Policies - AM-005
Effective Date - 01/01/18
The statewide policies contained in this section are the result of our review of applicable State Statutes, Attorney General's opinions, federal rules and regulations, and common business and accounting practices of the State. These policies supersede all past policy statements issued by the Department of Administrative Services, State Accounting Division. Some of these policies are a clarification of general State Statutes affecting all agencies. A listing of general Statutes which are the most widely used in the State Accounting System follows. These Statutes should be read in their entirety.
- 81-1174 through 81-1182.01
Agencies are encouraged to review their specific agency Statutes in addition to general Statutes and develop in-house policies in those areas not covered by the general statewide policies in this section to ensure good internal control and compliance with law.
These statewide policies are the only policies in force other than procedural policies included in this manual. These policies will be used (along with state and federal laws, rules and regulations) in determining the propriety of accounting transactions. As laws, business and accounting practices, federal rules and regulations, etc. are developed and/or changed; these policies will be reviewed and altered, if necessary. Claims which violate these policies will be returned to the agency unprocessed.
These policy statements have been divided into two sections: 1) General Policies which pertain to general accounting related transactions of the State of Nebraska and 2) Travel Expense Policies which specifically apply to the reimbursement of employees for expenses incurred by them on behalf of the State.
Travel Expense Policies are intended to be a clarification of State Statutes, Attorney General's opinions and Internal Revenue Service rulings concerning reimbursement for expenses incurred by employees on behalf of a state agency.
Section 81-1174 through 81-1182, R.R.S., 1943 and the Internal Revenue Code should be consulted before authorizing travel by State employees so that reimbursement for travel expenses are within the guidelines prescribed in State and federal law. In cases of conflict, the Internal Revenue Code or State Statutes will prevail over the policies stated here.
1. State Agency Sponsored Conferences(5/2017)
State Agency Sponsored Conferences - Agencies, boards, and commissions may sponsor conferences and incur conference expenses of anyone who is NOT an employee of the state, if sufficient money is collected from such person, or other non-State sources, to cover their portion of the expenses incurred for the conference.
All transactions relating to the conference should identify the conference name, purpose, and date. Records should be maintained in NIS to identify that the revenues related to the conference were sufficient to recover prorated conference cost for anyone who is NOT an employee of the state. Revenues and expenditures should be recorded in the same fund and program. Revenues should be coded to "Sale of Services." Expenditures should be coded using "item" orientation. For example, handouts or pamphlets should be coded to Publications and Printing expense.
State employee expenses may be paid according to Travel Expense Policies Section.
No adjustment will be made to an agency's appropriation (without the approval of DAS Budget), nor will netting of receipts against disbursements be allowed when sponsoring a conference. Any disbursement must be included in the agency's budget. (§81-1182)
2. Entertainment Expenses(5/2017)
Entertainment Expenses - In a letter to the Director of Administrative Services, the Attorney General's Office stated that entertainment expenses are not allowed to be reimbursed absent specific statutory authority.
3. Job-applicant Expenses(5/2017)
Job-applicant Expenses - The State Personnel Rules and Regulations permit an agency to reimburse up to three applicants (§81-1311 (10)) per position/opening for travel, meals and lodging expenses incurred to travel to and from the prospective job/interview site. Agencies should follow policies established for employee travel when determining the amounts to be reimbursed and require the same documentation.
Items to consider are:
- Meals are reimbursable, if the applicant is on overnight travel. Itemized detailed receipts are required.
- Agencies should arrange lodging to ensure the most cost effective lodging with consideration given to the proximity of the lodging to the interview site.
- Agencies should either arrange or grant prior approval of airline reservations or other transportation in order to obtain the most efficient and cost effective travel.
All expenses should be coded to Job Applicant Expense, 522600, regardless of whether payment is to the applicant or a vendor that provided the services on behalf of the applicant. All transactions should include the applicant's name and the position for which application is being made. NOTE: The University of Nebraska and the State Colleges have specific statutory authorization to pay expenses for the recruitment of academic, administrative, professional, and managerial personnel.
Prepayments - - Occasionally, there are situations that arise where prepayment is necessitated due to federal requirements, State Statutes, contracts or, normal business practices. Though prepayments are not illegal, per se, they are in conflict with the normal claims process since the State will give an asset in anticipation of goods or services being rendered at a later date. (There is not an enforceable claim against the State until goods or services are received.) Since the potential for loss to the State is greater under prepayment situations, extreme care should be exercised and a conscious effort should be undertaken to minimize prepayments. State Accounting reserves the right to review all prepayment requests. Three prepayment requests are reviewed:
- Conference Registration - State policy permits the prepayment of training session and conference registration fees by the agency on behalf of State employees.
- Federal Government and Affiliates - The Superintendent of Documents and the Postmaster require prepayment for publications and postage, respectively. In these situations, warrants will be drawn for payment in advance. All other transactions with the federal government should be reviewed to determine if prepayment is mandatory and can be made.
- Routinely Recurring Expenses - Normal business practice necessitates the prepayment of expenses such as magazine subscriptions, local telephone service, rent expense, etc.
5. Purchase Limitations(1/2018)
Purchase Limitations - Agencies shall complete a detailed requisition for all articles or property to be purchased or leased which exceed the purchasing limitation as established by the Materiel Administrator and, in addition, shall have the purchase approved by DAS Materiel. The Materiel Administrator has established $1,500 as the minimum for capitalization of articles or property. Agencies have the option to capitalize items under $1,500 on their inventories if they so desire.
NOTE: The University of Nebraska is not subject to the purchasing controls of DAS Materiel.
6. Authorized Agent(1/2018)
Authorized Agent - - The person(s) authorized at each agency that has the authority to determine user access to EnterpriseOne (Payroll & Financial Center) functional responsibilities. This responsibility is granted by the agency head or their designee.
Additional information can be found here.
7. Prior Period Adjustment
Prior Period Adjustment - Adjustments to prior fiscal year periods are limited to corrections of errors. Normally, only material adjustments should be accounted for as prior period adjustments unless there is a legal or budgetary requirement to make a nonmaterial adjustment.
An error results from mathematical mistakes, mistakes in the application of accounting principles, or oversight or misuse of facts that existed at the time the accounting transaction occurred.
Prior period adjustments should only be made when there is an error that results in either an erroneous prior year-end fund equity balance or an erroneous legally mandated budget control balance. Errors (even material errors) that have no effect on the prior period's ending fund equity or legally mandated budget control should not be corrected in a following fiscal year since this will only cause both years' accounting records to be in error.
The proper treatment for correcting errors detected in a following fiscal year is as follows:
- Material Adjustments:
- If the net revenue or expenditure, which was erroneously recorded in a prior accounting period, is material, contact State Accounting for the proper steps to correct fund equity. Such adjustments to fund equity should be rare.
- Nonmaterial or Legally Mandated Adjustments:
- Correct an expenditure account in the period the error is detected by using the Miscellaneous Adjustments account. The Miscellaneous Adjustments account is included in the Chart of Accounts as a revenue account. (Reference Journal Entry Instructions)
- Correct a revenue account in the period the error is detected by also using the Miscellaneous Adjustments account.
8. Third Party Reimbursements
Third Party Reimbursements - For funds received as repayments of amounts previously disbursed. Record the reimbursement using:
- Third Party Reimbursements expenditure account, if the expenditure was
- Recorded in the current fiscal year, and
- An appropriated or legally authorized expense of the agency's program, and
- The reimbursement was nonroutine and not a result of normal agency operations.
- Miscellaneous Adjustments account, if the expenditure was
- Recorded in a prior fiscal year, and
- An appropriated or legally authorized expense of the agency's program, and
- The reimbursement was nonroutine and not a result of normal agency operations.
- Miscellaneous Adjustments account if the expenditure was not an appropriated or legally authorized expenditure of the agency's program, regardless of fiscal year.
- Appropriate revenue account if the expenditure and reimbursement is a recurring item that has been included in the budget as both an expenditure and revenue, regardless of fiscal year.
- Fund equity if the expenditure was
- Recorded in a prior fiscal year, and
- An erroneous transaction, and
- The amount of the reimbursement is material.
NOTE: See General Policy # 7. Prior Period Adjustment if this item applies.
Refunds - an amount paid back to the State or a credit allowed because of an over collection or because of the return of an item to a vendor. Record the transaction using:
- Original expenditure account if the refund is received in the same fiscal year as the original payment.
- Miscellaneous Adjustments account if the original expenditure was
- Recorded in a prior fiscal year, and
- Not an erroneous transaction, and
- The refund or credit resulted from an overpayment other than an item described under current liability below.
- A current liability account if the original expenditure was
- Recorded in a prior fiscal year, and
- A refund or credit resulting from a faulty or defective item that will be repurchased.
NOTE: The balance in the liability account will be offset against the repurchase price when the item is repurchased. If the repurchase price is different from the refund, the difference will be
- Transferred to a miscellaneous revenue account if the repurchase price is less than the refund, or
- Charged to an appropriate expenditure account if the repurchase price is more than the refund.
- Fund equity if the expenditure was
- Recorded in a prior fiscal year, and
- An erroneous transaction, and
- The amount of the refund is material.
NOTE: See General Policy # 7. Prior Period Adjustment if this item applies.
10. Moving Expenses(6/2018)
ALERT: Per the Federal Tax Cuts and Jobs Act signed by President Trump on December 22, 2017, effective January 1, 2018 all reimbursed moving expenses (including any payment to a vendor) are fully taxable to the employee. Please inform any affected employees of this tax law change.
DAS - State Accounting is researching the tax code and will update the Moving Expenses policy on this webpage in the near future.
Agencies should reimburse the employee using an employee Expense Reimbursement Document and code the expenses to object code 516100 (employee relocation).
Payment made directly to a vendor should be coded to object code 522500 (employee moving expense).
Agency Payroll staff should be notified to do a one-time override using DBA code 5800 to record the expenses as taxable. Use of this DBA code does not create additional pay for the employee, but correctly records these amounts as other taxable earnings.
Encumbrances - Financial obligations which are chargeable to a specific biennium's appropriation and for which a part of the appropriation is reserved. State Accounting policies on encumbrances are based upon Statutes 81-138.01 through 81-138.04.
- Valid encumbrances include:
- A purchase order is issued, but the goods and accompanying invoice were not received and paid during the same biennium;
- Goods or services were received, but an invoice has not been received and paid;
- Goods or services and an invoice were received, but payment could not be made during the same biennium;
- Salaries earned and payable to employees, but have not been paid (this can occur at mid-biennium and at the end of a biennium); and
- A written agreement for a grant or award to distribute aid was signed but was not paid during the same biennium.
- Contracts, other than a purchase order, for goods or services to be provided in a subsequent biennium do not represent valid encumbrances of current biennium appropriations and will require specific re-appropriation by the Legislature. Only that portion of a contract which meets the criteria established in subdivision (2) of section 81.138.01 may be encumbered.
- Encumbrances for claims, whether settled in court or out of court, for carryover purposes will be valid if a court decision or a signed out of court settlement has been made by June 30 of any biennium. If the court decision is appealed, the encumbrance will still be valid as long as payment is made in the next biennium.
- Agencies with bi-weekly payroll should encumber the portion of the July payroll related to June working dates. This encumbrance should include salaries as well as the state contributions for FICA and retirement. Health and Life & Accident insurance should not be encumbered since these amounts are considered July expenses.
- An encumbrance established in one biennium may only be carried over into the subsequent biennium. Any encumbrance shall be paid during the first biennium following the biennium in which such encumbrance is established.
12. Withholding on Nonresident Personal Services(1/2018)
Withholding on Nonresident Personal Services - State Statutes Section 77-2753 requires that payments to nonresident individuals for personal services be subject to Nebraska income tax withholding even though the individuals are not State employees. Personal services include, but are not limited to, payments made to nonresident: consultant, public speakers, entertainers, individual athletes, jockeys, performers, etc., payments for personal services made to a partnership or corporation which is controlled by individual(s) performing the service will also require withholding, since the payment is deemed to be made directly to the individual(s) involved. Control is defined as having greater than 80% ownership of the partnership or corporation by the individuals performing the service within the State. Tax Guide.
Withholding is required whenever a payment or payments to the same individual, partnership or corporation is in excess of $600. If total payments are less than $28,000, withholding is 4.00% of the payment. If total payments are $28,000 or more, withholding is 6.00% of the payment.
- Enter the gross amount currently due to the payee as a debit using the appropriate agency business unit and expenditure object.
- Enter the income tax withholding amount as a credit using the following account number - 76550.2114xx, where xx represents the remitting agency number.
Reference Accounts Payable Procedures for the proper procedures in payment of these individual(s).
Nebraska Withholding Certificate for Nonresident Individuals (Nebraska Department of Revenue Form W-4NA) will need to be completed by the payee if:
- A portion of the fee is for expenses directly attributable to the service being performed in Nebraska, or
- The payment is to a nonresident partnership or corporation that is controlled by the person(s) performing the service in the State.
Penalties may be imposed on any payor who uses the withholding information on Form W-4NA if they know it to be false or who maintains records that show the withholding to be false. The penalty may equal the total tax evaded and an additional amount up to $1,000. The general rule is that any penalties that the government levies must be assumed by the State agency initially responsible for obtaining the correct Form W-4NA.
Form 1099-MISC's will be prepared by State Accounting. The original Form W-4NA should be on file at the agency.
13. Uncollectable Amounts (1/2018)
Uncollectable Amounts - State Statute Section 81-8,297 requires that all requests for waiver or cancellation of charges on behalf of State agencies, boards or commissions be submitted to the Department of Administrative Services - Risk Management Division.
14. Nebraska Sales Tax Exemption(5/2017)
Nebraska Sales Tax Exemption - Sales to the State of Nebraska and its agencies are exempt from Nebraska sales tax. A Nebraska Exempt Sale Certificate, Form 13, with section B completed must be given to the seller at the time of the purchase and must be retained with the seller's records for audit purposes. Since the exemption category is "1", section B does not contain an identification number. Agencies may wish to check the Blanket certificate type which continues in force until revoked in writing by the Agency. The "Authorized Signature of Purchaser" on the Certificate is the agency's authorized representative.
NOTE: If vendor needs further clarification, please have them refer to the Instructions on the back of Form 13.
15. Volunteer/Provider Expenses(8/2017)
Volunteer/Provider Expenses - §81-1182.01 allows Agencies, Boards and Commissions to pay for the reasonable and necessary expenses to recruit, train, use and recognize volunteers providing services to the State under a State recognized program. Approval for a Volunteer Program is given for one year from the date of the approval letter and must be renewed annually.
Volunteers shall mean those persons providing services to the State who are not being compensated for their time. In addition to volunteers, certain "providers" of service to the State are also eligible for expenses. Providers eligible are those individuals/organizations providing services associated with a state aid program in which the provider receives nominal compensation for their services. Foster care parents are an example of an eligible provider.
Examples of allowable expenses are:
- Travel expenses incurred when performing services for the State. Such travel shall have the prior approval of the agency and be reimbursed under the same policies as established for State employees.
- Food and non-alcoholic beverages provided at training and recognition events.
- Providing tokens of appreciation such as certificates, plaques, pins, flowers or similar items of nominal value.
Expenses should be coded to either of the following two object codes: 523000 or 574700. Refer to the Chart of Accounts for which one to use.
When paying expenses for an approved volunteer program, the agency shall include with the disbursement document the name of the program, name(s) of the volunteer(s)/provider(s) for which the expenses were incurred, and a description of the activity. It is the intent of this policy that the value of service provided by the volunteers/providers to the State shall exceed the expenses incurred. Agencies using federal funds to pay for expenses under this policy should review the grant award and federal cost guidelines.
To establish a recognized volunteer/provider program, the agency shall complete the form "Request to Approve or Renew a Volunteer Program".
Upon receipt of the completed form, State Accounting will review the request and make recommendations to the Administrative Services Director. The agency will receive a letter indicating if the program has been approved or denied.
Any requested exception to this policy shall be made in writing to the Director of Administrative Services.
Pre-audit - §81-1111 allows the DAS Director to authorize agencies to perform their own pre-audits, subject to monitoring by State Accounting. A Memorandum of Understanding (MOU) will be initiated between State Accounting and an agency to fulfill this statutory obligation, including the conditions to pre-audit sensitive object code expense items and those payments that exceed $1,500. The State Accounting Administrator has the authority to waive pre-auditing vouchers totaling less than $1,500 with the following exceptions, §81-1111(3)(b):
- Employee-related expenses such as:
- Employee expense vouchers
- Direct-bill lodging and airfare
- Moving expenses
- Tuition assistance
- Employee recognition programs
- Expenses pertaining to conferences including:
- Encumbrance liquidations between bienniums
- Statutes allow the State Accounting Administrator to determine other audit-sensitive areas.
Voucher samples from agencies may be requested by State Accounting to fulfill the statutory requirement that State Accounting ensure that adequate internal controls exist and agencies are following proper accounting methods. Supporting documentation for these vouchers will be required from the agency on an as needed basis. The review may be conducted at State Accounting or at the agency's accounting office. If conducted at State Accounting, the agency must forward copies of the voucher, invoice, and all other supporting documentation. Agencies found abusing either object codes or good accounting practices may be required to submit all payment vouchers to State Accounting for pre-audit. Potential problems could include: purchasing impermissible items, splitting invoices to keep them under the $1,500 level, using improper object codes, etc. If such problems exist, the agency head will be notified in writing, summarizing the problems and requesting a response. This response will be considered and if any changes in the MOU are deemed necessary such action will be initiated by the State Accounting Administrator.
17. Lease/Purchase Agreements(1/2018)
Lease/Purchase Agreements - Section 81-1107 requires the Department of Administrative Services (DAS) to review and approve all financing agreements of the state. DAS has set a policy that if the amount to be financed is greater than $50,000 and payment is over a term that exceeds one year, State Accounting must review the financing terms.
State Accounting has developed a Master Lease Purchase Program (MLPP) to provide a low cost method of financing certain essential equipment purchases. This program is available to all state agencies and may be utilized to lease/purchase data processing, telecommunications, laboratory, motor vehicles and other essential equipment. The MLPP utilizes the state's tax exempt status to provide a low cost alternative to vendor financing. Refer to Contact List for the State Accounting contact for "Master Lease Purchase Program".
18. Personal Cellular Telephone Expenses
Personal Cellular Telephone Expenses - The State of Nebraska provides cellular telephones to agency personnel to utilize in the performance of their official State duties when deemed necessary. Occasionally, an employee will make work related cellular calls on their personal cellular telephone, and request reimbursement.
The State of Nebraska will reimburse employees for any cellular calls that are billed to the employee when the following criteria are met:
- The employee provides their cellular company detail billing for the call(s) for which they wish to be reimbursed. Detail billing will show the date, time, length of call(s), number called and/or calling number, and cost of the call for each call submitted for reimbursement. A log shall be provided if the cellular company billing does not provide the above detail.
- The call(s) are billed on a per minute basis, above and beyond the monthly fee charged for the service the employee has elected as their base plan. The State will reimburse State work related calls regardless of when in the month the State work related calls are made if the employee exceeds the base minutes. For example, Employee A has a plan which allows 25 minutes of calls for the base rate each month.
- Employee A has 30 minutes of personal calls and 5 minutes of state work related calls during the month. The State will reimburse 5 minutes of calls regardless of when in the month the State work related calls are made.
- Employee A only has 15 minutes of personal calls and 5 minutes of state work related calls in the month. The State will not reimburse the employee since the cellular company made no additional billing.
- Employee A has 22 minutes of personal calls and 5 minutes of state work related calls in the month. The State will reimburse 2 minutes of calls since the cellular telephone service provider will charge an additional billing for the 2 minutes exceeding the base plan minutes.
- The agency monitors all personal cellular telephone reimbursements for accuracy.
- Agencies will determine if the usage indicates the need to issue a State owned cellular telephone to employees.
19. Temporary Work Site Expenses
Temporary Work Site Expenses - Employees are sometimes assigned temporary assignments away from their primary work sites. In those instances, commuting or travel expenses may be reimbursed provided that the work site is temporary and not a permanent change in work location. Agencies shall make that determination based on the facts and circumstances or each individual case. However, in no case shall the length of time of the temporary work site exceed or be expected to exceed one year. Periods greater than one year are not considered temporary in nature and expenses will not be reimbursed. The agency must determine that the employee has not made a permanent move and is truly in a temporary work location. If the employee is expected to work at a single location for more than one year, the assignment will be treated as indefinite and related expenses will not be reimbursed, regardless of the actual time spent at the temporary work site. At the agency's discretion, shorter lengths of time may be used to define what is considered temporary.
If the temporary assignment requires the employee to be away from home over night, expenses for meals, lodging and transportation will be reimbursed in accordance with the Travel Expense Policies.
If the temporary assignment does not require the employee to be away from home over night, expenses for meals, lodging, and transportation will not be reimbursed except for those meals which fall under the One Day Meals policies. The employee may be reimbursed for mileage to and from the temporary work site. Mileage will be reimbursed at the rate specified in the Travel Policies - Personal Automobiles or, at the agency's discretion, an automobile may be provided from the Department of Administrative Services - Transportation Services Bureau.
20. Electronic Funds Transfer (EFT)(1/2018)
Electronic Funds Transfer - Effective June 1, 2008, all vendors receiving disbursement document payments of $25,000 or more should be paid electronically. Effective December 1, 2010, vendors receiving multiple payments a year are required to sign up for direct deposit (ACH payments). It is essential that agencies use the correct address book number when making payments. It is also essential that all agencies include sufficient information in the remark field to allow the vendor to post the payment. Only the invoice number, amount field, and the remarks field will be transmitted with the payment to the bank and then to the vendor. The State of Nebraska ACH Enrollment Form is available from State Accounting. Agencies must use the updated form marked Version 12.2014. Agencies may contact firstname.lastname@example.org to request exceptions to this policy. Exceptions being granted are for payments going to entities that maintain bank accounts outside the territorial jurisdiction of the United States and Federal Government payments. Other exception requests will be handled on a case-by-case basis.
21. Bank Accounts(7/2017)
Bank Accounts - No agency shall establish a bank account for any purpose without the prior approval of the State Treasurer and the State Accounting Administrator.
22. State Employee Expenses While Not In Travel Status
State Employee Expenses While Not In Travel Status - These payments are only allowable under State Statute 81-1174 for attendance at official functions, conferences or hearings, not to include normal day to day operations of the agency, and employee reimbursements shall be accounted for using object code 571600.
If meals, snacks or beverages are included in the payments by the agency, a list of State employees attending the conference, official function or hearing that were provided meals, snacks or beverages must be attached to the payment document. The agency must identify for each employee their headquarter city. The disbursement document description must state whether this is an official function, conference or hearing and the disbursement document shall be signed or approved online by the agency director. If the agency director preauthorized (signed) the meal, snack or beverage; the original preauthorization may be submitted in place of their signature, and the payment may be approved by an individual other than the director. The director's approval or preauthorization is only required for meals, beverages or snacks for employees who are not in travel status. Other employee expense reimbursements may be handled normally.
Reimbursements to employees for meals, snacks or beverages for conferences, official functions or public hearings shall provide the same information and shall also be approved or preauthorized by the agency director.
It is the policy of State Accounting to allow agency directors to determine the definition of conferences, official functions and hearings, unless otherwise defined by Statute.
23. Agency Head/Agency Director
Agency Head/Agency Director - The Agency Head or Agency Director is the individual responsible for the management of the Agency. For accounting purposes, the Agency Head may designate an individual to act on his or her behalf during the Agency Head's absence and all approvals of the designee are considered to be the approval of the Agency Head.
If the Agency Head wishes to delegate, on a permanent basis, responsibility for any accounting policy that requires the Agency Head approval, the Agency Head shall notify the Accounting Administrator of such delegation in writing and include the name(s) of the designee(s).
24. Petty Cash(1/2018)
Petty Cash - State Statutory 81-104.01 allows the executive head of any agency to make application to the Department of Administrative Services and the Auditor of Public Accounts to establish and maintain a petty cash fund. Apart from a few statutory exceptions, these petty cash funds cannot be less than $25.00 or more than $300.00 at a specified location in this state. Petty cash funds can be established by agencies which need to make change; when receipting cash; or when it is more economical to make payments for minor items. Petty cash funds should NOT be placed in checking accounts without specific approval from State Accounting and State Treasurer.
To request a petty cash fund be established or to request a change to your current authorization, complete the Petty Cash Fund Application. The petty cash address book record will be updated by State Accounting.
25. Warrant Cancellations(7/2017)
Warrant Cancellations - The warrant cancellation process shall be initiated by the issuing agency. Agency staff is responsible to obtain the warrant and complete the Accounts Payable Warrant Cancellation Form. The completed form and warrant should be sent to State Accounting for processing.
If a warrant is not available, the agency shall complete the Warrant Cancellation Certification and submit both forms to State Accounting. Reasonable efforts to obtain the warrant should be made before submitting a Warrant Cancellation Certification.
26. Replacement Warrants or Stop Payments(7/2017)
Replacement Warrants or Stop Payments - Agencies shall complete the Request for Stop Pay/Replacement Warrant Form or a Request for Payroll Emergency Stop Pay/Replacement Warrant form when a replacement warrant is needed. Agencies must state a definitive reason for requesting a replacement warrant (examples: went through washer, destroyed, etc.) or the request will be returned to the agency. Warrants will not be reissued for ten days after State Accounting has been notified of a lost warrant according to Statute, allowing the recipient time to receive or find a warrant; received damaged warrants will be replaced upon receipt by State Accounting. See Procedures for Requesting a Replacement Warrant.
27. Certification of Payroll
Certification of Payroll - Agencies shall certify each payroll to State Accounting. The Agency Director (or designee) shall provide State Accounting with the name(s) of employees who have authority to certify the agency payrolls on an annual basis. The certification form shall be completed for each pay period and forwarded by an authorized person via email using the email link provided on the bottom of the form. The email address is email@example.com with subject line of Payroll Certification.
The person certifying the payroll must review their Agency payroll to ensure:
- Payroll messages have been reviewed and all changes made;
- Employees listed are employees of the agency;
- The total number of hours and gross pay for the Agency is reasonable;
- Journal entry is in balance.
Reports that may assist you with this review are the Payroll Register (R073012), the Payroll Journal Proof/Edit Report (R05229) and the Payroll Exception Report (R053191). Review the Payroll Certification Mini Manual for recommendations on procedures for certifying the payroll.
Each agency should document their procedures for certifying payroll. This documentation is subject to review and approval by State Accounting.
28. Capital Outlay(1/2018)
Capital Outlay - The DAS Materiel Administrator has established $1,500 as the minimum for capitalization of articles or property. Agencies have the option to capitalize items under $1,500 on their inventories if they so desire.(View Information)
To determine if an item should be a capital outlay, the item should have an expected useful life of two or more years and the total costs for the item should be $1,500 or greater. Capitalized items must be coded to object codes 580000 - 586900. These costs can include the cost for freight and any costs incurred in preparing the item for service. Fixed assets should be recorded to the appropriate object code and item code to ensure appropriate depreciation lives are utilized.
Each agency should run the Unposted Fixed Asset Report to review costs assigned to a specific tag number. When it has been determined that costs on the report are properly capitalized, the agency should post the costs to the tag number. Costs on the report that are not appropriate to be capitalized should be passed on. (Processing a fixed asset)
When an event occurs which causes additional costs to an existing fixed asset, these new costs should be capitalized only when the useful life of the existing asset has been extended. Never add additional costs to an existing asset number in NIS; instead, a new tag number should be used to create a child-parent relationship between the new costs and the existing fixed asset. THIS IS VERY IMPORTANT FOR DEPRECIATION PURPOSES. If the new costs do not increase the life of the existing asset, the costs should be expensed to the appropriate expense object code.
Building Additions and Building Improvements:
Building additions are capitalized when the project adds square footage to an existing building and the accumulated costs are $100,000 or greater. For large projects with multiple progress payments, the payments should be coded to 587500 – Construction In Progress (see Construction In Progress below).
Building improvements are capitalized when the project enhances the functionally of the building either by effectiveness or efficiency, or extends the life of the building and the accumulated costs are $100,000 or greater. These improvements do not add square footage to the existing building. For large projects with multiple progress payments, the payments should be coded to 587500 – Construction In Progress (see Construction In Progress below).
For building additions and building improvements under $100,000, costs should generally be expensed to the appropriate expense object code. If an agency is unsure if their project should be capitalized, they should contact State Accounting for guidance.
Construction In Progress: (use when there are multiple progress payments)
For large projects (new construction, building additions, or building improvements), with multiple progress payments, the payments should be coded to 587500 – Construction In Progress.
- When a new construction project is complete and all costs have been accumulated, the agency should complete the Building Inventory Form and send it to DAS Building Division. Building Division staff will create an asset tag number and enter the asset into EnterpriseOne using Item Code 12. The agency will create a Journal Entry to attach the costs to the new tag number by debiting 581200 and crediting 587500 and entering the tag number in the appropriate column on the Journal Entry.
- When a building addition or building improvement project is complete and all costs have been accumulated, the agency should complete the Building Inventory Form and send it to DAS Building Division. DAS Building Division will establish a child-parent relationship with the original asset tag number for the building and notify the agency of the new tag number. The agency will create a Journal Entry to attach the costs to the new tag number by debiting 581500 and crediting 587500 and entering the tag number in the appropriate column on the Journal Entry.
Donated Fixed Assets:
Donated fixed assets should be entered into NIS at fair market value at the time of donation
Combined purchase of land with building(s):
- Purchase price should be split between land and building(s) based on an acceptable method (i.e. appraisal, estimated fair market value, etc.)
Application software - computer software that is internally developed or substantively modified, shall be capitalized as a separate asset if the acquisition value is One Hundred Thousand Dollars ($100,000) or more and has a life greater than one year. During the application development stage (as defined below) of software development the costs should be accumulated in object account 587500 – Projects in Progress. Once the project is complete the costs are moved to 583300 – Computer Equip & Software.
Note: Operating software - such as Microsoft Windows that is purchased with a computer package will be capitalized as part of the initial cost of the computer.
- Application software Costs to Capitalize:
- Application software acquisition and/or development costs
- Costs directly related to software development, includes:
- Material costs
- Developer salary & benefit costs
- Outside Consultant Costs (including tie and related expenses)
- Project Team testing
- Data conversion software
- Manager salary & benefit costs for project oversight if directly related to software development.
- Application Software Costs not to Capitalize:
- Discovery Costs - those costs incurred before the project scope is broadly defined and before management approval
- Costs to develop and offer end user training of new or upgraded software
- Costs to implement, after development is complete
- All other testing - not done by the project team
- Staff training
- Costs incurred after implementation has begun (defined as the point at which the software is in use, in a production environment, by the users for whom the software was designed). For example, maintenance agreements may not be capitalized.
- Phases of an Application Software Project
- Phases: General treatment of costs:
- Preliminary Project Stage - Expensed
- “Preliminary Project Stage” means the earliest stage of a software development or selection project, during which the alternatives are being evaluated but no decision has been made as to which strategy or vendor to use. Typical activities during this phase include assembling the evaluation team, evaluating proposals from vendors and the final selection of alternatives.
- Application Development Stage - Capitalized
- “Application Development Stage” means the stage of a software development or selection project during which the design, coding, installation and testing of new software occurs. The stage begins once management has authorized and committed to funding the project, and it is considered probable that the project will be completed and put to its intended use. The application development stage concludes when the software is complete and ready for use.
- Post Implementation/Operation Stage - Expensed
- “Post-Implementation/Operation Stage” means the stage that begins once the software is put into use. It includes training and subsequent maintenance of the software.
- Preliminary Project Stage - Expensed
- Phases: General treatment of costs:
29. Wage Attachments(1/2018)
Wage Attachments - Agencies shall immediately forward to State Accounting the original copies of any paperwork received requiring a wage attachment for any employee. These documents would include Summons & Order of Garnishment, continuing liens, extension notices, Order for Withholding on Debt Owed for Defaulted Student Loans, Order to withhold income for Child Support (both Mandatory Court Orders & Voluntary Orders from the employee), Garnishment Orders from the Social Security Administration, Bankruptcy Orders to employer, and State and Federal Tax Levies. These documents require a timed response and if not processed by State Accounting in a timely manner, the agency may be placed in a financial risk or responsibility position.
30. Payroll Adjustments to Leave Balances
Payroll Adjustments to Leave Balances - Agencies are responsible for updating their employee payroll records. When an agency determines an adjustment needs to be made to an employee's leave history record, the correction should be made in the EnterpriseOne (Payroll and Financial Center) payroll system. (Leave Adjustments)
An audit trail should be documented indicating why the change was made and showing the status before and after the change. It is recommended that this documentation be placed in the employee’s personnel file.
Adjustments to current year leave payments should be made with an adjustment to the appropriate pay type on the user’s time card.
Adjustments for current year accruals should be made using One Time Overrides and the pay types identified below. These pay types should ONLY be used when the adjustment is for a change to an employee’s hours and there is no financial impact. Please note that a double entry is required as stated in the leave adjustment instructions.
- Sick leave Adjustments - agencies should use pay type 892 when making adjustments to prior year (beginning balances) for sick leave. This pay type should also be used to reduce a retiree's sick leave balance to zero (after the proper sick leave balance for a retiree has been paid out).
- Vacation leave adjustments - agencies should use pay type 894 when making adjustments to prior year (beginning balances) for vacation leave.
- Compensated time adjustment - agencies should use pay type 895 when making adjustments to prior year (beginning balances) for compensated time.
Additional Information: Agency & State Accounting
31. Termination Payoff for Employees Working on Federal Grants (1/2018)
Termination Payoff for Employees Working on Federal Grants - To ensure agencies are in compliance with OMB Circular A-87, agencies shall code sick leave payoffs or vacation leave payoffs for employees who are working on a Federal grant, either part-time or full-time, to an account number under their agency's general administrative activity. Agencies should use the correct pay Type for coding leave payouts found in Lesson 5, Pay Type Descriptions.
32. Terminated Employee Payroll and Financial Center ID's(1/2018)
Terminated Employee Payroll and Financial Center ID's - Each agency shall have a documented procedure to immediately disable the Payroll and Financial Center ID of an employee who has terminated employment with the agency. It is the responsibility of the agency's authorized agent to request termination of the User ID from the computer system within five working days from the termination date by following the work instructions found at: Request Termination of Existing User ID.
When a terminated User ID is in batch management, the authorized agent is responsible for requesting termination of the ID by notifying EnterpriseOne (Payroll and Financial Center) Security using the spreadsheet located at: Batch Management
This request should be completed within two weeks of the user termination date by which time the agency should have verified that all batches created with the User ID have been approved and posted.
33. Processing Payments to Employees of Other Agencies(1/2018)
Processing Payments to Employees of Other Agencies - When one agency needs to reimburse travel or other miscellaneous expenses to a current employee of another agency:Link to Procedure
- The agency needing to pay the employee will process a journal entry to record their expense. The debit side of the entry should be to the appropriate account number (business unit.object code) for the expense. The credit side of the entry should be to a balance sheet business unit (equal to a fund number of the employee’s home agency) with an object code of 132200 (Due from Government). The appropriate balance sheet business unit/fund will need to be obtained through contact with The appropriate balance sheet business unit/fund will need to be obtained through contact with the accounting department of the employee’s home agency.
- The employee’s home agency will then be responsible for processing a disbursement document for the employee (using Search Type E), by debiting (charging) the same balance sheet business unit and object code 132200 as was previously credited by the paying agency. The invoice number field of the disbursement document should be used as a means to cross-reference the payment to the JE number.
The journal entry and the disbursement document are independent transactions. The JE should be processed and then the home agency should be notified to make the disbursement.
This policy does not apply to situations where an agency is paying another agency’s employee for true contractual services. In this situation, that relationship needs to be clearly communicated to the State Accounting-Address Book section so that a separate vendor/payable Address Book record can be created.
Agencies should not use the IBT process as a substitute for this procedure.
34. Unused Leave Recorded in EnterpriseOne (PFC)
Unused Leave Recorded in Payroll and Financial Center - State Accounting has adopted EnterpriseOne (Payroll and Financial Center) to record all earned but not used sick and vacation leave and compensatory time. State Accounting needs this data in the system to be able to verify the dollar amount of the earned but unpaid days when the employee leaves State employment and to annually compute a liability for the Comprehensive Annual Financial Report (CAFR).
If an agency does not input such leave data into EnterpriseOne (Payroll and Financial Center), it is State policy to consider such liability NOT to exist. Therefore, when any employee of such agency leaves State government, NO payment will be allowed for any claimed unused vacation or sick leave or compensatory time until proper accounting for such leave or time is provided.
35. Deposit Processing(1/2018)
Deposit Processing - All State agencies depositing State funds directly into a State Treasury bank account are required to remit a State Treasurer Payroll and Financial Center Deposit Document and required documentation (deposit ticket or bank receipt) to the State Treasurer’s Office. These documents should generally be submitted within two business days after the funds have been deposited in the State Treasury bank account. Faxed copies may be submitted to the State Treasurer with the original copies kept on file at the agency location. The timing of deposits is covered by State Statute 84-710.
36. Collection of Sales Tax (1/2018)
Collection of Sales Tax - Agencies should review the Department of Revenue Sales and Use Tax Regulation 1-006 and Regulation 1-080 to determine if they are required to collect sales tax when items are sold to a purchaser for "use or consumption and not for resale". Before an agency can collect sales tax, they must receive a Sales & Use Tax Identification Number by filing application Form 20 with the Department of Revenue (see Tax Regulation 1-004).
When revenues for sales of items are deposited by an agency, the sales tax portion of the deposit should be placed into a liability account, using AgencyFund.215100. Payment of the sales tax should be made to the Department of Revenue through EnterpriseOne (Payroll and Financial Center) using the journal entry process on either a monthly, quarterly, or annual basis as per State Statute 77-2708(1)(b)(i). The agency will debit the Agency Fund.215100 and credit 10000.2159xx with xx being the two digit agency number. Agencies have the option of filing Form 10 through the mail or as an attachment to the journal entry. Please follow one of these options as described on the Department of Revenue's website.
37. Pre-Audit Certification(11/2017)
Pre-Audit Certification - All employees who conduct pre-audit must be knowledgeable in regard to State Statutes, Administrative Services Policies, and their Agency policies to ensure transactions comply with such laws and policies. (Reference: Memorandum of Understanding)
Agencies that are authorized to perform their own pre-audit must have their pre-audit staff trained and certified by State Accounting. Pre-Audit Certification is subject to suspension or revocation by State Accounting.
Further information on the certification process can be found at Pre-Audit Certification Procedure.
38. Employee Awards(1/2018)
Employee Award - Awards may be given to State Employees based on a Recognition Program implemented with the approval of the Director of Personnel, AS State Personnel Division. The following defined the federal tax reporting requirements of such awards.
There are two classes of awards - tangible and non-tangible.
- Non-tangible awards (include such things as cash, cash equivalents, gift certificates or cards, stocks, bonds or other forms of securities, vacations, meals, tickets to theatre or sporting events) are subject to taxation without limit in the amount of the award. These awards must be included on the employee’s payroll and wage history for tax and W2 purposes. Utilizing EnterpriseOne – use One Time Override DBA Code 5600 instructing the system to include the cash value of the awards in taxable income, subject also to social security and Medicare taxation.
- Tangible awards are considered to be those items of personal property (including such items as watches, clocks, coffee cups, etc.) given to an employee as an award for length of service or safety achievement, awarded as part of a meaningful presentation and awarded under circumstances that do not indicate that the payment is disguised compensation. Such low value tangible awards are excludable from federal income, social security or Medicare taxation.
39. Internal Control Plan
Internal Control Plan - Agency management (Boards, Commissions, Directors) for each State agency bears full responsibility for establishing and maintaining a proper system of internal control within the agency. State Statute 81-1111(4) places accountability with State Accounting to systematically conduct reviews of internal controls and accounting methods for all agencies. In order for State Accounting to effectively evaluate these controls and accounting methods, agencies shall have a documented internal control plan which will address the five components of an internal control structure: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. The effective date for all agencies to have such a plan in place is March 1, 2010.
Each principal executive officer and each principal fiscal officer shall annually certify, in a manner prescribed by the State Accounting Administrator, that the agency has in place a proper system of internal control.s
Agencies shall assign a qualified employee to be responsible for ensuring the internal control plan is implemented correctly and updated as necessary, training agency staff, monitoring the plan, and reporting to State Accounting.
- More information:
40. Payments for State Employee Wages(7/2017)
Payments for State Employee Wages - In accordance with §81-1117.05, payments for wages for all state employees will be by electronic funds transfer (EFT/Direct Deposit). Such EFT payments may be made to any financial institution of the employee's choosing or to a state authorized debit card. State employees include all officers or employees of the state or any state agency and pursuant to §81-1178 shall include duly appointed committee, board and commission members.
41. Payments for State Employee Expense Reimbursements
Payments for State Employee Expense Reimbursements - In accordance with Statute 81-1117.05, payments for expense reimbursements for all state employees will be by electronic funds transfer (EFT/Direct Deposit). Such EFT payments may be made to any financial institution of the employee’s choosing or to a state authorized debit card. State employees include all officers or employees of the state or any state agency and pursuant to Section 81-1178 shall include duly appointed members of committees, boards and commissions. See Employee Payroll Update Quick Reference Guide (EWC section) to verify that employee is properly setup in EnterpriseOne (PFC).
42. Charitable Contributions to Governmental Units(7/2017)
Charitable Contributions to Governmental Units - Governmental units, such as States and their political subdivisions, are not generally subject to federal income tax. Political subdivisions of a State are entities with one or more of the sovereign powers of the State such as the power to tax. Typically they include counties or municipalities and their agencies or departments. Contributions to governmental units are tax-deductible under Internal Revenue Code section 170 (c) (1) when they are made for a public purpose. Either object code 484100, Operating Donations & Contributions; or 484200, Capital Donations & Contributions should be used to record donations received.
43. Recording Utility Expenses(7/2017)
Recording Utility Expenses -
- Utility Expenses shall be recorded by using the following object code/unit of measure combinations. The Object Code, Unit of Measure (UM), and Number of Units must be entered on each voucher.
- The Facility Code of the Facility for which the utility expense applies must be entered on the voucher. Unit, UM, and Facility are adjacent to each other on the voucher screen. The facility Code must be selected from the search type of "F" from the Address Book contained in E1. Determine the appropriate facility address book number and use it consistently for utility invoices for each facility. The vouchers must be entered into E1 as a Voucher Without Purchase Order (unless the Purchase Card is utilized). Training Guides are available to guide you through the entry for these utility bills.
- Utility Expenses paid by Purchase Card shall be recorded using the following object code/unit of measure combinations. The Object Code, Unit of Measure (UM), and Number of Units must be entered on each journal entry and the Facility code of the Facility must be entered in the Address Book field. Training Guides are available to guide you through the entry for these utility bills.
Utility Expense Table
Unit of Measurement (UM)
|523201||Natural Gas||TR||Therm - (100 Cubic Feet)|
|523202||Electricity||KH||KWH - Kilowatt-Hours|
|523203||Water||CF||CCF - Hundred Cubic Feet|
|523204||Sewer||CF||CCF - Hundred Cubic Feet|
|523205||Chilled Water||TH||Ton - Hours|
|523208||Steam||MB||MMBTU - Million BTU|
|523219||Other Utility||No common measure|
1. Air Travel (1/2018)
Air Travel - Air travel shall only be authorized when it is more economical than surface transportation. Reimbursement for commercial air travel will be limited to "coach" fare, if such seating is available at the time of ticket purchase. If an agency chooses to calculate productive time saved, the employee's actual salary shall be used. For board members, or others who do not receive a salary, the State average annual salary, as published in the Personnel Almanac, shall be used. Whenever reimbursement of air travel is made separate from the employee expense reimbursement document, a cross reference shall be made from the employee expense reimbursement document to the air travel reimbursement document.
Travel by privately-owned airplane or personally-rented airplane, shall have the prior approval of the agency director. Such approval shall be provided with the payment documents.
- Privately-owned - AAn employee will be reimbursed at the prevailing standard rate as established by the Internal Revenue Service through its Revenue Procedures. As of April 1, 2013 the rate is one dollar and thirty three cents per mile ($1.33) Statute air mile. DAS will not differentiate between "travel at the convenience of the agency or employee". This mileage rate is effective for all employees not covered under a collective bargaining agreement, or in which the bargaining agreement does not specify a mileage rate.
- Personally-rented - Employees shall be reimbursed for the actual expense of personally renting an airplane unless the expense is paid directly by the agency involved.
- Charter flight - Agencies should contact the Department of Transportation, Division of Aeronautics to make arrangements for charter flights.
2. Commuting (1/2018)
Commuting - The IRS defines commuting as the use of a vehicle for travel in any of the following situations. From the employee's:
- Regular place of employment to the employee's residence.
- Residence to regular place of employment.
- Commuting expenses are defined by the Internal Revenue Service as those expenses incurred in traveling from one's regular place of employment to one's residence, no matter how often this occurs during a day. These are considered personal expenses and are, therefore, unallowable expenses when using a non-state vehicle.
- Expenses incurred in traveling from one's residence to a temporary work location are not considered commuting expenses and are reimbursable when using a non-state vehicle.
- According to regulations issued by the Internal Revenue Service, certain responsibilities are required of employers who have employees that use State vehicles for commuting purposes.
- The regulation provides that a value of $1.50 for one way commute ($3.00 for round trip commute) be added to the employee's income. Social Security taxes must be withheld on this income at least once a year. Federal and State income taxes need not be withheld, although the income will be included on the employee's W-2.
- Each agency is responsible for maintaining the necessary supporting documentation and correctly entering the withholding into EnterpriseOne (Payroll and Financial Center). State Accounting may ask to review such supporting documentation at any time. Use of a State vehicle for commuting is recorded in the payroll system by using Pay Type 530. A "one-way" commute would be entered as .50 hours; a round trip commute would be entered as one hour. Two round trip commutes in one day would be recorded as two hours. Commuting adjustments must be processed during the calendar year payroll and can be entered as they occur or on a quarterly, semi-annual or annual basis. The entry is subject to Social Security and the employee's social security deduction will increase on their payroll when the entry is processed.
- A de minimis exception, (which means we do not have to report usage), is allowed when an employee does not use an employer provided vehicle in a commuting capacity more than once a month.
- The regulations also provide that where more than one employee commutes in the same employer provided vehicle, each employee is subject to the $1.50/$3.00 income value.
IRS regulations provide that an employer may use a cutoff date prior to the calendar year end to ease the processing of current year’s W-2’s. State Accounting has established a November 30th cutoff date which allows sufficient time to collect the necessary data and process the required paperwork in December.
Generally, a state employee whose home is their official office would not incur any commuting income.
3. Conference (Attendance by State Employees)
Conference - State employee expenses - Expense incurred by a State officer, employee, or member of any commission, council, committee or board of the State while attending a non-State agency sponsored conference may be paid. Payment may be made directly to a vendor or as reimbursement to an employee for expenses incurred on behalf of the agency. Original invoices/receipts and a document, or statement, showing the date, purpose and agenda of the conference must be attached to the payment document. Expenses should be coded using "item" orientation. For example, travel expenses should be coded to the appropriate travel expenditure account and the registration fee to Conference Registration Expense.
The payment of meals and non-alcoholic beverages for State employees attending a non-State agency sponsored conference is allowable if the employee is in travel status or the meal is included in the overall conference pricing.
Lodging - Employees shall report only actual expenses paid for lodging. Business telephone calls (Travel Expense Policy #10. Long Distance Telephone Calls) and parking charges incurred at the lodging site may be included on the lodging bill. Lodging expenses may either be directly billed to the agency or claimed on an expense reimbursement. If claimed on an expense reimbursement, detailed receipts for lodging are required to be filed with the claim. Lodging may be reimbursed when an employee is "away from home overnight". The Internal Revenue Service states: "You are away from home overnight if your duties require you to be away from the general area of employment for a period substantially longer than an ordinary day's work and, during released time while away, it is reasonable for you to need and to get sleep or rest to meet the demands of your employment or business. The absence must be of such duration that you cannot reasonably leave and return to that location before and after each day's work."
Sales to the State of Nebraska and its agencies are exempt from Nebraska sales, use and lodging tax. Therefore, if in-state lodging expenses are directly billed to the agency, the agency should present a completed copy of Form 13 (Nebraska Resale or Exempt Sale Certificate) to the lodging establishment.
It is State Accounting policy that a person generally be more than 60 miles from his or her workplace in order to be eligible for lodging. We realize there may be reasons to pay for lodging for distances less than 60 miles. Such reasons include, but are not limited to work requirements, medical conditions or weather; in those instances the reason must be clearly stated on the disbursement document.
5. Substantiation of Expenses
Substantiation of Expenses - Under our accountable plan, the Internal Revenue Service requires employees to substantiate the cost for travel, lodging, meals, and other expenses. To be reimbursed, the expense must be a necessary expense, incurred in the line of duty, reason/purpose of the expense must be clearly stated, all start/stop dates and times must be recorded, and the amount of the expense must be substantiated.
Adequate accounting generally requires the use of a documentation record such as an account book, expense diary or log, or similar record near the time of incurrence of the expense. Such log should list the date, amount, place (e.g. city) or description, and purpose for each expense or meal/food cost. A combination of receipts and detailed itemization is permitted. To satisfy the requirement of our accountable plan, the employee should complete the Expense Reimbursement Document correctly (see instructions) or utilize a documentation record to transfer cost information to the expense reimbursement form so reimbursement can be made.
A request for reimbursement (on an approved expense reimbursement document) for the incurred expense must be submitted by the employee to the appropriate agency office (business office, accounting office). To document that this requirement is met, the agency office will need to have an effective method of recording when the expense document was received.
Such request must be made not later than sixty days after the final day on which the expenses were incurred for which reimbursement is sought. This means that if travel occurs June 15 - June 18 and again on June 22 - June 25, the request for reimbursement may include both trips, but the request for reimbursement for the first travel period must be submitted no later than 60 days after June 18.
If an employee typically requests reimbursement for non-travel expenses and accumulates the receipts for which reimbursement is sought, each expense will have its own 60 day limit for reimbursement. (Travel is defined as being away from headquarter city longer than one day).
When a receipt does not provide the essential character of the expense, such as rate or period of use, the agency may require a copy of the rental contract or other billing as supporting documentation to substantiate the expense. For instance, vehicle rental receipts with only an amount would require additional documentation. Screen prints or other support of online purchases should be provided, if possible, to document purchases being made via the internet.
- Overnight Travel - Pursuant to Section 81-1174, employees traveling on State business shall claim only actual amounts paid for food/meals. Employees should not submit claims based on any per diem amount. (The Federal maximum per diem rates are only a guideline and should NOT be claimed). When requesting or approving food/meal costs, compare the average cost per day for the entire trip with the appropriate daily GSA rate. Exceeding the GSA daily rate by a small amount fits the State definition of reasonableness. Reasonableness in very limited cases may exceed such rates by larger amounts; however, the reasons must be fully documented. No reimbursement may be made for alcoholic beverages. (GSA meal guidelines)
- Agencies are responsible to see that all submitted claims for food/meals are adequately substantiated. Unsubstantiated food/meals should not be reimbursed. Receipts are required unless the cost of the food/meal is under $5.00. Per diem type claims should always be questioned.
(Travel Expense Policy #5. Substantiation of Expenses)
- Breakfast - When an employee leaves for overnight travel at or before 0630, breakfast may be reimbursed.
- Lunch - When an employee leaves for overnight travel at or before 1100 or returns from overnight travel at or after 1400, the noon meal may be reimbursed.
- Supper - When an employee leaves for overnight travel at or before 1700 or returns from overnight travel at or after 1900, the evening meal may be reimbursed.
- One-Day Travel - At the agency head's discretion, one-day travel meal expenses (breakfast and supper only) may be reimbursed when it is deemed necessary for the working conditions of the employee. Only actual amounts paid for meals may be claimed. No reimbursement may be made for alcoholic beverages.
NOTE: Meal expenses incurred in the city or town in which the residence or primary work location of such employee is located, are not reimbursable, except as discussed in General Policy #22. State Employee Expenses While Not in Travel Status and Travel Expense Policy #3. Conference (attendance by State Employees).
- The IRS has taken the position that reimbursement for meal expenses incurred on one-day travel is taxable income to the employee unless such reimbursements are deemed "occasional". In order to monitor this provision, all such reimbursements for one-day travel shall be coded to account 571900. When reimbursements for meals for one-day travel exceed $200 per employee in any one year (December 1 through November 30), the entire amount of such reimbursements will be considered taxable income. If reimbursements for an employee are $200 or more for any one year, the agency will enter a payroll one-time override using DBA 1005 for the total amount coded to object code 571900. This should be processed during the calendar year payroll. The reimbursements will be added to the employee's gross wages and payroll taxes will be withheld accordingly. Reimbursement to one employee for two or more employee's expenses will not be allowed for one-day food/meals because of this provision. (Travel Expense Policy #9. Reimbursement to One Employee for Two or More Employee's Expenses)
- Breakfast - When an employee leaves for one-day travel at or before 0630 or 1 1/2 hours before the employee's shift begins, whichever is earlier, breakfast may be reimbursed.
- Lunch - Noon meals for one-day travel are not reimbursable.
- Supper - When an employee returns from one-day travel at or after 1900 or 2 hours after the employee's shift ends, whichever is later, the evening meal may be reimbursed.
NOTE: The time limitations set forth in this policy do not include the time taken for the meal.
7. Personal Automobiles(1/2018)
Personal Automobiles -An employee will be reimbursed for use of a personal vehicle while on State business (this does not include commuting miles) at the prevailing standard rate as established by the Internal Revenue Service through its Revenue Procedures. As of January 1, 2018, the rate is fifty-four and one half cents ($.545) per mile. This mileage rate is effective for all employees not covered under a collective bargaining agreement, or in which the bargaining agreement does not specify a mileage rate. All contract employees currently use the IRS rate. However, agencies may, at their determination, require employees to utilize state-owned vehicles (as opposed to personal vehicles) if the use of the state-owned vehicle would be more economical from both an auto rental rate and the time involved in renting the state-owned vehicle. If after such agency determination, an employee still wants to drive their personal vehicle, the agency is not required to reimburse the employee any more than it would have cost the agency to rent the state-owned vehicle. [Previous rate was $.535 as of January 1, 2017.]
Motorcycles - - An employee will be reimbursed for the use of a motorcycle while on State business (this does not include commuting miles) at the prevailing standard rate. Effective May 1, 2017 the rate is fifty and a half cent ($.505) per mile.
Rental Cars - Insurance - An employee should decline rental agency insurance coverages. Please refer to your agency's annual letter from Risk Management. There is a section on rental cars. Under Section III B, it states that you should NOT accept the coverages because the car rental is covered by the State's insurance.
Receipts - Detailed receipts are required as support for all expenditures except immaterial items identified by the Director of Administrative Services. (However, you are required to substantiate meals and immaterial items, including meals under $5.00, in a log, as described under Travel Expense Policy # 5. Substantiation of Expense). The requirement to provide detailed receipts includes, but is not limited to, food/meals lodging, car rental, commercial travel, and registration fees. The requirement is an internal control feature to guard against duplicate payment of claims.
Detailed receipt is defined as a receipt that shows a listing of each item purchased and the related cost. Detailed receipt does not include the receipt copy that only identifies an amount is being charged to the employee’s credit card.
Immaterial items, as referenced above, are vending machine food purchases, parking, tolls, intra-city bus fares, business telephone calls (Travel Expense Policy #10. Long Distance Telephone Calls), baggage handling, tips and taxi fares. Tips need not be itemized separately.
In the absence of detailed receipts supporting an employee's claim, State Accounting will require a written acknowledgment that after-the-fact documentation will be provided. This documentation may be a copy of:
- Cancelled check;
- Charge card slip and signed written explanation; or
- Subsequently acquired receipt and signed written explanation.
- If receipts have been lost, or where a receipt was not provided (such as when only one meal receipt is provided per table), the employee should create and present an affidavit.
This policy is for the convenience of the agency and the employee. The absence of after-the-fact documentation may necessitate the discontinuation of this process and the subsequent inability to reimburse employees when receipts are not available.
9. Reimbursement to One Employee for Two or More Employee's Expenses
Reimbursement to one Employee for Two or More Employee's Expenses - One employee may be reimbursed for actual expenses incurred on behalf of another State employee, such as when two employees sharing a motel room are billed jointly and one employee pays the bill. The employee to be reimbursed must provide the same detailed information that would have been required of each State employee had they been billed individually. In all cases when one employee is requesting reimbursement for expenses of more than one State employee, detailed receipt policies must be adhered to, employees' names listed and documents cross-referenced, when applicable. If two employees are billed jointly, but each pays half and each requests reimbursement separately, the documents must be cross-referenced, since one employee usually may not have a detailed receipt.
10. Long Distance Telephone Calls
Long Distance Telephone Calls - Charges for long distance telephone calls are an allowable state expenditure if:
- They are related to State business or
- The employee is in a travel status on State business and the calls are in accordance with an approved agency policy.
To establish an approved agency policy, the State agency shall submit their proposed policy to State Accounting for approval. The policy shall describe the circumstances in which long distance calls will be reimbursed, to include:
- the reason(s) for which calls will be reimbursed,
- the number of calls an employee will be allowed within a certain time period,
- the duration of allowable calls or cost per call,
- the relationship to the employee of the person being called.
State Accounting shall notify the State agency in writing of approval or disapproval.
11. Employee Signatures
- The employee claiming reimbursement of expenses must provide an original signature on the expense document or submit the document with an electronic signature. Supporting documentation must be maintained by the agency for those documents submitted with an electronic signature.
- An employee not able to provide original signatures due to physical disabilities may request a waiver of the original signature requirement. The employee must request such a waiver in writing from the State Accounting Administrator of DAS. This request must be:
- Approved by the employee's supervisor,
- Include the reason for the inability to provide the original signature,
- Include the anticipated length of time of the physical condition, and
- Include a sample of the intended signature to be used.
The State Accounting Administrator may request the employee to give additional supporting documentation, which could include a description of the physical condition and limitations from the employee's physician.
If the request is approved, the employee and agency will be notified in writing.