STATE ACCOUNTING MANUAL
|
|
|
Effective |
|
Section |
|
|
|
|
|
Date |
|
Number |
|
|
|
POLICIES |
|
02-03-14 |
|
AM-005 |
|
|
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.
|
|
81-118 |
81-1014 |
81-1117.02 |
|
|
81-145 |
81-1107 |
81-1121 |
|
|
81-161.03 |
81-1111 |
81-1174
through 81-1182 |
|
|
81-8,211 |
|
|
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. General Policies which
pertain to general accounting related transactions of the State of Nebraska and
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.
GENERAL
POLICIES
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.
All transactions relating to the conference should identify the conference name, purpose, and date. Records should be maintained in the Nebraska Information System to identify that the revenues related to the conference were sufficient to pay personal maintenance expenses 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.
No adjustment will be made to an agency's appropriation (without the approval of AS Budget), nor will netting of receipts against disbursements be allowed in sponsoring a conference. Any disbursements must be included in the agency's budget.
2. Entertainment Expenses - In a letter to the Director of Administrative
Services, the Attorney General's Office stated that entertainment expenses are
unallowable costs not authorized by Statute to be reimbursed.
GENERAL
POLICIES
3. Job-applicant Expenses
- The State Personnel Rules and Regulations permit agencies to reimburse up to
three applicants per position/opening for travel, meals and lodging expenses
incurred in traveling to and from the prospective job site/interview site. Agencies should follow the same policies as
established for employee travel when determining the amounts to be reimbursed
and require the same documentation.
Items
to consider are:
a. Meals
are reimbursable, if the applicant is on overnight travel. Receipts are required.
b. Agencies
should arrange lodging to ensure the most cost effective lodging (governmental
rates) with consideration given to the proximity of the lodging to the
interview site.
c. 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 regardless of whether payment
is to the applicant or a vendor that provided 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.
GENERAL
POLICIES
4. 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 has given
up assets in anticipation of goods or services being rendered at a later
date. (There is no 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 at the agency
level. State Accounting reserves the
right to review all prepayment requests.
Three prepayment situations are discussed below.
a. Conference
Registration - State policy permits the prepayment of training session and
conference registration fees by the agency on behalf of State employees.
b. Federal
Government and Affiliates - The Superintendent of Documents and
the Postmaster require prepayment for publications and postage,
respectively. In these two cases,
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.
c. Routinely
Recurring Expenses - Normal business practice necessitates the prepayment
of expenses such as magazine subscriptions, local telephone service, rent
expense, etc.
GENERAL
POLICIES
5. 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 - (Reference
Authorized Agent)
GENERAL
POLICIES
7. 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 accounting errors detected in a following
fiscal year is as follows:
a. Material
Adjustments:
1) 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.
b. Nonmaterial
or Legally Mandated Adjustments:
1) 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)
2) Correct a revenue account in the period the error is detected by
also using the Miscellaneous Adjustments account.
GENERAL
POLICIES
8. Third Party Reimbursements - For funds received as
repayments of amounts previously disbursed.
Record the reimbursement using:
a. Third Party Reimbursements expenditure
account, if the expenditure was
1) Recorded
in the current fiscal year, and
2) An
appropriated or legally authorized expense of the agency's program, and
3) The
reimbursement was nonroutine and not a result of
normal agency operations.
b. Miscellaneous
Adjustments account, if the expenditure was
1) Recorded
in a prior fiscal year, and
2) An
appropriated or legally authorized expense of the agency's program and
3) The
reimbursement was nonroutine and not a result of
normal agency operations.
c. Miscellaneous
Adjustments account if the expenditure was not an appropriated or legally
authorized expenditure of the agency's program, regardless of fiscal year.
d. 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.
e. Fund
equity if the expenditure was
1) Recorded
in a prior fiscal year, and
2) An
erroneous transaction, and
3) The
amount of the reimbursement is material.
NOTE: See General Policy No. 7 if item 8.e.
applies.
GENERAL
POLICIES
9. 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
a. Original
expenditure account if the refund is received in the same fiscal year as the
original payment.
b. Miscellaneous
Adjustments account if the original expenditure was
1) Recorded
in a prior fiscal year, and
2) Not
an erroneous transaction, and
3) The
refund or credit resulted from an overpayment other than an item described in
9.c. below.
c. A
current liability account if the original expenditure was
1) Recorded
in a prior fiscal year, and
2) 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
a) Transferred
to a miscellaneous revenue account if the repurchase price is less than the
refund, or
b) Charged
to an appropriate expenditure account if the repurchase price is more than the
refund.
d. Fund
equity if the expenditure was
1) Recorded
in a prior fiscal year, and
2) An
erroneous transaction, and
3) The
amount of the refund is material.
NOTE: See the General Policy No. 7 if item 9.d.
applies.
GENERAL
POLICIES
Whether
or not relocation is for the benefit of the employing agency shall be
determined on an individual basis by the agency head. Promotions may be considered as a benefit to
the employing agency.
Payment
of moving expenses shall be made only with the prior written approval of the
agency head. The written agreement shall
include a listing of the items that will be reimbursed.
a. New
Employee - The State may reimburse a newly appointed employee, excluding
temporary employees, for moving expenses or a portion of these expenses, at the
agency head's discretion, provided the employee agrees in writing to remain in
the employment of the State for a period of one year.
b. Resignation
- If an employee, whose moving expenses (all or part) have been paid, resigns
within 1 year of the move, the agency head may require the employee to
reimburse the agency for a portion of the moving expenses, based on the length
of time the employee worked for the agency after the move.
c. Personnel
Record - Agencies should reimburse the employee using an employee
Expense Reimbursement Document. Then the
agency’s Payroll staff should do a one-time override using DBA code 5700 for
qualified (non-taxable) expenses and/or DBA code 5800 for non-qualified
(taxable) expenses. Using these DBA
codes does not create additional pay for the employee, but correctly records
these amounts for inclusion on the employee’s W-2. A memo(s) signed by both the
agency and the employee, agreeing to the amount of moving expenses to be paid
and the portion of which is taxable, shall be placed in the employee’s
personnel file.
d. Receipts
- Original receipts are required in order to be reimbursed; including closing
statement and invoices from vendors.
e. Eligibility
For Reimbursement - The employee's new job location must be 50 miles farther
from the employee's old residence than the old residence was from the old job
location. If deemed necessary, the
agency head may make a request to the Director of Administrative Services for a
waiver of this requirement. If this
waiver is granted, all related moving expenses will be taxable. In order to be reimbursed for any expenses
under this policy, the expenses must be incurred by the employee no later than
one year from the date the employee is officially transferred to the new duty
station.
f. Taxability
of Reimbursement - Certain reimbursements for Qualified
moving expenses are excluded from income as Qualified fringe benefits under
g. Expenses Qualifying for Reimbursement -
1) Qualified
Moving Expenses (not reportable as
taxable wages).
a) Transportation
of Household and Personal Goods.
i) Actual, reasonable costs shall be
reimbursed for the costs of a commercial mover (including packing and transit
insurance). The payment for the type of
items moved will be at the agency head's discretion.
ii) Actual,
reasonable costs may be paid for a self-move at the agency head's discretion
including rental of personal property (van, trailers, two-wheel carts, etc.)
NOTE: When a commercial carrier is to be used in
g.1.a) above, the employee is to obtain firm bids from a minimum of two (2)
commercial carriers. Acceptance of a bid
will be at the agency head's discretion.
Charges incurred for obtaining bids are reimbursable.
b) Travel
to the New Location. Transportation
costs (by the most direct route) and
reasonable lodging (excluding meals)
as approved by the agency head shall be reimbursed for the employee and all
family members living with the employee at the time of the move. The transportation reimbursement may be the
actual cost or $.565 per mile
[January 1, 2013] and becomes $.56 per mile January 1, 2014. The first $.24 ($.235 effective January 1, 2014) per mile is considered
non-taxable income; any amount over $.24 ($.235
per mile effective January 1, 2014) per mile should be treated as a
Non-Qualified moving expense and is considered taxable income.
c) Costs
to disconnect and reconnect utilities.
d) Costs
of shipping your car and your household pets to your new home.
e) Costs
of storing and insuring household goods and personal effects within any period
of 30 consecutive days after the day your things are moved from your former
home and before they are delivered to your new home.
2) Non-Qualified
Moving Expenses (reportable and subject
to withholding).
NOTE: At the agency
head's discretion, reimbursement may be made for reasonable taxable expenses as
listed below.
a) Travel
to the New Location. Meal expenses may
be reimbursed for the employee and all family members living with the employee
at the time of the move.
b) Pre-move House-Hunting Trips. Transportation costs (actual cost or $.565 per mile effective [July 1, 2013] and becomes $.56 per mile January 1, 2014), reasonable lodging and meal expenses may be reimbursed for the employee and spouse for a maximum of two pre-move house-hunting trips.
c) Temporary
Lodging. Reasonable expenses of
occupying temporary lodging (excluding
meals) in the new job location may be reimbursed for up to 30 consecutive
calendar days or until permanent lodging is established, whichever is
earlier. Under special circumstances,
the 30 consecutive calendar days may be waived.
Agencies should submit a written request to the State Accounting
Administrator explaining the reason for the waiver.
d) Cost
of storing and insuring household goods and personal effects over 30 days after
the day your things are moved from your former home and before they are
delivered to your new home.
e) Miscellaneous
Expenses of Principle Residence Sale/purchase.
Usual and customary expenses may be reimbursed, which may include:
i) Actual realtor's commission for the sale of
the employee's principle residence in the old job location
ii) Recording
Fees
iii) Title/Abstract
Fees
iv) Documentary
Stamp Tax
v) Appraisal
Fee
vi) Credit Bureau
Fee
vii) Survey
Fee
viii) Inspections
NOTE: No reimbursement shall be made for home
improvements, points, loan fees, interest, taxes, liens, etc.
GENERAL
POLICIES
11. Encumbrances - Financial obligations which are chargeable
to a specific biennium's appropriation and for which a part of that
appropriation is reserved. State Accounting
policies on encumbrances are based upon Statutes 81-138.01 through 81-138.04.
a. Valid
encumbrances include:
1) A
purchase order is issued, but the goods and accompanying invoice were not
received and paid during the same biennium;
2) Goods
or services were received, but an invoice has not been received and paid;
3) Goods
or services and an invoice were received, but payment could not be made during
the same biennium;
4) 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
5) A
written agreement for a grant or award to distribute aid was signed but was not
paid during the same biennium.
b. 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.
c. 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.
d. 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.
e. 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.
GENERAL POLICIES
12. Withholding on Nonresident Personal Services - State Statutes
Section 77-2753, R.R.S., 1943 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: consultants, 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.
A) Enter the gross amount currently due to the
payee as a debit using the appropriate agency business unit and expenditure
object.
B) 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:
1. A
portion of the fee is for expenses directly attributable to the service being
performed in Nebraska, or
2. 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
GENERAL POLICIES
13. Uncollectable Amounts - State Statute Section 81-8,297,
R.R.S., 1943, requires that all requests for waiver or cancellation of charges
on behalf of State agencies, boards or commissions be reviewed by the Department
of Administrative Services - Risk Management Division.
14. 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 require an identification number. Agencies may wish to check the Blanket
certificate type which continues in force for until revoked in writing by the
Agency. The "Authorized Signature
of Purchaser" on the Certificate is the agency's authorized
representative.
GENERAL
POLICIES
15. Volunteer/Provider Expenses – State Statute 81-1182.01
allows Agencies, boards and commissions to pay for the reasonable and necessary
expenses for the recruitment, training, utilization and recognition of
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 on an annual basis.
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:
a.1 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.
b.1 Food
and non-alcoholic beverages provided at training and recognition events.
c.1 Providing
tokens of appreciation such as certificates, plaques, pins, flowers or similar
items of nominal value.
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.
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.
Any requested exception to this policy shall be
made in writing to the Director of Administrative Services.
GENERAL
POLICIES
16. Pre-audit - State Statute Section 81-1111, R.R.S., now
allows the DAS Director to authorize agencies to perform their own pre-audits,
subject to monitoring by State Accounting.
A separate Pre-Audit Agreement between State Accounting and the agency,
laying out the terms of the performance of the pre-audit, must be in place for
this authorization. For all agencies not
authorized to perform their own pre-audit, State Statute Section 81-1111,
R.R.S., requires the accounting division to pre-audit and control all payment vouchers
equal to or exceeding
$1,500. Appropriate
charges to agencies will be made by State Accounting to perform these
services. The State Accounting
Administrator has the authority to waive pre-audit
on those vouchers totaling less than $1,500 with the following exceptions:
a. Employee-related
expenses such as:
1) Employee expense
vouchers
2) Direct-bill
lodging and airfare
3) Moving expenses
4) Tuition assistance
5) Employee
recognition programs
b. Expenses
pertaining to conferences including:
1) Food
2) Lodging
3) Honorariums
c. Encumbrance
liquidations between bienniums.
d. The
legislation also provides that the State Accounting Administrator may determine
other audit-sensitive areas. Currently
none have been identified. Sensitive object codes.
To fulfill the Statutory requirement
that State Accounting ensure adequate internal controls exist and agencies are
following proper accounting methods, each month a sampling of vouchers from
selected agencies may be requested for
review by State Accounting. Copies of
the supporting documentation for these vouchers will be required from the
agencies on an as needed basis. The
review may be conducted at State Accounting or at the agency’s accounting
offices. If conducted at State
Accounting, the agency must forward copies of the voucher, invoice or 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 account codes for
purchases required to be 100% pre-audited, etc.
If such problems exist, the agency head will be notified in writing,
summarizing the problems and requesting a response. The response will be considered and if any
changes in the Pre-Audit Agreement process are deemed necessary,
such action will be taken
by the State Accounting Administrator.
GENERAL
POLICIES
17. Lease/Purchase
Agreements -
Section 81-1107, R.R.S., 1943, 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. Refer
to Contact List for the State Accounting
contact for “Review and Approval of Financing Agreements”.
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”.
GENERAL
POLICIES
18. 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:
a. 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.
b. 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.
1) 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.
2) 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.
3) 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.
c. The agency monitors all personal cellular
telephone reimbursements for accuracy.
d.
Agencies will determine
if the usage indicates the need to issue a State owned cellular telephone to
employees.
GENERAL
POLICIES
19. 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 of 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, and lodging 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 Polices - Personal Automobiles or, at July the agency’s
discretion, an automobile may be provided from the Department of Administrative
Services - Transportation Services Bureau.
20.
Electronic Funds Transfer (EFT) - Effective
January 1, 2008, all vendors receiving disbursement document payments of
$50,000 or more should be paid electronically.
Effective June 1, 2008 the amount was lowered to payments at $25,000 or
more. 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 to
electronic vendors. 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 (Link to
Form) is available from State Accounting. Agencies must utilize the updated form marked
Version 10.14.2010. Agencies may contact nst.tmstaff@nebraska.gov 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 - No
agency shall establish any bank account for any purpose without the prior
approval of the State Treasurer and the State Accounting Administrator.
GENERAL
POLICIES
22. 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 on-line 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 - 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
– 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 the 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 located at http://www.das.state.ne.us/accounting/forms/pcfdapp.pdf. The petty cash address book record will be
updated by State Accounting.
25. Warrant Cancellations
– All warrant cancellations shall first be processed through the proper
agency. Agency staff is responsible for
obtaining the warrant and completing the Warrant Cancellation Form. The completed form and the warrant shall then
be sent to State Accounting for further processing. Returned warrants will be physically stored
with the State Treasurer.
If a warrant is not available, the agency shall also complete the Warrant
Cancellation Certification Form and submit both forms to State Accounting. Reasonable efforts to obtain the warrant
should be made before submitting a Warrant Cancellation Certification. Cancellation
Form
26. Duplicate Warrants or Stop Payments
– Agencies shall complete the Request for Stop
Pay/Duplicate Warrant Form or a Request
for Emergency Stop Pay/ Duplicate Warrant when a duplicate warrant is
needed. Agencies must clearly state a
definitive reason for the request of a duplicate warrant (examples: went
through washer, destroyed, etc.) or the request will be returned to the
agency. Warrants cannot be issued
immediately upon receiving the form as the reason for a request of a duplicate
warrant will be researched by State Accounting before a new warrant is issued. See Procedures for Requesting
a Duplicate Warrant.
27. 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 as.stateaccounting@nebraska.gov
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 reasonalble;
· 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.
GENERAL POLICIES
28. 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. (http://das.nebraska.gov/materiel/surplus/fixed-asset/section1.html).
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: http://das.nebraska.gov/nis/training_manuals/fa/L02_T02_01_Post_Cost_To_A_FA/Training%20Guide/Post%20Costs%20to%20a%20Fixed%20Asset_TRAIN.pdf )
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
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.
a. When a new construction project is
complete and all cost 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.
b. 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 EnterpriseOne 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.)
Software Capitalization:
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.
1.
Application
Software Costs to Capitalize:
•
Application
software acquisition and or development costs
•
Costs
directly related to software development, includes:
o
Material
costs
o
Developer
salary & benefit costs
o
Outside
Consultant Costs (including time and related expenses)
o
Project
Team testing
o
Data
conversion software
o
Manager
salary & benefit costs for project oversight if directly related to software development.
2.
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.
3.
Phases
of an Application Software Project
Phases: General
treatment of costs:
*Preliminary Project Stage – Expensed
*Application Development Stage – Capitalized
*Post Implementation/Operation 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” 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” means the stage that begins once the software is put into use. It
includes training and subsequent maintenance of the software.
GENERAL POLICIES
29. 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—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 system.
EnterpriseOne Navigation-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.
A. 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).
B. Vacation leave adjustments - agencies
should use pay type 894 when making
adjustments to prior year (beginning balances) for vacation leave.
C. Compensated time adjustment - agencies should use pay
type 895 when making adjustments to
prior year (beginning balances) for compensated time.
Additional Information:
Agency
Instructions part 2
State
Accounting part 1
31. Termination
Payoff for Employees Working on Federal Grants – To ensure agencies are in compliance with OMB Circular
A-87, Attachment
B, Paragraph 11.d(3), 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 at http://www.das.state.ne.us/nis/trainingmanuals/Payroll , Lesson
5, Pay Type Descriptions.
GENERAL POLICIES
32. Terminated Employee EnterpriseOne ID's - Each
agency shall have a documented procedure to immediately disable the
ENTERPRISEONE 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 Security using the spreadsheet located
at:
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.
GENERAL
POLICIES
33. 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
A. 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
accounting department of the employee’s home agency.
B. 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
utilize the IBT process as a substitute for this policy procedure.
GENERAL
POLICIES
34. UNUSED LEAVE
RECORDED IN ENTERPRISEONE
State
Accounting has adopted the Nebraska Information System (ENTERPRISEONE) 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, 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 – All State agencies depositing State funds
directly into a State Treasury bank account are required to remit a State
Treasurer ENTERPRISEONE 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 – 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 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 web site.
GENERAL POLICIES
37. 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, Section 2c)
Agencies that are authorized to
perform their own pre-audit must have their pre-audit staff trained and
certified by State Accounting.
Certification is required for the pre-audit employee to have
approval/posting authority in the Nebraska Information System. 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 – 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 defines 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. Agencies utilizing the ENTERPRISEONE System –
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. [University and
Colleges won’t be doing the adjustment after July 1, 2009 as they will utilize
SAP.]
· 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.
GENERAL POLICIES
39. 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.
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: Shaping a Culture of Accountability - Memorandum
of Understanding for Internal Controls; five components of internal control
40. Payments for State
Employee Wages – In
accordance with Statute 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 Section 81-1178
shall include duly appointed members of committees, boards and commissions.
41. 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 PFC.
GENERAL POLICIES
42. 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. Charitable contributions to governmental units
are tax-deductible under section 170 (c) (1) of the Internal Revenue Code if
made for a public purpose.
GENERAL POLICIES
43. Recording Utility
Expenses
1.
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.
2.
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 a search type of
“F” from the Address Book contained in EnterpriseOne.
Determine the appropriate facility address book number and use it consistently
for utility invoices for each facility. The vouchers must be
entered into EnterpriseOne 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.
3.
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
|
Object Code |
Description |
Unit of Measure(UM) |
Description |
|
523201 |
Natural Gas |
TR* |
Therm - (100 Cubic Ft)*amended |
|
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 |
|
523206 |
Coal |
TN |
Ton |
|
523207 |
Propane |
GA |
Gallon |
|
523208 |
Steam |
MB |
MMBTU - Million BTU |
|
523219 |
Other Utility |
no common measure |
TRAVEL EXPENSE POLICIES
1. 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.
a. Privately-owned – An 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. (Previously one dollar and twenty nine cents per mile ($1.29)
1-1-2010. 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.
b. 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.
c. Charter flight - Agencies should contact the
Department of Aeronautics to make arrangements for charter flights.
TRAVEL EXPENSE POLICIES
2. Commuting - The
1) Regular place of employment to the
employee's residence.
2) Residence to regular place of
employment.
A. Commuting expenses are defined by the Internal Revenue
Service as those expenses incurred in traveling from one's residence to one's
regular place of employment and 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.
B. 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.
C.
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 the Nebraska Information System (ENTERPRISEONE). 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.
Generally, a state employee whose home is their official
office would not incur any commuting income.
TRAVEL
EXPENSE POLICIES
3. Conference (Attendance by
State Employees)
State employee expenses - Expenses 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 nonalcoholic
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.
TRAVEL EXPENSE POLICIES
4. Lodging - Employees shall report only actual
expenses paid for lodging. Business
telephone calls (Reference 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.
TRAVEL EXPENSE POLICIES
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.
TRAVEL EXPENSE POLICIES
6. Meals
a. 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 $5.00. Per diem type claims should always be questioned. Reference 5 – Substantiation of
Expenses.
1) Breakfast - When an
employee leaves for overnight travel at or before 0630, breakfast may be
reimbursed.
2) Lunch
- When an employee leaves for overnight travel at or before 1100 or returns
from overnight travel at or after 1400, the noon meal may be reimbursed.
3) Supper
- When an employee leaves for overnight travel at or before 1700 or returns
from overnight travel at or after 1900, the evening meal may be reimbursed.
b. One-Day
Travel - At the agency head's discretion, one-day travel meal expenses
(breakfast and supper only) may be reimbursed when it is deemed necessary for
the working conditions of the employee.
Only actual amounts paid for meals may be claimed. No reimbursement may be made for alcoholic
beverages.
NOTE:
Meal expenses incurred in the city or town in which the residence or
primary work location of such employee is located, are not reimbursable, except
as discussed in General Policy, Section 22 and Travel Expense
Policy, Section 3.
The
1) Breakfast - When
an employee leaves for one-day travel at or before 0630 or 1 1/2 hours before
the employee's shift begins, whichever is earlier, breakfast may be reimbursed.
2) Lunch - Noon meals
for one-day travel are not reimbursable.
3) Supper - When an
employee returns from one-day travel at or after 1900 or 2 hours after the
employee's shift ends, whichever is later, the evening meal may be reimbursed.
NOTE: The time limitations set forth in this policy
do not include the time taken for the meal.
TRAVEL EXPENSE POLICIES
Motorcycles
– An employee will be reimbursed for the use of a motorcycle while on State
business (this does not include commuting miles) at the prevailing standard
rate. As of April 1, 2013 the rate is
fifty three and one half cents ($.535) per mile. (Previously forty seven cents
(.47) 1-1-2010)
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
TRAVEL EXPENSE POLICIES
8. Receipts
a.
Detailed receipts are required as
support for all expenditures except immaterial items identified by the Director
of Administrative Services in section b., below. (However, you are required to substantiate
meals and immaterial items, including meals under $5.00, in a log, as described
under Reference 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.
b. Immaterial
items, as referenced above, are vending machine food purchases, parking, tolls,
intra-city bus fares, business telephone calls (Reference 10. Long
Distance Telephone Calls), baggage handling, tips and taxi fares. Tips need not be itemized separately.
c. 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:
1) Cancelled
check;
2) Charge
card slip and signed written explanation; or
3) Subsequently
acquired receipt and signed written explanation.
4)
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.
TRAVEL
EXPENSE POLICIES
10. Long Distance Telephone Calls - Charges for long
distance telephone calls are an allowable state expenditure if:
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:
1)
the reason(s) for which calls will be reimbursed,
2)
the number of calls an employee will be allowed within
a certain time period,
3)
the duration of allowable calls or cost per call,
4)
the relationship to the employee of the person being
called.
State
Accounting shall notify the State agency in writing of approval or
disapproval.
TRAVEL
EXPENSE POLICIES
a. 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.
b. 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. The request must
be:
1) Approved
by the employee’s supervisor,
2) Include the reason for the inability to provide the original
signature,
3) Include
the anticipated length of time of the physical condition, and
4) 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.
|
Accounting Manual Contents | Accounting Home | Nebraska Home | DAS Home |