Fiscal Operations Manual
Section 000: Introductory Material
Terms used in the Fiscal Operations Policy & Procedure Manual or general accounting practices are defined as follows:
Expenses incurred for administrative and support services such as in the Deans' offices, academic departments and divisions, educational media services, and centers/departmental administrative offices that benefit common or joint departmental activities.
The third element of a FOAPAL accounting string used to identify specific financial transactions. Account codes define the type of activity taking place, such as revenues, expenses, and transfers in the Operating Ledger, and assets, liabilities, and fund balances in the General Ledger.
An expense that has been incurred but a check has not been issued.
Automated Clearing House (ACH) is a method of electronically moving funds from bank to bank, similar to a wire transfer. It is a mechanism used for domestic transactions, as opposed to international transactions which are Electronic Fund Transfers (EFT).
Any person, organization or agency that incurs charges, fines, or penalties at Oregon State University establishes an accounts receivable at OSU. An account becomes past due when not paid by the due date as stated in each bill or as listed in the Schedule of Classes.
Acknowledgements are sometimes issued by vendors to confirm their receipt of an order. Acknowledgements, as well as, packing slips, work orders, and quote sheets may show unit prices but are never used as invoices.
The fifth element of a FOAPAL accounting string. These codes are available to the department to facilitate more detailed reporting and tracking.
ACTUAL COST (in lieu of per diem)
Actual lodging cost supported by a valid, itemized receipt.
Forward all notifications of vendor remittance or vendor address changes via a Vendor Maintenance Form to Business Affairs. Employees and students should go to the web On-line Services to make any changes to their address.
There are two kinds of advertising, Classified and Display. Complete information should be on file to verify the ad contents and date of publication. A tear sheet (printed copy of the advertisement) should be kept in departmental files.
An external entity that utilizes the University’s accounting system while in the pursuit of its own mission and purpose. Monies placed in agency funds are not the property of OSU. OSU; however, acts as the custodian of the funds. Examples include officially sanctioned student groups, employee deductions payable to another entity, and the OSU Alumni Association.
An authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and the time within which it may be expended.
All BANNER invoices require approval before routing to the Business Center or Business Affairs for final processing. The BANNER invoice label/stamp must be completed and attached to all documents.
FIS documents route to approvers for review. The FOAPAL elements and/or dollar amounts determine which queues are required. See FIS 1108 Approval Routing for further information.
The financial value of property or economic benefits owned by the University. Typical assets and their account codes include: Cash (A0xxx-A1xxx), Accounts Receivable (A3xxx), Inventories (A4xxx), Prepaid Expense (A5xxx), and Capitalized Assets (A8XXX).
The examination of documents, records, reports, internal control systems, as well as, accounting and financial procedures. Audits may also include the examination of other evidence for the following purposes in accordance with generally accepted accounting principles of institutions.
- To evaluate whether the statements prepared from the accounts present fairly the financial position of the institution.
- To evaluate whether the results of institutional financial operations of the constituent funds and balanced groups are consistent with the previous year’s financial activities.
- To determine the propriety, legality and mathematical accuracy of an institution’s financial transactions.
- To ascertain whether all financial transactions have been properly recorded.
- To evaluate stewardship of public funds.
Selected vendors have been contracted by OSU to submit their billings centrally to Business Affairs for processing. See FIS 408: Centralized Processing of Expenditures for more information.
A non-academic, institutional support or service activity, specifically established to furnish goods or services to students, faculty, or staff primarily for personal use, rather than to units/departments of the institution. Examples include dormitories, residence halls, dining halls, student health services, and intercollegiate athletics.
A notice which authorizes OSU to transfer a financial obligation. These should be sent to Business Affairs.
BAD DEBT ALLOWANCE
A bad debt expense is assessed to all departments submitting charges to be billed through accounts receivable. The individual funds record the applicable SIS accounts receivable, as well as, an allowance for bad debt. The allowance is based on the balance of the accounts receivable on June 30. The calculation is adjusted annually by the Office of Business Affairs.
Forward all vendor bankruptcy notices to Business Affairs. Bankruptcies usually involve issuance of the check to a financial intermediary rather than the vendor providing the goods and/or services.
Department head or equivalent, or delegated person responsible for the University account and whose signature will be required on all documents authorizing expenditure of funds from the University account.
BUILDING USE CREDITS
Building Use Credits are funds that are set aside from Facilities and Administrative (F&A)/Indirect Cost recoveries on sponsored grants and contracts. See FIS 705: Building Use Credit Reserves.
Business Centers are seven units regionally located on the Corvallis campus to provide transactional administrative support to all campus departments. These seven units provide support to their stakeholders through a customer-service-driven model that continues to seek to increase efficiencies and effectiveness in the University’s administrative support processes. Key areas of support include accounts payable, travel, financial accounting, grant support, human resources, and payroll.
BUSINESS PURPOSE (Travel)
A clear and understandable reason for travel that is specific enough to explain how the University benefits from the expense being claimed.
CANCELLED (CASHED) CHECK COPIES
To obtain a copy of vendor checks that have been cashed, complete a Vendor Inquiry Form, and submit to Business Affairs. A final or cleared check is shown as “F” by the check number in FOIDOCH.
For questions on student checks, see Student Finance Office.
Purchases of equipment, buildings, major remodeling, or improvements other than buildings (such as art work, outside lighting systems, sidewalks, etc.) that meet the dollar threshold and other criteria for capitalization. These purchases result in the acquisition of or addition to fixed assets and are accounted for under the 4xxxx series.
Capitalized, non-expendable assets. Tangible, personal property that is loaned, leased, controlled, or possessed by an institution and that meets the following criteria:
- Are not consumed in the normal course of business
- Have a value of $5,000 or more
- Have a useful life that exceeds one year
There is one exception to the threshold of $5,000 – vehicles licensed for road use are capitalized regardless of the value.
CDW – Collision Damage Waiver
CENTRALIZED PROCESSING – See Auto Pays
CHART of ACCOUNTS
Oregon State University’s chart code is “C”.
City pairs are contracted, discounted, unrestricted, one-way fares that require no advance reservation. There are no cancellation or transfer penalties.
The individual requesting reimbursement of University business-related expenses.
CLOSING OF THE BOOKS
A process completed at fiscal year-end to close all revenue and expense accounts. An additional fiscal period (accrual period 14) is opened in July for any adjustments needed after period 12 is closed. No changes can be made to the financial records in FIS for the fiscal year after closing.
When a student leaves OSU owing money, his/her receivable account balance is placed in collection status. A collection fee is assessed and collection procedures are initiated. Collection procedures are also performed for non-student receivables.
Private-sector supplier of air, rail, or bus transportation.
Payment for services rendered in an exchange transaction as defined by the IRS. This includes honorariums.
To ensure expenditures are conducted in accordance with all applicable laws, regulations, policies, procedures and sound business practices.
An event externally sponsored by an organization other than OSU and at location beyond the control of OSU.
A written agreement between OSU and a contractor which describes the work to be done and the obligations of the parties. OSU may use "contract" as meaning a purchase order, price agreement, or other contract document. Only University approved contract officials can sign on behalf of the University.
CONTRACTED TRAVEL AGENCY
Travel agency under contract with the University to provide travel related services.
CONTRIBUTIONS – see gifts
CORPORATE TRAVEL CARD
A personal liability card issued to employees for reimbursable travel and hosting expenses associated with official University business.
A document issued by a vendor to adjust a previous invoice, to refund an overpayment, or adjust for returned merchandise.
Department of Administrative Services (State of Oregon).
All payments in connection with funds borrowed by an institution: principal payments, interest charges, trustee’s service charges, legal expenses and other items related to indebtedness.
Research, development and scholarly activities that are not sponsored research. That is, they are not separately budgeted and accounted for. See the OSU Research website for information on sponsored research.
Depreciation expense for capital assets is an allocation of the net cost of the depreciable asset over its useful life using the straight-line method. The depreciation process is run monthly.
The 05xxxx series of funds used to account for self-sustaining activities related to instruction, testing, and public service. For more information, see FIS 515: Designated Operations.
Detail codes are used by the Banner accounting system to process accounts receivable charges and credits; including but not limited to course fees. All charges to accounts require the use of a detail code, and they must be established before charges can be processed. Departments seeking to put charges on a student A/R account should request a detail code by submitting the index, account number, billing description, and the intended use of the detail code to Business Affairs for their review and setup. Detail Code Request Forms may be obtained online.
Those expenses which can be charged directly as part of the cost of a service department or operating unit, as distinguished from overhead and other indirect costs which must be prorated among several services, departments or operating units.
A completed FIS transaction is subject to an approval process. A document may be disapproved if it contains errors or fails to meet all applicable requirements. Disapproved documents are coded as incomplete and the originator of the document will receive a BANNER disapproval message. The originator may then make the corrections and re-complete the document or delete it.
DISCOUNTS – VENDOR INVOICES
Vendors may give a cost discount for prompt payment. Check each invoice for discount terms and take the maximum discount offered. Take the discount only on the value of the items purchased, not on handling and transportation charges.
Travel within the 48 contiguous states, the District of Columbia, Alaska and Hawaii.
Oregon State University has no authority or obligation to make disbursements for voluntary contributions, donations or funds solicited for various causes.
EDUCATION AND GENERAL FUNDS (E & G Funds)
Those funds received by the University directly from the legislature and from student tuition. The funds are subject to expenditure limitations, and are allocated to colleges and departments through the budget process.
Short term loans to be paid back by the end of the term. Students must be admitted to the University, enrolled at least half time, and be in good financial standing to be eligible. Students may appeal a denial of an emergency loan with Business Affairs.
Individual on the payroll of Oregon State University (e.g.: faculty, staff, Graduate Research Assistants).
EMPLOYEE RECOGNITION AWARDS
An award given by departments to honor employees for outstanding achievements, length of service or retirement. See FIS 410-08 Employee Recognition.
Travel of OSU employees on official University business.
Electronic Funds Transfer (EFT) is a method of electronically moving funds from bank to bank used with international transactions. Domestic transfers are handled through the Automated Clearing House (ACH).
A dollar amount reserved for some future budgetary expense. The HRIS Payroll system, FIS On-line Purchase Orders and Accounting Encumbrance Journal Vouchers create encumbrances.
Endowments are donations from a donor where the donor specifies that the principal (or corpus) cannot be expended.
EQUIPMENT REPLACEMENT RESERVES
Funds created for the purpose of setting aside money to be used for the purchase of replacement equipment. Only Auxiliary Enterprises and Service Centers are authorized to have these funds. See FIS 701 Equipment Replacement Reserves for specific details.
EVIDENCE OF TRAVEL STATUS
Evidence of travel status is normally in the form of lodging receipts. However, vehicle rental, local transportation, meal receipts, or other receipts showing the travel location may be used.
FEDERAL PERKINS STUDENT LOAN
A federally funded loan co-administered between the Office of Business Affairs Student Finance and the Office of Financial Aid and Scholarships (OFAS). OFAS administers the application process and recipient selection. The Office of Business Affairs maintains the promissory notes and processes the repayment schedules.
The payment of full or partial tuition by the University on behalf of the student. The amount of the financial award is determined by the specific tuition remission program within the Tuition Remission Policy.
The tuition charged to the student is recorded as University income, and remissions are posted as a reduction of income (account code 019xx). The Fee Remission is recorded as a credit on the student’s account. Graduate Assistantship appointments are recorded as part of the employment compensation. These GRA/GTA fee remissions are recorded as an expense to the University (account code 1095x) and credited to the student’s account.
An amount paid for the benefit of an individual to aid in the pursuit of study or research, usually at the graduate level. See the Graduate School website for Graduate School institutional allowance policy. See FIS 410-11: Fellowships, Scholarships, and Student Payments.
Required study trips outside the regular classroom or laboratory. Trips must be necessary for field instruction, observation of contemporary practices and other areas that are not readily available for classroom or laboratory presentation, but are considered by the instructor to be subject matter essential to the course.
Financial Aid includes awards of aid and actual disbursement to students. It includes PELL grants, Supplemental Education Opportunity Grants (SEOG), Oregon Opportunity Grants, Federal Perkins loans, Federal Direct loans, institutional loans, university and non-university scholarships, fellowships, special awards, and tuition remission waivers. All student payments, including cash awards, are processed through The Office of Financial Aid & Scholarships.
The University’s Financial Information System (FIS) is a comprehensive software package for entering, adjusting, and retrieving financial data. FIS Banner is a complete financial system with modules devoted to accounting, purchasing, accounts payable, fixed assets, grants/contracts, and budget development.
A twelve month period in which the annual budget applies. At the end of the fiscal year (FY) an institution determines its financial position and the results of its operations. Oregon State University's fiscal year extends from July 1st to June 30th of the following year. The fiscal year for the federal government runs from October 1st to September 30th of the following year.
FIXED ASSET – See Capitalized Equipment.
FLY AMERICA ACT
49 U.S.C. 40118, commonly referred to as the ``Fly America Act,'' requires the use of a U.S. flag air carrier service for all air travel funded by the U.S. Federal Government.
Acronym for the six chart of accounts elements used to process financial data. FIS term standing for fund, organization, account, program, activity and location codes.
Travel within another country or in a US Territory or Possession such as Puerto Rico, Guam, American Samoa, or the Virgin Islands.
FREQUEST FLYER MILES
Credits acquired when making qualified purchases.
FTE (FULL-TIME EQUIVALENT POSITIONS)
Position FTE is a four-digit decimal fraction representing the proportion of full-time for which an individual is employed in the position indicated in their position number. Position FTE indicates one of two things:
- · The percentage of full-time monthly pay a classified employee will receive for the current month
- · The percentage of full-time annual salary an unclassified employee is to be paid.
A method of recording financial information that groups resources into funds based on their source and any limitations on use.
Fund balances are the excess of the assets of a fund over its liabilities. The term net equity is often used to mean fund balance.
The first element in FOAPAL representing the source of revenue/budget. Examples: general funds, grant funds, gift funds, agency funds, service department funds, designated operations funds, inventions/royalties funds, auxiliary funds, student loan funds, endowment funds, plant funds.
A method to separate funds by a two digit type code.
An electronic transfer of data from independent cost accounting systems (Printing and Mailing, Facilities Services, Transportation Services, Chemistry Stores) to transfer data into Banner/FIS. An interface process is completed from the source location to FIS, and the documents post to the identified indexes.
Employee garnishment requests are time sensitive and should be sent to Payroll immediately.
A balance sheet made up of Asset, Liability, Fund Balance, and Control Accounts.
Research assistants provide duties related to the research function of the University. GRAs on .49 FTE appointments are expected to perform 255 hours of duties during the 13-week term (at least .20 FTE is required to be on this appointment). GRAs at other FTE levels are expected to provide proportional levels of service and are required to enroll for 12 hours of course work. Students meeting the requirements do not pay the instruction fee portion of tuition, but do pay the mandatory enrollment fees.
GRADUATE TEACHING ASSISTANTS (GTA)
Graduate teaching assistants are expected to provide duties related to the university's instructional program (e.g., teaching laboratories or discussion sections, grading papers, advising). Graduate Teaching Assistants are required to enroll for 12 hours of course work, and work at least .20 FTE, but no more than .49 FTE. Students meeting the requirements do not pay the instruction fee portion of tuition. GTAs do pay the mandatory enrollment fees. Fee remissions are assessed at resident rates and are charged to the index that pays the GTA stipend.
An instrument of commitment from an outside source for a project. Resources provided by a unilateral agreement signed by the grantor and issued to a grant recipient or grantee. Expenditures are governed by general rules covering all agreements issued by the grantor. The agreement also includes the grantee’s obligation to use the resources for the purposes stated in the grant and subject to the conditions of the grant. See Grant, Contract, and Gift Accounting Policy & Procedure Manual.
An additional payment for a service provided that is optional and within an individual's discretion.
University business-related Athletic team or student group travel in which a minimum of one OSU employee is in attendance who is responsible for the care, custody, or control of the students.
Gurfeed - SEE FUPLOAD
The H-1B VISA is a temporary work permit for professional positions that allows foreign nationals to live and work in the U.S.
HIGH COST LOCALITY
A locality determined by the IRS as being one that requires a higher per diem rate for meals, lodging and incidental expenses.
Human Resources Information System within Banner that handles transactions from Human Resources and Payroll.
Capitalized improvements that are not part of land or buildings. Examples include fountains, bleachers, dugouts, goal posts, and scoreboards.
Minor expenses incurred while traveling that include, but are not limited to, expenses for laundry, cleaning and pressing of clothing, and fees and gratuities for services, such as waiters and baggage handlers. Incidental Expenses are combined with meals into a single per diem rate. The term does not include miscellaneous expenses such as taxi cab fares, airport shuttle bus fares, telephone calls, facsimiles, and lodging taxes.
A document is incomplete when it needs to be corrected or deleted according to guidance within the FIS Manual.
Combines the appropriate Fund, ORG, and Program codes. Indexes are used when processing invoices and journal vouchers in the Operating Ledger. Indexes are not used on General Ledger entries because there is no ORG or Program codes in the GL.
Amounts charged on transactions to cover overhead costs, such as administrative support or utilities, that are not specifically charged to any fund. Also known as facilities and administrative costs.
Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples include roads, bridges, tunnels, drainage systems, water and sewer systems, sidewalks, alleyways, street lighting systems, traffic lights/signs, fire hydrant, gas/electric/fiber optic distribution systems, dams, wells and septic systems.
University business related travel between two points in Oregon, or University business related travel that originates in another state or country in which the destination is within the State of Oregon boundaries.
All funds available to the institution received from internal and external sources, including reimbursements from an affiliated University foundation for costs paid through the University. The only exclusion is agency funds. There may be specific agreement restrictions on grant, contract, or other sponsored project funds. University funds do not include funds held at an affiliated foundation when payment requests are submitted directly to and paid by that foundation.
Expenses associated with units that provide support to the entire University. This includes the President’s office, Provost, Vice Provost for Academic Affairs, Vice President for Research, Business Affairs, General Counsel, Budgets, Institutional Research, Human Resources, and Information Services.
The teaching and training activities of the University, whether it is for credit towards a degree or on a non-credit basis.
INTEREST PAID ON OVERDUE ACCOUNTS
Interest is paid on A/P vendor invoices when the vendor presents a bill for the late payment charge. Interest may begin to accrue on the 46th day from the date of initial invoice receipt. Late payment charges are limited to 2/3 of 1% per month or 8% per year and cannot exceed the vendor’s usual charge. Late payment charges are recorded with account code 28911 (Late Charge – Vendor Payments).
INTERNAL MANAGEMENT DIRECTIVE (IMD)
Oregon State Board of Higher Education Internal Management Directives (IMDs) identify the policies established by the Board and those delegated as responsible for implementation of the policies.
Either 09xxx account codes or 79xxx account codes are used to record reimbursement for sales and services to other entities within the institution depending upon what entity/fund is providing the service. 09xxx account codes are used as the credit (revenue) for all Designated Operations (05xxxx funds), Service Centers (09xxxx funds) and Auxiliaries (1xxxxx funds). A fee must first be established in the internal fee book which lists the fees charged within the institution.
ITINERARY – AIRFARE
Information provided by the airline or internet website showing the traveler's name, date(s) of travel, class of travel, and route traveled.
ITINERARY – OSU TRAVEL REIMBURSEMENT REQUEST FORM
A daily showing of a traveler's exact whereabouts for a specific trip. Details such as the date and time of departure/return, the traveler's destination/lodging location, and any days of personal leave utilized are specified.
Referring to something that is internal within a single department/unit.
Referring to transactions between different departments/units.
An accounting document used to process payments to a vendor for commodities and/or services.
Integrated Post Secondary Education Data System survey. Conducted by the National Center for Education Statistics; US Dept of Commerce Bureau of the Census
Journal Voucher (JV)
Depreciable Permanent improvements, other than buildings, that ready land for its intended use and that deteriorate with use or the passage of time. Examples include parking lots, yard lighting, fencing and gates, paths, telephone and power lines, retaining walls, railroads, tennis courts, athletic fields, golf course, and septic system.
LDW – Liability Damage Waiver
The financial value of obligations owed.
Assignment of building location for fixed assets.
An individual responsible for a book’s safekeeping is charged for its loss. Charges cannot be made to institutional funds for lost books.
LOW COST LOCALITY
A locality as determined by the IRS where the normal per diem rate is the standard amount for all cities in the continental United States.
The value at which a transaction is considered to be significant to the financial records.
Document of accumulated private vehicle miles used in performance of official duties.
Equipment that is valued at less than $5,000, will not be consumed in the course of business and lasts a year or more. Exceptions include books, periodicals and reference materials that are part of The Valley Library holdings or Potts Guinn Library holdings, and inventory for resale.
New employees may be reimbursed for specific, pre-approved moving expenses when reimbursement is necessary to employ qualified personnel. Any agreement must be reflected in the employee’s Letter of Offer. See FIS 415 Relocation and Moving for additional information.
NET INVESTMENT IN PLANT FUND
Fund used to account for the acquisition value of the University's capital assets; including land, buildings, equipment, improvements other than buildings, libraries, and museums. This fund excludes assets of auxiliaries and service centers which are in their own operating fund.
Alternate lodging (e.g. travel trailer, motor home, staying with family or friends) provided while on official travel.
Individuals not on OSU's payroll (e.g. students, employees from other state agencies, official volunteers, OSU appointments without pay, etc.)
NON-REFUNDABLE COURSE FEE
A designation that may be applied to a course fee when the University would not be able to recover the cost of the fee should the student drop the course before or after the terms begins. Examples are materials that cannot be reused or reissued to another student or a field trip discount that has been arranged dependent on the number of participants.
NON-SUFFICIENT FUNDS (NSF)
A check returned from the bank because of irregularities or non-sufficient funds. A fine will be assessed for all NSF checks.
An individual deemed by an authorized University employee for a specific purpose that benefits OSU’s mission. Official guests can include, but are not limited to, visiting speakers, visiting faculty, diplomatic or dignitary guests, public figures, candidates and their accompanying family members, and performing artists.
The city, town or other location to which an employee is assigned. The official station may be specifically defined by the state executive department in certain circumstances.
OFFICIAL UNIVERSITY BUSINESS
Business that directly provides a benefit to the University's educational, research, and public service objectives.
A non-OSU employee whose volunteer status is documented and on file with OSU.
ONE DAY TRIP
Travel not involving an overnight stay by the employee.
Other payroll expenses (fringe benefits). These include retirement, Medicare, FICA, and benefit contributions.
The financial record of the day-to-day business (revenue, expenditures and transfers) of the University over a given time period, by fiscal year.
OPERATION AND MAINTENANCE OF PHYSICAL PLANT
Expenses, which have been incurred for the administration, supervision, operation, maintenance, preservation, and protection of the University’s physical plant (buildings, grounds, and equipment).
ORGANIZATION CODE (ORG)
The second element of FOAPAL identifies the budgetary unit within the University responsible for the budget, such as a department.
OREGON ADMINISTRATIVE RULES (OAR)
Agency rules adopted under the Oregon Administrative Procedures Act.
OREGON REVISED STATUTES (ORS)
Statutes of the State of Oregon.
OREGON STATE UNIVERSITY INSTITUTIONAL LOANS
The OSU Financial Aid Office awards OSU Institutional Loans to qualified students. The OSU Student Loan Office in Business Affairs is responsible for the disbursement of the funds that have been awarded. See the Financial Aid & Scholarship website for information on Financial Aid.
Travel from a point in Oregon to a destination in another state, or travel between two states outside of Oregon including Alaska and Hawaii.
A deficit fund balance as determined after considering recorded receivables and outstanding payables. Any deficit as of June 30th must be eliminated by transferring funds from other Current General Funds. See Year End Closing instructions for correct account codes to use to eliminate overdrafts.
PAI - Personal Accident Insurance.
Passport and VISA expenses are reimbursable, if the travel is required for doing University business. Use account code 24560 VISA/Passport Processing Fees.
PAST DUE BALANCE
Oregon State University may impose finance charges on Accounts Receivable. Student accounts that are past due are referred to as in-house collection accounts and managed by Student Debt Management. See Collections definition. The total of past due amounts, including fees, charges, prior interest and finance charges, less payments and credits received to date. The past due balance does not include any new charges added to an account since the last billing or to charges assigned future due dates
Federal allowances for daily expenses for lodging, meal and incidental expenses involving an overnight stay.
PLANT CONSTRUCTION OR IMPROVEMENTS
This category includes acquisition, construction, or renovation of University land or buildings which are capitalized. The value of the asset is increased.
The official recording of a transaction or a document on a general or operating ledger through a periodic "posting process".
Some vendors require advance payment before providing goods or services. All prepayments require documentation for audit purposes, and clear communication to the vendor of the nature of the order. Documentation may be provided by one or more of the following items:
- Vendor invoice specifying required prepayment
- Purchase order
- Registration form
- Vendor quote
- Customer order form/work order/job order
- Detailed memorandum
Deposits that are partial payments for a larger order or contract require a purchase order to avoid fragmenting the order. The purchase order also provides an encumbrance and liquidation history on partial payments. Use account code 40199 for partial payments of capitalized equipment (more than $5,000).
PROOF OF PAYMENT
A cancelled check, copy of a credit card billing statement, or other receipt showing the person’s name. If using a credit card statement or cancelled check, blacken out the card or checking account number.
The fourth element of FOAPAL, program codes identify the type of activities for which dollars are spent, such as Instruction, Administration, Research and Public Service.
Travel for field research, presenting papers, and meeting with people from other agencies.
Contractor requests for progress payments. Accompanying architect or engineer certificates must be checked for proper signature prior to approval. In accordance with ORS 279.354, the Contractor and every subcontractor shall submit written certified statements (Wage Certifications) with the Owner’s Authorized Representative, on the form prescribed by the Commissioner of the Bureau of Labor and Industries. See PaCS.
QUALIFIED LODGING LIST
A list of Oregon lodging establishments provided by the Oregon State Department of Administrative Services whose rates are within the per diem rates.
Principal can be spent with approval, as well as, interest with approval. Any individual donation or gift that equals or exceeds $100,000 in total market value, regardless of the type of gift or the accounting periods in which it is received, shall be designated a quasi-endowment. The principal (corpus) can be moved to a gift fund for expenditure. Consult the Office of Post Award Administration for additional information.
RATE CODES (Tuition & Fees)
Rate codes are assigned to every student upon admission to the University, and may vary from term to term. They are an important element in determining the correct tuition and fee assessment. Initial assignment of the rate code generally reflects the residency and educational level of the student. Rate codes can be later assigned by Business Affairs to effect special billing provisions, such as teaching assistants, study abroad, and national student exchanges.
A cost may be considered reasonable if the nature of goods and services reflects prudent action. Generally, charges for goods or services that foster or support the on-going missions of the University are considered reasonable as long as they comply with the regulations by which the University is governed.
Deposits made as a reduction of expense are very limited under Oregon Executive Department rules. It is used for the return of goods and services, a discount or rebate given from the vendor after the bill has been paid. The deposit is credited to the fund and account code to which the purchase was charged. The original “I”doc must be referenced on the cashier deposit slip.
Outside entities may reimburse the campus, pay a service provider directly, or reimburse an employee for travel expenses related to OUS business. If the reimbursement is made to the campus, it should be accounted for as a reduction of expense.
A repayment of expenditures that were overpaid or where the University is otherwise entitled to receive money back from the vendor. Examples include:
- A conference registration payment where the conference is later cancelled.
- Return of a defective item that is not replaced.
The amount refunded should be deposited (credited) against the original expenditure account code. These are instances where no value (goods or services) were received, therefore, no expenditure should be recorded.
To be eligible to register for a future term, the student’s receivable balance must be below a predetermined amount that is published in the Schedule of Classes. That amount is determined by the Vice President of Finance and Administration in conjunction with the Registrar. A registration hold is placed on the student’s account when the balance exceeds the maximum limit. If the student is not currently enrolled, his/her account must be paid in full in order to register.
These are reimbursements to OSU that can occur as a result of a staff member officially representing the University in the course of their job. It could also occur whenever an outside entity reimburses OSU for expenditures OSU has incurred. Examples include:
- If OSU receives funds because an employee has been a conference speaker, it should be accounted for as a reduction of expense.
- If an employee is hired as a conference speaker, he/she is acting as a consultant and the money is his/hers. OSU doesn’t become involved. (The staff member would get a 1099 form from the hiring entity for tax purposes.) See Consulting, Overload, and Outside Employment Compensation.
- An outside source pays OSU or an OSU employee for travel expenses previously paid to a University index by an OSU contracted travel agency. The check should be made payable to OSU and placed against the index/account code as a reduction of expense. See FIS 102-08: Travel Paid by Outside Source.
RENEWAL AND REPLACEMENT FUNDS
Used by service departments and auxiliary enterprises, these funds reflect resources set aside in accordance with OUS policy on a systematic basis to fund future equipment purchases and building repairs. Housing, Memorial Union, Printing and Mailing, and Student Health Service are examples of organizations that maintain such funds.
An account which records a portion of the fund balance which is “saved” for some future use and which is, therefore, not available for further appropriation of expenditures. Budgeted Reserves are monies set aside for contingencies and are not yet allocated for expenditure. Reserves differ from renewal and replacement funds in that reserves are general fund monies and are for any contingency rather than to fund future equipment purchases and building repairs.
The OSU employee receiving a group travel advance who is held accountable for paying and documenting the group travel expenses.
Used to identify resources that may be used only for a specific purpose as directed by the donor or the granting or contracting agency. Sponsored research, gifts for construction of a facility, or student aid are examples.
RETIREMENT OF DEBT FUNDS
Used to account for funds set aside and disbursed to retire debts incurred to finance the acquisition, construction, or renewal of capital assets.
Proceeds from any activity sponsored by OSU, evidenced in part by the use of OSU letterhead, using state resources such as employee time and effort, state facilities, state vehicles, etc. These activities are deemed to be State of Oregon revenue and must be deposited into an OSU fund. Examples are proceeds from short course workshops or seminars.
The ability in FIS to summarize data at various hierarchical levels, which allows you to query financial reports not only at the data-entry level, but also at higher levels that will combine the data as needed.
Sabbatical leave is granted to tenured faculty of academic rank for purposes of research, writing, advanced study, travel undertaken for observation and study of conditions affecting the applicant's field, or related scholarly or professional activities.
SABBATICAL LEAVE, SUPPLEMENT
Staff members may supplement their sabbatical salaries to a reasonable degree, provided that such supplementation strictly conforms to the stated and approved purposes of the sabbatical leave. Supplementation of sabbatical leave paid from grants and contracts must be set up as a secondary job and approved by the sponsoring agency. Route the Job Form through the Office of Post Award Administration for approval. See GCG 209-01A Sabbatical Leave
SAFEKEEPING AND SUNDRY SCHOLARSHIPS
Safekeeping is a custodial fund that receives funds and disburses funds to student accounts based on authorizations received from parents, grandparents, trusts and sundry scholarships. When a student receives funding from an organization, the organization sends the University an authorization specifying the cost they will pay on behalf of the student and for the period of time. Foreign students generally receive support from embassies, ROTC students receive support from the branch of service that the student has committed time with, while private support includes any corporation or state agency paying for employee training.
When a department head considers a safety device a necessity, and the employee cannot work without it, the expense must be paid from institution funds. Such devices include safety shoes and safety glasses. If the device is not required as a condition of employment, the employee bears its cost. Safety devices and other equipment purchased by the state remain state property whether used by one or several employees. It is recommended that the departments confer with Environmental Health and Safety to determine the benefits of the device, and the Office of Human Resources to determine if there are conflicts with the collective bargaining agreement and/or other University policies. See the Safety Manual for additional information on this subject.
Financial assistance that is awarded to students. Recipients are not required to render service to or repay the institution as a consideration for their awards. The scholarship is awarded to a student to help defray educational costs. Many scholarships are awarded based on achievement or financial need. All scholarships are processed through the Office of Financial Aid and Business Affairs. Scholarships are posted on the student’s university account.
Small Energy Loan Program loans that are sponsored by the Oregon Department of Energy. The loans are for the purposes of providing partial funding for energy conservation or energy efficient projects. The loan must be repaid by Facilities from the energy savings.
An additional payment for a service provided that is not optional and labeled as such by the vendor.
The primary function of a service center is to provide financially self-sustaining services to other departments of the institution. The service might be purchased from commercial sources, but, for reasons of convenience and/or cost control, is more effectively provided through a unit of the institution.
SERVICE CREDITS – See Internal Sales Reimbursements definition
The University’s Student Information System within Banner that supports all of the major administrative functions of the University related to students (ie Admissions, Registrars, Financial Aid, and Student Accounts).
SPONSORED INSTRUCTION AND TRAINING
Specific instructional or training activity established by a grant, contract, or cooperative agreement.
All basic or applied research that is separately budgeted and accounted for. This may also be called organized research.
STAFF TUITION RATES
A reduced instruction fee is charged to OSU staff members taking courses at any OUS institution.
OSU employees eligible for staff fee benefits may transfer such privilege to family members or domestic partners. See OSU Office of Human Resources Benefits for details of this benefit.
STAFF TUITION TAXABLE BENEFITS
Staff taking graduate credits using the staff fee privilege are taxed on the difference between the tuition instruction rate for graduate students and the staff rate. This amount is reported to the IRS on form W-2. The IRS code excludes undergraduate courses from this taxable compensation.
A check that has not been cashed that is more than six months old. The bank the check was issued on may pay it, but is under no obligation to do so. OSU stale checks are turned over to the State Land Board at the end of Statute of Limitations – 2 years.
A subsistence allowance for students, post doc’s and participants to help defray general living expenses in support of those engaged in training or research programs.
Payments (scholarships, fellowships or awards) to enrolled students. See FIS 507-02 Scholarships or Fellowships to Students.
Loans disbursed to students from Federal Direct Loan program, Federal Perkins Loan program, and University Loan program. The Federal Direct Loans are totally funded by the federal government, Federal Perkins Loans by repayments from former students, and University Loans by repayments from students and contributions.
Travel in which OSU will receive compensation from an outside entity.
State of Oregon agencies are exempt from paying federal taxes on purchases of gasoline, oil, etc. If an employee paid for a product and is seeking reimbursement, or if the product was purchased and possession taken in another state, taxes may be paid. Agencies are exempt from paying State, city or county taxes in some instances.
OSU is subject to real and personal property taxes on property owned but not used for institutional purposes, such as miscellaneous rentals. State-owned property that is located within an irrigation district is subject to taxation by the district.
TAX EXEMPT STATUS OF OSU
Occasionally a request is received for an IRS tax exemption status letter. The inquiry is usually in conjunction with a request from a donor. It is not possible to furnish such a letter, since it does not exist. OSU as an agency of the State of Oregon is exempt from tax under IRS Code 115. The federal government does not issue tax exemption status letters for organizations exempt under this section of the code.
1098 T STATEMENTS
This is a Tuition Payment Statement that is provided to students to assist in computing the Hope and Lifetime Learning credit on form 8863 to be filed with their Federal tax return. Business Affairs Student Finance prepares these statements.
1099 MISCELLANEOUS STATEMENTS
Reports of taxable income paid to individuals and companies by Oregon State University. They are produced every January for the prior tax year. Per IRS regulations, these statements must be mailed on or before January 31 or a penalty is assessed. The Business Affairs Financial Accounting and Analysis office is responsible for producing the statements.
see Gratuity definition.
Travel related to employee training, including any conference, workshop, seminar, or formal program of learning that contributes directly to the professional competence of the individual.
Requests for official transcripts are held for any receivable balance owing prior to the current term. Balances owing for prior terms must be paid in full before transcripts will be released. Exceptions to this policy may be made for employment or certification purposes.
When a student is put on a Graduate Assistantship appointment resident tuition is assessed and the additional amount for non-resident fees is waived.
UBIT (UNRELATED BUSINESS INCOME TAX)
A tax imposed on a nonprofit exempt organization on income derived from an activity of a trade or business, regularly carried on, that is not substantially related to the organization's tax exempt purpose. For more information, see section FIS 501 on Unrelated Business Income.
All funds available to the institution received from internal and external sources, including reimbursements from an affiliated University foundation for costs paid through the University. The only exclusion is agency funds. There may be specific agreement restrictions on grant, contract, or other sponsored project funds. University funds do not include funds held at an affiliated foundation when payment requests are submitted directly to and paid by that foundation.
Used to identify resources with no specific limitations imposed by donors or external agencies.
US TERRITORIES AND POSSESSIONS
Includes Puerto Rico, Guam, Northern. Mariana Islands, American Samoa, Papua New Guinea, Wake Island, Midway Islands, US Virgin Islands (St. Croix, St. John and St. Thomas), and other outlying islands.
A valid receipt provides the following information:
- name and address of the business
- date of the purchase
- itemized description of the goods or service purchased
- amount of the purchase
VALID RECEIPT FOR LODGING
An original receipt completed by the establishment that includes:
- Name and Address of lodging establishment
- Date(s) occupied
- Name of guest
- Number of persons occupying the room
- Room rate (if more than one occupant single room rate is needed)
- Lodging tax
- Room number
- Actual amount paid
A company or person from which goods and/or services are purchased.
VISA PETITION FEE
The fee for visa petition to classify a non-immigrant as a temporary worker or trainee. The Visa fee is an allowable expenditure. Any additional expenses associated with procuring the Visa are unallowable for reimbursement.
WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION (WICHE)
An agreement established in 1953 allows students from several western states to pursue certain professional courses of study in member states and pay resident tuition rates. Member states include Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming. Reference: ORS 351.770 through 351-840; OAR 580-010-0085.
The Western Regional Graduate Program is a program of the Western Interstate Commission for Higher Education (WICHE). WRGP status permits graduate students from eligible WICHE states to enroll in selected graduate programs and be assessed tuition at the resident graduate rate. See OSU Graduate School home page for complete details.
WIRE TRANSFER (INCOMING AND OUTGOING)
Electronic transfer of funds from a private bank account to the Oregon State University state treasury account, or from OSU to a private bank account. Wired funds can be used for either a departmental payment or a student account payment and are often used for international payments.