Financial Accounting


AGENCY ACCOUNTS

INTRO TO AGENCY ACCOUNTS

Agency accounts are funds held by ISU as custodian for certain organizations. These accounts are established and maintained by the Office of the Controller at the agency’s request. All budget and financial transactions, including receipts, encumbrances, and expenditures, are reflected in the accounting records for each agency. Each agency fund has an on campus faculty or staff advisor responsible for the account and to make sure funds are being properly reported. All student organizations registered with Student Government Association (SGA) that receive grant money from them are required to have these funds deposited in an agency account so that these funds can be tracked.

The Office of the Controller will maintain an account of the organization’s transactions. Periodically, a report of all transactions recorded should be provided to the organization for reconciliation. The periodic report documents the University’s accountability for the account.

Agency Accounts are created by the Controller for Student Organizations as a registration requirement of the SGA. All other Agency account requests should be directed to the Budget/Agency Clerk, Billie Dill -- x3522

FORWARD

The purpose of these instructions is to equip officers with some knowledge of simple bookkeeping, to insure continuity in the faculty and members, and to furnish adequate records of all transactions. This University has established the policies and controls for all persons concerned.

Although the instructions contained herein are addressed to Treasurers, they should be carefully reviewed by the other Officers and by the Advisors who have their own responsibilities in connection with financial arrangements. They have a real and ever present obligation in connection with the Treasurer’s activities: they should see to it that the Treasurer keeps his/her money accounts properly by frequent inspection and verification.

ACCOUNT INDEX

The INDEX is an alphanumeric code between 4 and 6 characters long and is usually a part, or abbreviation, of the name of the account. This will be your “account number” and will be needed on all Purchases Orders, Agency Vouchers, Intramural Vouchers, Travel Authorizations, Deposits and is basically the key to doing anything with the Account. Know your INDEX!

END OF THE YEAR AUDIT

The Controller’s Office collects Agency Account financial records at the end of each spring semester for an audit. The Agency Account Clerk will perform this audit.

The following items are requested at the time of audit:

All outstanding bills need to be paid before the audit. All Petty Cash accounts and Purchase Orders must be closed at this time also (NO EXCEPTIONS). If the books are not audited then it will be assumed that the records kept by the Controller’s Office are correct. This is also very convenient for storing your organization's records over the summer break. In the Fall, the new treasurer may pick up the books at the Controller's Office.

PAYMENT TO INDIVIDUALS FOR SERVICES RENDERED

Anytime a voucher is used to pay an individual for Services Rendered (i.e. Speaker, DJ, etc) a home address (not campus) and a social security number are required. WE MUST HAVE THIS INFORMATION SO THAT THE UNIVERSITY CAN COMPLY WITH IRS REGULATIONS. Any payments for services rendered to an individual that is already being paid through the University Payroll System must be sent to the University Payroll Office on a One Time Pay Authorization form. This form can be found on the Payroll web page at http://www.indstate.edu/payroll/.

COLLECTION OF DUES

List collection of dues in the Ledger Book as a deposit. Dues and all collections made are to be deposited in the Controller’s Office Cashier area. NO PURCHASES are to be made from any money collected before it is deposited. The collection of funds using any type of credit card swiping device attached to a tablet or iPhone is prohibited.

PAYMENT OF DUES TO A NATIONAL OFFICE

Dues are paid to a National Office by making out an Agency Voucher only to the National Office, listing the names and amount of dues of each member making payment. The voucher is presented with invoice, bulletin or membership card that shows amount of dues for the current year, to the Controller’s Office for payment.

DIRECT BILLING

As a prestigious University, we have been afforded the privilege, by certain Vendors, of Direct Billing. This means that a P.O. may be presented to these Vendors (or other required form they produce) for merchandise/services and an itemized bill for such is sent directly to the Controller’s Office. The Agency Account Clerk makes the payment for Agency Accounts. No Agency Voucher is necessary. The direct bill will be matched with the Purchase Order number or Index and paid directly from the Agency Account. It is important to know who these Vendors are so the amount of the purchase may be entered as a debit in the Cash Ledger Book from the original receipts. This amount can be verified when a copy of the direct bill is received from the Agency Clerk. Please review this copy to be sure it matches the original receipt amount. As of April 2003, Vendors paid by direct bill are:

DEPOSITS

To make deposits, bring money/checks to the Controller’s Office Cashier’s area. The Agency Account Index and the Account Code 56304 is required along with the amount of each deposit (so it can be compared to the amount the Cashier deposits). If depositing checks, it is necessary to write the Index and the account code of 56304 on the back of each check. The cashier will produce a receipt for each deposit made. This receipt will have the date and receipt number that must be recorded in the Cash Ledger Book.

CASH LEDGER BOOK

The Office of the Controller will provide a Cash Ledger Sheet for each student organization. Additional sheets may be obtained from the Controller’s Office as needed.

At the time a deposit or withdrawal is made, record that transaction in your Cash Ledger Book. When making deposits, record the amount in the credit column and the receipt number in the document column. When producing a check from an Agency Account, record that transaction at the time the Agency Voucher is completed. The invoice number will be forwarded to the Account Advisor after processing and should be recorded in the Cash Ledger Book.

A ledger other than the one provided by the Controller’s Office (i.e. a computerized spreadsheet or journal), may be used but please be sure to use the same accounting format.

PETTY CASH

If an Organization is required to make a number of small payments, a Petty Cash fund is more convenient than individual vouchers. A Petty Cash fund is a sum of money withdrawn from an Agency Account and kept in the Petty Cash Custodian’s possession for minor expenditures. The Petty Cash Custodian should be the Treasurer, President, or the Advisor of the Organization.

TO ESTABLISH PETTY CASH

Prepare an Agency Voucher with the Custodian as payee and the explanation of “To open Petty Cash” in the description section of the voucher. There is no regulation as to the amount of Petty Cash that an organization can open; however, it should be in a reasonable amount, depending on the need. The custodian is personally responsible for the Petty Cash fund, and must account for all receipts and cash.

Please, keep a separate book for Petty Cash. This book will have the list of all expenditures made. Keep all receipts with the Petty Cash fund. Receipts plus cash on hand must equal the original amount of Petty Cash at all times. NEVER ADD MONEY TO THE PETTY CASH FUND FROM DUES OR OTHER COLLECTIONS.

TO REIMBURSE PETTY CASH

When the Petty Cash fund is running low, it is restored to its original level by preparing an Agency Voucher, payable to the Custodian, with the explanation of “To Reimburse Petty Cash”. Attach the receipts that have been kept for expenditures out of Petty Cash, to the voucher. The voucher is for the amount of the receipts only. Original receipts are needed for each and every expenditure made out of the Petty Cash fund.

TO CLOSE OUT PETTY CASH

When closing out Petty Cash, bring all receipts and/or cash and also a completed Intramural Voucher to the Agency Account Clerk. At that time a receipt will be given for any cash returned and the Agency Clerk will close out the Petty Cash account with the remaining receipts. Please complete the Intramural Voucher as listed below.

Date – The actual date the Intramural Voucher is completed.

For Services And Goods Furnished To – Enter “Petty Cash Close Out”.

By Supplying Department – Enter the Name of the Petty Cash Custodian.

Debit Department Name – Agency Account Title.

Credit Department Name – Leave Blank.

Date And Description Of Items Or Expenses Being Transferred Or Services Provided – Enter “To Close Out Petty Cash” and

Total petty cash = $000.00
- Total receipts = $000.00
= Cash returned $000.00
Total Cost - The total amount of the receipts.

Fund – Completed by the Controller’s Office.

INDEX - The Index for the department or organization. The Index must be entered.

Account Code – Leave Blank.

Activity – Completed by the Controller’s Office.

Debit Amount – The total amount of the receipts.

Credit Amount – Leave Blank.

Total - Completed by the Controller’s Office.

Head Of Department Being Billed - The Advisor’s signature is required.

Circle one - Completed by the Controller’s Office.

Office of the Controller – Signature required from the Controller’s Office.

Voucher Date – Completed by the Controller’s Office.

Intramural Vchr No. - Completed by the Controller’s Office.

AGENCY PURCHASE ORDER

This form is found online and should print in triplicate. The completed and signed Purchase Order is brought or sent to the Controller’s Office for numbering and approval BEFORE a purchase is made. The Controller’s Office retains a copy, the Treasurer retains a copy, and a copy is given to the Vendor in lieu of payment. The Treasurer may visit the Agency Clerk’s office for approval or have approved Purchase Orders returned by campus mail. Keep a record of approved Purchase Orders and numbers. DO NOT DEDUCT FROM THE ACCOUNT BALANCE UNTIL THE AGENCY VOUCHER IS PROCESSED. Remember that a Purchase Order DOES NOT pay the Vendor, you must fill out an Agency Voucher to create a check that will actually pay.

VENDORS ONLY ACCEPT APPROVED PURCHASE ORDERS. Listed below is each field on the Purchase Order form and what should be entered.

Vendor Name and Address – Enter the Vendor’s name and address. For businesses, use the full business name and address. For individuals, use full legal name and campus or US mailing address.

Date – Actual date the form was completed.

Vendor Code – Assigned by the Controller’s Office.

P.O. Number – Assigned by the Controller’s Office and used to reference your specific purchase by the Vendor.

Quantity – The number of items being purchased, if known.

Description – A short explanation of what the P.O. is being used to purchase and why.

Unit Price – An estimated amount of each individual item.

Amount – Total estimated amount, not to be exceeded for the items purchased.

Name of Agency Organization – Name of the Organization making the purchase.

Index – Enter the Index of the Agency Account to be charged.

Account Code – Assigned by the Controller’s Office unless a specific code is preferred by the Organization. If an inappropriate code is entered, the Agency Clerk, without further notice, will correct it.

Agency’s Billing Address – An address for the Organization where billing may be sent.

Authorized by – Signature of the Agency Account Treasurer is required.

Approved by – Account Advisor’s signature is required.

Date Encumbered – Completed by the Controller’s Office.

Amount Encumbered – Completed by the Controller’s Office.

Controller’s Office Approval – Required signature from the Controller’s Office. Without this signature, the P.O. is not approved and will not be accepted by the Vendor.

Download Agency Purchase Order (Microsoft Excel Document)

AGENCY VOUCHER

The completed and signed Agency Voucher, with original receipts, is presented to the Controller’s Office with the Vendor’s invoice or billing for payment. Anticipate your needs and allow time for processing. It generally takes 3-5 working days to produce a Check once the Voucher has been received in the Controller’s Office. Incomplete or incorrect vouchers will be returned to the Advisor for correction before payment will be made. At the time a voucher is sent to the Controller’s Office, record this information in your Cash Ledger Book. Enter the date, the payee/vendor, and the amount in the correct columns. Deduct the amount of the voucher from the balance. When a voucher is processed and payment is made, the yellow copy of the voucher will be returned to the Advisor. Upon receipt of the yellow copy, enter the Voucher Invoice Number in the document number column. Listed below is each field on the Agency Voucher and what should be entered.

Date – Actual date the form was completed.

Vendor Name and Address – Enter the Payee’s name and address. For businesses, use the full business name and remittance address as seen on the invoice. For individuals, use full legal name and campus or US mailing address.

Please indicate with an X – Check all that apply. An “Attachment” is anything that should be remitted to the payee/vendor with the check. Please attach a copy of each remittance. The Controller must retain the original.

SSN or ITIN – Enter Federal I.D. number if known, when paying a business. Enter the Social Security Number if an individual person is being paid. The Social Security Number is required for tax purposes only & should be provided when paying for any "service".

Name Of Your Organization – The name of the Organization that is paying the Vendor.

Payment Due Date – The date on the Vendor invoice or the due date if applicable.

Vendor Code or University ID – Enter the payee's 991 number. Leave blank if paying a business.

Income Type – Completed by the Controller’s Office.

Description – A short explanation of what the Agency Voucher is being used to pay.

Vendor Invoice Number - If there is a number on the Vendor billing, include it for payment tracking purposes.

Amount – Total Check amount. Individual invoice or receipt amounts may be listed to total the amount.

Purchase Order Number – If the Agency Voucher is being generated to pay an encumbrance generated by a Purchase Order, the P.O. number must be entered.

Signature – Organization’s Officer signature required.

Title – Officer’s title.

Fund – Completed by the Controller’s Office.

Index – Enter the Index of the Agency Account to be charged for the purchases listed. You may use more than one Index to pay for a purchase but you may not pay different Vendors on one Agency Voucher. Several receipts to the same payee may also be processed on one Agency Voucher.

Account Code – Assigned by the Controller’s Office unless a specific code is preferred by the Organization. If an inappropriate code is entered, the Agency Clerk, without further notice, will correct it.

Activity – Completed by the Controller’s Office.

Amount – Total Check amount.

Agency Acct Advisor – Account Advisor’s signature is required.

Office of the Controller - Completed by the Controller’s Office.

Voucher Date – Completed by the Controller’s Office.

Invoice DOC Number - Completed by the Controller’s Office.

Audited by – Completed by the Controller’s Office.

Date - Completed by the Controller’s Office.

Agency Vouchers may be obtained from the Agency Account Clerk, or use the following link:
Download Agency Voucher (Microsoft Excel Document)

INTRAMURAL VOUCHER

The completed Intramural Voucher (signed by the Advisor on the Head of the Department line) is sent to the Controller’s Office. Intramural Vouchers are used for all campus transactions excluding the Foundation Office. Incorrect or incomplete forms will be returned to the Advisor for correction before payment will be made. Enter Intramural Vouchers in the Cash Ledger Book the same way as an Agency Voucher if it is a debit or like a deposit if it is a credit to the account. Please complete the Intramural Voucher as listed below.

Date – The actual date the Intramural Voucher is completed.

For Services and Goods Furnished To - The Department or Organization paying for goods or services (debited).

By Supplying Department - The Department or Organization being reimbursed (credited) for services or goods.

Debit Department Name – Enter only if there are several organizations or departments functioning under one INDEX.

Credit Department Name – Enter only if there are several organizations or departments functioning under one INDEX.

Date And Description Of Items Or Expenses Being Transferred Or Services Provided – Enter a short description of why the transfer is being made.

Total Cost - The total amount of the transfer.

Fund – Completed by the Controller’s Office.

INDEX (First line) - The Index for the department or organization that is being debited.

INDEX (Second line) - The Index for the department or organization that is being credited.

Account Code – Assigned by the Controller’s Office unless a specific code is preferred by the Organization. If an inappropriate code is entered, the Agency Clerk without further notice will correct it.

Activity – Completed by the Controller’s Office.

Debit Amount – The amount being transferred out of the debited INDEX (use debit side only).

Credit Amount – The amount being transferred into the credited INDEX (use credit side only).

Total - Completed by the Controller’s Office.

Head Of Department Being Billed - The Advisor’s signature of the organization paying for the services (debited) is required.

Circle one - Completed by the Controller’s Office.

Office of the Controller – Signature required from the Controller’s Office.

Voucher Date – Completed by the Controller’s Office.

Intramural Vchr No. - Completed by the Controller’s Office.

Download Intramural Voucher (Microsoft Excel Document)

TRAVEL AUTHORIZATION

It is a requirement that any travel with Agency monies must have a Travel Authorization number before traveling. This process is usually initialized by registration for conferences, workshops, etc. If there is travel involved, there must be a Travel Authorization number obtained from the Controller's Office before any travel occurs. No reimbursements for travel will be made until this authorization is processed. Please try to avoid “after the fact” authorizations. Please allow 2 weeks for the processing of the Travel Authorization number. Listed below is a detailed description of how to fill out the Travel Authorization form.

Date Submitted – Actual date the form is completed.

No. – To be assigned by the Travel Account Specialist. This number will be available on-line once encumbered.

Travel for – Indicate by marking appropriate box, type of traveler.

Name of Traveler – The full legal name of individual traveler.

SSN# - Enter the Traveler’s social security or ISU I.D. number.

Department – Indicate the traveler’s department or organization.

Contact Phone Number – Indicate traveler’s home or department phone number.

Will your department be reimbursed for travel? (Y or N) – Answer by marking either Y for yes or N for No. If travel is to be covered entirely by the traveler’s departmental INDEX, then N should be marked. This is usually the case with Agency Accounts.

If yes, please provide Index of that department – Provide INDEX of organization that will be covering the travel costs. If departmental V.P. is going to provide funding, enter V.P.’s Index.

Destination – Indicate where the traveler is going. City and State.

Departure Date & Time – Indicate, by estimation, when traveler will be departing. Day/Month/Year is sufficient.

Return Date & Time – Indicate, by estimation, when traveler will be returning. Day/Month/Year is sufficient.

Beginning Date of Official University Business – Indicate the date of the first workshop, meeting, presentation, etc. Day/Month/Year is sufficient.

Ending Date of Official Univ. Business – Indicate the date of the last workshop, meeting, presentation, activity, etc. Day/Month/Year is sufficient.

Dates of Personal Time Used – List all dates that traveler will use as vacation days on this trip, if any, that do not pertain to official University business.

Purpose of University Travel – Be specific. Explain the purpose of the trip. This will be abbreviated to 35 characters for data entry purposes. For auditing purposes an acronym must be spelled out. For example NACUBO should be written out National Association of College and University Business Officers and referenced as NACUBO for data entry purposes.

Indicate Type of Travel – Mark appropriate box based on following definitions:

Traveler’s INDEX – List traveler’s INDEX to be charged.

Activity Code - Leave blank.

Expense Items – Mark all expenditures that will be claimed whether reimbursable to traveler, prepaid (registrations), or direct billed (airfare).

Transportation – Mark all modes of transportation that traveler will be using.


Lodging – Mark here if traveler will be requesting reimbursement for overnight lodging during travel. If traveler shares a room or takes a guest that is not an ISU employee or student, they must only claim the Single Occupancy Room rate. ISU will only reimburse the single room rate. Indicate the number of nights and rate per night. Amount will automatically calculate based on these two fields and populate dollar amount in Estimated Cost Column.

Registration Fee – Mark here if travel will require a registration fee to be paid. Enter estimated dollar amount of registration in the Estimated Cost column.

Subsistence – Mark if traveler will be claiming subsistence for their travel. Do not include days in which traveler is requesting traveler’s checks to cover expenses. Indicate # of day’s subsistence will be claimed. Amount will automatically calculate based on fields and populate dollar amount in Estimated Cost column.

Miscellaneous – Mark here if any additional reimbursement will be claimed for this trip. Types of miscellaneous expenditures include ground transportation, taxis, parking, phone calls, etc. Reasonably estimate these expenses to the best of your ability. Enter the estimated dollar amount of these expenses in the Estimated Cost column. The $1 amount for item 10 will be encumbered under “other travel” in order to provide a method of paying and tracking unexpected expenses associated with a trip.

Signature of Traveler – Traveler should sign authorization certifying that travel is necessary and directly related to University business, and that if requesting reimbursement that they agree to submit a Travel Reimbursement form with original receipts within 30 days of their return.

Authorization –

University Funds Requested – Mark if requesting University funds for reimbursement for any part of travel expenditures.

Maximum of $__ - Mark if traveler’s organization has agreed to pay up to a maximum dollar amount towards travel expenses. Indicate dollar amount that the organization has agreed to reimburse traveler.

No University Funds Requested – Mark if traveler will not be requesting any University funding for this trip. Travel must be pre-approved and authorized by appropriate officials whether Travel will be reimbursed out of ISU funds or not.

Dept Chair or Administrative Head – Signature of organization's advisor is required indicating approval of travel and that adequate funding is available within their account.

Dean – Organization Officer’s signature is required indicating approval of travel and travel estimates.
Vice President – Signature of Vice President of Student Affairs, Tom Ramey, is required on all travel; authorizing travel of individuals and approving travel expense estimates. Agency Account Travel Authorization require the signature of the VP of Student Affairs.

Signature Note – No one can sign to authorize his/her own travel except for the President of the University.

Special Situations:

Travel Expenditures that are not approved on the Travel Authorization prior to trip may not be reimbursed and are the responsibility of the traveler. If requesting reimbursement via a memo that references the original TA number and all authorizing signatures, and original invoice is required before reimbursement can be processed. This memo should be attached to the Travel Reimbursement form.

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