University General Accounting

1
University General Accounting

• Jane Patterson
• Controllers Office MS124
• [phone]
• janep_at_unr.edu

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Chart of Accounts
The account number defines the structure and
organization of the university accounting system.
The chart of accounts structure is set up in
order to segregate and classify transactions into
groupings.
3
Source of Funds

• The fund is the four digit numeric code which
  defines the source of funds such as where it is
  coming from and spending rules applicable to the
  fund.
• 1101 to 1199 State funds, revert back to the
  State of Nevada at the end of each fiscal year.
• 1200 to 1299 Non-state funds, generally
  unrestricted. Any funds remaining at year end
  roll forward to the next year. Any non-state
  funds from which salaries are paid or expenses
  exceed 25,000 must be budgeted. Contact
  Planning, Budget and Analysis at 784-6516.
• 1207 and 1210 Indirect Cost recovery accounts.

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Source of Funds cont.

• 1300 to 1399 Non-state restricted funds.
• Includes Foundation accounts (1311)
• Scholarship (1312)
• Grants and Contracts (1320-1373). Grant Accounts
  are multi year accounts, roll at fiscal year end
  and have grant end dates.
• 1400 to 1850 Various other non-state sources
  such as endowments, agency funds, loan funds etc
• 1900 Agency Funds.
• 4101 to 4850 Nevada System of Higher Education.

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Agency

• Three digit numeric code identifying the College
  or Vice President. This 3 digit code follows the
  fund in each account number.
• Examples
• 102 is the Provosts Office
• 105 is Student Services
• 107 is Athletics
• 113 is Education
• 117 is Engineering

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Organization

• Four digit alpha/numeric code identifying the
  department or project. The combination of Agency
  Organization form a unique account structure
  within the financial system.
• Examples
• 112-0200 to 112-0299 is the Art Department in the
  College of Liberal Arts.
• 114-2300 to 114-2399 is the Biology Department in
  the College of Science.
• Area and organization form a unique code. If
  account number 1101-102-0028 exists, there will
  NOT be a 1200-102-0028 account number. 102-0028
  is a unique identifier for that specific account
  number. Grant accounts always start at 0050.
  All other university accounts range from 0001 to
  0049.

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Expense Object and Sub Object Expense Codes

• Expense Object Codes
• Two digit alpha/numeric code identifying the
  general type of expenditure category.
• 11 Professional Salaries 20 Travel
• 14 Classified Salaries 25 Hosting
• 16 Fringe 30 Operating
• Expense Sub Object Codes
• Two character alpha/numeric code providing
  additional detail about the transaction.
  Required on all university forms for expenditures
  and deposits at the Cashiers office.
• 20 01 In-State Travel
• 20 02 Out-of-State Travel
• 20 03 Foreign Travel

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Revenue Source Sub Revenue Source Codes

• Revenue Source Codes
• Two digit alpha/numeric code identifying the
  source of the revenue.
• 68 Tuition Fees
• 78 Sales Services
• 85 Private Gifts, Grants Contracts
  Restricted
• Sub Revenue Source Codes
• Two character alpha/numeric code providing
  additional detail about the transaction.
  Required on all university forms for deposits at
  the Cashiers office.
• 78 01 Misc. Sales/Service Rev
• 78 02 Athletic Events
• 78 03 Gate Receipt/Other

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Fiscal Year and Month
Fiscal Year Two digit code identifying the state
fiscal year from July 01 - June 30 July 01, 2008
through June 30, 2009 09 Inception to date
accounts have a MY or Multiple Year code Grants
Contracts accounts funds 1320 through 1371
and fund 1208. Fiscal Month Two digit code
which identifies the fiscal month within the
fiscal year identifying when transactions are
posted. 01 July 02 August 03
September
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Document IDs

• Transaction Code
• Two digit character code identifying the document
  type
• PV Payment Voucher
• JV Journal Voucher
• SC Purchase Order
• Transaction Number
• Up to an eleven digit alpha/ numeric code
  assigned to a transaction posted to the financial
  system. (Number in the upper right corner of the
  pre-numbered forms in the forms directory on the
  web).
• The combination of Transaction Code and
  Transaction Number is unique to each transaction
  in the Advantage financial system and in CAIS.

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Account Types

• 01 Assets
• 02 Liabilities
• 03 Fund Balance
• 20 Pre-encumbrance Purchase Requisition to
  BCN Purchasing.
• 21 Encumbrance - Purchase Order or Salary and
  Fringe encumbrance.
• 22 Expenditure/Expense
• 31 Revenue Except Recharge 39
• Budget or Budget Revision (Expense)
• 51 Budget or Budget Revision (Revenue)

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What does Accounts Payable (AP) Do?

• AP processes invoices for payments against
  encumbered funds.
• AP processes payments to vendors and employees
  via Request for Payment (RFP).
• Receives and routes invoices to departments for
  approval.
• Processes JVs, TVs, IPOs, Stop Payments, Wire
  Transfers, Stale Dated Checks and copies of
  cancelled checks.
• Maintains and scans into document imaging
  processed payment documents.
• Maintains W-9s and issuance of annual 1099s.
• AP does not process RXs, POs or PO
  modifications. Please contact BCN purchasing at
  784-6552 or visit their web site
  http//www.bcn-nshe.org/purchasing/

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Which Form/Document Do I Use?

• First ask yourself, am I paying a vendor or an
  individual?
• To pay a vendor for goods/services in the future
  exceeding 2,000 submit a requisition to BCN
  Purchasing http//www.bcn-nshe.org/purchasing/.
• To pay a vendor for goods/services in the future
  less than 2,000 use the university pcard
  (MasterCard).
• To pay an Individual (non UNR) for future
  services submit an Independent Contractor
  Agreement or Guest Speaker form.
• To reimburse for interview expenditures submit a
  Request for Payment form with original receipts.
• To reimburse an employee for expenditures submit
  a Request for Payment form with original
  receipts.

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Request for Payments

• RFPs are used for the following when the
  university pcard is not accepted
• Employee or student reimbursements (non-travel)
  original receipts required
• Hosting Reimbursements
• Prizes or Awards
• Guest, Interview Candidate Moving Expenses
• Conference Registration fees
• Memberships, Subscriptions, Accreditation,
  Licenses, Royalty/Patent Fees, Sponsorships
  Dues
• After the fact payments Subject to purchasing
  violations being issued.
• Petty Cash Replenishment
• See second page of the RFP for a complete list.

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Acceptable Receipts for all Reimbursements and
Pcard

• Receipts must contain the following
• Business Name and Address
• Itemization of Purchase
• Total Amount Paid
• Method of Payment
• Date of Purchase
• Original Receipt

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Non-Reimbursable Expenses

• The following expenditures will not be
  reimbursed
• Parking Permits
• Annual fees for personal credit cards
• Vehicle Cleaning
• Gift Certificates for non-research participants
• Corporate credit card delinquency fees, finance
  charges, or annual charges
• Loss/theft of personal property
• Parking fines or traffic fines
• Personal clothing or hygiene items
• Personal entertainment including sporting events
• Personal telephone calls in addition to prepaid
  phone cards or other prepaid cards.
• Fees associated with booking travel on-line such
  as Orbits, Travelocity, etc in excess of 25.00

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Gift Certificates

• Due to the accountability issue with gift
  certificates the current policy is that you may
  neither purchase or be reimbursed for the
  purchase of gift certificates for the following
  reasons
• Gift certificates can be cashed for their face
  value.
• There is no effective way to account for gift
  certificate purchased or how and whom they are
  distributed.
• The ONLY exception is gift certificates are
  allowable for research participants with approval
  from the Office of Sponsored Projects.

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Membership Dues Licenses

• Institutional Memberships, Dues, Licenses
  Associations.
• Held in the University of Nevada, Reno name.
• May be paid with state funds.
• May be paid with either a RFP or pcard.
• Requires Dean or VP approval.
• Individual Memberships, Dues, Licenses
  Associations.
• Held in the name of the individual.
• Are NOT permitted to be paid with state funds
• May be paid with either a RFP or pcard.
• Requires Dean or VP approval.
• Dues asses a qualified individual by education,
  field or interest.
• Individual licenses must be required in the
  employees work position.

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Petty Cash

• Contact Robert Andrews 784-1203 in AP to set up a
  Petty Cash Account. Funds are used for small
  dollar purchases of goods that cannot be
  purchased on a Pcard.
• To replenish the fund, a RFP must be filled out
  with the original receipts and submitted to AP.
• Cannot be used for Hosting.
• The amount requested plus the balance remaining
  in the fun, should equal the authorized amount of
  the petty cash fund.
• Visit the web for policies, procedures and forms.
  http//www.unr.edu/vpaf/controller/accounts-payabl
  e/petty-cash.html

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How to Spend MoneyPurchasing Card

• The Pcard is to be used for small dollar
  purchases up to 2,000 for external vendors who
  accept Master Card. Pcard training is provided
  by Bob Andrews 784-1203.
• Each card holder can access payment net to edit
  their own pcard transactions.
• Each card has a default account number and it can
  be changed via payment net for specific
  transactions.
• Biweekly statements with supporting documentation
  are submitted to the Controllers Office after
  being signed by the appropriate authority.
• Does not create an encumbrance on the account.

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How to Spend MoneyRFP, IPO or POs

• Request for Payment To be used for small dollar
  purchases up to 2,000 if the vendor does not
  take Master Card. Used to reimburse expenses,
  request for check and other various payments
  listed on the RFP form. Does not create and
  encumbrance on the account.
• Internal Purchase Order Used for internal
  purchases of goods or services of any amount from
  other units on campus. For example Locks
  Department, IT computer software etc
• Purchase Orders or Purchase Requisitions
  Contact BCN Purchasing Department at 784-6552 for
  additional information or visit their web site at
  http//www.bcn-nshe.org/purchasing/ Use the
  Purchase Requisition forms to initiate purchases
  from off campus vendors of anything over 2,000.

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How to Spend Money Purchase Orders

• All expenditures that are 2,000 or greater
  require a Purchase Orders (PO). POs are used for
  purchasing goods or services and will create an
  encumbrance on the account
• Items between 2,000 - 24,999 must be documented
  with a quotation or price list.
• Items between 25,000 - 49,999 require quotes
  from two or more responsible vendors.
• Items over 50,000 will be awarded after
  Purchasing completes a formal bid process.
• Proprietary/sole source purchases are allowed
  under certain circumstances.
• BPOs Blanket Purchase Orders For goods and
  services that are purchased on a regular,
  periodic basis. May be used for recurring
  payments and must be used if the total annual
  recurring expenditures exceed 10,000.
• http//www.bcn-nshe.org/purchasing/

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Vendor Invoices

• If a vendor is not in the database a W9 will need
  to be completed prior to payment.
• All foreign vendors require a W-8BEN.
• Invoices are paid against encumbered POs. The
  invoice should contain the PO number issued by
  BCN Purchasing.
• Payments are for goods and services purchased by
  the university.
• Vendor invoices should be mailed to the
  department for department approval.
• AP will only pay invoices without department
  approval if they are established in Advantage
  with no approval required.

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After-the-Fact Purchases

• All goods and services 2,000 and over must go
  through BCN Purchasing. If you have services
  rendered without a PO you will need to complete
  the following steps
• Submit an RX to BCN Purchasing with a copy of the
  invoice and a letter explaining why a PO was not
  issued before the services were rendered.
• A Purchasing Violation will be issued and
  documented on the PO so the vendor and department
  will know the PO was not requested before the
  services.
• A copy of the purchasing violation letter and the
  PO will be sent to the departments Dean or VP.
• BCN Purchasing will send the PO and invoice to AP
  requesting a cash with order after the PO and
  purchasing violation are complete.

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How to Spend MoneyPayroll

• Payroll Expenses Spending money from object
  codes 11, 12, 14, 15 also affects object code 16
  fringe benefits. For state accounts (1101)
  fringe is covered from a central fringe pool.
  For all other state accounts and for non-state
  accounts, the fringe needs to be paid from the
  same account number that is being charged the
  salary.
• Use PAFs, Payroll Action Form to initiate a
  salary expenditure. Many employees will also
  need a contract Terms of Employment document as
  well.
• A PAF will create an encumbrance on the account
  accept for hourly wage employees.
• PR-45 Use this form to transfer payroll
  expenditures between accounts. Salary and fringe
  expenditures will be moved together.

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How to Spend Money Independent Contractors
Guest Speakers

• Visit the Controllers Office web site
  http//www.unr.edu/vpaf/controller/controllers-off
  ice/indy-contractors.html or contact SJ Yoon at
  784-6663. SJ also offers training classes!!!
• To be used to pay for services provided by
  external vendors but subject to many regulations.
  
• Cannot be used for teaching of classes.
• Cannot be used for anyone who is employed by any
  campus in the NSHE or a relative of someone
  employed by NSHE.
• Can be used to pay an honorarium to a speaker but
  special care is to be taken if the speaker is
  international.
• Can usually be used to pay for services that are
  not typically provided by employees of the NSHE.

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Nonresident Aliens

• Visit the Controllers Office web site at
  http//www.unr.edu/vpaf/controller/nrat/index.html
  
• Contact SJ Yoon at SJ Yoon at 784-6663 or attend
  one of her training classes PRIOR to making a
  commitment to pay any foreign person.
• All UNR departments and organizations must be in
  compliance with the federal rules and regulations
  and with the UNR NRAT policies and procedures.
  Contact the Office of International Students and
  Scholars when hiring any foreign nationals.
• It is important the individual have the correct
  immigration status for the type of payment
  requested or we may not legally be able to pay
  the individual under immigration law.

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Hosting

• Hosting Documentation/Approval Please review the
  University Administrative Manual
• Spending money using object code 25 from an
  approved hosting account. Expenditures can be
  paid by using the pcard, RFP, PO or IPO.
• The expense must have an attached Host Expense
  Documentation/Approval form and flyer or agenda
  documenting the event.
• The form must be completed for any and all types
  of hosting payments.
• The form must state who, how, when, where and
  why?
• If hosting is paid for on a pcard, hosting
  documents must be submitted with the pcard
  statement.

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Hosting

• Hosting Documentation/Approval Cont.
• All hosting payments must have the approval of
  the Dean or VP.
• If hosting is charged to a grant account, the
  grant must have prior approval from OSPA and be
  listed as an approved expense.
• Each Dean or VP has a host account for their area
  and all hosting must run through those designated
  accounts.
• Table purchases at fund-raising events are
  subject to prior approval by the President.
• On-campus hosting must be through Chartwells
  unless the total amount is less that 50.00.

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Why Does Accounts Payable have so many policies
and procedures that must be followed?

• University Administrative Manual
  http//www.unr.edu/business_finance/forms/uam.pdf
• NRS - Nevada Revised Statutes http//www.leg.stat
  e.nv.us/NRS/
• NAC Nevada Administrative Code
  http//www.leg.state.nv.us/NCA/CHAPTERS.HTML
• SAM State Administrative Manual
  http//www.budget.state.nv.us/SAM24/
• IRS Internal Revenue Service for tax code,
  regulations, revenue rulings and procedures and
  case law. http//www.irs.ustreas.gov
• USCIS US Citizenship and Immigration Services
  for legal payments to nonresident aliens.
  http//uscis.gov/graphics/
• Board of Regents http//system.nevada.edu/Board-
  of-R/Handbook/index.htm http//system.nevada.edu/
  Board-of-R/Procedures/index.htm

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Tax Information

• NSHE Tax Identification Number 88-6000024
• Sales Tax Exemption Letter http//www.unr.edu/vpaf
  /controller/accounting/documents/taxexemptltr05.pd
  f
• UNR completed W-9 http//www.unr.edu/vpaf/controll
  er/accounting/documents/UNR_W9.pdf
• 1099 related questions please contact Robert
  Andrews at 784-1203
• Nonresident alien and independent contractors tax
  questions please contact SJ Yoon at 784-6663

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Forms on the Web

• http//www.unr.edu/forms
• Internal Accounting Forms
• Request to Establish/Modify Account PDF
• Internal Purchase Order PDF
• Journal Voucher PDF
• General Invoice PDF
• Transfer Voucher PDF
• Cash Transmittal Receipt PDF
• Cashier Deposit Slip PDF
• ETC

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Controllers Office Forms

• General Invoice
• Used to invoice an outside entity for services or
  products provided by the university, including
  other institutions within NSHE.
• Nevada System of Higher Education (NSHE) the
  system office is considered internal and you
  should use an IPO instead of a general invoice.
• Cash Receipt (CR)
• Document used to record income and/or
  reimbursement of expense received from an outside
  entity. The Cashiers office excepts checks,
  cash, and credit cards and posts to the
  appropriate account in the Advantage financial
  system.

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Controllers Office Forms

• Request to Establish/Modify Account
• Create a new non-grant account within the
  Advantage financial system.
• Modify an existing account such as add/delete
  signature authority or change the account
  manager.
• All 1311 requests must go through the Foundation
  office.
• Internal Purchase Order (IPO)
• Used for purchases between departments of the
  university and/or the NSHE.
• No dollar limit

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Controllers Office Forms

• Journal Voucher (JV) Use the JV form to correct
  a previously posted non-payroll expenditure or
  revenue transaction from one account to another.
  Also used to correct object/sub-object and
  revenue and sub revenue source codes.
• Expenses revenue can be transferred between
  funding sources as long as they are transferred
  to funds that allow the expense/revenue. For
  example, a host expense can NOT be transferred to
  a non-hosting account.
• Post foreign wires and drafts to/from the bank
  account to appropriate operating account in the
  financial system.
• If you need to JV salaries from one account to
  another use the PR-45 form.
• The JV form must contain the fund, agency, org,
  object/ revenue source codes and sub
  object/source codes.
• The original posted transaction must be on the
  form.
• The JV must be signed by someone with signature
  authority on the account.
• The comment section must be filled out stating
  why the JV is being processed.

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Controllers Office Forms

• Transfer Voucher (TV) Non-state funds only. The
  Transfer Voucher form allows you to transfer
  cash from one account to another account.
  Please note the following restrictions
• Cannot move cash into our out of state accounts
  (funds 1101 to 1199).
• The TB1 form allows you to move funds between
  object codes within a state account or between
  other state accounts with the same fund. Note,
  you cannot transfer funds between functions.
  Submit the form to Planning, Budget, Analysis
  784-6516.
• You cannot move cash in or out of state funds to
  self supporting funds. (1101 to 1200)
• Grant accounts require OSPA approval for funds
  1320 to 1373 and 4320 to 4371.
• You can NOT transfer in or out of a Foundation
  (1311 fund) account without prior approval from
  the foundation.
• Processed through the financial system as JV
  document.

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Controllers Office Forms

• Request for Payment (RFP)
• Small dollar purchases up to 2,000 for products
  or services where the vendors does not accept
  pcard as a method of payment.
• All purchases 2,000 or greater MUST go through
  the BCN Purchasing Department.
• Services paid to a vendor who is NOT doing
  business under his/her social security number.
• If it is under a social security number, an
  independent contractor or guest speaker form is
  used to process the payment request.
• Reimburse employees for out-of-pocket,
  (non-travel) related expenses.
• Original detailed receipts are required.
• Written explanation of why the pcard was not
  used.
• Employees supervisor or higher has to approve
  payment, even if they do not have signature
  authority on the account being charged.
• Reimburse job candidates interview expenses.

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Controllers Office Forms

• Scholarship Request SJ Yoon (784-6663) provides
  Scholarship and Award training. All scholarship
  requests must be approved by the Scholarship
  Coordinator, Suzanne Bach and the Nonresident
  Alien Tax Specialist, SJ Yoon.
• Always check with the Scholarship office
  regarding scholarships. Failure to do so may
  cause the student to not qualify for financial
  aid.
• All payments to students MUST be approved by
  Financial Aid.
• Students are required to read the section on
  taxability, check whether or not they are a US
  citizen/lawful permanent resident and sign.
• Types of Scholarships
• Compensatory Scholarship income for services
  i.e. researcher, teaching assistant or graduate
  assistant. The individual must be set up as an
  employee and the payments must be paid through
  the payroll system. This income is reported on a
  W-2 form and is taxed.

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Controllers Office Forms

• Scholarship Request continued
• Non-compensatory Scholarship income paid to or
  on behalf of an individual for the purpose of
  aiding study, training, or research and does not
  represent compensation for services. It is
  specifically intended to defray the expenses of
  study, training, or research.
• Qualified Scholarships This income is to pay
  for tuition, fees, books, supplies and equipment
  required for courses.
• Nonqualified Scholarship This is income the
  student receives that is above the cost of
  required tuition, fees, books, supplies and
  equipment.

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Controllers Office Forms

• Award Request
• The student must check the appropriate box
  regarding their citizenship status.
• All Award Requests must be approved by the
  Scholarship Coordinator and the Nonresident Alien
  Tax Specialist.
• All payments to students must be approved by
  Financial Aid.
• There are two types of award payments
• Compensatory Award There must be an
  employer-employee relationship existing between
  the one making the award and the recipient of the
  award. If no such relationship exists, the award
  will not constitute wages.
• Non Compensatory Award An example of this would
  be if the non-employed student wrote a paper, and
  unexpectedly received an award for writing the
  best paper.

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Controllers Office Forms

• Travel Request Travel training classes are
  available through Bob Andrews at 784-1203
• Required when an employee is traveling out of the
  state for over 24 hours. The employees travel
  request must be completed, approved and received
  at the Controllers office prior to the departure
  date.
• If college or department travel policies are more
  restrictive, the employee is to follow the
  policies which are more restrictive.
• If a cash advance is requested, the approval form
  needs to be received in the Controllers office
  10 working days prior to departure date. Only
  approved for extreme circumstances or student
  travel.
• Travel Expense Claim
• Must be completed and submitted to the travel
  department within ten working days of the travel
  return date for all travel.
• Travel expense claim form must be completed if
  there are no expenses to be reimbursed to the
  employee.

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Controllers Office Forms

• W-9
• Required when adding new vendors to the
  university vendor database. Federal regulation
  require the completion of this form for any
  payment paid to an individual (non-employee/studen
  t), corporation, partnership and or sole
  proprietor.
• If not completed, the payment will be delayed
  until the form is complete and on file.
• Pcard payments do not require a W-9 to be on
  file.
• State of Nevada Sales Tax Exemption Letter
• Letter from the State Department of Taxation
  exempting the university from sales tax.
• The university is a State Entity and does not
  pay Nevada State Sales Tax.
• If you are physically in another state and
  purchase/receive a product, the university is to
  pay the state sales tax applicable to the sale.

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The End Thank You!