Accounts Payable

The PLNU accounting staff receives all reimbursement requests. Please see the following link for additional information on expense reimbursements: Accounting.
Requests of $75 or more are processed and forwarded to Accounts Payable for check issue.
Requests under $75 are processed by Accounting as cash payouts.
For employees who are working off campus (satellite campuses), all requests, regardless of amount, are issued as checks and mailed to the appropriate campus unless other arrangements have been made.

General Information - Submitting Requests

All requests may be sent via inter-campus mail or delivered to Draper Hall, Accounting and Finance (downstairs).
Completed requests will be processed within five business days of receipt in the Accounting and Finance Office. Incomplete requests will be returned to the requestor.
Check-run schedule: The Accounts Payable team issues checks three times each week: Tuesday, Thursday and Friday. A campus-wide e-mail will be sent to notify you when exceptions are made to accommodate campus holidays.

PROCEDURES

Complete the correct form:

Expense Report: Use this form to reimburse any business-related expenses incurred during travel for the university. Expense Report form.
Check Request: Use this form to request a check for expense reimbursements (not related to university travel), membership renewals, subscriptions, vendor payments, etc. Check Request form .
Honorarium/Stipend/Independent Contractor: Use this form to request a check for payment of goods and/or services provided by and individual or independent contractor. Honorarium/Stipend/Independent Contractor form . More information .
Mileage Reimbursement: Use this form to request reimbursement for mileage only. If you have additional travel-related expenses to include, please use the Expense Report form instead. Mileage Reimbursement form.
Approvals Required: A full signature of the individual authorizing payment is required to match the Cost Center Authorization form or Restricted Project Authorization contract. Initials will not be accepted. Only those individuals having budget responsibility, or individuals to which that responsibility has been delegated and documented (on the Cost Center Authorization form or Restricted Project Authorization contract), may approve requests.

Individuals cannot approve their own reimbursements: In these situations, the individual’s immediate supervisor must approve the request. Also, the person signing must be listed on the Cost Center Authorization form or Restricted Project Authorization contract.

Account Coding: All requests must be coded with the correct cost center or restricted project number and the most appropriate expense account number. For a list of the most commonly used expense account numbers, please see Commonly Used Expense Account Numbers.
Return check to: Please choose one of the options listed: “Send via US Mail” or “e-mail (insert name) when ready.” If the e-mail option is chosen, we will e-mail the designated person when the check is ready to be picked up at the cashiers window.
Remittances: Any forms to be included with the check when mailed should be paperclipped to the invoice. The Accounts Payable team will be responsible for enclosing the document(s) with the check. When submitting subscriptions, membership dues, or any other payment requests without an invoice number, a copy of the invoice must be attached to send with the payment. This will assist the vendor in crediting the university with payment of the invoice. Any requests submitted without a copy to be mailed will be returned to the requestor.

Honorarium/Stipend/Independent Contractor

SPECIAL NOTE: Honorariums are to be processed through Accounts Payable and paid via university check only. Please use the Honorarium/Stipend/Independent Contractor form to request payment to an individual. Under no circumstances is an individual to receive a cash payment for an honorarium, stipend or independent contractor payment.

Honorarium

Examples of honorarium payments are:

Payment for a special lecture or short series of lectures.
Payment for conducting a seminar or workshop of no more than a two-week duration.
Payment for a guest speaker at a commencement exercise or similar function.
Payment given to a professional person for services for which fees are not legally or traditionally required. If there is a contract or invoice, please see independent contractor payment .

Honorarium payments may NOT be made for an independent consultant (an individual or organization outside the university of proven professional or technical expertise) in an independent contractor relationship.

Stipend

A fixed or regular payment to a person for services rendered on behalf of the university.

Independent Contractors

Examples of independent contractor payments are:

Payment for services provided to an individual for: cleaning, repair work, painting, construction, piano tuning, etc.
Payment for attorney or medical services.
Payment for a guest speaker or performer where there is a contract, invoice or agreed upon rate.
A business is unincorporated (not a corporation).

PROCEDURES

Honorarium, stipend and independent contractor payments to university employees are subject to withholding for federal and state income taxes, as well as social security taxes, and must be paid through payroll. Please submit the request to Accounting and Finance for budget authorization. Your request(s) will then be forwarded to payroll.
Honorarium, stipend, and independent contractor payments to non-university employees are requested on an Honorarium/Stipend/Independent Contractor form .
You may contact Accounts Payable to see if we have an ID number in CARs for the individual. If not, we must have a completed IRS Form W-9 form on file in order to process all honorarium, stipend and independent contractor requests.
Honorarium, stipend and independent contractor payments are payable to individuals only, not to a business (individuals may have a dba*).
If the payee resides outside of California, there may be state tax withholding requirements. Please see http://www.ftb.ca.gov/individuals/wsc/entFaqs.html for information on payments made to out-of-state payees.

*dba (doing business as) – Independent contractors are individuals who operate their own businesses. They are unincorporated and file their income taxes using their social security number or individual tax ID number. These individuals may or may not have a business name. For example: John Smith dba John Smith Tree Trimming Services.

***Please contact Accounts Payable (x. 2377) for information on foreign payees.

Purchase Order Invoice Payments

Purchase order numbers are issued through Accounting. Please see the following link for information on how to get a purchase order number. Purchase Orders .

Invoices received for goods and/or services issued on a PLNU purchase order do not require a check request.
A change order is required (processed through Accounting) if the unit cost of any item and/or service exceeds the amount shown on the purchase order by 10 percent or more.

PROCEDURES

Vendors are instructed to address all purchase order invoices as follows:

Point Loma Nazarene University
ATTN: Accounts Payable
3900 Lomaland Drive
San Diego, CA 92106

The original requestor of the purchase order will receive an e-mail similar to the example below:

Example

REMINDER: We do not need a check request for purchase order invoices. The signature approval process was completed when the original purchase order request was submitted.
“OK TO PAY”: Please sign the actual invoice, confirming that the order for goods and/or services was received and the order was completed to your satisfaction.
Send the invoice(s) to Accounting and Finance, ATTN: Accounts Payable.
Accounts Payable will process the payment and mail the invoice(s) directly to the vendor.

***If the invoice is sent directly to the department requesting goods and/or services, please follow the steps above (starting with “OK TO PAY”).

Student Account Disbursements

The Accounts Payable department issues checks for student account disbursements. Please see the following link for additional information on how to request a student account disbursement: Student Financial Services.

Vendor Payments

Vendor Payments include

Memberships
Subscriptions
Conference registrations (not paid by employee)
Cell phone statements
Goods/services provided by a corporation
Honorarium/stipend payments
Independent contractor payments

PROCEDURES

Approvals Required: A full signature of the individual authorizing payment is required to match the Cost Center Authorization sheet or Restricted Project Authorization contract. Initials will not be accepted. Only individuals with budget responsibility, or individuals to which that responsibility has been delegated and documented (on the Cost Center Authorization form or Restricted Project Authorization contract), may approve requests.
Individuals cannot approve their own reimbursements: In these situations, the individual’s immediate supervisor must approve the request. Also, the person signing must be listed on the Cost Center Authorization form or Restricted Project Authorization contract.
Account Coding: All requests must be coded with the correct cost center or restricted project number and the most appropriate expense account number. For a list of the most commonly used expense account number please see Commonly Used Expense Account Numbers.
Return check to: Please choose one of the options listed: “Send via US Mail” or “email (insert name) when ready.” If the e-mail option is chosen, we will e-mail the designated person when the check is ready to be picked up at the cashiers window.
Remittances: Any forms to be included with the check when mailed should be paper-clipped to the invoice. The Accounts Payable team will be responsible for enclosing the document with the check. When submitting subscriptions, membership dues, or any other payment request without an invoice number, a copy of the invoice must be attached to send with the payment. This will assist the vendor in crediting the university with payment of the invoice. Any requests submitted without a copy to be mailed will be returned to the requestor.

Accrual/Prepaid and Year-End Deadlines

Point Loma Nazarene University operates on the accrual basis of accounting, meaning we record expenses and revenue in the period in which the expense or revenue take place.

Accruals are usually received and posted until the third week in July. An e-mail will be sent out in the last week of June to the entire campus explaining the year-end and accrual deadlines.

Towards our Fiscal Year End (June 30), this becomes especially important because purchases are often made in one fiscal year, and the invoice is received and paid in the next fiscal year. This is where accruals are posted to correctly report the expense into the appropriate fiscal year.

Example #1: Accrual

Office supplies are ordered and received in June (FY 07/08).
Invoice for supplies is received and paid in July (FY 08/09).
Accrual is completed to post the expense back into fiscal year 07/08.

Prepaid expenses are those that require advance payment. This is especially significant when an expense is paid now for something taking place in the next fiscal year. This is where a prepaid journal entry is completed to correctly report the expense into the appropriate fiscal year.

Example #2: Prepaid

Conference Registration is paid for in June (FY 07/08).
Conference is attended in August (FY 08/09).
Prepaid journal entry is completed to post the expense into fiscal year 08/09.

Example #3: Prepaid

Airfare is paid for in May (FY 07/08).
Flight is scheduled for August (FY 08/09).
Prepaid journal entry is completed to post the expense into fiscal year 08/09.

***Fiscal year is determined by when the item or service is received, not when the item or service is paid for.

America’s Christian Credit Union

Corporate credit cards can be issued to departments by submitting a request to Accounting and Finance, Attn: University Controller. The request must come from a director or department dean and must specify the intended use.

Card Holder/Department Responsibilities

The department requesting the card will designate a contact to which we can e-mail the monthly statement. This e-mail (see sample e-mail below) will give the date we need to have receipts submitted by in order to avoid late fees and finance charges.

We receive all the statements in one batch. The first month, the credit union may send the statement directly to the department, in which case we ask that you send it our way as soon as possible. After that, you should be on the same billing cycle as the rest of campus.
We receive the statements and send the designated department contact a copy via e-mail. It is recommended that a system of organization be established by the department for keeping track of purchases and receipts.

If the card is used to make internet purchases, the vendor may or may not send an actual credit card receipt. Please make sure and print out the e-mail confirmation/receipt that most companies send for those types of transactions. If this is the case, the e-mail confirmation of the order from the vendor (which usually has the charge amount, shipping and handling, and sales tax) will be used in lieu of a credit card receipt to substantiate the purchase.

Please indicate on each receipt the budget or restricted project number the transaction should be charged to. Tape all receipts to an 8 ½ x 11” sheet of paper and attach it to a completed check request payable to America's Christian Credit Union. Please see the following link for further information: Vendor Payments .

We process completed requests and send overnight (via UPS or FedEx) one check each month to America’s Christian Credit Union. This insures that all accounts are paid by the statement due date.

SAMPLE E-MAIL : The attached statement was received by the Accounting and Finance office 01/30/08. As you will note, payments are due 02/11/08. In order to have these payments mailed out on time (to avoid late fees and finance charges), we need to have check requests and receipts returned to our office no later than:

DUE IN The Accounting and Finance office: Noon on 02/05/2008.
Please let me know if you have any questions. Thank you for your continued assistance!

Most Common Expense Account Numbers

The following is a list of some of the most commonly used expense account numbers. Please feel free to use these when completing your check requests or expense reports. Please note: All requests are reviewed by the Accounting and Finance office and some expense account numbers may be changed when reviewing requests.

ACCOUNT NUMBER AND ACCOUNT NAME

6304 – Consultants
6305 – Computer Software
6307 – Laundry
6308 – Legal Counsel
6310 – Advertising
6312 – Honorarium
6314 – Master Teacher
6316 – Printing Off-Campus
6318 – Photo/Graphics Service
6320 – Other Service (usually associated with an invoice)
6321 – Contract
6404 – Supplies
6405 – Film and Video Purchase
6406 – Postage
6408 – Repair/Parts/Service
6410 – Gasoline and Oil
6414 – Electrical Supplies
6602 – Telephone-Long Distance
6603 – Fax Charges
6604 – Telephone – Other Service
6605 – Telephone – Monthly Charges
6610 – Water and Sewage
6702 – Membership (in PLNU's name)
6703 – Membership (in individual's name)
6704 – Travel – Meals and Lodging
6705 – Local Meals and Entertainment
6706 – Workshop/Seminar/Conference
6708 – Travel – Auto and Air
6710 – Other Expenses
6722 – License Fees
6724 – Maintenance – Equipment
6726 – Maintenance – Other
6728 – Rentals – Contract
6904 – Leases
6910 – Books
6911 – Periodicals

Frequently Asked Questions

How long will it take to process a payment request?
Once received by Accounting and Finance, all requests are processed within five business days; however, exceptions are made to accommodate university holidays.

	Will Be Ready On: (Unless PLNU Holiday)
Monday	Friday (same week)
Tuesday	Tuesday (following week)
Wednesday	Tuesday (following week)
Thursday	Thursday (following week)
Friday	Friday (following week)

In the event of a university holiday, a campus-wide e-mail will be sent out with the details of the modified check-run schedule.

What constitutes an “incomplete” request? And why was it returned to me?
An incomplete request is one that is missing an authorized signature, budget (cost center/restricted project) information, adequate documentation, or receipts.

Please keep in mind that each request processed by Accounting and Finance is subject to scrutiny during our annual audit. Therefore, if something is missing, the request and all attached documentation will be returned to the person listed on the line labeled, “requested by.”

I have signature authority, can I sign my own reimbursement?
You cannot be the only signature on the “Approved By” line for your own reimbursement requests. You must have your direct supervisor’s signature, as designated on the Cost Center Authorization form or Restricted Project Authorization contract. This policy applies to everyone.

Why does the mileage rate change? How is the rate change determined?
The university's mileage reimbursement rate is determined by using the current IRS Standard Mileage Rate. The rate typically changes each year on January 1. A campus-wide e-mail will be sent out to address all mileage rate changes.

What if t he amount showing up on my budget report doesn’t match the amount I show the check request was submitted for?
It is common for the discrepancy to be related to sales tax. Many out of state vendors fail to charge California sales tax. The university is not exempt from paying sales tax. In fact, if an out of state/internet vendor does not charge us sales tax, we are obligated to pay this tax directly to the Franchise Tax Board.

Example : Books/Supplies ordered through Amazon.com

Books were purchased from Amazon.com on Professor J’s personal credit card.
Professor J submits an Expense Reimbursement Request form for the amount of the books/supplies.
Accounting and Finance calculates the current sales tax rate for this purchase.
The cost center/restricted project on the request is charged the amount of the books/supplies plus the calculated sales tax.
Accounting and Finance sends all calculated sales tax transactions to the Franchise Tax Board on a quarterly basis.
The amount that will show up on budget review and/or budget reports will be the combined total (books/supplies + sales tax).

Glossary of Terms

Accrual:
Recording an expense or revenue in the period (fiscal year) in which the expense or revenue took place. Example :

Office supplies are ordered and received in June (FY 07/08).
Invoice for supplies is received and paid in July (FY 08/09).
Accrual is completed to post the expense back into fiscal year 07/08.

***Fiscal year is determined by when the item or service is received, not when the item or service is paid for.

Cost Center Authorization Sheet:
A form documenting who is allowed to sign for a particular cost center. The information provided on this form includes: effective date, cost center number, department name, director and/or department chair (name typed and accompanied by signature), administrator (name typed and accompanied by signature), co-signers (name typed and accompanied by signature) and amount authorized to sign for.

Fiscal Year:
The university’s financial statements and accounting system are based on the fiscal year (July 1 – June 30), rather than the calendar year.

Honorarium:
An honorarium is a payment or award granted to an individual in recognition of a special service.

Independent Contractor:
A non-employee who provides products or services to the university; doing business as a sole proprietor (not incorporated).

IRS Form W-9:
Request for Taxpayer Identification Number and Certification. This form is used to collect necessary information on all payees (individuals, corporations, partnerships, etc.) and must be completed before we can issue payment.

***Please contact Accounts Payable (x. 2377) for information on foreign payees.

Prepaid expenses:
Expenses that require advance payment. This is especially significant when an expense is paid now for something taking place in the next fiscal year. This is where a prepaid journal entry is completed to correctly report the expense into the appropriate fiscal year.

Example #1 : Prepaid

Conference registration is paid for in June (FY 07/08).
Conference is attended in August (FY 08/09).
Prepaid journal entry is completed to post the expense into fiscal year 08/09.

Example #2 : Prepaid

Airfare is paid for in May (FY 07/08).
Flight is scheduled for August (FY 08/09).
Prepaid journal entry is completed to post the expense into fiscal year 08/09.

***Fiscal year is determined by when the item or service is received, not when the item or service is paid for.

Stipend:
A fixed or regular payment for services rendered.

Point Loma Nazarene University

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