), Credit Memos and Auxiliary Enterprise, Section K, Inventory Valuation (I-fifth paragraph)

Returns/Credit (Publishers).

Procedure

1. A Credit Memo must include the following:

a. Vendor number identifying vendor's credit.

b. Voucher number assigned to Credit Memo.

c. Account number associated with the Credit Memo. Use prepaid travel

account for advances.

d. Accounting system transaction code.

e. If applicable, Purchase Order number (including P) that identifies the

Purchase Order the credit is to be applied against.

f. Vendor assigned Credit Memo number.

g. Brief description of basis for credit.

h. Date Credit Memo is created.

i. Amount of monies to be credited.

j. Prepared By/Approved By: authorized signatures and dates.

IX. Account Request/Notification

Rationale

The Account/Request Notification form (ARN) is used to request account numbers to be created,

modified, or deleted. Account Request/Notification forms are sent to Central Office for

processing The ARN will be used as a turn-around document to inform regional business offices

of the completion of the request.

Procedure

1. All data items listed on the ARN must be completed if the account pertains to specific grants,

contracts, or projects. If the account does not pertain to grants, contracts, or projects, identify as

such.

2. If the account utilizes payroll or benefits, Section I: Use of Funds, must be fully completed.

X. Deferment/Payment Agreement

Rationale

Students whose tuition, fees, books, and supplies are to be paid by a third party will be required

to sign a Deferment/Payment Agreement making the student liable for any balance not covered

by the third party. In all cases, tuition, fees, books and supplies that are to be billed to a third

party, must be verified by a letter, contract or other documentation on file at the regional

Institute.

By approval of the Vice President's designee, students who are unable to pay their entire tuition

and fees may defer up to two-thirds (2/3) of their account balance. The student must pay at least

one-third (1/3) of the balance due upon registration and must pay at least one-half (1/2) of the

remaining balance within thirty (30) days. The remainder must be paid within thirty (30) days

after the second payment was due (not to exceed sixty (60) days from time

of registration). Students receiving approval are required to sign a Deferment/Payment

Agreement holding them liable for the balance due. Charges for books and supplies may not be

deferred unless they are to be billed to a third party. Exceptions are made on an individual basis

and approved by the Vice President/ Chancellor or designee.

XI. Wire Transfer/Debit Adjustment Form

Rationale

Ivy Tech Community College of Indiana regularly performs transactions involving the Federal

Wire System. These transactions include, but are not limited to: investment activity, payment of

payroll taxes, and payment of sales tax. In addition, there is an occasional need to

perform miscellaneous debit adjustments to the accounting system. The Ivy Tech Wire

Transfer/Debit Adjustment form is used to perform both of the above-mentioned activities.

Procedure

1. The originator of the transaction completes the form with the following information:

Originator's signature

Date prepared

Date of the transaction

Ten (10) digit account number to be debited

Account description

Amount of the transaction

2. Adequate documentation must be attached supporting the transaction. Maintain the pink copy

and forward the form to the appropriate person for approval.

3. Once the form is approved and signed in accordance with the approved signature card

authority, the white (original) and the yellow copy must be sent to the Financial documents

Processing and Retrieval Department for document number assignment and input into the

accounting system.

4. Once the document is entered into the accounting system, the yellow copy will be sent back to

the person who approved the form.

5. The individual authorizing the College's bank to perform the wire transfer must not be the

same individual who authorizes the Ivy Tech Wire Transfer/Debit Adjustment form.

XII. Document Filing

The following describes acceptable College-wide document filing. A College-wide standard is

important to assure that documents can be identified and retrieved at all College locations.

College locations are given the option of creating supplemental files. That is, an additional file

in other than the prescribed order may be maintained if a need for such a file exists. However, all

locations will assure the standard is adhered to in establishing a primary file prior to creating

supplemental files.

This standard applies both to numbered and unnumbered documents.

The College's financial documents are required to be filed under one of the following two

alternatives:

1. The first alternative would be that all accounting system documents be filed in batch number

sequence by type of batch (Check Vouchers, Cash Receipts Forms, Purchase Orders, etc.) All

document logs will be used for cross-reference of this filing system. This file will be maintained

on a fiscal-year basis.

In the batch filing system as described above, a copy of the financial document, supporting

documentation, and the computer-generated report for each respective batch are to be filed with

the appropriate batch control document as listed below:

AP Data Collect Control Form

FA Data Collect Control Form

AP Real-Time Session Data Control Form

FA Real-Time Session Data Control Form

2. The second alternative is identified by filing financial documents by vendor name in alpha

sequence. All payment history should be recorded on the face of Purchase Orders or an

attachment to the Purchase Order for payment history. All backup documentation is included

with each accounting document.

Prior to filing the processed document with backup in the vendor file or batch sequence file, an

"open file" should be maintained at least weekly or monthly. It is recommended that

all processed documents in the "open file" be verified for accuracy of input.

XIII. Affidavit Concerning Forged Endorsement

Affidavit Concerning Forged Endorsement must be used when a vendor, student, or employee's

check has been signed and negotiated by someone other than the payee, without permission to do

so.

It is important to include a police investigation case number on the affidavit. Along with the

affidavit being completed in full, a paper must be attached where the payee has signed his or her

name at least five times.

The detailed procedures to complete the form are as follows:

(1) the State of Indiana

(2) the county of the region of the College involved

(3) the case number given to the payee, by the police, when the police were notified of this

forgery

(4) the name of the payee

(5) the word "his or her" depending on gender

(6) the word "he or she" depending on gender

(7) the issued date of the forged check

(8) the check number

(9) the issuer "Ivy Tech Community College of Indiana"

(10) the dollar amount of the check written out

(11) the word "he or she" depending on gender

(12) the name that was endorsed on the check

(13) the word "he or she" depending on gender

(14) the dollar amount of the check written out

(15) the word "him or her" depending on gender

(16) the payee's signature

THE NOTARY PUBLIC FILLS OUT THE FOLLOWING....

(17) current day

(18) current month

(19) current year

(20) the signature of the Notary Public

(21) the date of the Notary Public commission expiration

AT THIS POINT THE FORM MUST BE EMBOSSED WITH THE NOTARY SEAL.