INTERNAL TRANSFERS, BILLING, & A/R
Table of Contents
Non-University Users/External Billing
University Users - are:
1. Invoice/transfer procedures followed?
- Ideal Answer: YES. The most efficient method for internal billing is to direct charge customers for the goods/services they receive. This should be done on a monthly basis to ensure a center gets its money timely and to eliminate the risk of not being able to receive payment due to a project closing.
2. Any no-charge services or goods given?
- Ideal Answer: NO. All customers must pay for the services they receive. A recharge center should not barter or allow anyone to receive goods/services for free. The cost accounting for such activity would be complex and difficult to defend in the case of an external audit.
3. Internal transfers reconciled to SFS monthly by department personnel?
- Ideal Answer: YES. To ensure charges are processed timely and accurately transfers are matched to the Shared Financial System. Any rejected items must be tracked, corrected and resubmitted.
4. Transfers processed on a timely basis?
- Ideal Answer: YES. Internal transfers are processed during the first week of the month for goods/services provided the previous month. The only exception is for the month of June when they can be processed the last week of the month, to ensure revenues are credited to the fiscal year in which they were earned.
5. Accurate charges on supporting documents?
- Ideal Answer: YES. The transfer request sent to Accounting Services for processing (whether paper or electronic) contains complete information of the goods/services provided, including rates, quantity and dates of service. If this is not the case the billing department becomes the holder of the original source documents and must retain the detailed records, in an easily retrievable form, for six years plus current. Such records must match transfer requests and have any corrections cross-referenced to the original transactions.
6 Are internal transfers charged to federal grants properly authorized?
Ideal Answer: YES. All charges to extramural funds are documented at the time service, including time/hours of service and the fund/account to be charged. The authorization documentation, whether it be a specific requisition for service, or service log, should be signed by the principal investigator or delegate and include information on the specific project to the charged (by project number).
7. Are internal transfers, both those done manually and those done via an electronic billing/file transfer system, reviewed for accurate coding before submission to Accounting Services for processing?
Ideal Answer: YES. All charges are reviewed to ensure the department/project account codes are used, all grants and requisitions to be charged are open, and other possible coding errors are minimized. Proper coding allows internal transfers to be processed timely and efficiently by Accounting Services -- eliminating the time and effort expended on transfers which cannot post to SFS because of coding error.
8. Are users provided a “customer statement” either at the time of usage or on a monthly basis?
- Ideal Answer: YES. All charges to extramural funds are documented in detail on a statement provided to the customer either at the time of service or on a monthly basis.
9. Current rates used?
- Ideal Answer: YES. Billing systems and forms are updated at the start of a new rate cycle to ensure charges are for the proper rate, and that customers have current information at hand when they ask about service.
10. Are the rates properly documented?
- Ideal Answer: YES. All rates are based on actual costs and are regularly reviewed and calculated in accordance with University and federal policies. Accounting Services Policy 403 http://www.bussvc.wisc.edu/acct/policy/rpa/calc/rpacalcpol.html documented provides guidance in rate calculation.
11. Transfers properly coded?
- Ideal Answer: YES. A recharge center must use organization/revenue coding established for the center at the time it was approved by the Dean or as revised by Accounting Services. UW expense coding must be used in setting the code under which users are charged.
12. Deposits and Internal Transfers reconciled to SFS?
- Ideal Answer: YES. Recharge center promptly reconciles deposit slips and transfers to the amounts shown in SFS and resolves any discrepancies with Cash Management or Accounting.
13. Prior period records retained for future audits?
- Ideal Answer: YES. The State record retention schedule for the UW requires that we retain supporting detail for rate calculation, billing, deposits and reconciliation for six years plus current. (See Records Retention Policy)
Non-University Users/External Billing – are:
14. Is the Bursar’s External Invoicing Service used?
- Ideal Answer: YES. The Bursar’s External Invoicing System External Invoice directs payments to the Bursar and eliminates cash handling in the department, thus it provides better internal control in the department. If a revenue center maintains its own invoicing system whereby checks are directed to the department, there must be physical separation between the billing, receipts handling and any product inventories to ensure proper accountability and internal control.
15. Invoice cancellations, adjustments and write-offs properly authorized and documented?
- Ideal Answer: YES. To ensure proper accountability for any billing adjustment, someone who does not have access to the initial invoice or incoming payments approve (in writing) such actions.
16. Follow-up actions on past due accounts and bad checks adequate, and in compliance with UW policy?
- Ideal Answer: YES. A revenue center reviews unpaid invoices at least monthly and follow procedures established by Accounting Services A/R, Billing, Collections Policy.
17. Account Receivable Revenues reconciled to SFS monthly by department personnel?
- Ideal Answer: YES. Each month a revenue center reconciles the record of payments received per their accounts receivable system to SFS and resolve any differences.
18. Are adequate controls maintained over revenue reconciliation?
- Ideal Answer: YES.. Revenue is reconciled to SFS by someone other than the individual handling receipts or with the authority to process credit transactions to personal credit card accounts.
19. Order slips, letters or Email obtained from customers for goods/services?
- Ideal Answer: YES. A recharge center does not provide goods or services before identifying the source of funding and have a properly authorized request. Providing services before identifying source of funding results in delays in collection and added work tracking down the appropriate funding sources.