Disbursement Division

(1)

Accounts Payable

Disbursement Division

County of Monterey Auditor‐Controller

County of Monterey Auditor Controller

(2)

Accounts Payable Functions

• Audits, prepares and processes

–

Vendor payments

–

Employee claims

–

Procurement card payments

• Provides services to independent special districts

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• Reviews purchase orders for accounting accuracy

• Prepare and process Information Returns (1099‐MISC),

Prepare and process Information Returns (1099 MISC),

Non‐resident Withholdings, etc as required by the IRS

and the State.

(3)

A snapshot of our statistics

• Process 3850 vendor/claim payment documents per

Process 3850 vendor/claim payment documents per

month

• Approve an average of 700 purchase orders per

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g

p

month

• Issue an average of 3525 vendor/claim checks per

g

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month totaling an average of $48 million

• Issued 1100+ IRS Informational Returns 1099‐MISCs

each year

(4)

Accurate Vendor Proper set up of Purchase Accurate Payment Accurate Reporting Vendor Information of Purchase order Payment Processing Reporting

(5)

County’s Policies & Procedures

County s Policies & Procedures

• Policies and Procedures

–

Procurement Policies

–

_{Proper Authorizations (Board approvals, etc.)}

–

_{County Travel Policy, Cash Handling Policy, Capital}

Asset Policy, Procurement Card Policy, etc.

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i h IRS

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–

Compliance with IRS and State laws

–

Proper internal controls

–

Appropriate use of taxpayers’ money

• Technical Procedures

–

Advantage Financial System

(6)

Vendor Registration

• What information do we need from vendors?

Vendor Registration

• Vendor Legal Name • Tax ID number (EIN or SSN) • Current addresses • Ordering address/1099 addresses R itt dd • Remittance address • CA Resident vs. Non‐resident

• Goods vs Services Medical vs Non medical

• Goods vs. Services, Medical vs. Non‐medical,

legal fees, rentals, etc. • Contractor vs. Employee p y

(7)

Vendor Information

• Required Documents

Vendor Information

• Vendor Data Record (VDR) • California forms for residency status • Insurance, etc as required by Purchasing Wh d d th ? • Why do we need them? • IRS laws (1099‐MISC reporting)

• State laws (non resident reporting)

• State laws (non‐resident reporting)

• Accurate vendor database

(8)

Purchase Orders

• Types of Purchase Orders • BPO, PO, LPO, BSC, SC, MYA/DO, MA/DO, EPO • Requirements set by Contracts/Purchasing • Details – Specifications, Quantity & Unit prices, Taxes, Goods vs. Services,

• Capital asset Purchases

• Authorizations based on thresholds

• Board Orders, Emergency PO approvals, etc.

• Agreement approvals & Details

(9)

Accounts Payable

• Types of Advantage payment documents • GAX (General Accounting Expenditure) • PRC (Commodity Payment Request) • Understanding the laws, Policies and Procedures that impact payments

Procedures that impact payments

• Proper authorizations and approvals

• Proper proceduresp p

• Sufficient supporting documents

(10)

Before using

GAX

(claims), ask these questions • Is it authorized to be paid on a claim or h ld h b should there be an agreement? • Is it in compliance with County Policies?

• Does it ha e proper appro als?

• Does it have proper approvals?

• Is it an appropriate use of taxpayers’ money or is it gift of public funds? money or is it gift of public funds?

Travel reimbursements – now via Payrolly

• Is it employee reimbursement or is it a reportable income for employee?

(11)

Current uses of

GAX

(claims)

Current uses of

GAX

(claims)

• Per Board Resolution No. 87‐444 • Purchase of books, subscriptions, publications • Postage & mailing expenses • Legal advertising & legal notices • Fees to the State • Contributions to other agencies • Aid in goods and services for Social Services clients • Non‐employee Reimbursements (in accordance with p y ( County Policies) • Registration fees for conferences, workshops, trainings • Board approved settlements • Petty Cash • Procurement Card paymentsp y • Utilities

(12)

Common GAX documents

• Procurement Card Payments

–

Refer to Procurement Card Policy

–

Appropriate use of procurement cards

–

Sufficient documentation

–

Late charges

• Registration for Conferences, trainings, etc

• Non‐employee reimbursements

Non employee reimbursements

• _Refunds

P tt C h

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(13)

GAX and PRC

• Paying attention to details

• Supporting Documents

• Sufficient and appropriate documentation • Redact confidential and protected info • Redact confidential and protected info

• Legible, organized backup = Quick approval

• Vendor Accuracy

• Vendor Code

• Remittance address

• Scheduling payment datesScheduling payment dates • Disbursement Formats

(14)

GAX and PRC

• Commodity Code (PRCs only) • Accurate amount & quantity • Applying sales/use tax correctly • Service Dates per invoice • Correctly referencing to PO, Comm Line, Ref Type, etc. • Fixed Asset information • Accuracy Accounting Informationy g • Appropriate Event Type • Accurate amounts & allocations • Vendor Invoice NumbersVendor Invoice Numbers

• Fund Accounting & Detail Accounting • Object code, etc

(15)

(16)

Reporting Requirements

• 1099‐MISC Reporting • Sales & Use Tax Reporting • Non‐Resident Withholding • Financial Statements & Reports, etc.

(17)

Accurate Vendor Proper set up of Purchase Accurate Payment Accurate Reporting Vendor Information of Purchase order Payment Processing Reporting

(18)

(19)

Common Reasons for Rejections

• Not knowing/understanding/following Advantage (technical) procedures/requirements – Incorrect entries – Incorrect use of document types – No prior hands‐on training • Not knowing/understanding/following County Policies N d di / f i C T l P li – Not understanding/referring to County Travel Policy – Not understanding/using Capital Asset Policy • Incorrect use of accounting information N t d t di / i h t f t d ti – Not understanding/using chart of accounts and accounting principles • Inaccurate information/calculation • Insufficient backup/information • Insufficient backup/information