NHCS BUDGET MANUAL July 2015

Transcription

1 NHCS BUDGET MANUAL July

2 Table of Contents Introduction... 4 Budget Duties and Responsibilities... 4 Budget Director... 4 Budget Delegation Process... 4 Financial Tools... 5 Centralized Financial System... 5 Cook Spreadsheets... 5 DocAgent... 6 Travel Tracker... 6 Reconciliation Process... 6 Budget Topics... 7 Chart of Accounts... 7 Grouped Account Codes (Roll-up Codes) Budget Transfers Print Shop Textbooks School General Ledger Reports Budget Information on Finance Web Site Allotment Process Allotment Formulas Allotment Policy Manual Types of State Allotments School Budget Allotments Disbursement Procedures Preaudit Certificate Obligations Requiring Purchase Orders Contracts Not Requiring Purchase Orders Expenditures Not Requiring Purchase Orders or Contracts Disbursement Violations Unallowable Expenditures and Accounts Travel Procedures Professional Leave Approval Process Travel Expenditure Restrictions Payment Requests Direct Deposit of Employee Reimbursements Workshop and Meeting Procedures

3 General Procedures Internal Workshops External Workshops Accounts Payable Account Payable Process Accruals Accounts Payable Forms Check Requests Employee Expense Reimbursements In-County Travel DocAgent (Electronic A/P File Cabinet) On-Line Receiving in Sunpac Internal Service Invoices Textbook Procedures Fixed Assets Fixed Asset Responsibilities General Fixed Asset Procedures Missing Equipment Procedure Other Inventory Procedures Managing Federal Programs School Allotments from Title I Time and Effort Forms Time and Effort Reconciliation Semi-Annual Certifications Multiple Cost Objective Departmental Receipt Procedures Department Invoicing Procedures Central Office Event Ticket Sales Signature/Approval Requirements Year-end close out process Purchase Order Roll Over Budget Carryover Expense Accruals Prepaid Expenditures

4 INTRODUCTION The purpose of this manual is to serve as a reference guide for budget administrators and support associates with budget responsibilities. Topics include basic budget information, along with procedures related to purchasing and accounts payable. This manual does not include School Funds or Payroll Procedures. Please refer to the Treasurer s Manual for procedures related to School Funds and the Administrative Payroll Manual for procedures related to payroll administration. Suggestions for additional topics to be included should be ed to the Finance Office. BUDGET DUTIES AND RESPONSIBILITIES BUDGET DIRECTOR Each budget program is assigned a budget director, also referred to as budget manager. The budget manager for each school allotment is the principal. Recurring program assignments are listed annually in the budget book. A more detailed listing is located on the Finance web site under the Budget tab, and includes all programs by fund, budget director, department, and the Finance Department budget analyst assigned to each program. This position serves as liaison between the director and the Finance Department, providing technical guidance and support. Budget management duties include: 1. Ensuring all procedures are followed in a timely and accurate manner 2. Planning for expenditures in alignment with school or department goals 3. Authorizing expenditures in accordance with financial procedures and in compliance with grant requirements 4. Requesting Budget Transfers and/or Position Changes as needed 5. Review and reconciliation of transactions to ensure general ledger properly reflects activity approved by the Budget Manager 6. Budget Delegation, if any, for assigned programs BUDGET DELEGATION PROCESS A budget director may opt to delegate authority to perform specific budget duties, but the responsibility and accountability for those duties remain with the budget director. Specifically, the following duties may be delegated by program or specific purposes within a program: 1. Approval of Expenditures (Purchase Requisitions, Check Requests, Travel Reimbursements, etc.) 2. Budget Transfer Requests 3. Warehouse Order Entry To delegate budget duties, please complete a Budget Delegation Form (see Finance forms on Finance web page), sign and submit to Donna Rosser in Finance. Donna maintains a summary chart used by Finance and Purchasing to ensure only those with proper authority approve expenditures. 4

5 FINANCIAL TOOLS CENTRALIZED FINANCIAL SYSTEM SunPac is the K12 Enterprises Financial Software Package used by NHCS. This software also transmits monthly financial transactions to the NC Department of Public Instruction (DPI). All financial transactions are recorded in this software. Software modules include: Budgeting Purchasing General Ledger Payroll Accounts Payable Fixed Assets Child Nutrition inventory and purchasing transactions are recorded in Meals Plus, a separate software product, and all general ledger transactions interface with SunPac. COOK SPREADSHEETS Cook Spreadsheets are an EXCEL based Reporting Tool for Financial Software, Absence History, Substitutes and Teacher Certification. Each elementary and middle school has two site licenses for principal and treasurer/payroll operator. High Schools have three licenses for the principal, treasurer and payroll operator. Each department has two licenses for the director and the support associate that works with their budget. The Finance Department conducts periodic training for both Cook and SunPac. Below is a quick guide for running School Budget Reports in Cook. Quick Reference Guide for School Budget Reports in Cook Cook security for schools is set to allow access to payroll and HRMS data for all staff assigned to the school. However, that also gives automatic access to salary expenditures which are budgeted centrally. Below are a few suggestions for setting report formats to ignore those salary accounts: Budget Tab: 1. Click Hide Payroll Codes (top right). This is a filter so don t try to subtotal if you select this option. Then filter on the program you want to review. 2. Sort by Fund/PRC/Purpose. 3. Subtotal by Fund/PRC/Purpose. 4. Then filter on the programs you want to see. Budget Pivot Table Tab: 1. Select budget Fund/Purpose/PRC/ Object Table 2. Filter on programs you want to see. The most used school programs are listed below: Supply allotment for STAE Title I Instructional Supplies At-Risk Services (secondary schools may see payroll expenses in 069; and alternative schools may have non-salary allotments in this program) Title I School Improvement School Funded Payroll 500 s - Grants Custodial Supplies 5

6 805 - Administrative Supplies Flexible Use School Funds Priority Allotments High School Signature Programs Athletics Arts 3. Filter to select non-salary object codes (300 s and 400 s only). 4. Also may be helpful to throw away the following columns: Beg Budget, Budget Adjustments, Estimated Escrow, and Balance w/ escrow. DOCAGENT DocAgent is a web-based software program which allows retrieval and routing of electronic versions of Invoices, Purchase Orders, Receiving Documents and Check copies. See more information under Accounts Payable. TRAVEL TRACKER Travel Tracker is the bus scheduling program that is used for field trips and athletic trips. Teachers/Coaches have the capability to enter their own trip requests, follow their trips through the approval process, send notification to child nutrition for meal planning, print customized parent permission slips, and view their bus assignments on a trip calendar. The system is internet-based, allowing access at any time from a web browser. Either the treasurer, or the funding source can identify whether the trip will be paid by budget code or a school funds check. The following link to the Travel Tracker system is located on the NHCS website, on the Transportation Department page. RECONCILIATION PROCESS Monthly Activity Review - Use Cook Spreadsheets or General Ledger Account Inquiry to review budget, encumbrance and transaction activity as follows: Ensure all requested budget transfers were posted Check to make sure all requisition/purchase orders are accounted for Review Purchase Order Balances for reasonableness Make sure expected payment transactions are reflected on the transaction ledger 6

7 BUDGET TOPICS CHART OF ACCOUNTS The NC Department of Public Instruction (DPI) requires Local Education Agencies (LEAs) to use a standard Chart of Accounts. All chart of account documentation and definitions can be found on the State Web site: Below is a brief overview of how the chart works. It is critical that all expenditures are properly coded in compliance with the chart for proper planning, accountability, and budget analysis, and both a local and state level. Segment Structure X XXXX XXX XXX XXX XXX XX FUND FUNCTION PROGRAM OBJECT SCHOOL USE 1 USE 2 Segments are divided by dots (x.xxxx.xxx.xxx.xxx.xxx.xx), but may be keyed in the system with or without them First 5 segments must be in compliance with the State Chart of Accounts The last two segments are locally defined, with Use 1 used for Department Numbers as needed for budget delegation purposes, and Use 2 used as needed to define projects, program set-asides, or installment indicators Definitions for the first 5 segments and a listing of allowable codes for each program on included in the state documentation referred to above. Fund: A Fund is an Independent Fiscal Accounting Entity. The following funds are used by NHCS: 1 State 2 - General 3 - Federal 4 - Capital Outlay 5 - Enterprise (Child Nutrition) 6 - Trust 8 - Other Restricted Revenue Purpose: The reason for which something exists or is used. Activities or actions performed to accomplish the objectives of a local school administrative unit. Five Categories of Expense: Instructional Services System-Wide Support Services Ancillary Services Non-Programmed Charges Capital Outlay 7

8 Each of the 4 digits have a specific meaning/use: X X X X P U R P O S E F U N C T I O N L O C A L S U B F U N C T I O N U S E Example: Instructional Services Alternative Programs and Services Extended Day/Year Instructional Services Summer School Instructional Services The function (2 nd digit) is used to categorize the major operational activities of the district. The budget is approved and financial statements reported at this level. The sub-function level (3 rd digit) provides greater level of detail used in program analysis. The 4 th digit use is optional. We use when we need to track program expenditures at a greater level of detail Program: A program report code (PRC) designates a plan of activities or funding designed to accomplish a predetermined objective. Program Codes are used to allocate money from DPI for State and Federal Programs Local allocations are also made by program The chart of accounts for local program must match state (example: PRC 032 Children with Special Needs) Locally defined programs can have a locally defined Chart (example: PRC 856 Human Resources) Object: Service or Commodity obtained as a result of a specific expenditure: Salaries: All payroll amounts paid to persons who are employed by the local school administrative unit Benefits: Amounts paid by the local school administrative unit on behalf of employees, in addition to the regular salary Purchased services Supplies and Materials Capital Outlay 700 Transfers 8

9 Object Code definitions for most commonly used non-salary school codes: 311 Contracted Services Include amounts paid for non-payroll professional and technical services performed under contract, excluding Workshop Expenses. Services include amounts paid for non-payroll services performed by a qualified attorney to assist the local school administrative unit in specialized legal matters, services performed by an independent auditor concerned with examining, verifying, and reporting on the accounting records of the local school administrative unit, copier contracts as well as for other professional and technical services in the school system. 312 Workshop Expenses Include amounts paid for contracted services, supplies, and participant's travel costs for workshops and in-service seminars designed to enhance the quality of a program. Expenses include reimbursement to employees for mileage for workshops on personal vehicles equal to or less than the IRS allowable rate for business use. 331 Pupil Transportation - Contracted Include expenditures to agencies and persons, other than employees, for the purpose of transporting children to, from or between schools. This includes reimbursement of transportation expenses to individuals who transport themselves or parents who transport their own children. 332 Travel Reimbursements Include costs for transportation, meals, hotel, and other allowable expenses (which require documentation) associated with traveling on business (other than for workshops and in-service seminars, which are coded to 312) for the local school administrative unit. Also includes reimbursement to employees for mileage on personal vehicle equal to or less than the IRS allowable rate for business use. Employer paid relocation costs. 333 Field Trips Include expenditures for transportation and other costs related to field trips for students. 342 Postage Include amounts paid for postage services. 411 Supplies and Materials Include all supplies, materials and workbooks used in the school system for instructional and non-instructional purposes. Examples of supplies: construction paper, crayons, pencils, pencil sharpeners, and other small unit cost equipment that meets the criteria for a supply item as outlined above. Examples of workbooks: map skills, handwriting, bookkeeping workbooks, etc. Include amounts expended for supplies and materials other than instructional supplies. (Expendable tools used in the garage and School Food Service should be recorded here.) Include amounts expended for periodicals and newspapers. A periodical is any publication appearing at regular intervals of less than a year and continuing for an indefinite period. Include amounts expended for audiovisual supplies and materials in the local school administrative unit. Include amounts expended for processing and cataloging books and materials in a school library. This would include kits and other supplies used for this purpose. Include amount for subscriptions to internet based educational resources and for the purchase of on-line educational media/materials used for the instruction of pupils. 412 State Textbooks Include the value of the State Textbook fund expended for prescribed textbooks purchased for pupils or group of pupils, and resold or furnished free to them. 413 Other Textbooks Include amounts expended for other prescribed textbooks purchased for pupils or groups of pupils, and resold or furnished free to them, which are not classified above. This category includes the cost of textbook binding or repairs, as well as the new amount of textbooks, which are purchased to be resold or rented. This category also includes online textbooks. 414 Library Books (Regular and Replacement) Include amounts expended for regular or incidental purchases of library books available for general use by students, including any reference books used solely in the classroom. Also recorded here are costs of binding or other repairs to school library books. 418 Computer Software and Supplies Include amounts expended for computer programs, floppy disks, ribbons, and etc., annual renewable license code and maintenance fees for computer software. 459 Other Food Purchases Include amounts expended for other food purchases, such as snacks and meetings. 9

10 461 Furniture and Equipment - Inventoried (>$1000 but less than $5,000) Include expenditures for the initial, additional and replacement costs of equipment for both instructional and support areas whose small unit cost and/or lease/purchase arrangement makes it inadvisable to capitalize the item. Use this code only if you will inventory the items purchased. If not inventorying the item, use 411 Supplies and Materials. 462 Computer Equipment Inventoried (>$1000 but less than $5,000, and all computers) Include expenditures for computer hardware whose small unit cost and/or lease/purchase arrangement makes it inadvisable to capitalize the item. Use this code only if you will inventory the items purchased. If not inventorying the item, use 411 Supplies and Materials instead. 541 Purchase of Furniture and Equipment Capitalized (>$5,000) Include expenditures for the initial, additional, and replacement items of capitalized equipment such as furniture and machinery; including lease/purchase, for both instructional and support areas. 542 Purchase of Computer Hardware - Capitalized (>$5,000) Include expenditures for the initial, additional, and replacement items of capitalized computer hardware such as microcomputers, printers, file servers, other equipment required for infrastructure/connectivity, etc.; including lease/purchases. GROUPED ACCOUNT CODES (ROLL-UP CODES) Several codes used for school allotments in the Chart of Accounts have been grouped with a Parent/Child link. This means that money is budgeted in the "parent code" but may be spent in the linked "child codes" without budget transfers. All grouped codes must have the same purpose codes, and transfers will not be processed to linked codes. These codes are grouped for budgeting purposes only, and expenditures must still be coded to the appropriate codes in compliance with the State Chart of Accounts. To view grouped codes in Cook Spreadsheets, filter by program, purpose and object. To view in the SunPac, select Option #11 on the General Ledger Menu. Please note that the system deletes codes not used in the prior year, so please Tonice Brewer in Finance to request set up of codes. BUDGET TRANSFERS Once the budget has been approved, budget managers may request line item transfers by submitting a Budget Transfer Form. Transfer Restrictions: No transfers are allowed between funds, but most local transfers are allowable. Federal Transfers must be submitted through the Federal Budgeting System (LBAAS). Transfers between purpose codes in excess of $50,000 require Board approval. Do not request transfers between salary codes without first meeting with your assigned budget analyst to review the budget impact. PRINT SHOP Program 853 Not real money Allocated by Purchasing and used for tracking purposes only May transfer in additional money, but may not transfer out 10

11 TEXTBOOKS Program 830 Not real money; Allocated for use to order from State Textbooks Warehouse Funds may be transferred to State Program 061 See more detailed information in this manual under Textbook Procedures SCHOOL GENERAL LEDGER REPORTS Run reports from the General Ledger Menu as follows, using options 40 and 42. Only the school and programs under your authority will print when you run this report. Locations also have access to options #39 and #41 to copy or create reports. When creating reports start the name with location number to ensure the report is not deleted at year-end. Ledger Reports Formats Option 40: These reports will print account balances for the period selected Once a report is selected, select the Current Month for month-to-date column and select the fiscal periods of the selected months, which will default to YTD. Standard School Reports include: SCHOOL ALLOCATIONS (for school supply allocations) SCHOOLPRGREPORT (for allotted programs with salary codes) SCHOOLNCPREK - State Pre-K funding for schools which may have Pre-K supply allocations SCHOOLSUMPRG and SCHOOLSUMALLOC These two summary reports provide program totals only so you can review your funds at a glance Standard Department Reports include: PROGRAMREPORT Program Reports PROGRAMREPORT% - Program Reports with % Expended/Encumbered Activity Reports Formats Option 42: These reports will print detailed ledger transactions Once a report is selected, select the current month for Month to Date column and select the months for the report, which will default to YTD. Standard School Report is : SCHOOL Standard Department Report is : DEPARTMENT BUDGET INFORMATION ON FINANCE WEB SITE Annual Budget Book Budget Resolution Allotment Formulas Budget Calendar Budget Development Process Request Forms Program Assignments Grouped Account Codes Budget Delegation Form Budget Transfer Form 11

12 ALLOTMENT PROCESS ALLOTMENT FORMULAS Allotment formulas determine the amount of funding for each program. Various criteria are used in formulas such as: Number of students Number of students in a specific population Student numbers weighted by poverty data State allotment formulas are found in the Allotment Policy Manual listed below, and local formulas are posted on the Finance web site. ALLOTMENT POLICY MANUAL The Allotment Policy Manual provides information on restrictions for each allotment (program): For each allotment, the manual provides information related to the: Term of allotment (# of Months; Carryover eligibility) Eligibility Allotment Formula Special Provisions Allotment Restrictions TYPES OF STATE ALLOTMENTS State and Federal funding is allotted by program in one of 3 ways: Categorical Allotments Funds used to address the needs of a specific population or service. All other State and Federal Programs with Salaries are Categorical and budgeted for salary and nonsalary support of the specific programs. All Categorical Allotments are assigned budget directors. These directors work closely with finance to determine how allotted funding will be spent. Dollar Allotments Dollars allotted to hire employees or purchase goods for a specific purpose. Most state programs with salaries are either position or categorical. Below are examples of state programs allotted in dollars for one specific purpose: o Central Office Admin 002 o Teacher Assistants 027 o Non-Instructional Support 003: Subs, Clerical, and Custodians only Position Allotments The State allocates a number of positions or a number of months of employment for a specific purpose and pays the state salary regardless of dollar amount. 12

13 Positions Allotments: o 001 Teachers o 007 Instructional Support Months of Employment Allotments: o 005 School Administrators o 013 CTE Months of Employments (State only) Local funding is added to Programs 001, 005, and 007, which result in better local formulas. Local Allotment Process The State usually issues State and Federal planning allotments in February or March, which are based on current or projected funding levels along with State Student Projections. Student Support Services prepares local student projections, which are generally more accurate, but we have to adjust to State for teacher allocation purposes so we don t overspend. We adjust to actual during the first 10 days because the state will adjust funding to actual based on best 1 of first 2 months ADM. In order to maximize the use of State Funding, all supplies are allocated from local funds in program 061, but both the State and Local formulas are used to calculate the allotment per school. Local Allotment formulas are included in the Annual Budget Book. SCHOOL BUDGET ALLOTMENTS Allotment Formulas: Used to determine number of positions and allocations of supplies Position Allotments: Finance calculates based on projected ADM and sends to Human Resources Human Resources works with schools to implement position changes For programs with position allotments, the program directors are also involved in this process with recommended allotment changes based on need Supply Allocations: Finance sends preliminary supply allocations in May for Summer Orders. These orders are processed early by Purchasing, but all dated 7/1/xx and shipped after the beginning of the new year Remaining allotments in July, with adjustments based on ADM changes in September 13

14 DISBURSEMENT PROCEDURES All purchases and contracts shall be made in accordance with the requirements of Board Policies 4610(Purchasing Administration) and 3410 (Contract Administration). These procedures provide additional guidance to help budget administrators determine which disbursements require contracts and/or purchase orders. PREAUDIT CERTIFICATE All New Hanover County School disbursements must be preaudited. A preaudit certificate is an assurance by the Chief Financial Officer that funds are available. If an obligation is supported by a contract or purchase order, then those documents must be preaudited. Expenditures that do not require purchase orders shall be preaudited on the face of the payment document. In accordance with G.S. 115C-441, no obligation may be incurred by a local school administrative unit unless the budget resolution includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. If the Chief Financial Officer disapproves any payment not in compliance with 115C-441, the obligation is invalid and may not be enforced and the employee shall be held liable for any sums so committed. OBLIGATIONS REQUIRING PURCHASE ORDERS Purchases of goods and services shall be supported by an encumbrance (purchase order) unless listed as an exception below: Contracts for the Procurement of Goods: Contracts for the procurement of goods are normally established through issuance of a purchase order (offer to purchase), which becomes a contract when the vendor either issues an acknowledgement accepting the purchase order terms and conditions, or ships the goods in accordance with the purchase order. Contracts for goods established in this way are preaudited when the purchase order is issued. Service contracts Service contracts for personal/professional, construction or repair work, or general services are signed by both parties and establish terms, conditions, provisions, expectations, requirements and obligations of both parties. Service contracts shall also be supported by a purchase order to encumber funds, unless the checks will be immediately processed. Service contracts below New Hanover County Board of Education approval levels may also be established through issuance of a purchase order if the bid document or written quote address the issues above, are signed by vendor, and are incorporated in the purchase order. A basic contract and contract amendment form can be found on the Finance web page under forms. Procurement Card Purchases Procurement card purchases also require encumbrances. Please refer to Procurement Card Program Procedures issued by the Purchasing Department: CONTRACTS NOT REQUIRING PURCHASE ORDERS Purchase orders are not required for service contracts for which checks will be immediately processed. Examples include staff development presenters or arts performances for which payment will be made on the day of the presentation or performance. Attach a copy of the contract to the check request and indicate that the check should be held in Accounts Payable for pick-up by the budget administrator. The budget administrator will then be responsible for delivery of the check to the presenter when the presentation is complete. A purchase order is still advised to encumber the money for such contracts made well in 14

15 advance. In such cases, use the same payment process as listed above and the purchase order will be cancelled at the time of payment. EXPENDITURES NOT REQUIRING PURCHASE ORDERS OR CONTRACTS Some types of expenditures do not require a purchase order because the obligation occurs at the time of payment, and the disbursement is preaudited prior to payment in the Finance Department. Allowable exceptions include: 1. Emergency Payments Invoices meeting the definition below may be submitted for payment with an Emergency Payment Request. Definition: An emergency purchase is only allowable in cases of genuine emergency or pressing need. Pressing needs arise from unforeseen causes including, but not limited to, delay by contractors, delay in transportation, breakdown in machinery, or unanticipated volume of work. Genuine emergencies are situations that endanger lives, property, or the continuation of a vital program and which can be rectified only by immediate on-the-spot purchases or rental of apparatus, supplies, materials, equipment or services. 2. Employee Reimbursement for Food or Supplies under $100: Reimbursements should only be requested for small purchases totaling less than $100. Do not split purchase into multiple transactions. Recurring purchases should be made with a purchase order. Employees will only be reimbursed for expenditures approved by budget administrator with funding available in the appropriate code. 3. Check Requests for items other than purchases of goods or services such as: Postage Miscellaneous fees and fines Travel Advances and Reimbursements Workshop Registrations School Fund Reimbursements for staff development, postage, or athletic travel Renewable Annual Contracts paid in advance such as maintenance agreements, insurance policy payments and institutional memberships 4. Utilities 5. Legal Services approved by the Board Attorney, Superintendent or designee. DISBURSEMENT VIOLATIONS Non-emergency purchases completed without first obtaining a purchase order or contract are considered violations of Board policies 4610, Purchasing and 3410, Contract Administration, and NHCS Disbursement Procedures. When a disbursement violation occurs, the invoices must be submitted to Finance with a completed Disbursement Violation Form to justify the direct payment to the vendor. Payment may be denied by the Finance Officer if funds are unavailable in a particular budget or if school funds may be appropriately used instead. According to General Statute 115C-441, if a finance officer disapproves any such payment, the employee may be held liable for any funds so committed or disbursed. UNALLOWABLE EXPENDITURES AND ACCOUNTS The following items are unallowable and shall not be purchased with budgeted or school based New Hanover County School s funding: 1. Gifts, Gift Cards, or Gift Certificates 2. Expenditures not budgeted or specifically allowable in the Chart of Accounts No credit cards or store accounts in the name of the school system or an individual school may be authorized by any employee other than the Chief Financial Officer or the Director of Purchasing. 15

16 TRAVEL PROCEDURES Reimbursement for travel expenses of employees traveling on behalf of New Hanover County Schools are paid in accordance with the policies, regulations and approved rates of the Office of State Budget and Management. PROFESSIONAL LEAVE APPROVAL PROCESS 1. A Professional Leave Request form is required for all Professional Leave and must be signed by the employee and the appropriate supervisor prior to approval by the program administrator. Professional Leave includes workshops, conferences, and out-of-county meetings. Both in-county meetings related to regular administrative responsibilities and in-county workshops held beyond the regular workday are excluded. Professional Leave Forms may be ordered from the Print Shop or printed from Human Resources website under Employee Forms. 2. Budget managers may approve all travel inside of the contiguous United States. The Superintendent or Designee (appropriate Assistant Superintendent) must approve any other travel requests. 3. If the budget manager is not the supervisor, please return the approved copy back to the requesting school/department to confirm approval. 4. Copies of Professional Leave forms should be kept on file by schools/departments with related payroll records for 3 years. TRAVEL EXPENDITURE RESTRICTIONS 1. Meals and lodging are reimbursed at the subsistence rates determined by the state, with separate rates for in-state and out-of-state travel. Tips are included in the daily subsistence rates for meals and lodging. No receipts are necessary. 2. State Travel Regulations require that lodging rates may only exceed State rates with State and Federal funds if lodging could not be obtained at the State rate or that safety was a concern. Excess lodging authorization must be approved in advance with written documentation explaining why lodging could not be obtained at the State rate or that safety was a concern. Approved documentation must be submitted with the payment or reimbursement request. Personal preference is not a valid reason for excess lodging. 3. Lodging rates that exceed the state rate for reasons not authorized by the Office of State Budget and Management must be paid from local funds and approved by the Superintendent or designee on the payment request form. PAYMENT REQUESTS 1. Expenses may be approved and incurred in accordance with budgetary allocations for travel expenses. Expenses will not be reimbursed in excess of budgeted amounts. 2. All reimbursement requests must be filed for approval and payment within 30 days. Each employee is responsible for his/her request for reimbursement. 3. Supervisory personnel must certify the reimbursement requests as necessary and proper. 4. Registration fees must be supported by an original receipt or copy of the cancelled check. Lodging expenses must be supported by the original detailed hotel receipt. 5. At the discretion of the Chief Financial Officer, an advance of funds that does not exceed the estimated travel expense may be issued to an employee. All travel expenses must then be reported on an Expense Reimbursement Form showing amount of advance and net amount owed to employee or to New Hanover County Schools. Any refund due to New Hanover County Schools should be submitted to the Finance Department along with the Expense Reimbursement Form. 16

17 6. If unusual circumstances require an employee to leave his duty station before 6:00 a.m. and/or return after 8:00 p.m., the cost for the morning and/or evening meal may be reimbursed; however, a statement identifying specific times must be shown on the expense reimbursement form. 7. Reimbursement for personal vehicle mileage will be made at the current state rate. Mileage rates include all related charges incurred except tolls and parking. MapQuest documentation should be provided measuring the mileage for the closer of duty station or point of departure/return. 8. Other Travel Related Reimbursements: a. Tolls and Parking - Will be reimbursed but require receipts. b. Tips and Gratuity Tips are allowable for: i. Airports: Baggage Handling/Skycaps = no more than $2 per bag; ii. Parking/Valets = $2 per car; Taxi Drivers = 15% of the fare and $1-$2 per bag iii. Hotel Internet Access. Local funds may be used to reimburse hotel internet access only approved by Superintendent or designee. 9. All payment request forms are located on the Finance Department web site under the Forms/AP Forms drop down and print with detailed instructions: Form Employee Expense Reimbursement Monthly In-County Travel Check Request Use Employee travel expense reimbursements and advances including daily subsistence and lodging, transportation, and other travel related expenses. In-county mileage reimbursements excluding commuting mileage. Registration and hotels. DIRECT DEPOSIT OF EMPLOYEE REIMBURSEMENTS All employee reimbursements processed by Accounts Payable are directly deposited into employee bank accounts similar to payroll checks. Checks can be viewed using the Employee Portal. Direct deposit for reimbursements are processed weekly. Requests for reimbursements must be received in the Finance department 10 business days prior to the Friday of the expected deposit. WORKSHOP AND MEETING PROCEDURES GENERAL PROCEDURES 1. All purchases should follow Disbursement Procedures published by the Finance Department. 2. Local supply funds may be used to purchase food for meetings that are not classified as workshops. Such expenditures must be coded to object code 459, Other Food Purchases, and amounts are restricted as per #2 below. (Food may not be coded to object 411.) 3. System banquets must be approved by the Superintendent. 4. School general funds may be used for expenditures related to workshops and meetings. All restrictions listed below apply. 17

18 INTERNAL WORKSHOPS 1. Internal Workshops are those that involve the attendance of employees within our agency. A routine staff meeting is not an internal workshop. 2. Staff Development funds may be used for food for internal workshops as follows: Snacks may not exceed $4.50 per person. Snacks may only be purchased with State & Federal funds for workshops with a minimum of 20 attendees. Meals may be purchased on a limited basis for an all day workshop with Local funds, but the cost per attendee may not exceed the In-State Lunch Per Diem rate. Meals may not be purchased with State or Federal funds. 3. Workshop Participant Stipends may only be paid for required workshops outside contracted employment dates. Payroll pay requests should be submitted on Request for Extra Pay. Stipend rates for workshop participants and presenters are published annually on the NHCS Supplement Schedule. 4. Workshop Object Code Definitions: 312 Workshop Expenses/Allowable Travel - Include amounts paid for contracted services, supplies, and participant's travel costs for workshops and in-service seminars designed to enhance the quality of a program. Expenses include reimbursement to employees for mileage for workshops. (Include food for internal workshops in accordance with #2.) 163 Substitute Teacher - Staff Development Absence 166 Teacher Assistant Salary When Substituting - Staff Development Absence 196 Staff Development Participant Pay - Workshop Participant Stipends (#4 above) 197 Staff Development Instructor - Hourly instructor fees paid to local school employees for conducting in-service workshops on personal time. 5. Staff Development funds may be used to reimburse a school s General Fund if the proper documentation is attached to the check request, including school check number, and all workshop procedures are followed. EXTERNAL WORKSHOPS External workshops are those that involve the attendance of persons other than the employees of our agency. Staff Development funds may be used for food for external workshops as listed above, but external workshop meals may not be purchased with State or Federal funds unless a registration fee is charged to all attendees. The registration fee must not consist exclusively of the cost of the meal. The fee must help defray the total costs of the workshop. ACCOUNTS PAYABLE ACCOUNT PAYABLE PROCESS All budgeted non-payroll expenditures are paid through the Accounts Payable Process. Listed below are forms and procedures related to the payment process. Before an invoice can be paid, documentation is needed to verify that goods have been received or services have been completed. Employee reimbursements or check requests must also have appropriate approvals and supporting documentation. ACCRUALS Expenditures must be booked in the fiscal period in which an item is received or service is rendered. After year end (6/30/xx), the Finance Department will book journal entries to reclassify expenditures to the correct period. For example, an invoice paid in July for items received in June will be reversed out of July 18

19 and expensed to June. Accruals may only be keyed to local funds (2, 4, 5, 6 & 8), so make sure all invoices to be paid in June are received by the Accounts Payable deadlines for June processing, otherwise local funds will have to be used. ACCOUNTS PAYABLE FORMS All Accounts Payable forms and the Payment Schedule can be found at: Forms. Please note that each form has second tab with detailed instructions on how to complete the form. Check Request Monthly In-County Travel Board Monthly In-County Travel Mileage Chart Expense Reimbursement Disbursement Violation Emergency Purchase CHECK REQUESTS Check requests may be used to requests vendor payments when invoices are not provided. Check requests may not be used for employee reimbursements or salary payments to employees. The check request should clearly indicate purpose of the expenditure and supporting documentation must be provided such as registration forms, reports, or contracts. Make sure the budget code is appropriate and has a sufficient balance to cover the expenditures, and that all required Disbursement Procedures have been followed. EMPLOYEE EXPENSE REIMBURSEMENTS Must be submitted within 30 days upon return. An explanation is required for late submissions. Use the current form on website to ensure current reimbursement rates. Original receipts are required (hotel, transportation, registration, etc.). No faxes or s. Date and time of departure and return are required. Receipts are not required for meals but conference covered meals are not reimbursable. Attach support for mileage (MapQuest). Lodging which exceeds the State rate must be paid with Local funds. Employee and Supervisor must sign the form. IN-COUNTY TRAVEL Must be submitted within 30 days upon return. An explanation is required for late submissions. Use the current form on website to ensure current reimbursement rates. Form will automatically total. Date of travel and to and from are required. Use the mileage chart on the website. Employee and supervisor must sign the form. 19

20 DOCAGENT (ELECTRONIC A/P FILE CABINET) DocAgent is a web-based software program which allows retrieval and routing of electronic versions of Invoices, Purchase Orders, Receiving Documents and Check copies. It is a tool we use to store and move paper documents electronically from the Finance and Purchasing Departments to Schools and Departments. Everything we process through Accounts Payable (with the exception of Child Nutrition related information) is available for viewing in DocAgent. It is also used to share information about those documents with others in the routing path for that document. Who needs Access? Access will be granted to the individual in your School/Dept. who reviews invoices for payment and/or is responsible for keying the on-line receiving information into SunPac. What kinds of things will be sent to me in DocAgent? When an invoice arrives in the Finance Department but receiving has not been entered into SunPac for the items on the invoice, it is sent to you through DocAgent. You also have the ability to search for Invoices, Purchase Orders, Receiving Documents, and Check copies. Documentation for receiving is still done in SunPac (see On-Line Receiving below). ON-LINE RECEIVING IN SUNPAC Schools and departments are responsible for keying online receiving for items picked up from vendors or shipped directly to schools/departments. Purchasing will key online receiving for items shipped to the Purchasing Department. Merchandise on a purchase order must be received before it can be paid by Accounts Payable. This should reduce turnaround time on invoice payments. You can access on-line receiving as follows: Under the Purchasing Menu Choose Enter PO Receipts (Option # 9) Detailed - Purchase Order Blanket - Purchase Order INTERNAL SERVICE INVOICES Process for Payment of Transportation Invoices: 1. Follow Travel Tracker Procedures found on the Transportation web page or the application link: 2. The system will require a designated funding source for each trip. The funding approver, usually the school treasurer or budget director, will be required to enter a budget code or school funds commitment prior to scheduling the bus. 3. Send invoices for payment (either by budget code or school funds check) on the site as soon as they have been approved for payment by Transportation. Process Steps for CN Catering Invoices: 1. Determine appropriate budget code and verify funds are available when catering is requested 2. Child Nutrition will send invoices to each department or school upon completion of the catering service. 20

21 3. Budget manager should verify work was completed, record budget code and approve invoice for payment. 4. Forward approved invoice with either a school check or budget code authorization to Finance in a timely manner. 5. Finance will charge budget code and mark invoice paid. TEXTBOOK PROCEDURES Textbook Coordinator: Each principal should appoint a Textbook Coordinator to be responsible for Textbook Management. Allocations: State textbook funding is allotted to schools on a per pupil basis, and unspent funds carry forward into the next budget year. Funds are allotted in a local budget code ( xxx) because textbook funding is not real money, but rather an authorization to purchase up to a certain dollar amount from the State Textbook Warehouse. This account may only be used for purchases from the State Textbook Warehouse. No outside vendor orders may be coded to this account. Funding Transfer Process: State funding flexibility allows for transfers from the State Textbook Account (Local PRC 830) and State PRC 061. If textbook funding is to be used for purchases of books or supplies not on the State Adoption List, then funds must be transferred as follows: 1. Transfers must be approved at the State level and should only be submitted for significant dollar amounts (minimum of $1,000). Try to estimate transfer needs on an annual basis so only one or two transfers are submitted per year. 2. The principal should complete a Budget Transfer Form and forward to the Finance Department. 3. The Finance Department will complete the appropriate State Form and forward to DPI for approval. 4. Transfers will be entered into our system as soon as the internal approvals have been obtained. 5. Transferred funding will be allotted to xxx, and orders will follow the normal purchasing process. Budgeted funds in PRC 061 must be spent by June 30th or will revert to the State. Transfers of Books between Schools: When agreements are made between two principals to transfer or trade books, the school transferring the books should complete a Textbook Transfer Form from the Purchasing website. Instructions are included at the bottom of the form. Send the books through school mail, and be sure to include a copy of the transfer form with the books. Textbook Ordering Process: 1. Textbook Order Forms by school level and ordering deadlines are posted on the Purchasing website. 2. The Textbook Coordinator should consolidate all teacher requests for textbooks and teachers editions. 3. The Textbook Coordinator should compare order form totals with the current budget report to ensure that adequate funds are available for the orders. 4. The Textbook Coordinator should fax all warehouse requisitions for textbooks to the Purchasing Department at or to laurie.lee@nhcs.net. 5. Only textbook orders going to the State should be processed from budget code xxx. As soon as the order is entered, an encumbrance will be set up, and a transaction recording the expense will be recorded once the books are shipped to your school. 21

22 5. Modified textbooks for visually impaired or reading disabled students are available. We now have online access for students approved for modified textbooks. Please contact Cindy Booth or Laurie Lee to setup student or teacher accounts. Braille and large print books are still ordered from Textbook Services and are loaned to our unit on a yearly basis, and they must be returned at the end of the school year. Copies of new adoptions take several months for preparation since the titles are custom printed. These books are very expensive, and so accountability for them is critical. If you have questions about this service, contact Laurie Lee in Purchasing. Textbook Fines: 1. Fines for all textbooks shall be collected, receipted and turned into the School Treasurer. 2. All fees should be turned in daily (as with all receipts) and deposited into the School Funds textbook account. 3. Schools may transfer these funds to their General Fund, or may send a check to the Finance Department requesting they be allotted to the school s instructional supply code. Surplus: Textbooks become surplus when no longer on adoption or in use by the school. Surplus books may be discarded as follows: Surplus textbooks may be given to students. Some schools offer them to their PTA or PTO and the books are then distributed to parents at a meeting. Surplus books may be given to a non-profit agency. For example, some local churches make use of surplus books. Some use them in after school programs or ship them overseas to use in mission programs. Surplus books may be discarded by simply throwing them away. Other Textbook Procedures and Forms: To view important textbook ordering dates, forms and adoption schedules, visit the New Hanover County Schools Purchasing Department website and click Textbook Information. Textbook Inventory Procedures: FIXED ASSETS Fixed Assets include Land, Buildings, Furniture, Equipment and Vehicles. Board Policy 3320 defines the capitalization levels for Capital Assets, those assets which are depreciated and reported in the Financial Statements. The policy also designates that asset control is the responsibility of individual schools and departments, while financial reporting and depreciation are the responsibility of the Finance Department. Therefore, furniture, equipment and vehicles are assigned to specific schools or departments. Administrators are responsible for each asset assigned to their school or department. FIXED ASSET RESPONSIBILITIES 1. Ensuring that assets are properly identified, accounted for, and safeguarded. 2. Location transfers are tracked and approved. 3. The location of assets is verified during the annual fixed asset inventory. 22