city & county of san francisco – office of the …...city & county of san francisco – office of...

CITY & COUNTY OF SAN FRANCISCO – OFFICE OF THE CONTROLLER

7/1/2016 Accounting Policies & Procedures

Ben Rosenfield, Controller Contact: Jocelyn Quintos, [email protected], 415-554-6609

mailto:[email protected]

City & County of San Francisco – Office of the Controller

A C C O U N T I N G P O L I C I E S & P R O C E D U R E S

Page 1

City & County of San Francisco – Office of the Controller A C C O U N T I N G P O L I C I E S & P R O C E D U R E S

Contents

1 | OVERVIEW ......................................................................................................... 21

1.1 | Purpose of this Document ............................................................................................... 21

1.2 | Roles and Responsibilities .............................................................................................. 21

1.3 | General Principles ........................................................................................................... 23

1.4 | Governing Laws, Rules, and Regulations ..................................................................... 24

1.5 | Revisions and Updates ................................................................................................... 24

1.6 | Exceptions to this Policy .................................................................................................. 24

1.7 | Internal Controls .............................................................................................................. 25

| Internal Control Questionnaire ..................................................................................................... 30 1.7.1

2 | BUDGETING & APPROPRIATIONS .................................................................... 37

2.1 | Overview .......................................................................................................................... 37

2.2 | Budgeting* ........................................................................................................................ 37

2.3 | Appropriations* ............................................................................................................... 37

| Automatic Appropriations ............................................................................................................. 38 2.3.1

| Supplemental Appropriations....................................................................................................... 38 2.3.2

| “De-Appropriation” of Capital Projects- ................................................................................... 38 2.3.3

2.4 | Cost Allocation* ............................................................................................................... 38

2.5 | Surplus Transfers .............................................................................................................. 38

| Controller’s Office Surplus Transfer Guidelines ........................................................................ 38 2.5.1

| How Departments Request Surplus Transfer .............................................................................. 40 2.5.2

| Controller’s Office Review of Surplus Transfers ........................................................................ 46 2.5.3

| Reporting of Surplus Transfers ..................................................................................................... 46 2.5.4

| Related Administrative Provisions of the Budget Ordinance .................................................. 47 2.5.5

| Surplus Transfers Frequently Asked Questions (FAQs) ............................................................. 49 2.5.6

2.6 | Reserves* .......................................................................................................................... 51

| Release of Reserves ....................................................................................................................... 51 2.6.1

2.7 | Budget Corrections* ........................................................................................................ 51



Page 2

| Budget Correction vs. Surplus Transfer ....................................................................................... 51 2.7.1

2.8 | Midyear Actions* ............................................................................................................. 51

| Budget Cuts ...................................................................................................................................... 51 2.8.1

2.9 | Reporting* ........................................................................................................................ 51

| Calculation of Fund Balance ......................................................................................................... 51 2.9.1

| Negative Fund Balance ................................................................................................................. 51 2.9.2

3 | CONTRACTS & ENCUMBRANCES ...................................................................... 52

3.1 | Overview .......................................................................................................................... 52

3.2 | Contracting Rules & Regulations, Admin. Code Chapter 6* ..................................... 52

| General Contracting Procedures ................................................................................................. 52 3.2.1

| Consultant Contract Requirements Guide ................................................................................... 53 3.2.2

| Formal Construction Contract Requirements Guide .................................................................. 54 3.2.3

| Formal Construction Contract Processing Timeline .................................................................... 56 3.2.4

| Informal Construction Contract Requirements Guide ................................................................ 58 3.2.5

| Informal Construction Contract Processing Timeline .................................................................. 60 3.2.6

3.3 | Contracting Rules & Regulations, Admin. Code Chapter 21* ................................... 62

| Scope ................................................................................................................................................ 62 3.3.1

| Definitions ......................................................................................................................................... 63 3.3.2

| Reg. 21.03(a): General Authority of the Purchaser of Supplies: Approval of Purchases65 3.3.3

| Reg. 21.03(e)(3): Dollar Limit for Optional Equipment in Vehicles ........................................ 66 3.3.4

| Reg. 21.03(e)(5): Definition of Specialized Vehicles ............................................................... 67 3.3.5

| Reg. 21.03(j): Information Technology (IT) Purchases .............................................................. 67 3.3.6

| Reg. 21.05(b): Procurement of Professional Services .............................................................. 67 3.3.7

| Reg. 21.06(c): Other Electronic Transactions .............................................................................. 67 3.3.8

| Reg. 21.3(b): Competitive Sealed Bidding: Bid Opening ...................................................... 68 3.3.9

| Reg. 21.3(d): Correction, Withdrawal, or Rejection of Bids; Cancellation of Awards ...... 69 3.3.10

| Reg. 21.3(g): Additional Purchases ............................................................................................. 70 3.3.11

| Reg. 21.3(i): Bid Protests ............................................................................................................... 71 3.3.12

| Reg. 21.5(a): Other Purchases: Commodities & Services Less Than $50,000 ................... 72 3.3.13

| Reg. 21.5(b): Sole Source ............................................................................................................. 73 3.3.14

| Reg. 21.5(c): Perishable Foods ..................................................................................................... 76 3.3.15

| Reg. 21.5(d): Proprietary Articles ............................................................................................... 77 3.3.16

| Reg. 21.5(e): Pilot Project ............................................................................................................. 78 3.3.17

| Reg. 21.6: Multiple Low Offers .................................................................................................... 78 3.3.18

3.4 | Becoming a City Vendor ................................................................................................ 79

| Roles and Responsibilities .............................................................................................................. 81 3.4.1

| Vendor Compliance Status ..........................................................................................................102 3.4.2

| Security and Internal Controls ....................................................................................................109 3.4.3



Page 3

3.5 | Technology Marketplace ............................................................................................. 110

| Overview and Contracting Tiers ................................................................................................110 3.5.1

| Hardware, Software and Maintenance ....................................................................................111 3.5.2

| Professional Services ....................................................................................................................116 3.5.3

| Tier 3: Micro-LBE Set Aside .........................................................................................................121 3.5.4

| Exceptions and Restrictions in Using Technology Marketplace .............................................124 3.5.5

| Technology Store Fee ...................................................................................................................124 3.5.6

3.6 | Blanket Purchase Order, Purchase Order & Direct Voucher* ............................... 127

| Encumbrances* ...............................................................................................................................127 3.6.1

| Purchase Orders* .........................................................................................................................128 3.6.2

| Blanket Purchase Order* ............................................................................................................129 3.6.3

| Direct Voucher / Payment without Encumbrance* ...................................................................130 3.6.4

3.7 | Sugar-Sweetened Beverage Funding Ban ................................................................ 131

3.8 | Contracting Frequently Asked Questions (FAQs) ..................................................... 135

4 | EXPENDITURES................................................................................................ 139

4.1 | Overview ........................................................................................................................ 139

4.2 | Invoices ............................................................................................................................ 139

| Forms of Invoicing (Electronic vs. Hard Copy) ..........................................................................139 4.2.1

| Information on Invoices.................................................................................................................140 4.2.2

4.3 | Approval of Invoices ..................................................................................................... 141

4.4 | Payment Considerations ............................................................................................... 143

| Prompt Payment to Vendors ........................................................................................................143 4.4.1

| Construction/Contract Payment* ................................................................................................149 4.4.2

| One-Time Payment .......................................................................................................................154 4.4.3

| Advance Payment .........................................................................................................................157 4.4.4

| Late Payment .................................................................................................................................160 4.4.5

| Credit Memorandum ....................................................................................................................160 4.4.6

| Payment Disbursement .................................................................................................................161 4.4.7

| Payment Cancellation ...................................................................................................................164 4.4.8

4.5 | Sales & Use Taxes ......................................................................................................... 166

| Definition of Sales Tax and Use Tax .........................................................................................166 4.5.1

4.6 | IRS 1099 Miscellaneous (MISC) Reporting Rules ..................................................... 170

| Requirement of Encumbrances, Vendor Numbers, and Sub-objects ....................................171 4.6.1

| 1099 Reportable Payments ........................................................................................................172 4.6.2

| No 1099 Payments to City Employees .....................................................................................175 4.6.3

4.7 | Payments-Related Frequently Asked Questions ....................................................... 176

4.8 | Employee Travel & Business Expenses* ..................................................................... 178

| Business Travel Reimbursement Guidelines ...............................................................................178 4.8.1



Page 4

| Travel Reimbursement Frequently Asked Questions ...............................................................199 4.8.2

| Non-Travel Expense Reimbursement Guidelines .....................................................................205 4.8.3

| Continuous Monitoring on Employee Reimbursement..............................................................209 4.8.4

4.9 | Payment Mechanisms .................................................................................................... 209

| Revolving Funds .............................................................................................................................209 4.9.1

| Wire Transfers ...............................................................................................................................218 4.9.2

5 | PROCUREMENT CARD (P-CARD) .................................................................... 223

5.1 | Overview ........................................................................................................................ 223

| Program Definitions ......................................................................................................................223 5.1.1

| General Information .....................................................................................................................223 5.1.2

| City Program Administration .......................................................................................................229 5.1.3

| Department Roles and Responsibilities .....................................................................................230 5.1.4

5.2 | Use of the Card ............................................................................................................. 234

| Allowable Purchases .....................................................................................................................234 5.2.1

| Prohibited Purchases ....................................................................................................................236 5.2.2

5.3 | Program Compliance .................................................................................................... 237

| Contact Information ......................................................................................................................239 5.3.1

5.4 | Form Automation ........................................................................................................... 240

| General Guidelines and Internal Controls ...............................................................................240 5.4.1

| To Request a New Card ..............................................................................................................241 5.4.2

| To Modify, Replace, or Cancel a Card .....................................................................................244 5.4.3

6 | INVENTORY ..................................................................................................... 245

6.1 | Policy Guidelines ........................................................................................................... 245

6.2 | Accounting Guidelines .................................................................................................. 249

7 | INTERDEPARTMENTAL SERVICES* .................................................................. 251

7.1 | Overview ........................................................................................................................ 251

| Memorandum of Understanding (MOU) / Interdepartmental Service Agreement (ISA) 252 7.1.1

| Work Authorizations .....................................................................................................................255 7.1.2

7.2 | Procedures for Work Orders ...................................................................................... 255

| Budgeting .......................................................................................................................................255 7.2.1

| Encumbrance ..................................................................................................................................257 7.2.2

| Billing ...............................................................................................................................................258 7.2.3

| Services to Outside Agencies* ...................................................................................................259 7.2.4

| Adjustments ....................................................................................................................................259 7.2.5

| Liquidation / Carryforward ........................................................................................................261 7.2.6

| Year-End Processes* .....................................................................................................................262 7.2.7

| Exceptions .......................................................................................................................................263 7.2.8



Page 5

| Frequently Asked Questions* ......................................................................................................263 7.2.9

8 | CASH RECEIPTS & REVENUE ........................................................................... 264

8.1 | Cash Receipts ................................................................................................................. 264

8.2 | Properly Handling Cash ............................................................................................... 265

| Department Documentation ........................................................................................................265 8.2.1

| Cash Handling Segregation of Duties ......................................................................................267 8.2.2

| Security for Cash Receipts ...........................................................................................................269 8.2.3

8.3 | Properly Recording Revenue ....................................................................................... 282

| Cash Difference / Overage .......................................................................................................283 8.3.1

| Non-Sufficient Funds (NSF) Checks ............................................................................................287 8.3.2

| Interest Revenue* ..........................................................................................................................292 8.3.3

| Chargebacks & Merchant Activity Reconciliation* .................................................................292 8.3.4

8.4 | Cash Handling and Revenue Recording FAQs ......................................................... 294

8.5 | Revenue Transfer* ......................................................................................................... 297

| Definition of Revenue Transfers / Other Allocations ..............................................................297 8.5.1

| Common Revenue Transfers & Other Allocations ....................................................................297 8.5.2

| Review and Approval Path .........................................................................................................298 8.5.3

| Compliance with City Policies, Guidelines, and Regulations .................................................298 8.5.4

9 | INVESTMENTS HELD WITH TRUSTEES* ............................................................ 300

| Fiscal Agents ..................................................................................................................................300 9.1.1

10 | FIXED ASSETS* ............................................................................................... 301

10.1 | Overview of Fixed Assets ......................................................................................... 301

| Generally Accepted Accounting Principles ..............................................................................301 10.1.1

| Regulations & Contractual Arrangements ................................................................................302 10.1.2

| Capital Asset Definitions, Thresholds, Valuations & Useful Lives ..........................................302 10.1.3

| Capital Asset Process Overview ................................................................................................310 10.1.4

| Construction/Development-in-Progress (CIP) ...........................................................................312 10.1.5

| Interest Capitalization ..................................................................................................................314 10.1.6

| Intangible Assets ...........................................................................................................................315 10.1.7

| Capital Leases ...............................................................................................................................316 10.1.8

| Placed In Service ..........................................................................................................................317 10.1.9

| Service Concession Agreement (SCA) ...................................................................................317 10.1.10

| Ownership & Multiple Funding ..............................................................................................318 10.1.11

10.2 | Depreciation ................................................................................................................ 318

| Straight Line Depreciation Method ...........................................................................................318 10.2.1

| Depreciating an Asset not Purchased at the Beginning of a FY ..........................................319 10.2.2

| Amortization of Intangible Assets ..............................................................................................320 10.2.3



Page 6

| Department’s Monitoring Procedures ........................................................................................320 10.2.4

10.3 | Asset Management ..................................................................................................... 320

| Inventory of Capital Assets .........................................................................................................320 10.3.1

| Disposal of Fixed Assets ..............................................................................................................324 10.3.2

| Transferring Fixed Assets.............................................................................................................328 10.3.3

10.4 | Capital Assets Impairment ........................................................................................ 331

10.5 | Reporting...................................................................................................................... 331

| Government-wide Financial Statements & Accrual Basis Accounting ..................................332 10.5.1

| Governmental Fund Financial Statements & Modified Accrual Basis Accounting .............332 10.5.2

10.6 | Fixed Asset Year-End Process* ................................................................................. 332

10.7 | Fixed Assets Frequently Asked Questions .............................................................. 333

10.8 | Elaboration of Key Fixed Assets Terms .................................................................. 336

| Building (Including Improvements or Betterments) ...................................................................336 10.8.1

| Land .................................................................................................................................................338 10.8.2

| Improvements Other than Buildings (i.e., Exhaustible Land Improvements) .......................338 10.8.3

| Maintenance & Repairs Expense ...............................................................................................339 10.8.4

10.9 | Development Agreements* ....................................................................................... 340

| Overview ........................................................................................................................................340 10.9.1

| Budget Process ..............................................................................................................................341 10.9.2

| Fees and Exactions .......................................................................................................................344 10.9.3

| Developer Agreement Implementation Costs ..........................................................................345 10.9.4

| Transfer Process.............................................................................................................................345 10.9.5

| Dedication of Public Improvements ...........................................................................................346 10.9.6

| Development Agreement Frequently Asked Questions ..........................................................348 10.9.7

11 | DEBT* ............................................................................................................ 351

11.1 | Debt Policy ................................................................................................................... 351

| Scope and Application ................................................................................................................351 11.1.1

| Mission of the Office of Public Finance ....................................................................................352 11.1.2

| Disclosure Practices Working Group .........................................................................................353 11.1.3

| Types and Purposes of Debt ......................................................................................................353 11.1.4

| Debt Approval Procedures .........................................................................................................356 11.1.5

| Bond Oversight ..............................................................................................................................358 11.1.6

| Debt Limitations .............................................................................................................................359 11.1.7

| Methods of Sale ............................................................................................................................360 11.1.8

| Debt Structuring Practices ...........................................................................................................361 11.1.9

| Derivatives Policy......................................................................................................................364 11.1.10

| Permitted Investments ...............................................................................................................365 11.1.11

| External Consultants .................................................................................................................365 11.1.12



Page 7

| Counterparty and Fiduciary Relationships ...........................................................................366 11.1.13

| Post Issuance Debt Administration and Covenant Compliance .........................................368 11.1.14

| Post Issuance Arbitrage Rebate Tax Compliance ...............................................................369 11.1.15

11.2 | Reserves ....................................................................................................................... 372

11.3 | General Obligation Fund Reporting ....................................................................... 372

12 | GRANTS & GIFTS* .......................................................................................... 373

12.1 | Grants ........................................................................................................................... 373

| Grant Application .........................................................................................................................374 12.1.1

| Grant Budgeting ...........................................................................................................................375 12.1.2

| Grant Changes ..............................................................................................................................400 12.1.3

| Requirements for Federal Awards and Pass-Through Awards ..............................................402 12.1.4

| Grant Revenues .............................................................................................................................410 12.1.5

| Grant Expenditures ......................................................................................................................415 12.1.6

| Grant Reconciliation .....................................................................................................................438 12.1.7

| Grant Close-out .............................................................................................................................445 12.1.8

| Grant External Audits ..................................................................................................................447 12.1.9

| Federal Emergency Management Agency (FEMA) ............................................................459 12.1.10

12.2 | Gifts & Donations ....................................................................................................... 461

| Definitions .......................................................................................................................................461 12.2.1

| Authority to Accept Gifts & Donations ......................................................................................462 12.2.2

| Acknowledgement of Gifts Received ........................................................................................463 12.2.3

| Gift Reporting Requirements ......................................................................................................465 12.2.4

| Cash Gifts .......................................................................................................................................466 12.2.5

| Donated Capital Assets ...............................................................................................................466 12.2.6

| “In Kind” Donations .......................................................................................................................468 12.2.7

| Donated Investments .....................................................................................................................469 12.2.8

13 | FINANCIAL REPORTING & RECORDS RETENTION* ..................................... 471

13.1 | Overview ..................................................................................................................... 471

13.2 | Financial Reporting ..................................................................................................... 471

13.3 | Financial Records Retention & Destruction Policy* ................................................ 471

| Records Defined ............................................................................................................................471 13.3.1

| Classification of Records .............................................................................................................472 13.3.2

| Records Not Addressed in the Financial Records Retention Schedule .................................473 13.3.3

| Pending Claims & Litigation ........................................................................................................473 13.3.4

| Records Relating to Financial Matters .......................................................................................473 13.3.5

| Records Relating to Payroll Records ..........................................................................................474 13.3.6

| Records that Contain Legal Significance ..................................................................................474 13.3.7

| Records Relating to Emergency/Disaster & Cost Recovery ..................................................474 13.3.8



Page 8

| Materials of Historic Significance ..............................................................................................474 13.3.9

| Electronic Mail (E-Mail) Policy ................................................................................................475 13.3.10

| Records Storage .......................................................................................................................475 13.3.11

14 | EMERGENCY PROCEDURES* ......................................................................... 476

14.1 | Overview ..................................................................................................................... 476

| Definitions of Emergency .............................................................................................................476 14.1.1

14.2 | Emergency Purchasing & Payment .......................................................................... 480

| Emergency Vendor Number Set Up ..........................................................................................480 14.2.1

| Emergency Procurement Card (P-Card) ...................................................................................481 14.2.2

| Emergency Vendor Check Writing ............................................................................................481 14.2.3

14.3 | Finance & Administration........................................................................................... 485

| Cost Tracking .................................................................................................................................485 14.3.1

14.4 | SF Disaster and Emergency Response and Recovery Fund ................................. 487

15 | BANKING SERVICES ....................................................................................... 490

15.1 | Overview ..................................................................................................................... 490

15.2 | Bank Account Opening and Closing ........................................................................ 490

15.3 | Collections and Deposits ........................................................................................... 491

15.4 | Stale Dated Checks .................................................................................................... 493

15.5 | Revolving Fund Replenishment .................................................................................. 493

15.6 | Fraud Controls ............................................................................................................. 493

15.7 | Accounting & Reconcilement ..................................................................................... 493

| Instructions & Recommended Controls for Processing Returned Items .................................494 15.7.1

| Instructions for Accounting for Banking & Credit Card Fees .................................................495 15.7.2

15.8 | Third Party Contracts ................................................................................................. 496

15.9 | Notifications on Incoming Receipts and Payment Requests through Electronic Funds Transfers (EFTs) 499

15.10 | Emergency Banking Procedures* .......................................................................... 499

15.11 | Banking Services FAQs ........................................................................................... 499

| NSF Items ...................................................................................................................................501 15.11.1

| Bank Fees & Credit Card Fees ..............................................................................................503 15.11.2

| Chargebacks and Merchant Activity Reconciliation ...........................................................504 15.11.3

| Cash Differences (Overages and Shortages) .....................................................................506 15.11.4

|Reconciliations & Other Transactions ......................................................................................507 15.11.5

| Online Banking ..........................................................................................................................510 15.11.6

| FIS Applications ........................................................................................................................513 15.11.7

| Helpful Tips ................................................................................................................................516 15.11.8

16 | HOW-TO & SCREENSHOTS* .......................................................................... 532



Page 9

16.1 | Purpose of this Section............................................................................................... 532

16.2 | General ........................................................................................................................ 532

| Notepad .........................................................................................................................................532 16.2.1

| Creating/Copying a RIMS Template ........................................................................................534 16.2.2

| Finding a Vendor ..........................................................................................................................538 16.2.3

| Finding a Commodity ...................................................................................................................539 16.2.4

| Purchasing Document/Match Type/Approval Path Matrix ...................................................540 16.2.5

16.3 | Budgeting and Appropriations ................................................................................ 541

| Surplus Transfers ...........................................................................................................................541 16.3.1

16.4 | Procurement ................................................................................................................. 542

| Creating a Blanket Purchase Order ..........................................................................................542 16.4.1

| Blanket Purchase Order Release ...............................................................................................545 16.4.2

| Creating a Direct Purchase Order ............................................................................................549 16.4.3

| Creating a Requisition ..................................................................................................................551 16.4.4

16.5 | Payments (FAMIS Purchasing – ADPICS) ................................................................ 555

| Creating an Invoice ......................................................................................................................555 16.5.1

| Posting a Voucher .........................................................................................................................560 16.5.2

| Deleting an Erroneous Voucher ..................................................................................................561 16.5.3

| Change Orders / Document Cancellations ..............................................................................565 16.5.4

16.6 | Payments (FAMIS Accounting) ................................................................................... 569

| Direct Payment ..............................................................................................................................570 16.6.1

| Employee and Travel Reimbursement (No Advance) .............................................................574 16.6.2

| Encumbrance Payment and Retention/Lien Withhold .............................................................579 16.6.3

| Credit Memo ..................................................................................................................................584 16.6.4

| Revenue Refund .............................................................................................................................587 16.6.5

16.7 | Travel Advance ........................................................................................................... 590

| Issuance of a Travel Advance .....................................................................................................590 16.7.1

| Settlement of Travel Advances ...................................................................................................594 16.7.2

| Corrections and Adjustments for Travel Advance Entries ......................................................603 16.7.3

16.8 | Sales Tax Accrual ....................................................................................................... 607

16.9 | Work Orders ............................................................................................................... 611

| Work Order Budget (Increase) – Requesting Department ...................................................611 16.9.1

| Work Order Budget (Decrease) – Requesting Department .................................................615 16.9.2

| Work Order Budget (Increase) – Performing Department ...................................................618 16.9.3

| Work Order Budget (Decrease) – Performing Department .................................................621 16.9.4

| Work Order - Manual Encumbrance .........................................................................................624 16.9.5

| Work Order - Encumbrance Adjustment – Increase/Decrease ............................................628 16.9.6

| Manual Billing – With Encumbrance ..........................................................................................631 16.9.7

| Manual Billing – Direct Billing ....................................................................................................635 16.9.8



Page 10

| Work Order Billing Adjustments – Over-Liquidation of Encumbrance ................................638 16.9.9

| Work Order Billing Adjustments – Under-Liquidation of Encumbrance .........................642 16.9.10

| Work Order Billing Adjustments – Decrease Over-billing Without Encumbrance ........642 16.9.11

| Work Order Billing Adjustments – Increase Billing Without Encumbrance ....................645 16.9.12

16.10 | Cash Receipts ............................................................................................................ 646

Cash Receipts – General Entry ..................................................................................................646 16.10.1

| Cash Difference between Point of Sales (POS) and Actual Cash Collected .................650 16.10.2

| Bank Adjustment for Departments with Individual Depository Accounts ........................661 16.10.3

| Bank Adjustment for Departments Using City’s Main Depository Account .....................668 16.10.4

| Unidentified Cash Receipts for Departments Using City’s Main Depository Account ..673 16.10.5

| Credit Card Fees ......................................................................................................................679 16.10.6

| NSF for Departments using City’s Main Depository Account ............................................681 16.10.7

| NSF for Departments with Individual Depository Account ................................................692 16.10.8

16.11 | Revolving Funds ........................................................................................................ 711

| Creating a Revolving Fund .....................................................................................................711 16.11.1

| Replenishing an Existing Revolving Fund ..............................................................................714 16.11.2

| Close Revolving Fund with Return of Cash ...........................................................................718 16.11.3

| Adjusting Revolving Fund ........................................................................................................721 16.11.4

16.12 | Revenue Transfers and Other Allocations ............................................................ 739

| Transfer Revenue from General Fund to Agency Fund ......................................................741 16.12.1

| Record Collection of Revenue Offset by Expenditures Account .......................................743 16.12.2

| Record Application of Revenue for an Unidentified Receipt ............................................746 16.12.3

| Recognize Unearned Revenue as Revenue ..........................................................................748 16.12.4

| Transfer Actual and Budget Proceeds from Sale of Bonds within a Department’s Capital 16.12.5Project Fund .....................................................................................................................................................751

| To Transfer Actual and Budget Revenue Between Different Sub-funds (ITI/ITO) .........758 16.12.6

| To Transfer Actual and Budget Revenue Between Different Funds (OTI/OTO) ............765 16.12.7

16.13 | Inventory .................................................................................................................... 772

17 | APPENDICES* ............................................................................................... 773

17.1 | Definition of Terms ...................................................................................................... 773

17.2 | FAMIS Transaction Codes .......................................................................................... 773

17.3 | Sub-Object Codes (Chart of Accounts) .................................................................. 773

17.4 | General Ledger Codes ............................................................................................. 773

17.5 | San Francisco Administrative Code, Chapter 6 ..................................................... 774

| Article I: General Provisions ......................................................................................................774 17.5.1

| Article II: Construction Contracting ...........................................................................................779 17.5.2

| Article III: Professional Services Contracting ..........................................................................813 17.5.3

| Article IV: Exemptions from and Alternatives to Competitive Bidding ...............................816 17.5.4



Page 11

| Article V: Violations of Administrative Code Chapter 6; False Claims; Procedures for 17.5.5Debarment; Monetary Penalties .................................................................................................................830

18 | INDEX* .......................................................................................................... 834

Sections in the Table of Contents marked with an asterisk (*) indicate that the topic is still

under review.



Page 12

List of Tables Table 1-1. Internal Control Questionnaire Template ....................................................................................................................................30

Table 2-1. When to Use Document Type “SU” for Transfers/Reallocation of Funds ............................................................................41

Table 2-2. Guidelines to Complete the Surplus Transfer Request Form .....................................................................................................44

Table 3-1. Consultant Contract Requirements ................................................................................................................................................53

Table 3-2. Formal Construction Contract Requirements ...............................................................................................................................54

Table 3-3. Formal construction Contracting Timelines ...................................................................................................................................56

Table 3-4. Informal Construction Contract Requirements .............................................................................................................................58

Table 3-5. Informal Construction Contracting Timelines ...............................................................................................................................60

Table 3-6. Proprietary List 7-03 .......................................................................................................................................................................77

Table 3-7. Vendor Types in the City Vendor File ..........................................................................................................................................79

Table 3-8. Sample Professional Service Project Checklist ........................................................................................................................ 121

Table 3-9. Vendors Subject to Technology Store Fee ............................................................................................................................... 125

Table 4-1. Prompt Payment Definitions ........................................................................................................................................................ 144

Table 4-2. Examples of Variations in Tax Rates ........................................................................................................................................ 168

Table 4-3. Sales/Use Tax Index Codes Table ............................................................................................................................................ 168

Table 4-4. 1099-Reportable and Non-Reportable Payments ................................................................................................................ 173

Table 4-5. 1099 Posting in FAMIS ................................................................................................................................................................. 173

Table 4-6. Flying vs. Long-Distance Driving Example ................................................................................................................................ 190

Table 4-7. Federal Domestic Meal & Incidental Expense (M&IE) Rates ................................................................................................ 195

Table 4-8. Federal Departure and Return Day M&IE Rates .................................................................................................................... 196

Table 4-9. Non-allowable & Non-reimbursable Costs .............................................................................................................................. 198

Table 4-10. Non-allowable & Non-reimbursable Costs ........................................................................................................................... 200

Table 4-11. Treasurer's EFT Request Template ........................................................................................................................................... 219

Table 4-12. Cancellation Transaction Codes ............................................................................................................................................... 221

Table 5-1. Sample Vendor Numbers for P-Card Departments ............................................................................................................... 232

Table 8-1. Cash Handling Internal Control Examples................................................................................................................................ 268

Table 10-1. Capital Asset Types & FAACS Categories ............................................................................................................................ 303

Table 10-2. Capitalization Thresholds .......................................................................................................................................................... 304

Table 10-3. Suggested Useful Lives for Non-Infrastructure Capital Assets .......................................................................................... 308

Table 10-4. Suggested Useful Lives for Infrastructure Capital Assets ................................................................................................... 309

Table 11-1. Standard Terms for General Obligation Bonds .................................................................................................................. 361

Table 11-2. Standard Terms for Lease Revenue Bonds/Certificates of Participation ....................................................................... 362

Table 11-3. Standard Terms for Variable Rate Bonds ............................................................................................................................. 363

Table 11-4. Permitted Investments: Investment Agreements ................................................................................................................... 365

Table 12-1. Documents Required for Grant Accept & Expend Process ................................................................................................ 376

Table 12-2. Guidelines for Implementation of Federal Grant Uniform Guidance ............................................................................. 403

Table 12-3. Federal Agency Adoption of UG ............................................................................................................................................ 404

Table 12-4. Determination of Sub-Recipient Vs. Contractor)................................................................................................................... 431

Table 12-5. Who Follows What Rule for a Post-UG Single Audit ......................................................................................................... 449

Table 12-6. Type A Program Selection Criteria ......................................................................................................................................... 452

Table 12-7. High-risk Type A Programs Based on Risk Assessment ....................................................................................................... 452

Table 12-8. Type B Programs Based on Risk Assessments ....................................................................................................................... 453

Table 12-9. Audit Minimum Coverage Requirement Calculations .......................................................................................................... 454

Table 12-10. UG Audit Requirements – Key Sections with Changes (CFR Title 2 §200.5XX (Updated June 2016)) ................ 455

Table 14-1. Local, State & Federal Disaster Declarations Summary..................................................................................................... 479

Table 14-2. Project Detail Coding Indicating FEMA Public Assistance Categories ............................................................................. 486



Page 13

Table 14-3. Gift Index Codes ........................................................................................................................................................................ 488

Table 16-1. Descriptions of Fields in Screen 1500 .................................................................................................................................... 555



Table 16-4. Descriptions of Fields in Screen 1500 Before Posting the IV ............................................................................................ 560




Table 16-8. Document Type Change Registrictions .................................................................................................................................... 566

Table 16-9. Common Document Types and Transaction Codes in FAMIS Accounting ........................................................................ 569

Table 16-10. Sub-objects to Use for Employee & Travel Reimbursement ............................................................................................ 578

Table 16-11. Screen 4250 - Transaction Code Details for Sales Tax Accrual ................................................................................... 585

Table 16-12. Screen 4250 - Transaction Code Details for Revenue Refund....................................................................................... 589

Table 16-13. Transaction Code Details for Settling Travel Advances when Expenses Equal Advance or Travel Advance is

Being Returned in Full ......................................................................................................................................................................................... 595

Table 16-14. Screen 4255 – Transaction Code Details for Settlement of Advance When Expenses are Less Than Travel

Advance ................................................................................................................................................................................................................ 596

Table 16-15. Transaction Code Details for Settlement of Advance When Expenses are More Than Travel Advance ............. 601

Table 16-16. Transaction Code Details for Adjust Liquidation Entry ..................................................................................................... 603

Table 16-17. Transaction Code Details for Settling Travel Advances When Wrong Transaction Code is Used and Liquidation

Posted .................................................................................................................................................................................................................... 605

Table 16-18. Screen 4250 - Transaction Code Details for Sales Tax Accrual ................................................................................... 608

Table 16-19. Screen 4250 - Transaction Code Details for Budget Entry ............................................................................................ 613



Table 16-22. Screen 4250 - Transaction Code Details for Manual Work Order Encumbrance ..................................................... 626

Table 16-23. Screen 4250 - Transaction Code Details for Manual Work Order Billing ................................................................. 630

Table 16-24. Screen 4250 - Transaction Code Details for Manual Work Order Billing ................................................................. 633

Table 16-25. Screen 4250 - Transaction Code Details for Manual Work Order Billing With No Work Order Encumbrance636



Table 16-28. Screen 4255 - Transaction Code Details for Recording Cash Receipts ....................................................................... 647

Table 16-29. Screen 4255 - Transaction Code Details for Recording Cash Shortage Between POS & Actual Cash................ 652

Table 16-30. Screen 4255 - Transaction Code Details for Recording Cash Shortage Between POS & Actual Cash................ 657

Table 16-31. Screen 4255 - Transaction Code Details for Recording Cash Shortage Between FAMIS & Bank ......................... 661

Table 16-32. Screen 4255 - Transaction Code Details for Recording Cash Overage Between FAMIS & Bank ......................... 665

Table 16-33. Screen 4255 - Transaction Code Details for Treasurer CR Entry for Shortage/Overage ...................................... 668

Table 16-34. Screen 4255 - Transaction Code Details for Department’s CR Entry For Shortage/Overage .............................. 670

Table 16-35. Screen 4255 - Transaction Code Details for Treasurer CR Entry for Unidentified Receipts ................................... 674

Table 16-36. Screen 4255 - Transaction Code Details for Department’s CR Entry for Shortage/Overage ............................... 677

Table 16-37. Screen 4255 - Transaction Code Details for Credit Card Fees .................................................................................... 680

Table 16-38. Screen 4255 - Transaction Code Details for Treasurer NS Entry for NSF Checks When Dept. is Using City’s Main

Depository Account ............................................................................................................................................................................................. 682

Table 16-39. Screen 4255 - Transaction Code Details for Dept. CR Entry for NSF Checks When Dept. is Using City’s Main

Depository Account ............................................................................................................................................................................................. 687



Table 16-42. Screen 4255 - Transaction Code Details for Treasurer NS Entry for Unidentified Receipts ................................... 702




Page 14


Table 16-45. Adjustment Transaction Codes for a Revolving Fund ........................................................................................................ 731

Table 16-46. Transaction Codes to Adjust Incorrect Data Elements Used to Close or Decrease a Revolving Fund .................... 735

Table 16-47. Transaction Code to Adjust Revolving Fund Overage ..................................................................................................... 738

Table 16-48. Transaction Code to Adjust Revolving Fund Shortage ..................................................................................................... 738

Table 16-49. Transaction Codes to Adjust Revolving Fund Balance ...................................................................................................... 739

Table 16-50. Transaction Codes to Transfer Revenue to Agency Fund ................................................................................................ 741

Table 16-51. Transaction Codes to Increase Revenue and Expenditure Accounts .............................................................................. 743

Table 16-52. Transaction Codes to Record an Unidentified Receipt ..................................................................................................... 746

Table 16-53. Transaction Codes to Recognize Unearned Revenue as Revenue ................................................................................. 748

Table 16-54. Common Transaction Codes to Transfer Bond Proceeds to Capital Project Fund ...................................................... 751

Table 16-55. Transaction Codes to Transfer Revenue Between Different Sub-funds.......................................................................... 758

Table 16-56. Transaction Codes to Transfer Revenue Between Different Funds ................................................................................ 765



Page 15

List of Figures Figure 1-1. Signature Authorization Form .......................................................................................................................................................29

Figure 2-1. Surplus Expenditure Budget Transfer Request ..........................................................................................................................43

Figure 2-2. Controller's Surplus Transfer Tracking Sheet .............................................................................................................................47

Figure 3-1. Sample Sole Source Waiver Request form ...............................................................................................................................74

Figure 3-2. Vendor Profile Application & New Vendor Number Request ...............................................................................................82

Figure 3-3. IRS Form W-9 ...................................................................................................................................................................................84

Figure 3-4. CMD 12B-101 Declaration ...........................................................................................................................................................85

Figure 3-5. MCO Declaration ............................................................................................................................................................................88

Figure 3-6. HCAO Declaration ..........................................................................................................................................................................89

Figure 3-7. Insurance Requirements ..................................................................................................................................................................90

Figure 3-8. Payment (Labor & Material) Bond ..............................................................................................................................................91

Figure 3-9. Performance Bond ...........................................................................................................................................................................93

Figure 3-10. LBE Program Application ............................................................................................................................................................95

Figure 3-11. CMD Form 104 (Chapter 12B Blanket Sole Source Form) ................................................................................................. 104

Figure 3-12. CMD Form 201 (Chapters 12B and 14B Waiver REquest Form) ..................................................................................... 107

Figure 3-13. FAMIS Screen 9560 VendoR Class/Status ............................................................................................................................ 109

Figure 3-14. Process Flow – Ordering IT Hardware, Software & Maintenance ................................................................................. 112

Figure 3-15. Technology Marketplace Quote Approval Form 1 ............................................................................................................ 113


Figure 3-17. Process Flow – Ordering Professional Services .................................................................................................................. 117


Figure 3-19. Process Flow – Ordering Through Micro-LBE Set-aside Contracts .................................................................................. 123

Figure 3-20. Sample of how Expenditures & Encumbrances Affect Appropriation Balances .......................................................... 128

Figure 4-1. Invoice Receipt Date Illustration 1 ............................................................................................................................................ 146

Figure 4-2. Invoice Receipt Date Illustration 2 ............................................................................................................................................ 146

Figure 4-3. Notepad Entry for Disputed Invoice ......................................................................................................................................... 147

Figure 4-4. Stop Notice Workflow ................................................................................................................................................................ 151

Figure 4-5. Check Pickup Request Form ........................................................................................................................................................ 163

Figure 4-6. Lost Warrant Affidavit Form ..................................................................................................................................................... 165

Figure 4-7. Authorized Travel Signatories for Travel Pre-approval ...................................................................................................... 179

Figure 4-8. Request for Employee Offset .................................................................................................................................................... 183

Figure 4-9. Payroll Request for Employee Offset Repayment Agreement .......................................................................................... 184

Figure 4-10. Declaration of Offset Due to an Unliquidated Travel Advance Letter .......................................................................... 185

Figure 4-11. Determining Allowable Transportation Cost ........................................................................................................................ 189

Figure 4-12. Reserving Allowable Conference Lodging ........................................................................................................................... 193

Figure 4-13. Revolving Fund Voucher Form & Instructions ........................................................................................................................ 214

Figure 5-1. Cardholder Acknowledgement Disclosure .............................................................................................................................. 225

Figure 5-2. Travel Expense Form ................................................................................................................................................................... 227

Figure 5-3. Field Expense Form ...................................................................................................................................................................... 228

Figure 5-4. Online P-Card Enrollment & Agreement Form ....................................................................................................................... 242

Figure 5-5. P-Card Cardholder Acknowledgment Disclosure .................................................................................................................. 243

Figure 7-1. Work Order MOU Template (Will be Updated Upon Implementation of PeopleSoft Accounting) .......................... 253

Figure 8-1. Cash Handling Receipt and Recording .................................................................................................................................... 283

Figure 8-2. Sample Cash Difference / Overage Report .......................................................................................................................... 285

Figure 8-3. Sample NSF Check Collection Letter ........................................................................................................................................ 289

Figure 10-1. Capitalization Thresholds from Other Jurisdictions ............................................................................................................ 306



Page 16

Figure 10-2. Fixed Asset Process Overview ................................................................................................................................................ 311

Figure 10-3. FAACS CIP Transfer Form ........................................................................................................................................................ 313

Figure 10-4. FAACS Retired/Disposed Assets Form .................................................................................................................................. 326

Figure 10-5. Sample Fixed Asset Disposal Process Flow (SFMTA)* ....................................................................................................... 327

Figure 10-6. FAACS Input form ...................................................................................................................................................................... 329

Figure 10-7. Inter-Departmental Transfer Process Flow* ......................................................................................................................... 330

Figure 10-8. PBEJTD Public-Private Development Projects....................................................................................................................... 342

Figure 10-9. CPMC Development Project Set-up in FAMIS (2 Screens) ................................................................................................ 343

Figure 10-10. CPMC Development Impact Fee Payment Schedule ....................................................................................................... 345

Figure 10-11. Transferring Out to City Department Following Development Agreement ................................................................ 346

Figure 10-12. DPW Acceptance Process ...................................................................................................................................................... 347

Figure 10-13. Decision Flow Chart—Exchange vs. Nonexchange Transactions .................................................................................. 349

Figure 12-1. Grant Ordinance Cover Memo & Checklist ......................................................................................................................... 379

Figure 12-2. Grant Ordinance Template ..................................................................................................................................................... 381

Figure 12-3. Grant Information Form & Disability Checklist .................................................................................................................... 383

Figure 12-4. Format for Including Position Information in Ordinance .................................................................................................... 387

Figure 12-5. Direct-Charge Budget Structure for Grant with Grant-funded Personnel for Another Department ....................... 392

Figure 12-6. FAMIS Screen 5070, Grant Set-up Screen .......................................................................................................................... 395

Figure 12-7. FAMIS Screen 5300, Index Code Set Up ............................................................................................................................. 397

Figure 12-8. Memo Format for Budget Revision Notification to Board ................................................................................................. 402

Figure 12-9. FAMIS Screen 6250, Appropriation Inquiry ........................................................................................................................ 437

Figure 12-10. FAMIS Screen 6260, Appropriation Detail Inquiry ......................................................................................................... 438

Figure 12-11. FAMIS Screen 6410 w/ Reserved Appropriation ........................................................................................................... 438

Figure 12-12. Sample Reconciliation Spreadsheet .................................................................................................................................... 441

Figure 12-13. FAMIS Screen 6220, Grant Summary Inquiry .................................................................................................................. 443

Figure 12-14. FAMIS Screen 6410, Grant Trial Balance Inquiry ........................................................................................................... 443

Figure 12-15. FAMIS Screen 5070, Closed grants with closing date .................................................................................................... 447

Figure 12-16. Grant Vs. Gift Determination Process ................................................................................................................................. 462

Figure 12-17. Gift of Property and Goods Acknowledgement Letter .................................................................................................. 464

Figure 12-18. Memo Format for Annual Report on Gifts To the Board of Supervisors ..................................................................... 465

Figure 14-1. Overview of Onsite Vendor Check Laptop Workflow ...................................................................................................... 482

Figure 14-2. Disaster Vendor Check Request Form.................................................................................................................................... 483

Figure 14-3. Sample Disaster Index Code & Project Code ..................................................................................................................... 487

Figure 15-1. Sample Letter for NSF Notification & Collection ................................................................................................................ 492

Figure 15-2. Sample Diagram for the Flow of Funds in an Online/IVR/Phone/Mobile Payment Application ............................ 497

Figure 15-3. Sample Diagram for the Flow of Funds in a Card Present Environment ....................................................................... 498

Figure 15-4. Sample FIS Invoice ..................................................................................................................................................................... 515

Figure 16-1. Screen 4010 - Add a Notepad Description ........................................................................................................................ 533

Fi