december 12, 2012. aos accounts payable banking (bounce backs) p/card aos vendor processes 1099...
TRANSCRIPT
AUDITOR OF STATE
TOWN HALL
December 12, 2012
AGENDA AOS Accounts Payable
Banking (Bounce Backs)
P/Card
AOS Vendor Processes
1099 Reporting and Accounts
Independent Contractors
Questions2
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AOS - AP UPDATES
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AOS AP PROCESSES
Processing Information Voucher Audit Points AP Packet Guidelines Utilities Payment to Wrong Vendor ACH Returns
AOS PORTAL You can always see what day AOS is entering
vendor information and approving payments by looking at the AOS portal or the AOS website. You can also access our portal through PS-Accounts Payable www.auditor.in.gov http://www.in.gov/auditor/2440.htm
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VOUCHER AUDIT POINTS
Remit Vendor Remit Location Remit Vendor
Address Receipt Date One invoice per
voucher Vouchers must be
posted6
The AOS audit includes, but is not limited to, the following fields:
Agency Approvals Invoice Vendor Invoice Number Invoice Date Invoice Total Invoice Line
Description Invoice Line
Account
Receipt ID and Date Purchase Order ID this does not apply to QPA purchases. All
QPA purchases should have be on a PO in order to tie the spend to the contract.
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VOUCHER AUDIT POINTS continued…
All Invoices over $500 using Account Points 3, 4, 5, 7 and some 9’s will also be Audited for :
Vouchers with incorrect or missing information will be denied and returned to agencies for correction.
CONTROL GROUPS Submit invoices in voucher order Vouchers in a Control Group must be
Posted prior to Agency approval and sending to AOS. (Monitor using SOIAPOO8)
If any voucher in a Control Group is not Posted – the Entire Control Group will be denied and returned to the Agency.
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AOS AP PACKET GUIDELINES Starting January 1, 2013 – the
coversheet template on the following slide must be used.
Specific Packet Guidelines are posted on the Auditor’s Portal - Accts Payable > Information > Encompass Information
Packet Types Non Travel Travel Utilities SDO Reimbursement High Volume Pre-Approved Special
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AOS AP PACKET GUIDELINES continued…
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AOS AP PACKET GUIDELINES continued…
Pre-Approved Special Agency needs AOS pre-authorization Vouchers need Scheduled Due Date
changed to Current date (credit vouchers).
Vouchers need immediate/expedited AOS approval
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AOS AP PACKET GUIDELINES continued…
Packet Packaging Arrange Transmittals by Voucher ID Package by Type (Non Travel, Travel, Utilities, HV,
SDO or Pre-Approved Special)
Staple Transmittals on top of Invoices Include only as many
Transmittal/Invoices as will fit into an interoffice envelope. (No daily limit on envelopes)
Attach new coversheet to the front of the packet and send to the AOS Service Center. 12
PAYMENT MESSAGE FIELD The following vendors require the
account number ONLY to be in the payment message field on the payments tab of the voucher.
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AT&T Mobility: 221336AT&T Mobility LLC: 80673AT&T: 271654AT AND T: 13945SBC: 50030JP Morgan Chase 81023
American Elec Power: 52747NIPSCO: 50220EMBARQ: 224760IPL: 50025Duke: 50233
ACH PAYMENT TO WRONG VENDOR Agency needs to contact the wrong
vendor and have them refuse the deposit
If payment is refused, AOS will treat the transaction exactly like a bounce back.
In rare circumstances, AOS can try to reverse the deposit (only as a last option). This is not a guarantee.
We will cancel and not re-issue payment and close voucher. Cancellation of payment will reverse all accounting entries and 1099 reporting to the wrong Vendor
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ACH RETURN (bounce backs) PROCEDURE
Payment is Stopped and rescheduled Vendor Remit Location is put on HOLD AOS will notify the Agency and Vendor Once new banking is received, AOS will
update vendor record and release the HOLD
Scheduled Payment will process in next Pay Cycle
Agencies should not create a new voucher when a payment has bounced back. 15
AOS P/CARD REQUIREMENTS Agency Program Administrator (or the
individual holding receipts) must complete State Form 54809 (9-11)
Need to pay from the Central Bill Bill must be paid in full each month Vouchers and/or distribution lines
should be in order of the Central Bill. P/Card and T/Card purchases needs to
be on separate vouchers. Lodging receipts are required to be
submitted with the Central Bill16
AOS P/CARD AUDIT POINTS
No invoices should be paid by the P/Card – pay through AOS first
No QPA items No asset Purchases No purchase over $500 unless IDOA
has granted an exception No Artificially dividing purchases to
stay under the $500 single purchase limit
Please refer to the P/Card Manual posted on the IDOA website 17
AOS VENDORS
AP VENDORS Vendor Guidelines Vendor Returns Location Information “No AUDITOR OF STATE Payments”
address Two Party Payments
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VENDOR GUIDELINES All Vendor Information Forms (VI forms –
SF53788 (R2/10-09)) must be signed and dated within the last 6 months. Former VI versions are shredded upon receipt.
Send all forms to the AOS service center via US Mail or inter-department mail.
Emergency additions may be submitted with prior approval from Maegan or Jessica. Forms received via email without prior approval will be deleted.
The form must be complete and legible. For change of address and/or bank info, mark
the VI form ‘change of address and/or bank’ and reference the old information. In the event of a typographical error, an email will suffice.
Employee VI forms must be submitted AFTER the employee receives their first state paycheck.
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VENDOR GUIDELINES continued… The banking portion of the VI Form must be filled
out by the bank or a matching, unaltered, voided vendor check can be attached to Section 2.
The check must not cover the ‘foreign bank account’ check box.
AOS will not accept starter checks, checks that have handwritten addresses, deposit slips, or checks copied onto the back of the form. Attach checks to a second page if necessary and staple the two pages together in the top left corner not the bottom of the page, or left side of the page, or the middle of the page.
Each agency is responsible for all correspondence with their vendor. Please request all vendor forms be returned to your agency when requesting vendor information. This will help you track the form through the system.
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• Write your BU# in the top right corner of the vendor form and bad forms will be returned to your agency.
• If a BU is not notated, wrong vendor forms will go back to the vendor if a complete address is given.
• Here is our Vendor Form Return Sheet.
• Please use this as a helpful tool when submitting forms or checking to see why forms haven't been entered. Do not use this form as your own, only AOS can mail this out.
Vendor Return Sheet
VENDOR RETURNS … CONTINUED Returns are done at least once a week. Here are common errors made by
agencies that are returned: Agencies CAN NOT ALTER vendor
forms!!!!! Incomplete addresses No signatures or no bank info Addresses don’t match ILLEGIBLE/ FORM NOT ABLE TO BE
READ Not an employee (has not received their
first paycheck) No legal name on the form Change which address or bank? Foreign bank check box must be visible
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LOCATION INFORMATION
Vendor Conversion and regular AOS entry set up locations named REMIT001, REMIT002, REMITXXX, etc . The remit locations contain vendor bank information.
For normal AP Vouchers select a REMITXXX location and update the remit address to correspond with Vendor Invoice. Do not rely on the default address to tell you which REMITXXX location to use.
If you are not sure which REMITXXX location to select, please confirm the information with your vendor.
If you have specific questions, please stay after the town hall for one on one help.
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NO AUDITOR OF STATE PAYMENT ADDRESS
Definition ‘No Auditor of State Payment’- Address is
not a valid payment address. This could be because the address is used for order purposes only by procurement agents or there is not corresponding bank information from the vendor.
Remedy If the address you want to use has a ‘No
Auditor of State Payment’ description, you must contact the vendor and get a new Vendor Information form (SF53788) with banking information in order to make it available for remit by AOS.
NOTE: THIS DESCRIPTION IS NEVER USED TO DESCRIBE A LOCATION.
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SETTLEMENTS/ TWO PARTY PAYMENTS E-mail: [email protected] with
‘Two Party Payments/Settlement’ in the subject line 48 hours prior to Voucher entry. If this is your first 2 party/settlement
payment, ask for a template form and further instructions.
AOS AP CONTACTSMary Reilly Director of Accounts Payable [email protected]
ov
233-5763
Kathy FrickAssistant Director of Accounts Payable [email protected]
ov
232-4736
Greg Piersall ACH Coordinator [email protected]
234-1024
Jessica Gillum Vendor Administrator [email protected]
232-3302
Maegan Walker Otten Levy/Vendor Administrator [email protected]
.gov
233-2674
Tim McCarty Audit/Payment Specialist [email protected]
232-3326
Danielle Burchell Audit/Payment/Levy Specialist [email protected]
232-3323
Tyler Thomen Audit/Payment Specialist [email protected]
232-3312
Margo Ivory Audit/Payment Specialist [email protected]
233-5616
Jackie Carr Lost Warrant Coordinator [email protected]
Joey Williams Research Coordinator [email protected]
233-2341
Cozette Brown Service Center Representative [email protected]
234-1128
1099 REPORTING AND ACCOUNTS
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WHAT IS 1099 REPORTING? Report to vendors and IRS of calendar
year payments IRS rules establish
When 1099 reporting is required Required for payments made in the course of
a trade or business What vendors are included
All vendors included unless specifically excluded by IRS rules
What payments are included All payments included unless specifically
excluded by IRS rules
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HOW IS AOS 1099 REPORTING DONE ? Vendors in PeopleSoft are classified
according to IRS classification rules and a 1099 reporting status code is assigned to the vendor The 1099 Reporting Status Codes currently
in use are EXMPT
Used for tax exempt and government entities CORP
Used for incorporated entities OTHRR
Used for all other entities
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HOW IS AOS 1099 REPORTING DONE ?
All general ledger accounts in PeopleSoft are assigned 1099 reporting codes in accordance with IRS reporting rules and IRS payment categories
1099 Reporting Codes currently in use are RE for rent payments MH for medical services payments NC for payments for services provided by
non-employees SP for lawsuit settlement payments to
attorneys LA for land acquisition payments PA for all other 1099 reportable payments NO for non-reportable payments
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HOW IS AOS 1099 REPORTING DONE ?
The 1099 codes are referred to as 1099 code attributes
There is a 1099 code matrix for every account
The 1099 code matrix is the combination of vendor status codes and account 1099 codes
In other words for every account there is a 1099 code associated to each vendor status because the 1099 reporting does vary by vendor status
The 1099 code associated to the OTHRR vendor status is considered the primary 1099 code for the account
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HOW IS AOS 1099 REPORTING DONE ? From the ENCOMPASS Project Home Page
you can navigate to an Excel worksheet containing all accounts and the 1099 code attributes
The navigation is ENCOMPASS Documents Chart of Accounts ACCOUNT_ATTRIBUTES_(date)
Later in this presentation Fred will demonstrate using the worksheet
Don’t find an account that fits your need, then submit a GMIS issue
Questions send to [email protected]
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WHEN IS 1099 REPORTING DONE ? 1099 reporting transactions are built
though out the calendar year by capturing payments coded 1099 reportable
In January a Form 1099MISC is sent to the vendor for reportable payments other than land acquisition payments
If the payment was a land acquisition payment, then a Form 1099S is sent to the vendor
Both Form 1099MISC and Form 1099S are sent electronically to the IRS
Focus Area #1 Selecting the correct account code Scenario A –
Vendor A is providing a training course on Time Management. The course will cost $5000. The State will pay Vendor A directly.
Scenario B – Employee B went to a training course
on Time Management. The course was $700. She paid the Vendor directly and is seeking reimbursement from the State.
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What account codes should be used for these two scenarios?
1099 Tools
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http://myshare.in.gov/SBA/encompass/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2fSBA%2fencompass%2fShared%20Documents%2fChart%20of%20Accounts&FolderCTID=&View=%7bF028AA1A%2d92F6%2d481F%2dAD3C%2dA6A404494279%7d
1099 Tools -
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GL_ACCOUNT_TBL_120112
1099 Tools -
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ACCOUNT_ATTRIBUTES_120112
Focus Area #1 Selecting the correct account code Scenario A –
Vendor A will be paid using account 535014.
Scenario B – Employee B will be reimbursed using
account 581020. If account 535014 was used, then a 1099 would be generated and sent to Employee B for $700.
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Focus Area #2 –Reimbursing vs. Direct Payment Scenario C –
Employee C occasionally buys postage materials for his agency on his way to work. Over the last year, he has paid $825 to USPS, and was reimbursed by the State.
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What account codes should be used for this scenario?
1099 Tools -
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GL_ACCOUNT_TBL_120112
1099 Tools -
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ACCOUNT_ATTRIBUTES_120112
Focus Area #2 –Reimbursing vs. Direct Payment Scenario C –
Whenever possible, the State should buy its own supplies and should pay USPS directly.
If account 599036 was used for these “reimbursements,” then a 1099 would be generated and sent to Employee C for $850.
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Recap Review the accounts that you are using
Account codes can have similar descriptions, but significantly different 1099 attributes
Review your policy for reimbursement State should pay vendors directly whenever
possible Account attributes are on the
Encompass website Focus on the OTHRR attribute
Account 1099 Attribute questions can be directed to [email protected]
Account questions, unrelated to 1099 attributes, will continue to be directed to Mary Reilly
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WORKER CLASSIFICATION
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EMPLOYEE VS. INDEPENDENT CONTRACTOR IRS does not classify a worker based on
the title a business gives a worker (employee or independent contractor)
IRS worker classification is based on the business relationship
Important to IRS because IRS requires FICA, Medicare and Withholding Taxes to be paid on employees, not required on independent contractors
If it’s important to the IRS, it’s important to us
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EMPLOYEE VS. INDEPENDENT CONTRACTOR
Common-Law Rules used to classify workers Behavioral control Financial control Type of relationship
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BEHAVIORAL CONTROL
Instructions to the worker about
When the work is done
Where the work is done
How to work
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FINANCIAL CONTROL Facts that show whether the business
has the right to control the business aspects of the worker’s job
The extent to which the worker has unreimbursed business expenses
The extent of the workers investment The extent to which the worker makes his
or her services available to the relevant market
How the worker is paid The extent to which the worker can realize
a profit or loss
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TYPE OF RELATIONSHIP Facts that show the parties’ type of
relationship
Written contract describing the relationship the parties intended to create
Whether or not the worker is provided employee type benefits
The permanency of the relationship
The extent to which the worker’s services are a key aspect of the regular business of the company
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FUTURE PERSONAL SERVICES CONTRACTS Future personal services contract
documents will contain a document addressing Behavioral control Financial control Type of relationship
The document must be completed by the contracting agency
If the worker’s classification is unclear, then classify the worker as an employee
Send questions to [email protected]
QUESTIONS
Agency specific questions – please stay after Town Hall