The URL can be used to link to this page

Home My WebLink AboutExpenditure Cycle Idaho Department of Correc tion Standard Operating Procedure Title: Expenditure Cycle Page: 1 of 4 Control Num ber: 114.03.03.003 Version: 4.0 Adopted: 01-15-1995 Henry Atencio, dire ctor, approv ed this document on 08/01/2017. Open to the public: Yes SCOPE This standard operating procedure applies to all Idaho Departm ent of Correc tion em ployees who process expenditures, inc luding purchase orders and purchase c ard transactions. Re v ision History Revis ion date (08/01/2017) vers ion 4.0: Revised sec tion pertaining to em ployee reimbursem ent process ing. TABLE OF CO NT ENT S Board of Correc tion IDAPA Rule Number 114 ...................................................................... 1 Polic y Control Number 114................................................................................................... 1 Purpose................................................................................................................................ 2 Respons ibility ....................................................................................................................... 2 Standard Procedures ........................................................................................................... 2 1. Purchase Order Processing ......................................................................................... 2 2. P-Card Process ing ....................................................................................................... 3 3. Employee Reim bursement Process ing ........................................................................ 3 4. Expenditure Process ing ............................................................................................... 4 5. Monitoring Appropriated Funds, Expenditures, and Encumbrances ............................. 4 BOARD OF CORRECTION IDAPA RULE NUM BER 114 Inm ate Funds Receipt and Maintenance POLICY CONT ROL NUM BE R 114 Fiscal Policy Idaho Department of Correc tion Control Numbe r: 114.03.03.003 Ve rsion: 4.0 T itle: Expenditure Cycle Page Numbe r: 2 of 4 PURPOSE The purpose of this s tandard operating procedure is to give ins truc tion to departm ent em ployees on proc essing expenditures of state funds. RESPONSIBILITY The expenditure cycle inc ludes five main processes: • Purchase order proc essing • P-card proces s ing • Em ployee reim bursement process ing • Expenditure processing • Monitoring appropriated funds, expenditures , and encum brances Department employees initiating purchas es, spending authorities authorizing expenditures, and fiscal staff reviewing and processing expenditures all have different respons ibilities in the expenditure c ycle as identified below. The employee initiating the purchase order is res pons ible for • Filling out the purchase order in its entirety • Ensuring that a spending authority reviews and s igns a purchase order • Ensuring a spending authority authorizes expenditures at appropriate levels The employee is the owner of the purchase order and respons ible for the order throughout the entire purchase order c ycle. STANDARD PROCEDURES 1. Purchase Order Proce ssing Purchase Order An em ployee must com plete a purchase order for each expenditure. Purc hase orders are available on EDOC. Review of Purchase Order by Fiscal Staff Fiscal staff must review all completed and s igned purchase orders to ens ure com pliance with Generally Accepted Accounting Princ iples, s tate laws, and departm ent polic y. Fiscal staff must also ensure a purchase order is com plete, acc urate, and the c orrect spending authority has s igned. If approved, fiscal staff assigns a unique num ber, from the elec tronic purchase order log, to the purchase order. Fiscal staff must return an incomplete or inaccurate purchase order to the originator with an explanation for its return. Idaho Department of Correc tion Control Numbe r: 114.03.03.003 Ve rsion: 4.0 T itle: Expenditure Cycle Page Numbe r: 3 of 4 Purchase Order Placem ent The employee originating the purchas e order places an order with a vendor after receiving the purchase order with the ass igned number. Encum bering Funds Fiscal staff must encum ber funds for c om pleted purchase orders in the s tatewide accounting and reporting system (STARS) to ac curately rec ord on departm ent financ ial s tatem ents. Receipt of Good or Services Ordered on Purchase Order The originating em ployee must send fis cal s taff c onfirmation of receiving goods or services. Fiscal staff must ens ure prom pt payment to a vendor when a purchase order is com pleted. M aintaining and Closing Purchase Orders Fiscal staff are respons ible for maintaining an elec tronic purchase order log and reviewing this log on a m onthly bas is. Each m onth, fiscal s taff are respons ible for reviewing the c urrent year encumbranc es on the financ ial s tatement generator to m ake sure that purchase orders are being paid or liquidated in a tim ely manner. Encumbrances in STAR S and the financ ial statem ent generator should match open purchase order totals. 2. P-Card Processing The departm ent issues c redit c ards , called P-cards to em ployees or groups of em ployees. P-Card User Purchases made with a P-Card will show up online and can be accessed through the Statewide Accounting Sys tem. An employee m aking a purchase with a P-card m us t access these charges online and verify that they made the purchase for the am ount s tated and that the charges are not fraudulent. After c om pleting the verific ation proc ess, em ployees making P-Card purchases m us t obtain an approval s ignature from a spending authority before sending a trans m ittal to fiscal s taff. Fiscal Staff Fiscal staff must review a P-c ard transm ittal ens uring it is com plete and accurate before approving and releas ing the transaction to STARS. If inform ation is incom plete, fiscal s taff m us t contact the employee who m ade the purchase to get the needed information. 3. Employee Re imburse ment Processing Travel Em ployees m ay reques t reimbursem ent for travel expenses only for authoriz ed and essential costs inc urred during offic ial s tate bus iness. Travel Vouchers Al l departm ent em ployees have access to the travel voucher form on EDOC. Department employees wanting reim burs ement for a departm ent expense they paid for Idaho Department of Correc tion Control Numbe r: 114.03.03.003 Ve rsion: 4.0 T itle: Expenditure Cycle Page Numbe r: 4 of 4 personally or claim ing per diem for travel must fill out a travel voucher. A s pending authority must sign a travel voucher to authorize expenditures. After receiving approval, the em ployee m ust send the travel voucher to fis c al s taff. Review of Travel Vouchers by Fiscal Staff Fiscal s taff m us t review all submitted travel vouchers for com pliance with the state travel policy prior to entry to STAR S for employee reim bursement. Fiscal staff m ust contac t the originator of the travel voucher for additional inform ation if there are any discrepanc ies. 4. Expenditure Processing Fiscal s taff are respons ible for entering invoices for paym ent and internally auditing accounts payable trans ac tions for proper supporting documentation and key punch accuracy prior to final approval and release of expenditures to STARS. The executive financ ial officer, in com pliance with the requirem ents of Office of the State Controller, publishes c ut off dates for the full year, exc luding June, which must follow the s tate controller’s year-end schedule. 5. M onitoring Appropriate d Funds, Expenditures, and Encumbrances Al l staff approving expenditures, m aking expenditures, reviewing expenditures, and process ing expenditures for payment are respons ible for monitoring appropriated funds to m ake sure expenditures and encum branc es do not exceed appropriations. The departm ent uses the financ ial s tatem ent generator and STAR S to m onitor appropriation balances against expenditures and enc umbranc es. – End of Doc um ent –