Accrual and Prepaid Year-End Deadlines

Accrual

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.

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.

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

Example Accrual

  • Office supplies are ordered and received June 28th.
  • Invoice for supplies received June 30th.
  • Supplies are paid for July 6th.
  • Accrual is completed to post the expense back to prior fiscal year.

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

Prepaid

Example Prepaid

  • Conference registration is paid for in June.
  • Conference is attended in August.
  • Prepaid expense is posted into current fiscal year.

*Prepaid expenses are those that require advance payment.

Advance Requests

FORM: Advance Request form - Required

Advances are issued to faculty and staff personnel only. No exceptions are allowed.

  • The payee is the only person allowed to pick up the Advance.
  • $75 is the minimum amount allowed for a Advance.
  • The individual requesting the Advance will be notified via e-mail when the Advance is ready.
  • Receipts and/or any unused cash must be submitted to the Cashier's Office within 60 days of the Advance date. If for any reason the documentation is not received within 60 days, the amount will be deducted from the requestor’s salary in the pay period following the Advance expiration date.
  • Advances are not issued more than 30 days in advance of an event. Contact the Accounting & Finance office if you have questions.

Automobile Expenses

FORM: Mileage Reimbursement form or Travel Expense form

Employees that regularly use their personal automobiles for University business should submit completed forms when requesting reimbursement.

The current mileage rate, effective July 1, 2011, is $0.555 per mile.

  • Use the Mileage Reimbursement form - dates required.
  • Use the Travel Expense Report form for the following: parking, shuttles, tolls, taxi charges, etc.
  • Reimbursements will be processed within five working days of being received in the Accounting and Finance Office.

Business Expenses

FORM: Travel Expense form or Check Request form

Faculty/staff/students of PLNU - complete the Travel Expense form when requesting reimbursement for any business-related expenses incurred during travel for the University.

  • Use this form for the following business expenses: travel, meals or other.
  • Attach all original receipts on an 8 ½”x 11” sheet of paper.
  • The Expense Report should be filled out completely.
  • Reimbursements are processed within five working days of being received in the Accounting and Finance Office.

Faculty/staff/students of PLNU complete the Check Request form for any business-related expenses not associated with travel for the University.

  • Complete a Check Request form
  • Attach all original receipts to the Check Request on an 8 ½” x 11” sheet of paper.
  • You will receive an e-mail when your reimbursement is ready.
  • Reimbursements are processed within five working days of being received in the Accounting and Finance Office.

Deposits

FORM: Deposit form

All deposits, including those for Rrestricted Projects, Agency Funds or Cost Centers, are to be attached to the Deposit form.

  • The Deposit form must be hand delivered to the Cashier’s Counter.
  • All deposits should be in sealed envelopes with the deposit slips attached to the outside of the sealed envelope.

*Deposits are NOT to be delivered via Campus Mail.

Honorarium/Stipend/Independent Contractor

FORM: Honorarium,Stipend,Independent Contractor form

SPECIAL NOTE: Honorarium/Stipend/Independent Contractor payments are to be processed through Accounts Payable and paid via University check only.

Under no circumstance is an individual to receive a cash payment for services, including honorarium, stipend, or independent contractor payments.

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 Request 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 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 or contact Accounts Payable for more information.

*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.

PETTY CASH PROCEDURES

  • Petty cash - no longer available. Please see ADVANCE REQUESTS.

Purchase Order Number

FORM: Purchase Order Request Form

A purchase order is a binding agreement between a vendor and the University.

  • The purchase order request is to be sent via campus mail to the Accounting and Finance Office .
  • Please allow five working days from date of receipt in the Accounting Office for processing.
  • A hard copy of the completed purchase order will be sent via e-mail to the requestor.

Research Account Special Projects (RASP)

FORM: Check Request form or Travel Expense Report form

This account is administered by the Provost Office.

  • When requesting reimbursement from RASP accounts, please attach all original receipts to an 8 ½” x 11” sheet of paper.
  • Reimbursements will be processed within five working days of being received in the Accounting and Finance Office.

Research for Account Transactions

FORM: Research Form.

  • Research on the account will be processed within five business days from receipt in the Accounting and Finance Department.
  • The Accounting and Finance staff will contact you via e-mail with a response. You will also be contacted if additional information is needed to complete your request.

Restricted Projects

FORM: Restricted Project Contract form.

  • Once approved, the Accounting and Finance Office will contact you with the restricted project number.
  • CX permissions will be granted to authorized signers.
  • In addition, please supply a cost center or department number to be used in the event that the restricted project goes over budget.
  • Restricted project contracts will be processed within five working days of being received in the Accounting and Finance Office.

Sabbatical Accounts

FORMS: Check Request form or Travel Expense Report form

Sabbatical accounts are approved and administered by the Provost Office
Please see the faculty handbook for policies regarding sabbatical accounts.

  • The Accounting and Finance Office is notified to set up a sabbatical account by the Provost’s Office.
  • When requesting reimbursement from sabbatical accounts, please submit all original receipts attached to an 8 ½” x 11” sheet of paper. Reimbursements will be processed within five working days of being received in the Accounting and Finance Office.

The Provost will authorize all reimbursements for sabbatical accounts.

Sea Lion Dollars for DEPARTMENT USE

Campus Personnel that bring guests to the cafeteria or Point Break Cafe, for University related business, can pay for these meals using Sea Lion Dollars on a Department ID Card. Following are the procedures for this process:

  • Request a Department ID Card from Student Financial Services.
  • Once the card has been issued, e-mail accounting@pointloma.edu to make the request for Sea 
    Lion Dollars.
  • The e-mail request must be from an authorized signer, as designated on the cost center or restricted project authorization sheet for the particular budget that will be paying for this expense.
  • The e-mail must include the cost center or restricted project, the Department ID Card Number, and the amount you would like to have transferred onto the card.
  • Accounting and Finance will add the Sea Lion Dollars to the Department ID Card.

NOTE:

Personal ID cards are NOT to be used for Sea Lion Dollar transactions that are for University related business. Reimbursements are not authorized for meals paid for on personal ID cards.

Transfer Requests - Cost Center or Restricted Project

FORM: Transfer Request form

A transfer request may be made if there is a change in a charge to the following items:

  • An account reclassification change to a different expense account within a cost center or a restricted project.
  • Another cost center or restricted project should be charged.
  • A cost center has agreed to cover the cost of an event for a restricted project.
  • A restricted project has agreed to help defray the cost of another restricted project.
  • A restricted project has a negative balance and the account responsible for the deficit will be covered by a cost center.

PROCEDURES FOR A TRANSFER REQUEST

  • Use the Transfer Request form to transfer funds from one cost center to another.
  • Use the Transfer Request form to transfer funds from a cost center to a restricted project, or to transfer from a restricted project to a cost center.
  • The cost center or restricted project that is to be charged would be a debit. Note the expense account to be debited.
  • The cost center or restricted project that is to be relieved of this expense would be a credit. Note the expense account to be credited.
  • If a cost center is assisting another cost center with expenses before an event or conference, use the expense account number 6710. (The 6710 account is used for “other expenses.”)

For more help using expense account numbers, please refer to our list: “Most Common Expense Account Numbers.”

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 & Marketing
6312 – Honorarium
6314 – Master Teacher
6316 – Printing Off-Campus
6318 – Photo – Graphics Service
6320 – Other Service (usually associated with an invoice)
6321 – Contracted Services
6323 – Catering
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
6611 – Shredding
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
6732 – Curriculum Development
6904 – Leases
6910 – Books
6911 – Periodicals

Wire Transactions

FORM: Wire Request form and Check Request form

All wire transactions must first be approved by the Director of Accounting.

  • Wire transactions will be processed within five working days of being received in the Accounting and Finance Office.

The requester is notified when the wire is completed.

Frequently Asked Questions

How do you request a PO Number? 
Submit a Purchase Order Request to the Accounting and Finance Office.

How long does it take to receive my reimbursement?
It will take five working days to process your request. You will receive an e-mail when your reimbursement is ready.

Where do I pick up my reimbursement?
The Cashier’s window at Draper Hall. Please note the hours and location at the top of this page.

Where do I find the reimbursement forms for my purchases or expenses? 
Go to the Accounting and Finance Web page and select the forms link. Processing time for all requests is five working days from the day it is received in the Accounting and Finance Office.

How do I get reimbursed for mileage?
Complete the Mileage Reimbursement form and submit it to the Accounting and Finance Office. Processing time for all requests is five working days from the day it isreceived in the Accounting and Finance Office.

How do I get reimbursed for travel expenses? 
Complete the Travel Expense form and submit it to the Accounting and Finance Office. Processing time for all requests is five working days from the day it isreceived in the Accounting and Finance Office.

How do I request a transfer? 
Complete the Transfer Request form and submit it to the Accounting and Finance Office. Processing time for all transfers is five working days from the day it isreceived in the Accounting and Finance Office.

How do I get an advance? 
Complete Advance Request form and submit it to the Accounting and Finance Office. The minimum amount for an advance is $75.

What if I have a question about an expense item charged to my cost center or restricted project account? 
Complete a Research Form and send it to the Accounting and Finance Office.

What types of receipts are required for Proper Expense Substantiation? 
Original receipts with the date, amount and business purpose of each expense. Meals and/or entertainment, must also include the place (e.g. name of restaurant), and the names of any other persons for whom expenses were paid by the employee. We do not accept loose receipts. Attach them to an 8 1/2” x 11” sheet of paper.

What if the amount showing up on my budget report does not 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 a Check Request form for the amount of the books/supplies.
  • Accounting and Finance calculates the current sales tax rate for this purchase.
  • The cost center or 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

Account
A four-digit suffix used with the cost center or restricted project number to designate the classification 
as an asset (1xxx), liability (2xxx), net asset (3xxx), revenue (4xxx), or expense (6xxx).

Accounts Payable:
Accounts Payable is the department that processes all non-payroll checks for the University. This includes reimbursements, vendor payments, etc.

Accruals
Recognize revenue when earned rather than when cash is received and recognizing expenses when incurred rather than paid.

Asset
The resources of the University; the probable future economic benefits obtained by the University as a result of past transactions or events.

Chart of Accounts
A listing of all departments and accounts in the general ledger system.

Cost Center
A four-digit code that identifies a collection of accounts for a specific identity such as an administrative office, academic department, center, or institute. The numbers begin with 5 (5XXX).

Endowment Fund
Fund where a donor or other outside agency has stipulated, as a condition of the gift instrument, that the principal is to remain intact in perpetuity and invested for the purpose of producing present and future income which may be expended or added to the principal.

Expense
The cost associated with managing your Cost Center or Restricted Project. By classifying each expense, we are able to accurately report the activity of each cost center and restricted project. The classification of expenses is (6XXX). Please see Most Common Expense Account Numbers.

Fiscal Year
The University’s financial statements and accounting system are based on the fiscal year, July 1 through June 30.

Fund
A two-digit number that identifies the types of account to be charged. These fund numbers are typically 10, 12, 31 or 47.

Fund Accounting
The procedure by which resources for various purposes are classified for accounting and reporting purposes. This is done in accordance with regulations, restrictions or limitations imposed by sources outside the institution, or in accordance with directions issued by the Board of Trustees.

Gift Donations
Charitable contributions in the form of cash, non-cash gift, stock or bequest.

Net Assets
The residual interest in the assets of an entity that remains after deducting its liabilities.

General Ledger
The system in which the balance sheet accounts (assets, liabilities and net assets), along with summaries of revenues and expenses for the entire University are maintained. Assets = Liabilities + Net Assets

Honorariums
A payment or an award granted in recognition of a special service. A current W-9 form is required.

Independent Contractor
A non employee who provides products or services to the University; doing business as a sole proprietor. A current W-9 form is required for the payee.

Journal Entry
An accounting transaction that records activity. Some examples include but are not limited to: telephone charges, copy charges, maintenance, and reclassification entries with a purpose and supporting documentation.

Liability
The claims of creditors against an entity's resources.

Operational Current Fund
Those economic resources of the University that are expendable for the purpose of performing the primary missions of the institution and are not restricted by external sources or designated by the Board of Trustees for other than operational purposes.

Purchase Order
A binding agreement between a vendor and the University.

Restricted Project Number
A specific account number that records income and expenses for a project. This fund is designated by the fund number 12 and a four-digit project number.

Revenue
An increase in net assets (i.e. difference of revenue - expenses) that results directly from providing products or services to customers during a specific period.

Stipends
A fixed or regular payment for services rendered. A current W-9 form is required for the payee.