Accounts Payable presentation - University of Alaska Anchorage

Accounts Payable
What We Do
Accounts Payable makes payments to the
university’s vendors while ensuring compliance
with IRS regulations, Board of Regents regulations,
and University policies.
AP/Travel Website:
[email protected]
The AP Process
The AP Process
O 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 Process
O 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
2) AP receives an invoice from a vendor
3) 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
O FOIDOCH- shows all of the documents tied
O FGIENCD- shows all of the activity on an
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 Process
O Three things are needed in order for AP to
issue a payment.
O 1) A purchase order
O 2) An invoice
O 3) An approval to pay from an authorized signer
-Who is an authorized signer?
It’s short-hand for Representational and Nonrepresentational.
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.
Considered for a bona fide business purpose
There are four categories:
Events which are traditional or ceremonial in nature
(such as receptions for commencements, students,
faculty, or employee award ceremonies);
Hosting advisory councils, boards, governance
functions, and fundraising events;
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
Providing instructional, research and public
services programs.
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
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
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
BOR 05.02.07F
O 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.
O 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
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
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 Forms
O Form to be used in limited situations
O 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 Tax
O 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
Non-Resident Alien Tax
O 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
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
O Should always include back-up
documentation supporting trip purpose.
Per Diem
O Meal per diem begins from the time you leave your
home or work to the time you return home or work.
Divided into 4 quarters.
Per diem rates can be found on the GSA website,
which a link to can be found on the AP/Travel
Per diem for entire State of Alaska is $52 per day.
Same day per diem issue- IRS says it is taxable.
Exceptions to standard reimbursement must be
approved by Travel Administrator.
Car Rentals
O 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
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 Report
O Traveler should complete it within 15 days of

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