The Unit or County Director is responsible for the appropriate use of University funds. It is important the individual review the eReports (or bank statement for field office checking accounts) each month, paying particular attention to cash, budget balance, payroll, honoraria, and travel reimbursements to employees in the unit.
To verify the integrity of the accounting system and financial control procedures, OSU Extension funds are subject to audit by: OSU Internal Audit, OSU external auditors (an outside firm hired by the University), various funding agencies, State of Ohio, Internal Revenue Service, NIFA-USDA
All policies apply to all types of University funds and all payment methods including field office bank accounts. However, the individual account restrictions must always be kept in mind (e.g. donor restrictions on a development account, or federal policies for federally-funded programs).
Pre-approval is required on all expenditures. As a Director you are required to establish an Internal Control structure on how those pre-approvals will take place (ex. always written, verbal, e-mail, written when expense is over $100). It is recommended that you write down your policy and share this with your staff.
Post-approvals are required on all expenditures. Usually an electronic approval through a University Accounting system is required but sometimes an original or e-mail signature may be sufficient.
As a new Director you will be asked to complete the Delegation of Approval Authority form on the Business Office Web site. http://osuebusiness.osu.edu/forms.php This certifies that you understand University policies and agree to follow them. This is kept on file in the Business Office.
Segregation of Duties
For every transaction you must have an initiator and an approver. This ensures segregation of responsibilities and helps to deter fraud. Below is a list of common fiscal responsibilities. Work through this in your office to decide who will be handling the duties of these functions.
University Purchasing Policies and Expenditure policies
All University policies apply to Extension funds. See the Business Office site and the Office of Business and Finance for additional information.
OSU Extension Business Office Web site: http://osuebusiness.osu.edu/policiesprocedures.html
Office of Business and Finance: http://www.busfin.ohio-state.edu/policies/default.aspx
Basic Accounting functions of a Fiscal Employee
Most Fiscal employees when they start at the University will find they are required to do a certain number of accounting functions. Below you will find a basic outline of those functions.
Every office is different so it is important to establish who does what in your office when starting a new position. Sometimes you may be the initiator and sometimes you might be the Approver/Reviewer and sometimes you may serve as a liaison between the initiator and the approver.
Take a moment to sit down with your office and fill in the appropriate names in the tables.
Identify an Initiator and an Approver for each of these transactions:
- Purchasing – via eRequests
- Purchasing – via Checking Account (for field offices only)
- Accounts Payable – approve invoices in PeopleSoft
- Accounts Payable – maintains payment documentation (i.e. PCard, Receipts, Packing slips)
- Accounts Receivable – Records cash/checks/credit cards received
- Accounts Receivable – Deposits cash/checks/credit cards received
- Accounts Receivable – Tracks balances due from customers
- Travel – Submits monthly mileage
- Travel – Obtains travel numbers
- Travel – Submits travel reimbursements
- Inventory – Maintains capital equipment records
- Inventory – Maintains non-capital equipment records
- Reconciliation – Reconciles eReports
- Reconciliation – Reconciles checking accounts (for field offices only)
- General Ledger – Submits corrections on eReports
- General Ledger – Tracks fund balances and activity on funds
- Grants and Contracts – Tracks and submit expenses on grant and contract budgets
- Grants and Contracts – Reconciles activity on grant and contract budgets
- Bank Account Maintenance – Submit sales tax report monthly (for field offices only)
- Bank Account Maintenance – Makes correcting entries on checking accounts (for field offices only)
- Bank Account Maintenance – Changes check signers on checking account (for field offices only)
2013 Revisions by: Cynthia Buxton