FINANCE
To:
DEANS & HEADS OF DIVISION HEADS OF SCHOOLS SECTION HEADS
FINANCE CIRCULAR 02/04 18 May 2004
Updates to UNSW Accounts Payable Policy and Procedures Recent audits of UNSW Accounts Payable transactions have identified instances where budget units are not complying with UNSW’s policies and procedures and areas where the policies and procedures need to be strengthened. The resulting changes to the Accounts Payable processes are detailed below: 1. Vendor Creation/Change Request Form The New South Financials Vendor Creation/Amendment Form has been amended to meet additional requirements and has been updated on the FSD Web page, http://www.fsd.unsw.edu.au/ under “Forms.” The additional requirements are: - For electronic telegraphic transfer payments, the BSB and bank account details of the supplier must be provided on the supplier’s original letterhead. Only original Vendor Creation/Amendment form is to be sent to Supplier Management. Faxed copies cannot be accepted for processing. Any request for vendor creation or amendment must be completed by a requestor and approved by another staff member. Budget units must provide EFT Bank account details when requesting a new vendor to be created in NSS Financials.
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2. Timely Payment of Supplier Invoices To enable suppliers’ invoices to be processed in a timely manner and to meet payment terms, it is essential for budget units to send invoices to Accounts Payable as soon as the goods have been received and are working in a satisfactory manner
UNSW SYDNEY NSW 2052 A U S T R A L I A Telephone: +61 (2) 9385 3000 Facsimile: +61 (2) 9385 3707 Email: p.quayle@unsw.edu.au A B N 5 7 1 9 5 8 7 3 1 7 9
3. Original Invoices and Receipts Required for Reimbursements To enable Accounts Payable to process payments to suppliers or reimbursements to staff, only original documentation such as invoices and/or receipts can be accepted for processing. Where originals are unavailable and copies are provided as supporting documentation, it is essential to provide an explanation. Where originals and copies are unavailable, a Statutory Declaration is required with a breakup of the expenses incurred. This Statutory Declaration must be signed and be approved by an appropriate financially delegated officer. 4. Accountability and Responsibility for Using UNSW Purchasing Cards Supervisors and managers are responsible for the oversight and monitoring of purchasing card transactions made by cardholders in their areas of responsibility. Whilst the Purchasing Card Transaction Report is provided quarterly to Deans and Heads of Divisions by Supplier Management, best practice is that the report should also be generated and reviewed by the cardholder’s immediate supervisor or manager on a regular basis. Faculty Executive Officers or designates of Divisional Heads are also required to undertake regular “spot checking” of transactions to ensure goods and services purchased are only for UNSW use and not for personal use, that transactions are not split to avoid exceeding the transaction limit of the card and to satisfy themselves that the purchases represent best value for money. Cardholders should ensure that expenses already processed through Non Order Payment Forms (AP01) or purchase orders are not duplicated using UNSW Purchasing Cards. For all purchases, original tax invoices must be obtained. Tax invoices and all other documentation (receipts, packing slips, cash register tapes, original dockets etc) relating to purchasing card transactions must be retained by the cardholder and be available for audit review in the school/budget unit for a minimum of six (6) years. Upon resignation or transfer of Purchasing Card Holders, all documentation is to be provided to the Purchasing Card reconciling officer for filing and when a reconciling officer resigns/transfers, the documentation is to be passed to the replacement.
Where purchasing card holders (under exceptional circumstances) reconcile their own transactions, on resignation or transfer, all documentation is to be provided to the appropriate managers. In instance where an area is disestablished the documentation is to be forwarded to the next level within the organisation.
5. Approval of Entertainment Expenses The account types to use for processing entertainment expenses in New South Financials are 6457 (FBT Payable) and 6458 (FBT Exempt). For all entertainment expenses it is essential to identify the number of staff and the number of non staff members involved. The staff portion is subject to FBT and is to be debited to account 6457, whilst the non staff portion is not subject to FBT and is to be debited to account 6458. For further clarification, refer to Finance Circular 15/00, dated 28 July 2000, titled “A New Tax System: Accounting Treatment of Entertainment Expenses.” 6. Segregation of Duties for Payments Over $2,000 For payments over $2,000, a greater degree of segregation of duty is required. At least two officers must be involved in the payment process relating to a purchase order or processing a Non Order Payment Form. 7. Non Order Payment Forms (AP01) The Non Order Payment Form has been amended to meet additional requirements and has been updated on the FSD Web page, http://www.fsd.unsw.edu.au/ under “Forms.” The amendments now require: 1. Original invoices to contain an invoice number and invoice date; 2. A checklist is to be confirmed and signed off by the approving financially delegated officer; 3. A statement that the expenditure is declared free of any conflict of interest is now included on the AP01 form. 8. Asset Purchases Using Non Order Payment Forms (AP01) If a payment relating to an asset is made using a Non Order Payment Form, a check should be made to ensure the asset is recorded correctly and against the appropriate Asset Management Unit and Asset Profile. Each asset item should be shown separately and must not be consolidated into an overall total. Further information on the matters addressed in this circular may be obtained from Phil Quayle, Manager, Supplier Management whose contact details are provided at the bottom of the first page of this circular.