2. 2nd Accounts Payable Workshop February 24, 2011 1

3. Topics to be Covered AP Staff – Responsibility and Accountability Review of AP Process – Approval Process Most Frequently Confused Topics Account Codes Travel Policies & Procedures Contracts Meals and Refreshments 2

4. AP Staff and Assignments Nick Shere Location 8 Funds 63 and higher Apple Nicanor Custodio Location 6 Hewlett Packard Tina Du Location 2 Grainger Earvin Robinson Location 5 Staples Utilities Dianna York Location 1 Office Depot Dettie Del Rosario AP Supervisor 3

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6. Review of AP Process a. When do we pay? - If documents are consistent and complete. b. What do we look for? 1. Signatures – on Pay to’s 2. Receipt from the warehouse on regular PO’s. 3. Invoices (not statements) 4. Budget 5

7. Review of AP Process….cont c. When do we cut the checks? Every Tuesday and Thursday. d. When do we disburse the checks? - Every Wednesday & Friday - They are either mailed or sent to the bursar’s office of each campus, or held at the district for pick up. If a check is to be held at the district or returned to the campus, that instruction should be clearly written or stamped on the requisition page. 6

8. Review of AP Process….cont. Documentation must be consistent with regard to: Invoice PO Contract Receiving What must be consistent? Vendor name and ID Dollar amounts Items paid for Tax Contract (for services over $600) Party billed (must be Peralta) 7

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10. 23 Accounting Codes Eight buckets of numbers: 1. Location – 1 digit (1, 2, 5, 6, 8) 2. Fund Number – 2 digits (01, 11, 63) 3. Cost Center – 3 digits (231, 531, 631, 831) 4. Object Code – 4 digits (4301, 5105) 5. Program Code – 1 digit 6. Activity – 6 digits (Top codes) (672000) 7. Project Number – 4 digits 8. Line Number – 2 digits (accounting line) 9

11. Account Codes…………………cont. What is the story behind these numbers; 5-63-551-6402-1-71000-2374-00 VP of Instruction is using Fund 63 Measure A funds to buy instructional equipment categorized under Physical property and related equipment under the project of Laney Equipment Tech Upgrades. New this year – all fund 63 expenditures require a project number approved by the District Finance. 10

12. Account Codes………………..cont. Who is responsible for checking these object codes: First level approval – Cost Center manager Second level approval – Business manager At the District: - Buyers - AP Technicians However, when object codes are not correctly used, AP Technicians cannot pay. 11

13. Account Codes……………….cont. Supplies vs Equipment – Appendix E of BAM Five Tests: 1. Does the item lose its original shape and appearance with use? 2. Is it consumable with normal service life of less than one year? 3. Is it easily broken, damaged or lost in normal use? 4. Is it more feasible to replace with new unit than to repair it? 5. Is it an inexpensive item, too small to inventory? 12

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15. Contracts No INDEPENDENT CONTRACTOR should be allowed to work without a signed contract. A valid contract should exist at the time the invoice is created. Work should be completed within the time period stated in the contract. Total payments for work under the contract should be within the Not to Exceed amount. 14

16. Contracts………………………..cont. An ICC is required for every payment for services over $600 for the year. ICC signatures College President Vice Chancellor, Finance & Administration Chancellor If the contract is missing some signatures, the paperwork will be returned. 15

17. Contracts…………………………cont. Contracts over $25,000 must be approved by the Board. Bond fund contracts over $78,900 must be approved by the Board. The requester is responsible for tracking total payments under each contract. 16

18. Contracts………………………..cont. A contract needs to be amended for any change in the ff: Amount Expiration Date Budget codes How to Amend the Contract: - Through An ICC Amendment Form to be obtained from the Finance Department. - All parties to the original contract should sign the amendment. 17

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20. Travel – Board Policy 6.39 All requisitions for travel-related expenditures, including registration, accommodation, and airline tickets, must be accompanied by the Travel Authorization Form signed by: 1. First-level supervisor, 2. Business Manager, and President. 3. Chancellor New Proposed Changes that will require Board approval: – travel in excess of $500.00 - out of state and out of the country 19

21. Travel ……………………………..cont. Travel advance requests should not exceed 80% of the authorized amount. must be submitted no later than 15 days before travel. will not be paid more than 15 days in advance. Registration, accommodation, or tickets can be paid early if necessary with separate requisitions. Must be accompanied by the Travel Authorization Form. Must be paid directly to the vendor, not to the employee. 20

22. Travel ……..cont. Advances must be liquidated/finalized within 30 days of completion of travel. Mileage is currently 51 cents. Original receipts must be submitted. All receipts must be carefully added. List expenses only in the correct column. Hotel receipts must be itemized. No liquor expense can be reimbursed. 21

23. Food & Refreshment Board Policy 6.40: Food, coffee and other refreshment at regular meetings are not “necessary” expenses and therefore cannot be paid from unrestricted general fund or Fund 01. Restricted and special programs may be used for food and refreshment if the funding source or agencies allow such type of expenditure. Budget allocating for food & refreshment be set up at the beginning of the budget period. 22

24. Contact Information Dettie Del Rosario Phone: 510-466-7260 Fax: 510-587-7852 ddelrosario@peralta.edu Earvin Robinson Phone: 510-466-7226 Fax: 510-835-4078 erobinson@peralta.edu Dianna York Phone: 510-466-7253 Fax: 510-587-7877 dyork@peralta.edu Nick Shere Phone: 510-466-7241 Fax: 510-835-4078 nshere@peralta.edu Nicanor Custodio Phone: 510-587-7860 Fax: 510-835-4078 ncustodio@peralta.edu Tina Du Phone: 510-587-7872 Fax: 510-835-4078 tdu@peralta.edu 23 If you have any concerns about the AP process or your AP tech, please contact the AP Supervisor, Dettie Del Rosario

25. Have an amazing year! 24