Office of the Controller

Departmental Accounting

Check Requests

Check Requests

Check Requests are used to issue checks for direct payment to a person or vendor when purchase orders or requisitions are not required. The University also provides a procurement card program that allows authorized employees to make business-related purchases under $1,000. Please allow 5 business days to process a check request.

Complete Check Request instructions can be found by hovering your mouse over each field in the form.

To comply with IRS reporting regulations, ISU requires a form W-9 Request for Taxpayer Identification Number and Certification for all new vendors. The completed form can be faxed to (812) 237-8179 or attached to the check request.

Eligible Expenditures

The following are examples of expenditures that can be paid using a check request:

  • Reimbursements to individuals (exclude tax on most purchases) - should be limited as much as possible
  • Memberships*
  • Services
  • Pre-paid Registration Fees (see Registration Fees)*
  • Subscriptions*
  • Freight charges*
  • Critic Teachers
  • Honorariums
  • Medical Services

* These items are also eligible to be paid with a procurement card

Ineligible Expenditures

The following expenditures are ineligible to be paid with a check request:

  • Alcohol*
  • Holiday Items*
  • Items considered personal in nature*
  • SERVICES RENDERED by Faculty, Staff or Students: For single payments to current ISU employees for services rendered outside of their current position, please use the One Time Pay Authorization Form. As of January 1, 2014, student employees cannot be paid via a One Time Pay Authorization form. All student employment should be routed through the Career Center.
  • Items that are required to be paid on a procurement card
    • Office supplies ordered from Staples
    • Federal Express charges
  • Items that must be paid on a Purchase Order (For purchases that require a PO, please refer to Purchasing for additional information):
    • Software
    • Licenses
    • Items that include the University’s trademark, logo and/or symbol
    • Expenditures over your purchasing authority

*These items are restricted expenditures that cannot be incurred with University funds.

Attachments to Check Request

The Office of the Controller requires supporting documentation to be attached to check requests. Examples of required documentation include vendor invoices and reimbursement receipts.

Attachments are no longer mailed with the check. It is important that the Vendor Invoice Number column is filled out in depth. The information in this column will be printed on the check. Because we no longer mail attachments, this area will be the only information the vendor receives. If a vendor invoice number is not provided, a description of the payment will suffice.

Send the completed and signed Check Request along with original detailed receipt(s) or invoice(s) to the appropriate person in the Office of the Controller. Send travel related check requests to the Travel Account Specialists, send grant related check requests to the Grant Account Specialist, and send all others to the Budget Coordinator. The documents will be imaged for audit purposes.

Fund Transfers

Intramural Voucher

The Intramural Voucher, hereafter referred to as an IV is used to move expense from one account to another or to charge expense to another department for services rendered. The IV normally originates from the supplying department but can originate from either department. The IV is also used to make corrections, within the department, to move expense from an Index or Account Code to the appropriate Index or Account Code.

  • Example: You used your procurement card to pay for a membership and the expense posted to your default account code, which is for supplies (73050). This can be corrected with an IV that moves the expense from the supplies account code 73050 (credit) to the memberships account code 72550 (debit).
  • Example: IV’s can be used to pay for internal expenses such as the rental of the Tilson Music Hall for an event.

Complete Intramural Voucher instructions can be found by hovering your mouse over each field in the form.

Budget Transfer Request

A Budget Transfer Request, hereafter referred to as a BA, should be used to move budget to a different account within an index or to a different index. All account codes should maintain positive balances at all times. If at any time an account code drops into a negative status, a BA should be completed to move budget from a pool account code with a positive balance to the pool account code with the negative balance. If additional expenses should occur in the deficient account code during the remaining fiscal year, you will need to transfer sufficient funds to cover the anticipated expenses. It is the responsibility of the department to send a transfer as soon as possible to cover any shortages.

The approving signature or signatures required for a BA is determined by:

  1. The amount of money being transferred
  2. The original budget location in respect to the destination of the transfer

For this reason account codes have been categorized as follows:

  • 60040-66999 Salaries & Wages
  • 67000-69999 Employee Benefits
  • 71030-77599 Supplies & Expense
  • 77600-78299 Repairs & Maintenance
  • 78300-78999 Capital Outlay

Internal Transfers - Transfers within a supplies & expense category of the same index will require the signature of the Department Head.

Dean and Vice Presidential Transfer – Transfers from one expense category to another expense category within a department or transfers from one department to another department in an amount LESS than $100,000 must be signed by the Department Head and the Vice President. Additionally, transfers of salaries & wages expense, repair & maintenance expense, and capital expense require Department Head and Vice President signatures. The Dean's signature may also be needed, if directed.

Board Transfer - Transfers from one expense category to another expense category within a department or transfers from one department to another department in an amount GREATER than $100,000 must be signed by the Dean, if directed, the Vice President and approved by the Board of Trustees.

Complete Budget Transfer Request instructions can be found by hovering your mouse over each field in the form.

Account Codes

Funds

A FUND number is used to identify the type of account. Fund numbers begin with an alpha character followed by five numeric characters. ISU’s fund types are as follows:

  • Axxxxx Current Operating Funds
  • Bxxxxx Bank Funds
  • Dxxxxx Designated Funds
  • Rxxxxx Restricted Funds
  • Hxxxxx Auxiliary Funds
  • Lxxxxx Loan Funds
  • Qxxxxx Quasi- Endowment Funds
  • Exxxxx Endowment Funds
  • Pxxxxx Plant Funds
  • Zxxxxx Agency Funds

Pool Account Codes

Account Codes identify the type of merchandise or service being purchased.

Pool Account Codes are account codes that hold the budget for several other account codes associated with it. Transfers can be made to and from other pool account codes, but expenses cannot be incurred in pool accounts.

Pool Account Codes can never be used for Deposits, Requisitions, Intramural Vouchers, or Check Requests.

Examples of pool Account Codes are:

60040 Admin. Salaries 70500 Travel 73300 Motor Vehicle
64000 Bi-Weekly Salaries 71500 Tel & Telegraph 77600 Repairs & Maint.
65000 Student Wages 72000 Printing 78300 Capital Equip.
70130 Personal & Cont. Service 72500 Other Services 81950 Budget Pool

Budget appropriations are recorded in the above account codes and are distributed to the related account codes as expenses are incurred. For example:

Budget appropriations for total printing expenses are placed in 72000, the Total Printing pool account, but printing expenses are charged to the following:

  • 72025- On-Campus Printing
  • 72050- Off-Campus Printing

The 72000- Total Printing pool account code will be automatically reduced at month end for the amount of expenses charged to 72025 and 72050. These automatic entries will be represented by a document number that begins with "BP".

Account Codes

Complete lists of Banner Finance account codes can be found in the following files:

To view the account codes, click on the file name above. To download the file to your computer, right click on the file name and click "Save Target As ..." (Internet Explorer).

Field Codes

Field codes are used to indicate the type of transaction that occurred. They are found on the Detail Transaction Activity screen (FGITRND), which shows transaction detail for budget, year-to-date activity, or commitments

Field codes found in the Commitments column:

  • RSV Encumbrance on a Requisition: Commitments are increased (+) when a requisition is applied, and decreased (-) when the requisition has been liquidated and a purchase order is issued.
  • ENC Encumbrance on a Purchase Order: Commitments are increased (+) when a purchase order is applied, and decreased (-) when an invoice against the purchase order has been paid or when a purchase order is closed or cancelled.

Field codes found in the YTD Activity column:

  • YTD Year to Date: When revenues are earned and expenses are incurred, they are applied to the YTD Activity column with the YTD field code. Activity from Intramural Vouchers, Journal Vouchers, Cash Receipts, Procard Feeds and Invoices will be found in this column.
  • Revenue Account Codes: Revenues will be increased with a credit (+) and decreased with a debit (-).
  • Expense Account Codes: Expenses will be increased with a debit (+) and decreased with a credit (-).

Field codes found in the Adjusted Budget column:

  • OBD Original First Year Budget: The original budget is posted as an increase (+) with an OBD field code.
  • ABD Adjusted Budget: Budget Transfer Requests adjust the original budget with the field code ABD. The adjustment can be an increase (+) or a decrease (-).

Banner Finance Training Manual

This manual documents the use of the Accounting Access Menu and Invoicing Menu of Banner Finance, along with other tips for use of the Banner Finance system.

Banner Finance Training Manual

To view the manual, click on the file name above. To download the file to your computer right click on the file name and click "Save Target As" (Internet Explorer). If prompted for a user name and password, click "Cancel".

Quick Reference Guide

The table below lists commonly used commands and icons used in the Banner system.

Departmental Reporting

The Departmental Reporting System has been developed to allow departments to run their own monthly financial reports. The preferred method of Departmental Reporting is the web-based "Finance Self-Service" tool.

To be set up to use Finance Self-Service, email the following information to Barbara Tschida:

  • Your Banner ID (do not email your password)
  • Your University ID (991 number)

After obtaining Finance Self-Service system access, it can be found through the MyISU Portal:

  • From the MyISU Apps page, select the "Employee Self-Service" badge.
  • From the Employee Services menu, select "Self-Service Menu".
  • Select the "Finance" tab.

Please review the documentation below to help you in using the system. Some of the screens may look slightly different from the screen shots in the documentation, but the functionality should be the same. If you have problems logging into the Portal, visit the OIT Help Desk online or call x2910. To download the file to your computer, right click on the file name and click "Save Target As". If prompted for a user name and password, click "Cancel".

The Accounts Payable department ensures that all disbursements are made in compliance with University policies and procedures as well as federal and state standards. This includes identifying potentially taxable transactions and reporting them to the appropriate government agency. The department approves and/or processes disbursements for purchase order invoices and University purchasing card transactions.

Payment Methods

The following payment methods apply to the purchase of supplies, equipment and services:

  • ISU Procurement Card: This is the preferential payment method for most purchases under $1,000. Procurement cards are issued by Purchasing & Central Receiving and the procurement card guidelines are enforced by the Office of the Controller. For more information regarding obtaining a procurement card, please visit Purchasing & Central Receiving.
  • Requisitions/Purchase Orders: Requisitions are to be used for all purchases over $1,000. Requisitions are initiated by departments, approved by the Office of the Controller for funding availability and sent to Purchasing & Central Receiving for bid. Funds are then encumbered on a purchase order. Purchase order invoices are sent to Accounts Payable, where they are entered into Banner and electronically approved/disapproved for payment by the ordering department.
  • Direct Payment: Check requests are used for direct payments to individuals or vendors when purchase orders have not been used and when the Procurement Card is not accepted. Please see Check Requests for instructions and guidelines.

Visit Purchasing & Central Receiving for complete purchasing policies and guidelines.

For payments for services, please review the 1099-MISC Guidelines for compliance with IRS regulations for payments to independent contractors.

Encumbrances

Encumbrances are reservations of funds for the purchase of goods or services. The encumbrance is established and changed by the creation or change of requisitions or purchase orders.

Invoice Approvals or Disapprovals

Invoices for purchases initiated with a purchase order are entered into Banner by Accounts Payable. The ordering department approves or disapproves the invoices or credit memos electronically. An approved invoice or credit memo authorizes the issuance of payment to the vendor. A disapproved invoice or credit memo re-opens the document and Accounts Payable will make adjustments if needed and resubmit for approval. To determine if an invoice is a credit memo, view the invoice on the Invoice/Credit Memo Query (FAIINVE) screen in Banner to see if the "Credit Memo" box has been checked.

Purchase Orders, Change Order & Requisition FAQ's

How can I change the index and/or account code on a Purchase Order?

If a change of index and/or account code is needed on a purchase order, email Robert Anthrop and provide the purchase order number and information that needs changed.

How do I find the balance of a purchase order?

To find the balance of a purchase order, use the Detail Encumbrance Activity (FGIENCD) screen in Banner.

How do I distinguish a credit memo from an invoice?

To determine if an invoice is a credit memo, view the invoice on the Invoice/Credit Memo Query (FAIINVE) screen in Banner to see if the "Credit Memo" box has been checked.

Who do I contact about closing or cancelling an open requisition or purchase order?

If invoicing has not occurred against the purchase order or requisition, it can be cancelled using the Purchase Order Change Request (FZAPOFU) screen in Banner. Refer to the instructions available on the Purchasing & Central Receiving website. If there has been invoicing activity against the purchase order, contact Accounts Payable to close the requisition or purchase order.

How do I increase a purchase order?

To increase a purchase order, a change order will need to be processed using the Purchase Order Change Request (FZAPOFU) screen in Banner. Refer to the instructions available on the Purchasing & Central Receiving website. A Budget Transfer cannot be used to adjust a purchase order.

For all other purchase order, change order, merchandise return, or requisition questions, please contact Purchasing & Central Receiving.

The Property Accounting guidelines have been established to assist University personnel in accounting for and preserving the institution’s property, plant, and equipment. Adhering to these guidelines is in the best interest of the University as it aids in ensuring the accuracy of our asset inventory valuation and depreciation expense for Financial Statement purposes and ensuring the proper levels of insurance coverage for the University’s assets.

Asset Classifications

Asset Classifications

  1. Capital Equipment
  2. Equipment is considered capital equipment if it meets all of the following characteristics:
     

    • Unit cost of $5,000 or more unless it will be permanently attached to, installed in, or used with other components that raise the total dollar value to $5,000 or more
    • Useful life of more than one year
    • Moveable: not a permanent fixture or part of a building
    • Exception: Art objects purchased at any cost from the artist or a reputable art dealer will be considered capital
  3. Non-Capital Equipment
  4. Equipment with an acquisition value of less than $5,000 will not be capitalized but may still be tagged and
    tracked for user and location information. Exception items considered non-capital equipment that are still
    tagged include the following:
     

    • Desktop computers, laptop computers, and tablets (you have to receive Office of Information Technology approval)
    • Printers with an acquisition value of $400 or more
    • Firearms
    • Licensed Vehicles (Cars, Trucks, Trailers, Utility Vehicles, etc.)
    • Equipment purchased with grant funds where the grant may require items with an acquisition value of less than $5,000 be tagged and tracked

Property Accounting Responsibilities

Property Accounting Responsibilities

It is the combined responsibility of Property Accounting and departmental custodians to ensure the accountability for capital and non-capital (exception item) equipment when it becomes the property of Indiana State University. Property Accounting performs the following functions:

  1. Creates and maintains the official permanent asset record for capital equipment and non-capital equipment exception items:
    1. Equipment Acquisition: Equipment can be acquired by the University in the following ways:
      1. Purchased through ISU Purchasing Process: Equipment can be purchased by the University by using a Purchase Order, Check Request or a Procurement Card. Property Accounting runs an extract report on a weekly basis that downloads all equipment purchased using the equipment account codes. These items are reviewed and a tag number is assigned to each if it is considered capital equipment or a non-capital equipment exception item. If an item is considered capital equipment, it is capitalized in the Fixed Asset System. If an item does not meet the criteria of capital equipment and it is not an exception item, it is moved to the appropriate expense account code using a journal voucher.
      2. Gifts: Assets can be acquired as a gift to the University. The department receiving the gift is required to report this through a Gift Report. Property Accounting relies on the expertise of the receiving department to determine the value of the asset given. These assets are given a gift code (GF) within the Fixed Assets System. At year-end, a list of gifts from the ISU Foundation is also obtained to reconcile with the Fixed Asset System to ensure all gifted assets have been recorded.
    2. Tagging New Assets: Property Accounting assigns a unique tag number to each unit of capital and non-capital exception item equipment and physically tags the item with a barcoded tag. When the item is tagged, Property Accounting obtains information regarding the item’s location, user, and serial number and updates the Fixed Asset System record.
  2. Facilitates the annual inventory verification process and conducts physical inventories of University assets.
    1. Inventory Cycle: Inventory is conducted on a department-by-department basis. The inventory cycle is a four (4) year cycle. Each department is assigned to one of four groups. Each group will have a physical inventory conducted every four (4) years and will be required to complete an inventory verification at the midpoint between their next physical inventory.
    2. Inventory Verifications: Inventory verification reports are issued to each department scheduled to receive a report at the beginning of the fiscal year. The reports contain a listing of all capital and non-capital exception items for which the department maintains custodial responsibility as well as a memo with instructions for completing the report. The departments verify the existence of the equipment, make updates for location and user changes, and list any additional equipment items not listed on the report. The completed Inventory Verification report is approved by the department Chairperson/Director and returned to Property Accounting. Property Accounting updates the equipment data and follows-up with the department if discrepancies exist.
    3. Physical Inventories: Property Accounting conducts a physical inventory for each department every four (4) years. All Federally-purchased capital and non-capital exception item equipment is inventories every two (2) years. Other inventories are conducted on a periodic basis, which could be due to failure by a department to return an Inventory Verification, a location change of a department, at the request of a department, or other circumstance that warrants a physical inventory.

Departmental Responsibilities

Departmental Responsibilities

Departments have a responsibility to ensure the safeguarding of equipment and that accurate inventory records are maintained. It is recommended that each department identify a specific individual as the department property administrator who is responsible for completing Inventory Verifications and acts as the main point of contact between the department and Property Accounting. Departmental custodial responsibilities are as follows:

  1. Provide adequate safeguards to ensure the prevention of loss, damage, or theft of the equipment. Any loss, damage, or theft should be investigated and immediately documented with a Loss and Theft Report within 24 hours of discovery. The Loss and Theft Report notifies Public Safety, Property Accounting, and Risk Management.
  2. Report changes and maintain records for the location and users of equipment. Changes reported include the transfer of equipment to another department (using the Transfer Notice form or other off-campus location (using the Request for Use of Equipment Off-Campus form.)
  3. Dispose of equipment through Purchasing and Central Receiving by following established procedures (See Disposal of Equipment). The Director of Purchasing is the official "Disposal Agent" of University-owned property, with the exception of works of art. The University Curator’s Office should be contacted to dispose of unwanted works of art. Departmental sale, disposal, or donation of University-owned property outside of the Purchasing and Central Receiving process is prohibited.
  4. Submit the annual Inventory Verification report within the timeframe requested by Property Accounting. The department’s property administrator should verify the existence of each inventory item and report necessary changes. Inventory verifications should be approved by the department Chairperson/Director before submitted to Property Accounting.
  5. Report gifts received to Property Accounting by submitting a Gift Report

Disposal of Equipment

Disposal of Equipment

The disposal, sale, or donation of University-owned equipment or goods that are no longer of use to the custodian must be directed by the Director of Purchasing and Receiving who acts as the official "Disposal Agent" for the University. Purchasing and Receiving can be advised of unwanted property through the Surplus Pickup Request System

Inventory Verification Process

Inventory Verification Process

If a department is scheduled to receive an Inventory Verification report, it will be issued at the beginning of the fiscal year. The reports contain a listing of all capital and non-capital exception items for which the department maintains custodial responsibility to verify its existence and report necessary changes. The process for Inventory Verifications is as follows:

  1. Verification reports and instruction memo issued after the beginning of the fiscal year.
  2. Departments have 60 days from the report issuance date to verify the existence of their capital equipment and non-capital equipment exception items, complete the report, and return it to Property Accounting. Inventory Verification reports must be approved by a department Chairperson/Director.
  3. Property Accounting will review the completed Inventory Verification report and make necessary updates in the Fixed Asset System. Property Accounting will follow up regarding items reported missing by the department property administrator and by possibly doing an independent physical verification. Items reported missing that cannot be found by Property Accounting will require the completion of a Loss and Theft Report
  4. After Property Accounting is satisfied with the completion of the Inventory Verification and has followed up regarding missing items, an updated listing of equipment will be provided to the department for their records.

If a department fails to complete an Inventory Verification within the required time frame, the department Chairperson/Director will be notified and Property Accounting may schedule a physical inventory.

Capital Equipment Account Codes

Capital Equipment Account Codes

All non-capital equipment exception items should be coded to account code: 73610.

78360 - Office Equipment and Furniture - Non-computer office equipment and furniture used for faculty and administrative purposes ($5000 or more)

78370 - Instructional and Lab Equipment - Moveable, non-computer instructional and lab equipment ($5,000 or more)

78400 - Art Objects - Works of art purchased from artist or art dealer (any cost)

78510 - Computer Equipment- Instructional Use - Computers and related equipment used for instruction in classes and labs ($5,000 or more)

78520 - Computer Equipment- All Other Uses - Computers and related equipment used for faculty and administration purposes ($5,000 or more)

78530 - Computer Equipment- LAN/Network - Computers and related equipment purchased to be used in campus networking ($5,000 or more)

78550 - Computer Software Equipment - Purchase of commercially available computer software ($5,000 or more)

78605 - Telecommunications Equipment - Equipment related to University-wide communications ($5,000 or more)

78620 - Household and Custodial Equipment - Equipment purchased by Facilities Management or Housing and Dining for custodial use ($5,000 or more)

78630 - Athletic Equipment- Intercollegiate - Athletic equipment purchased by Intercollegiate Athletics only ($5,000 or more)

78650 - Media Equipment - Audio-visual equipment ($5,000 or more)

78655 - Musical Instruments - Musical instruments ($5,000 or more)

78660 - Research Equipment - Equipment purchased for research purposes ($5,000 or more)

78680 - Firearms - Firearms (any cost)

78690 - Other Equipment - Non-computer equipment that doesn’t fall into another category ($5,000 or more)

78716 - Vehicles and Machinery - Vehicles and moveable machinery ($5,000 or more)

78790 - Library Books and Periodicals - Purchases of library books and periodicals for the University Library collection (any cost)

Capital Project Capitalization Guidelines

Capital Project Capitalization Guidelines

Capital projects include building construction and renovation, land improvements, and infrastructure projects. Generally, capital projects will be capitalized if the project costs are $100,000 or more, unless the costs are related to a major renovation. An example of a major renovation under $100,000 would be the replacement of a roof or the renovation of an elevator in a building. Interest costs incurred during building construction or renovation are also capitalized as a cost of the building or renovation.

Capital Project Account Codes

78840 - Land Improvements - Improvements that have a useful life exclusive of land or buildings, such as parking lot improvements, landscaping, and athletic field improvements

78850 - New Building Construction- General - Direct expenses for the construction of new buildings, such as materials, labor, overhead, and building permits

78860 - Building Rehab and Renewal - Direct expenses for the renovation of existing buildings, such as materials, labor, overhead, and building permits

78870 - Infrastructure - Improvements to land that have a useful life exclusive of land or buildings, such as pedestrian walkways, irrigation, and lighting improvements

Land Capitalization Guidelines

Land Capitalization Guidelines

All expense incurred to obtain land and prepare it for its intended use is capitalized. Expenses incurred to prepare land for its intended use could include demolition costs, legal fees, realty fees, etc.

Land Account Code

78830 - Land - Direct costs incurred to obtain land and costs incurred to prepare it for its intended use, such as demolition, legal fees and realty fees

The Procurement Card (Procard) is a University credit card that delegates small-dollar purchasing power to individual employees. The Procard permits purchases to be made with minimum delay and minimum clerical labor, while also providing accountability. The Procard allows the cardholder to charge work-related expenses directly to the University. This policy describes the proper use of a University procurement card. The procedures established here also serve to protect the University from fraud and other misuse of its funds.

Procurement cards are jointly managed by the Office of the Controller and the Purchasing and Central Receiving Department. Purchasing and Central Receiving manages the issuance of Procards and the contract with the card provider, while the Office of the Controller maintains the recordkeeping responsibility. The procurement card application and instructions can be found here.

A complete list of cardholder responsibilities, including all rules and procedures, security measures to prevent fraud, and a list of restricted vendors and unauthorized purchases, can be found on the Purchasing and Central Receiving web site.

Procurement Card Basics

Billing Cycle

The Procurement Card billing cycle is a monthly period from the 16th of one month to the 15th of the next month.

Changing the Default Account

All Procard purchases will be charged to the default index and account code listed on your original Procard application. If you should need to change the default index and/or account code on your Procard, please e-mail Barbara Tschida or Donna Scarbrough with the following information:

  • Department name
  • Name on procard
  • Old index and account code
  • New index and account code

Activating Your Procard

A sticker can be found on the Procard that lists an 800 number, which can be called to activate the card. You will need to provide some personal information during the call. The card must be activated before purchases can be made.

Deactivating Your Procard

If you are deactivating your Procard, follow these procedures:

  • Cease using the Procard 7-10 business days prior to deactivation
  • Take your Procard to the Purchasing Department
  • Complete your final Procard records and submit them to the Procard Auditor

The above procedures should be followed whether you transferring, terminating, or you simply no longer need the card.

Lost or Stolen Procurement Cards

Procedures for a lost or stolen procurement card can be found in Purchasing's Procurement Card Guide.

Cardholder Responsibilities

It is the responsibility of the cardholder to maintain records of Procurement card purchases and to submit monthly expense reports in a timely manner. Documentation requirements and procurement card reconciliation procedures are detailed below.

Documentation Requirements

Cardholders should always obtain an itemized vendor receipt or invoice for each transaction. If a cash register tape does not have descriptions, they should be written on the tape. If an itemized vendor receipt or invoice is missing, the cardholder should contact the vendor to obtain a copy. If the vendor cannot or will not issue a receipt or invoice, the cardholder should contact the Procard Auditor to complete a missing receipt/invoice report and get all appropriate signatures. If a cardholder consistently has a problem obtaining all original itemized receipts or invoices, their cardholder privileges will be reviewed and possibly revoked.

  • Itemized Vendor Receipt/Invoice: Is defined as an original invoice, original cash register receipt, original sales slip, or original packing slip which contains an itemized list of goods purchased, with dollar amounts, and the name and location of the supplier. An employee of the supplier must sign handwritten receipts.
  • Internet Purchases: At least one of the following types of documentation is required:
    1. Original itemized invoice or packing slip
    2. Printout of the online order confirmation
    3. Printout of the e-mail confirmation
    4. Printout of the completed online order form

Sales Tax: Indiana State University is exempt from sales tax. Indiana state sales tax charges should not be accepted on Procard purchases by the cardholder. The University’s tax exemption number is on the face of the Procard. You, as the cardholder, need to be sure that the vendor does not charge sales tax. The University is NOT exempt from all types of taxes. We are only exempt from sales tax.

Reconciliation Requirements

Procurement cardholders are responsible for completing a monthly expense report and submitting that report to the Procurement Card Auditor within 30 days of the end of the billing cycle (the 15th of each month).

  • Expense Reports: This report is your credit card statement. This report contains transactions, purpose of purchases, and fields for cardholder and reviewers signatures. Expense Reports can be printed from the SDG2 webpage.
  • Reconciliation: It is the cardholder’s responsibility to reconcile all purchases with the expense report. Any discrepancies are the cardholder’s responsibility to correct by contacting the vendor within 30 days of the end of the billing cycle.
  • Purpose of Purchase: The purpose of the purchase must be provided to determine compliance. The purpose can be entered using the SDG2 site (See Online Tools) in the field “Expense Description” found in Transaction Summary under the Account Activities tab. This should not be a list of what was purchased or a person’s name, but rather why the purchase was made.
  • Departmental Reviewer: The department reviewer should be the department head or someone he/she designates to be the reviewer of the cardholders. The departmental reviewer should be someone that is financially qualified to understand the reason for the purchase and knows whether the purchase is for the department’s benefit. The departmental reviewer will be responsible for seeing that the reconciliation of the Expense Report is correct.
  • Approvals: Both the cardholder and the departmental reviewer must sign and date the Expense Report. By signing the report, the cardholder and departmental reviewer are ensuring all transactions are for University purposes only.
  • Submit Records to the Auditor: After Expense Reports and itemized vendor receipts are reconciled by the cardholder and reviewed by the Departmental Reviewer, they should be turned into the Procurement Card Auditor within 30 days of the end of the billing cycle. It is recommended that these records be hand-delivered to the assigned drop-off area in the Office of the Controller. NOTE: These records become permanent records within the Office of the Controller, and we recommend making copies for your records.

Conference Registration Fees

Registration fees for an off-campus conference can be paid using the Procard. A majority of all registration fees are below the $1000 credit limit. If the expense is greater than your credit limit, you will need to pay via check request or personal credit card. All University travel must be approved prior to payment of registration fees with the Procard.

Procedures to follow when paying registration fees with your procurement card:

  1. When the expense posts to SDG2, change the account code to 70580.
  2. Enter the TA number in the “TA/Encumbrance #” field on SDG2 if a TA number is available.
  3. Within the expense description field on SDG2, enter the name of the traveler and purpose of the purchase.
  4. Attach a copy of the itemized invoice for the registration fee to your Procard records.
  5. Webinars and Teleconferences: In most cases, there is a cost to attend a webinar or teleconference. The cost is usually referred to as a registration fee. This type of registration fee has been approved as a Procard purchase, but the expense must be charged to account 70579. A change in account code to 70579 must be made on SDG2 once the expense has posted. This account code is for registration for events that do not require you to leave campus.

Unauthorized Purchases

The following are purchases are not allowed on the University procurement card

  • Personal items
  • Alcoholic beverages
  • Consultant fees/honorariums
  • Weapons/ammunition
  • Controlled substances (prescription drugs, narcotics, etc.)
  • Items with the University logo
  • Capital equipment (equipment over $5000)
  • Entertainment costs
  • Maintenance agreements
  • Radioactive isotopes
  • Travel (except for registration)
  • Cash advances
  • Personal services
  • Gasoline/oil
  • Works of art
  • Gifts
  • Telephone services (local/cell)
  • Computers

This is not an all-exclusive list. For questionable items, please contact the procurement card auditor. For a full list of restricted vendors and purchases, consult the Complete Guide to Your Procurement Card

Procard Audits

All procurement card transactions will be audited on a monthly basis. The Internal Auditor and State Board of Accounts will select a number of cardholders to audit for appropriateness of transactions and adherence to recordkeeping procedures. Procurement Card auditing procedures are established to verify that the Procurement Card is being used appropriately by the cardholder, that the cardholder and the department are maintaining the records, and that sales tax is not being charged. Procurement Card violations are described below:

The following non-compliant situations may result in cancellation of the cardholder’s card:

  1. Inadequate documentation to support purchases
  2. Inappropriate purchases
  3. Purchases split to circumvent the maximum transaction amount
  4. Monthly statements that have not been reconciled and signed by the cardholder or departmental reviewer
  5. Failure to reconcile within 30 days after the end of the billing cycle

Cardholders may be subject to disciplinary action, including termination, for the following non-compliant situations:

  1. Use of the card for personal purchases
  2. Not reporting a lost or stolen card immediately
  3. Sharing the card
  4. Other excessive violations of Purchasing Card policies

If the policy is violated, the cardholder will be notified and given one week to correct the violation. If not corrected by the deadline, the cardholder will be notified for the second time and given one week to correct the violation. The supervisor will be copied on the second notification.

At the end of the second notification, if the violation has not been corrected, the cardholder’s procurement card limits will be reduced to zero, and they will not be able to make purchases with the card. Once the violation has been corrected and approved by the procurement card auditor, the cardholder's limits will be raised back to the defaulted amounts, and the restriction will be lifted.

Online Tools

Smart Data Generation 2 (SDG2) is the online tool provided by JPMorgan Chase for management of procurement card accounts. SDG2 gives cardholders access to:

  • Procard transactions for the last 24 months
  • Transaction limits
  • Billing address on file
  • Printable Procard Expense Report
  • Approval of expenses
  • Capability to change accounting for expenses
  • Capability to input the purpose of the purchase

All cardholders are required to access this site on a weekly basis to make the necessary transaction updates.

Please review the Cardholder Quick Reference Guide for SDG2 for training information before accessing the site for the first time.

If you have technical problems with the SDG2 site, please contact Barbara Tschida

Links

Contact

Billie Dill
Budget Coordinator
(812) 237-3522

Barbara Tschida
Banner Finance Training
(812) 237-2976

Angela Herrick
Accounts Payable
(812) 237-3518

Carrie Walters
Property Accounting
(812) 237-3517

Bob Anthrop
Accounts Payable/Property Accounting
(812) 237-3521

Donna Scarbrough
ProCard Audits & Reporting
(812) 237-3519

Accounts Payable Address
200 North Seventh Street
Terre Haute, IN 47809