A. Reimbursable Expenditures
Tuition rates are set based on reimbursable expenditures as set forth in the Operational Services Division (OSD) regulations. All expenditures are monitored based on OSD regulations. The Program Directors and Department Heads are expected to keep expenditures within budgets.

B. Proper Documentation
A reimbursable expenditure must be supported by proper documentation (i.e., an invoice, vendor receipt, cash register tape). If a receipt is not available, or lost, a handwritten receipt must include the same information as an invoice. (who you paid, description, date and amount), and then must be signed by a Program Director. This should be an isolated incident.

C. Proper Authorization
Purchase Orders or Check Requisitions must be authorized by a Program Director or a Department Head and must be charged to appropriate budget line.

D. Delivery of Goods
Packing slips or receiving reports must be submitted to the Accounting Office to verify goods have been received. Staff authorized to receive purchase deliveries must sign the receiving report, date it, and submit to Accounts Payable. Vendors will not be paid without documentation that goods have been received.

E. Purchases Over $10,000
Three (3) bids must be obtained for any expenditure over $10,000
These bids must be submitted by a vendor, and include a detailed description of the goods or services; and a price quote. All bids must have comparable products or services. The lowest bid wins, unless there are extenuating circumstances, which must be documented. Campuses will be responsible for keeping records on file of all bids. Bids must be kept on file for three years. Copies of bids for maintenance and computer purchases must be sent to the Controller. The business office will periodically audit campuses to be sure that bids are being obtained and kept on file. Bids do not need to be obtained if they are at the state contract rate as set by OSD, but there must be evidence obtained to show that the purchase was at the state rate.

When purchases exceed $10,000, copies of the bids must be sent to the business office for approval by the Chief Financial Officer.

F. Supply Orders
Routine supplies are purchased individually by each campus. Each purchase must be assigned a purchase order number from the Accounts Payable Office.

Purchase Orders
A. To purchase on credit, the authorized purchaser contacts the Payables Clerk or the Business Manager or Controller when the A/P Clerk is unavailable, requesting a purchase order number. The request for a purchase order can be by phone (preferable) or by e-mail.
1. The Payables Clerk confirms authorization.
2. The Payables Clerk records vendor name, date requested, item(s) to be purchased, estimated cost, budget line to be charged, and person requesting items in the accounting software.
3. A purchase order number is then given to the person calling with the request. If the request was made via e-mail, the purchase order number is e-mailed or called in to the person who requested the purchase order.
4. The authorized purchaser then orders the item(s) needed, presenting the vendor with the purchase order number assigned to the purchase.
a. If items are picked up, the purchaser obtains the sales receipt and immediately forwards to the accounts payable department with the PO number written on the receipt.
b. If the item(s) are delivered, the purchaser insures that a signed and dated copy of the receiving or packing slip is immediately forwarded to the accounts payable department. The Purchase Order number should be written on the delivery or packing slip.

5. The accounts payable clerk files the sales receipt and/or the packing/receiving slips to be later matched with the purchase order upon arrival of the invoice.

a. In some cases, the receiving slips also serve as the vendor’s invoice. They must be matched up with the proper purchase order and other documentation, if available, and then scheduled for payment.

6. Invoices (or receiving slips) are then prepared for data entry.
G. Check Requisitions
Check Requisitions must have proper documentation. If you need money in advance, in the description area of the Check Requisition please clearly specify the reason for the advance along with the date incurring the expenditure. Documentation must be submitted as soon as it is available. If there are more than two outstanding Check Requisitions, new ones will not be honored until documentation is submitted.
A. To request a check, an authorized purchaser (program director/assistant program director) fills out a check requisition with current date, date needed, budget line to be charged, item description, price, and any other shipping or mailing instructions. If item cost exceeds $10,000, three competitive bids must be obtained. If the item cost exceeds $10,000.00 then all bids must be approved by the CFO. These bids must be kept on file The check requisition is then authorized by the campus program director.

1. The accounts payable clerk prepares these requests for data entry. All requisitions are checked to insure proper receipts are attached, calculated correctly, and proper approval has been obtained. The person requesting the monies must also, have all receipts returned for all previous funds requested in advance. Requisitions are entered onto the accounts payable system with the expenditure account number, vendor code, and scheduled for payment according to the date needed.

2. The Chief Financial Officer, Business Manager or Controller reviews and approves all check requisitions.

3. The authorized purchaser forwards the sales receipt, packing/receiving slips or any other additional documentation related to the purchase to the accounts payable department, as they are received.

4. Upon receiving the above documentation, the accounts payable clerk attaches receipts and documentation to the outstanding check requisition, which is then filed in the accounts payable file.

H. Petty Cash Controls
1. All cash must be properly safeguarded in a lock box or safe and accounted for by using a petty cash book.
2. Any cash distributed must be reflected on a petty cash voucher, which specified the date, description of activity, amount given, and budget line account number to charge.
3. The person receiving the money must sign the voucher.
4. When an expenditure is made, staff is responsible to return the receipts and any monies remaining to the Accounts Payables Office in a timely manner.
5. The actual expenditure amount must be noted on the petty cash voucher and circled.
6. The receipts totaling the expenditure amount are then attached to the voucher.
7. Any cash not expended is returned to the petty cash box.
8. Any expenditure exceeding amount given to staff is reimbursed to staff from petty cash box.
9. You must account for all cash balances.