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Accounts Payable
What We DoAccounts 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:[email protected]
786-1491
The AP Process
The AP ProcessO Department enters requisition into
Banner for goods or services.O Procurement creates a purchase
order from the requisition.
How does AP get involved?
The AP ProcessO 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 vendor3) 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?
O FOIDOCH- shows all of the documents tied together
O FGIENCD- shows all of the activity on an encumbrance
O FGIOENC- shows all of your open encumbrances for a given fund/org
O FAIVNDH- shows all of the payment history for a particular vendor
The AP ProcessO Three things are needed in order for
AP to issue a payment.O 1) A purchase orderO 2) An invoiceO 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:
1. Events which are traditional or ceremonial in nature (such as receptions for commencements, students, faculty, or employee award ceremonies);
2. Hosting advisory councils, boards, governance functions, and fundraising events;
3. 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
4. Providing instructional, research and public services programs.
Non-Representational Expenses
O Should be charged to a non-
representational account (3008, 3018, 4008, or 4018)
O These transactions only require approval by the account manager (fiscal manager vs Dean or Director)
Representational Expenses
O 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.
O 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
O Representational Expenses are subject not only to the requirements of this regulation, but also to considerations of public perception and the appearance of impropriety
O 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
O 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
O “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.
O “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
GiftsO 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.
O 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.
GiftsO 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
O Should never be used for travel expenses
O Should always include a rep/non-rep form for rep/non-rep expenses
O Employees are encouraged to sign up for direct deposit through their UAOnline account (completely separate process from payroll direct deposit)
O Procard or Procurement process should be used, if possible
Employee Reimbursement Forms
O 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
O 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 FormsO Form to be used in limited situationsO 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
O Send to Grants & Contracts for an approval if it is using a sensitive account code
Non-Resident Alien Tax
Non-Resident Alien TaxO Contact Sara Braniff in AP anytime
your department is considering bringing a foreign national to UAA
O Contact Sara Braniff in AP anytime you want to purchase services or commodities from a foreign vendor
O Very IMPORTANT we obtain the correct information from a foreign national that we would like to compensate for services or travel
Non-Resident Alien TaxO Failure to obtain the correct
documentation from a foreign national can result in tax penalties for your department
O GLACIER is an online non-resident alien tax compliance system. Implemented November 1st.
O In the process of creating new forms for the non-resident alien tax process for AP payments.
Travel
Travel Authorization Form
O Must be completed and approved before any travel is booked!
O 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.
O Should always include back-up documentation supporting trip purpose.
Per DiemO Meal per diem begins from the time you leave
your home or work to the time you return home or work.
O Divided into 4 quarters.O Per diem rates can be found on the GSA
website, which a link to can be found on the AP/Travel website.
O Per diem for entire State of Alaska is $52 per day.
O Same day per diem issue- IRS says it is taxable.O Exceptions to standard reimbursement must be
approved by Travel Administrator.
Car RentalsO Must be approved on TA.O Nothing larger than a mid-size can
be rented, unless it is pre-approved on TA by Travel Administrator.
O 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 ReportO Traveler should complete it within 15
days of returning.
