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Finance Procedures Manual

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Financial Management and Control (3000) Procedures

Procedure Number Procedure Name Category Content
3005 Internal Controls Financial Management and Control (3000)

.100 General

Internal controls are management procedures designed to ensure efficiency and effectiveness in operations, to improve management decision making, to protect resources, to ensure maintenance and reporting of reliable information and execution of operations consistent with established management policy. Internal controls, therefore, are an integral part of the mechanisms used by management to regulate and guide operations.

Internal controls are distinguished as accounting and administrative controls. Accounting controls are necessary to ensure that activities associated with authorizing, processing, recording, and reporting financial transactions are properly controlled and that the information resulting from these activities is reliable and useful. Administrative controls are necessary to ensure that all resources, including personnel, are properly obtained, maintained, and used; that decisions regarding the expenditure of funds are made based on reliable information; and that budgets are properly developed and monitored to ensure consistency between planned and actual expenditures.

Internal controls do not constitute or require separate systems within the University. They are and should be an integral part of each system James Madison University uses to operate its programs and functions.

.200 Policy

It is the established policy of James Madison University to require the maintenance of adequate internal controls. University Policy No. 1108, "Internal Controls", outlines the University's Internal Control Program.

.300 Control Responsibilities

.310 Assistant Vice President for Finance

  1. Recommends internal control policy.
  2. Develops and publishes procedures.
  3. Issues the statement concerning internal control that accompany the University's financial statements.
  4. Assists departments and activities in designing procedures that will provide adequate internal controls.
  5. Conducts an annual review of internal controls at the department level. Refers potential risk areas to the Director of Audit and Management Services.

.320 Director of Audit and Management Review

  1. Assists departments and activities in designing procedures that will provide adequate internal controls.
  2. Reviews the system of internal controls about audits performed and recommends improvements.
  3. Includes potential risk areas referred by the Assistant Vice President for Finance in the annual risk assessment process used to develop the annual audit plan, as appropriate.

.330 Department Heads

  1. Exercises primary responsibility for maintaining adequate internal controls.
  2. Cooperates with the Office of Finance to conduct the annual internal control reviews.
  3. Complies with internal and external audit recommendations related to their area. Enlists the assistance of the Assistant Vice President of Finance and/or Director of Audit and Management Services when developing new or modified systems.

.400 Procedures

.410 Office of Finance

  1. Sends Internal Control Questionnaires to selected department heads as necessary.
  2. Reviews the responses to the questionnaires in order to determine areas of weakness and, if applicable, communicates these findings to the applicable department head and the director of audit and management services.
  3. Advises department heads on how to incorporate internal controls into new and revised systems.
  4. Ensures that all financial systems have been reviewed by external auditors, internal auditors or by management at least every four- (4) years.
  5. Includes a general statement regarding internal controls with the University's Annual Financial Report.

.420 Department Heads

  1. Completes the Internal Control Questionnaires expeditiously and returns them to the Office of Finance.

.430 Audit and Management Services

  1. Performs a periodic comprehensive internal audit to review departmental internal controls and the effective and efficient use of available resources. (Departments referred by the Office of Finance will be included in the annual audit plan at the discretion of the Board of Visitor's Audit Committee. Comments relating to internal control weaknesses in these areas will be included in Audit and Management Services reports).
  2. Reviews quarterly the Internal Audit Reports, the External Auditors' Management comments, and the Progress Reports to resolve deficiencies noted by each. (This review is performed by the Director of Audit and Management Services with the Audit Committee of the Board of Visitors).
  3. Advises department heads on how to incorporate internal controls into new and revised systems.

 

3010 Cash Shortages and Fraudulent Transactions Financial Management and Control (3000)

.100 General

This section iterates the requirements of James Madison University for reporting suspected cash shortage, and fraudulent transactions. Also refer to James Madison University, Policy Number 1603, "Reporting of Fraudulent Transactions."

.200 Procedure

.210 Suspected Cash Shortages

In the event that a cash shortage is suspected, area management is to notify the Assistant Vice President for Finance immediately. The Assistant Vice President for Finance may authorize a specific dollar amount as non-reportable when associated with daily checkout procedures. Cash shortages, which are within that restriction, need not be reported. The Assistant Vice President for Finance will notify the Director of Audit and Management Services of significant or unusual cash shortages.

.220 Suspected Fraudulent Transactions

Senior Vice Presidents, Assistant/Associate Vice Presidents, Directors, Deans, or Department heads are to notify the Director of Audit and Management Services immediately of suspected fraudulent transactions.

.300 Definitions

Suspected Cash Shortage: Any instance when a person cannot prove the total amount of cash, for which that person is responsible. Cash includes currency, coin, checks, signed credit card slips, and other negotiable instruments.

Immediately: Upon discovery.

Fraudulent Transaction: The intentional deception perpetrated by an individual or individuals, which could result in a tangible or intangible benefit to themselves and/or could cause detriment to others, the University, or the Commonwealth. Fraud includes a false representation of a matter of fact (whether by words or by conduct, by false or misleading statements, or by concealment of that which should have been disclosed) that deceives and is intended to deceive.

3015 Records Retention and Disposition Financial Management and Control (3000)

.100 General

James Madison University requires departments to follow specific guidelines for retaining and disposing of records and files. Departments should refer to University Policy No. 1109, Records Management, before disposing of University Records. The University Records Manager is responsible for managing the Records Management Program.

.200 Financial Records

Financial records are those records that are needed to document and verify financial authorizations, obligations, and transactions. After a specified period of time and audit by the Auditor of Public Accounts such records can normally be disposed of without risk, provided that the necessary retention and disposition schedules have been approved.

Anyone in a University office who wishes to destroy financial records should begin by reviewing the retention and disposition schedule for fiscal records to determine if the state has established a period of retention for the type of record that is being considered for destruction. A detailed schedule (General Schedule 102) for Fiscal Records is provided by the Commonwealth of Virginia, Library of Virginia on their website at http://www.lva.virginia.gov/agencies/records/sched_state/GS-102.pdf.

Departments may contact the Finance Office if they have questions or need clarification regarding requirements for maintaining and disposing of financial documents and files.

3020 Signature Authorization Financial Management and Control (3000)

.100 General

Signature Authorization is required to document approved signatures of individuals authorized to sign financial transaction documents for all active DeptIDs. This includes, but is not limited to: PAR forms, Human Resources transaction documents for personnel, purchase documents, vendor invoices, other payment documents, Agency Transaction Vouchers (ATV), and Student and Wage Employee Time Sheets.

The Office of Finance will forward Signature Authorization listings to all departments and offices at the beginning of first semester. Upon receipt of the listings, departments should review and make any necessary changes to the listings and return the approved listings to the Finance Office, MSC 5719. Departments should use the Signature Authorization Form to make any corrections to signature authority during the year.

.200 Control Responsibilities

.210 Finance Office

  1. Maintain a current electronic list of approved signatures.
  2. Provide campus departments with change forms on the web for updating Signature Authority.
  3. Request campus-wide update to all listings as deemed necessary.
  4. Provide access to the electronic file of approved signatures to departments that need signatory information.

.220 Department

  1. Maintain a copy of each completed Signature Authorization form and each corrected listing.
  2. Submit corrected Signature Authorization listings to the Finance Office annually for signatory changes during the year and as requested by the Finance Office.

.300 Form Preparation and Submission

.310 Signature Authorization Forms

.311 Required

This form is required to document approved signers for financial transaction documents for all active DeptIDs. This includes but is not limited to: PAR forms, Human Resources transaction documents for personnel, purchase documents, vendor invoices, other payment documents, Agency Transaction Vouchers (ATV), and Student and Wage Employee Time Sheets.

.312 Where to Obtain Blank Forms

Blank forms are available online.

.313 Number of Copies/Where to Send Completed Forms

Complete one form and forward to the Office of Finance, MSC 5719,
Fax # 568-3346

.314 Form Preparation Instructions

Following are detailed instructions for the preparation of the Signature Authorization Form.

  Name of the Division Select one.
  Division Head Select one.
  Name of the College or the AVP Area Enter the name of your college or AVP area (example - College of Arts & Letters, Business Services, etc.). If the DeptID is assigned directly to the Division, you will not need to complete this section.
  Name of the Dean or AVP Enter the name of your Dean or AVP. If the DeptID is assigned directly to the Division, you will not need to complete this section.
  Name of the Department Enter the name of your department. If the DeptID is assigned directly to either the Division or the Dean/AVP, you will not need to complete this section.
  Name of the Director or Department Head Enter the name of your Director or Department Head. If the DeptID is assigned directly to either the Division or the Dean/AVP, you will not need to complete this section.
  Fiscal Contact Name Enter the name of the Fiscal Contact for this DeptID. The person designated as Fiscal Contact would answer general questions regarding the DeptID.
  Fiscal Contact Phone Enter the Fiscal Contact's phone number.
  Fiscal Contact MSC Enter the Fiscal Contact's mail stop code (MSC).
  DeptID Enter the six-digit DeptID for which signature authorities are being changed.
  P.I. of DeptID (Grants Only) For grants only, enter the name of the P.I. (principal investigator) for this DeptID.
  DeptID Name Enter the official name of the DeptID for which signature authorities are being changed.
  Action To add a new authorized signer, choose "Add Signer." To change a current authorized signer, choose "Change Signer." To delete an authorized signer, choose "Delete Signer."
  Names of Authorized Signers Type the name(s) of employee(s) you are adding, changing or deleting as authorized to sign financial transaction documents for this DeptID.
  PeopleSoft Employee ID Number Enter each authorized signer's PeopleSoft ID number. This is the number found on the employee's payroll advice and JAC card.
  DeptID Enter the six-digit DeptID – same as entered in top portion of form.
  Authorization Areas - (Time Sheets, Expenditures, PAR/Personnel, Budget) When adding or changing authorization areas for a signer, be sure to indicate ALL areas of authorization that will apply for that signer. When making a change to a current signer, the new line of information will supersede all previously submitted information for that signer. When deleting a signer, choose " Delete Signer " and all authorizations will be deleted.
For Time Sheets – choose either " Entry and Approval " or " Entry Only. " If no signature authority for time sheets is being given, choose "No Authority."
For Expenditures, PAR/Personnel, and Budget – Insert an "X" in each category for which the signer will be authorized to sign.
  Approving Authority Name Type name of Approving Authority.
  Title Enter the title of the Approving Authority.
  Effective Date Enter the date changes are to go into effect.

 

Mail completed form to the Finance Office, MSC 5719 or Fax # 568–3346

3025 Budget and Budget Revisions Financial Management and Control (3000)

.100 General

This subsection provides an overview of the internal budget process of the university. The Office of Budget Management is responsible for producing an annual operating budget which matches an organizational unit's needs with available resources. These needs are usually defined by the university's master plan and/or by state mandated program objectives.

.200 Definitions

This subsection provides definitions of terms used in the budget, budget revision process.

Administrative Unit A group of Organizations which function as an administrative unit. (For Example, Facilities Management, Finance, Office of Budget Management, Dining Services, College of Arts and Letters).
Control Account The expenditure levels within each Organization used by the Financial Information System to verify the availability of funding before transactions are processed into the system.
Detail Account Budgets assigned by the Organization to specific accounts such as student wages, office supplies, equipment leases, ADP equipment, etc. These specific accounts were previously called Expenditure Object Codes.
Division Head Currently Senior Vice Presidents and the Director of Intercollegiate Athletics.

Organization Signature Authority -

Organization Signature Authority The individual on record with the Office of Accounting Services as having signature authority for the organization number indicated on the form.

 

.300 Operating Budget Process

There are four phases of the internal budget cycle which must be coordinated with the state's biennium budget cycle. Any participants' degree of involvement will vary through the phases as major policies are established and staff and implementation requirements shift.

.310 Central Planning

The central planning phase involves the Office of Budget Management and the Office of the Senior Vice President for Administration and Finance. During this phase, which typically occurs November through March, the Office of Budget Management follows legislative actions which may cause changes to the university's appropriations. The budget staff interprets these legislative actions and determines internal resource requirements. At the same time the staff is reviewing other programmatic resource requirements such as utility and insurance increases which may or may not be funded by legislative action. The budget staff keeps the Senior Vice President for Administration and Finance and the Assistant Vice President for the Office of Budget Management apprised of internal funding requirements compared to legislated funding. The objectives of this phase are as follows:

  • Establish base budgets for each organizational unit.
  • Identify and allocate resources to reflect the impact on organizational budgets of legislated mandates, legislated funding and any internal funding requirements such as central issues.
  • Issue guidelines and detailed forms to individual organizational units for budget preparation.

.320 Organizational Unit Preparation

This phase of the operating budget involves the Office of Budget Management and all appropriate offices in each organizational unit. During this phase of the operating budget process, which usually occurs November through January, the individual organizational units prepare budget requests. The objectives of this phase are as follows:

  • Provide organizational units the opportunity to review base budgets and any centrally funded issues, which have been indicated by the Office of Budget Management, for accuracy.
  • Provide organizational units the opportunity to address the need for additional resources required to achieve objectives of the university if such resources are available.
  • Provide organizational units the opportunity to reallocate the limited available resources in order to achieve objectives.

.330 Central Review

This phase of the operating budget process involves the university's Division Heads, President, Board of Visitors, and the Office of Budget Management. During this phase of the process, which usually occurs January through March, the requests of the individual organizational units are reviewed. Reviews are conducted by appropriate Senior Vice Presidents who make recommendations to the President. Budget meetings may be held with individual units, especially those Auxiliary Enterprise units which are responsible for generating revenue. Also, during this phase, tuition and fee recommendations are made to the Board of Visitors for their approval. The objectives of this phase are as follows:

  • Provide Division Heads the opportunity to review allocations or reallocations of resources within their divisions to meet requirements related to divisional objectives.
  • Provide Division Heads the opportunity to make divisional recommendations to the President relative to resource allocations.
  • Provide Division Heads the opportunity to review tuition, fee, and other revenue implications of resource allocations especially for Auxiliary Enterprise units.
  • Provide the President the opportunity to review Division Heads recommendations for resource allocations.
  • Provide the Board of Visitors the opportunity to review tuition and fee implications of the recommended resource allocations.

.340 Execution and Evaluation

This phase of the budget process involves the Office of Budget Management, the Controller's Office and all appropriate organizational units. At the beginning of this phase, which occurs during July, an official budget for the new fiscal year is distributed to organizational units. During the rest of the fiscal year, expenditures are made against this budget. Revisions to the budget are made as plans change during the year. The objectives of this phase are as follows:

  • Provide organizational units with a beginning budget to expend against during the fiscal year.
  • Provide the total university operating budget to the Controller's Office for inclusion in the University's Financial Accounting System for financial control, analysis, and reporting.
  • Provide organizational units with the opportunity to reflect changes in their financial plans through budget revisions.

 

.400 Budget Controls

The JMU Office of Budget Management is responsible for producing an annual operating budget which matches an organizational unit's needs with available resources.   These needs are usually defined by the University's master plan and/or by state mandated program objectives.   After a lengthy review process which includes all division heads, the President, Board of Visitors, and the Office of Budget Management, the budget is adopted.  The office of Budget Management enters and uploads into PeopleSoft the original budgets for each organization of both a detail and sum account level.  This information is also provided to all departments on the Monthly Budget/Expenditure reports.  For a transaction to be processed in PeopleSoft, the transaction must pass an organization control check.  In the Organization Control Check, PeopleSoft verifies for an available row for each organization at the levels:

Account Code Description Detail Account Range
PS Personal Services 110000 to 118900
NPS Non-Personal Services 120000 to 510000
PSREC Personal Services Recoveries 119000 to 119990
NPSREC Non-personal Services Recoveries XX9000 to XX99990
ALLREV All Revenue 010000 to 099999

 

If there is no row available or no funding available at the NPS control level within an organization, PeopleSoft will not process transactions for that organization until a budget revision transaction has been entered into the system.  The account detail information is only used by PeopleSoft to create the monthly Budget/Expenditure Report.  The budget revision form allows the user to request budget changes at both the detail account and the control account levels.

.500 Revisions to Operating Budgets

This subsection describes the use and preparation of the Request for Budget Revision form. The budget revision form allows the user to request budget changes at both the detail account and the control account levels.

.510 Control Responsibilities

Listed below are the control responsibilities of the organization and the Budget Office.

.511 Organization

  1. Maintains departmental records to substantiate the entries made on the Request for Budget Revision form.
  2. Prepares the Request for Budget Revision forms in accordance with the instructions printed in this procedure and on the form.
  3. Forwards Request for Budget Revision forms to the appropriate department to secure signatures for all parties affected by the transaction.
  4. Verifies that transactions are correctly entered on FIS Budget Summary Transaction report in accordance with internal control requirements.

.512 Office of Budget Management

  1. Reviews Request for Budget Revision forms for accuracy and completeness.
  2. Restricts movement of funds from one fund group to another. Fund groups included are Educational and General; Student Financial Assistance; Financial Assistance for Educational and General Services (Grants); Auxiliary Enterprises; and Local/Agency Funds.
  3. Restricts movement of personal services funding to non-personal services expenditure areas.
  4. Personal services funding is typically not available for use in non-personal expenditure areas.
  5. Equipment funding in E&G instructional accounts is typically not available for use in other expenditure areas.
  6. Confirms funding availability and verifies signatures.
  7. Determines whether the transaction is permanent or temporary in nature.
  8. Authorizes the request.
  9. Processes request into the Financial Information System.
  10. Maintains original copies of processed Request for Budget Revision forms for reference, audit and internal control purposes.
  11. Maintains supply of blank forms.
  12. Maintains form on Office of Budget Management Web Site.
  13. Responds to organization inquiries.
  14. Prepares monthly reconciliations.

.600 Form Preparation and Submission

This section provides detailed instructions for obtaining, completing, and routing the Request for Budget Revision forms.

.610 Request for Budget Revision

.611 Required

The Request for Budget Revision form is required to record all revisions to the original budget.

.612 Where to Obtain Blank Forms

Electronic forms are available online on the Budget Management website.

.613 Number of Copies

Complete one copy for the Office of Budget Management and retain a copy of the completed form for departmental file.

.614 Where to Send Completed Forms

Upon obtaining all the appropriate signatures, the completed forms should be forwarded to the Office of Budget Management for processing.

.615 Processing Procedures

The Office of Budget Management approves the request upon compliance with this procedure.

.616 Forms Preparation Instructions

Following are detailed instructions for the preparation of the Request for Budget Revision form. Use the continuation sheet for revisions which require more than four lines of increase/decrease information.

  Page: Enter the page number on each form, 1 of 1, 1 of 2, 2 of 2, etc.
  Department: Enter the name of the Department issuing the request.
  Prepared by: Signature of individual preparing the form.
  Extension: Enter the telephone number of the person preparing the form.
  Date Prepared: Enter the department's preparation date.
  Description/Justification of requested action: Enter a clear, concise description of the action requested.
  Request for Changes to Detail Account Balances:
  Organization Unit: Enter the department's organization number.
  Account: Enter the account number.
  Amount: Enter the transaction amount for the account number shown.
  Request for Changes to Control Account Budgets:
  PS: Enter the personal services amount for the account number shown.
  NPS: Enter the non-personal services amount for the account number shown.
  PSREC: Enter the personal service recovery amount for the account number shown.
  NPSREC: Enter the non-personal service recovery amount for the account number shown.
  All Revenue: Enter the revenue amount for the account number shown.
  Sum Control Account Changes for Each Org Unit Shown on this Request: Enter transaction totals for amounts shown for each organization.
  APPROVALS:
  Level One Approval
- Signature and Date:
Signature(s) of the individual(s) on record with the Office of Finance as having signature authority for the organization number(s) shown in number 7. Include the date of the signature.
  Level Two Approval
- Signature and Date:
Signature(s) of the individuals(s) responsible for the fiscal activities of a group of organizations which function as an administrative unit. For example, Facilities Management, Finance, Dining Services, College of Business. Include the date of the signature.
  Level Three Approval
- Signature and Date:
Signature(s) of the Division Head(s) responsible for the fiscal activities of the administrative units reporting to them. See definition of Division Head in subsection .200 Definitions.
  REQUIRED APPROVALS:
  Level One: Required for all revisions.
  Level Two: Required when requests cross organization numbers within the same administrative unit.
  Level Three: Required for transfers between administrative units within the same division, transfers with other divisions, or requests for new funding. In all cases the unit head giving up money should approve the form.


3030 Reports Financial Management and Control (3000)

.100 General

The Office of Finance is responsible for maintaining the University's Financial Information System (PeopleSoft Finance) and for disseminating appropriate information to the Campus community. Financial Reports can be run from the Finance System at any time for those that have access to the system. 

Responsible departmental personnel may request security access to the system and their department number(s) by completing the online "IS Access Request”.  Upon receipt of a completed "IS Access Request", IT Training will contact the person requesting access to schedule the required training prior to gaining access to the system.

Should you have questions concerning completion of the form or obtaining access to the system, contact Finance System Security @ sealkh@jmu.edu or x87078.

The following subsections provide detailed descriptions of the information included on the Summary Financial Report (nVision Report) and the Monthly Detail Report.

.200 Report Descriptions

.210 Summary Financial Report

This report provides monthly and year to date revenue and expenditure transactions for each organization by account code. It also provides both original and revised budget by account code and calculates budget balance before and after encumbrances.
Sub-totals are provided for:

  • Personal Service Expenses and Personal Service Recoveries
  • Non–Personal Service Expenses and Non–Personal Service Recoveries
Total are provided for:
  • Revenues
  • Personal Services
  • Non–Personal Services
  • Total Expense and Recoveries combined for the organization

THE "HEADER" SECTION:

THE BODY OF THE REPORT:

  • Account: Revenue, Expenditure Account code and or Recovery. Expenditure Account Code definitions are available in Section 2015 and Revenue Account Code definitions are available in Section 2020 of these procedures.
  • Description: The description of the revenue and/or expenditure account code.
  • Original Budget: The beginning budget for the current fiscal year.
  • Revised Budget: The beginning budget adjusted by budget revisions approved and processed through the date of the report.
  • Revenue/Expenditure, Current Month: Current month's revenues, if applicable, and expenses recorded as of the report date.
  • Revenue/Expenditure, YTD: Revenue, if applicable, and expenditures recorded through the current month, for the fiscal year.

.220 Monthly Detail Report

The monthly detail report lists all budget, revenue, and expenditure transactions recorded in the Finance System for the reporting month. Transactions are listed individually by Revenue and Expenditure account code and include a brief description of the code. Totals are provided for each Account Code and for All Revenue Codes, Personal Service Expenses, and Non-Personal Service Expenses. A grand total is provided for All Expense Codes and a net total (difference between revenues and expenditures) for the Department. The total for each account code is automatically transferred to the Summary Financial Report.

THE "HEADER" SECTION:

  • Report Title: James Madison University, Monthly Detail Report.
  • Time Period of the Report: For the Period Ending, Month, Day, Year.
  • For Department: The Department Number and Name.
  • Manager Name: The title of the person responsible for the Department number listed on the report.
  • Report ID: JGL0001
  • Page. Number of pages in this report.
  • Run Date: The date the report was run.
  • Run Time: Time the report was run.

THE BODY OF THE REPORT:

  • Date: The date transactions were posted to the FIS.
  • GL Jrnl ID: General Ledger Journal Identification number of the transaction listed.
  • SRC: Source of the transaction, either Procurement (PO), General Accounting (GA), or Accounts Payable (AP).
  • Sub ID: A second Identification number, the Voucher No. for vendor payments or PO No. for purchase orders.
  • Description: A brief description of the transaction and/or the name of the payee, vendor or deposit certificate number.
  • Budget Amts: Amounts of original and budget revision transactions.
  • Actual Amts: Actual amounts of individual transactions posted.

.230 Monthly Exception Report 

This cross period posting report provides a summary of transactions that are processed in a given month but posted to the ledger in a previous month.

THE "HEADER" SECTION:

  • Report Name:  JGL0009
  • Report Date: The date the report was run.
  • Manager Name: The title of the person responsible for the Department number listed on the report.
  • Report Title: James Madison University, Cross Period Posting Report.
  • Time Period of the Report: For the Period Ending, Month, Day, Year.
  • For Org: The Department Number and Name.
  • Page No. Number of pages in this report.
  • Run Time: Time the report was run.

THE BODY OF THE REPORT:

  • Journal Date: The date transactions were processed.
  • Posted Date: The date transactions were posted to the FIS.
  • GL Jrnl ID: General Ledger Journal Identification number of the transaction listed.
  • SRC: Source of the transaction, either Procurement (PO), General Accounting (GA), or Accounts Payable (AP).
  • Sub ID: A second Identification number, the Voucher No. for vendor payments or PO No. for purchase orders.
  • Description: A brief description of the transaction and/or the name of the payee or vendor.
  • Actual Amts: Actual amounts of individual transactions posted.

.240 General Ledger Activity Report

The monthly report lists all accounts posted to the department/organization in the Finance System for the reporting month. Transactions are listed individually by Revenue, Expenditure, Liability and Cash account code. Total Activity, Ending Balance, and Expended Balance are provided for each account code.

THE "HEADER" SECTION:

  • Report ID:  GLS7002
  • Bus. Unit: JMDSN - James Madison University
  • Ledger: ACTUALS - Actuals Ledger
  • For Fiscal Year: The fiscal year of this report.
  • Period: Month to Month period of this report.
  • Dept: The Department/Organization Number is listed here.
  • Currency Code: This will always be USD (US Dollars).
  • Report Title: PeopleSoft GL - General Ledger Activity.
  • Page No. Number of pages in this report.
  • Run Date: Date the report was run.
  • Run Time: Time the report was run.

THE BODY OF THE REPORT:

  • Curr: Currency Code, which will always be USD for US Dollar.
  • Journal Date: The date transactions were posted to the FIS.
  • Journal ID: The journal number or PO number for that transaction.
  • Seq Line: Sequence line number for that posting.
  • Dept: Department number of the transaction.
  • Account: The account the transactions were posted to the FIS.
  • Program:  The program code associated with department.
  • Debit: The amount charged to the account for that transaction.
  • Credit: The amount credited to the account for that transaction.
  • Balance: The net balance of the account for the month.
3035 Reconciliation Guidelines Financial Management and Control (3000)

.100 Control Responsibilities

The Office of Finance is responsible for analyzing and monitoring University and individual account activity, advising administrative officials if problems or potential problems exist, recommending guidelines for completing reconciliation, and providing assistance to University departments as requested.

The Department Head or Approving Authority (the person responsible for the operating budget) is responsible for maintaining accurate records, and controlling the financial activity of their departmental organization(s).

.200 Importance and Documentation

Reconciliation of monthly reports is essential to assure the accuracy of transactions posted to the Financial Information System. It allows departments to monitor the budget and guard against under and over expending. The reconciliation process involves comparing departmental transaction records to the items posted on the FIS Monthly Detail Report and Summary Financial reports. Each department head or their designee is responsible for ensuring that documentary evidence, subject to audit, is maintained, that their budget and expenditure reports have been reconciled on a timely basis (no less than monthly) and that reconciling items have been promptly resolved. The nature and extent of this documentary evidence is contingent upon the size and scope of the department's operations and should be determined by the Department Head.

.300 Departmental Responsibilities

  • Maintain copies of FIS Transaction Detail reports and Budget and Expenditure summary reports obtained from the Finance System.
  • Maintain copies of commitments and expenditures.
    • Documentation for Central Charges such as Telecom, Postal Services, Facilities Management, and copiers, is not required.
  • Monitor departmental financial activity and ensure the reconciliation of departmental records to monthly FIS reports.
  • Resolve differences between departmental records and reports promptly.
  • Maintain documentation of monthly reconciliation for the current fiscal year and the three previous fiscal years.
  • Ensures appropriate security controls are in place related to customer(s) personal information.
    • No customer personal information is stored on JMU server or workstation hard drives, or in hardcopy form in departmental files. Such sensitive data includes social security numbers, payment card account numbers, etc.
    • All copies of customer checks show blacked out account numbers and are marked "VOID" and/or "COPY".

.400 Reconciling FIS Reports

.410 Reconciling the FIS Summary Financial Report

Individual amounts shown on the monthly detail report, are summarized and shown in total by expenditure account code on the Summary Financial report. These amounts are automatically summarized and forwarded to the current month column on the Summary Financial Report. Year to date expenditures, Budget Balance, Encumbrances and percent of budget available for expenditure is also shown on this report.

A review of this report is recommended to determine that the financial data is reasonable and that adequate funds remain in the budget to cover commitments and future expenses.

.420 Reconciling the FIS Monthly Detail Report

The following steps are suggested for reconciling monthly reports with departmental records for expenditures.

Using the monthly detail report, review Personal Services expenditures to determine that charges are appropriate. To facilitate this process, detailed information can be obtained from the HR System Personal Expenditures Report or through HR queries requested from the Payroll Services Department. To obtain access to the Personal Expenditures Report please contact the HRMS Data Manager. For expenditures Other than Personal Services begin with Contractual Services (120000 series) account codes and review each amount listed in the current month column, to determine if charges are correct.

Differences between the posted amounts and departmental documentation shall be reconciled by contacting the appropriate department.

  • Submit an online request regarding discrepancies
  • Contact Accounts Payable, x86265 for copies of vouchers
  • Contact Financial Reporting, x83656 for copies of ATVs

The Standard Tool for Accounting Reconciliation (STAR) is one available reconciliation method. Refer to the STAR webpage for more information.

The person completing the reconciliation should initial and date the monthly detail report and the Department Head or Designee should sign and date the report confirming the reconciliation has been properly completed. The JMU Monthly Reconciliation of JMU FIS Transactions Cover Sheet may also be used as certification of the monthly reconciliation.

3040 Insurance Financial Management and Control (3000)

.100 General

This procedure highlights the key provisions of the university's insurance coverage and provides information for reporting losses. The Commonwealth of Virginia provides several Risk Management Plans and individual insurance policies for insurance coverage. The university also obtains individual insurance policies for specific types of coverage.

The Division of Risk Management, the adjustment company or the insurance provider determines coverage for property loss or damage and for liability claims. Applicable coverage is determined after reviewing and evaluating pertinent information concerning the damage, loss or liability claim.  University employees, who become aware of a potential insurance claim, should not make any statements, such as, "the university or the state will cover this" when discussing insurance coverage.

.200 Responsibilities

.210 Office of Risk Management

  • Administers the risk management programs of the university to include procurement of insurance and the handling of claims, (except state-owned vehicles and workers compensation) associated with the university's insurance coverage.
  • Responds to questions concerning coverage, requests for "Certificate of Insurance," claims, losses, damages or filing of claims (except state owned vehicles and workers' compensation).

.220 Office of Facilities Management

  • Provides accident report forms for reporting accidents with state-owned vehicles.
  • Receives completed accident report forms and forwards to the Insurance carrier for processing.

.230 Office of Human Resources

  • Administers the workers' compensation program.
  • Submits workers' compensation accident reports to the Division of Risk Management to determine if they are compensative.
  • Acts as liaison for James Madison University employees regarding workers' compensation claim questions and issues regarding service providers.
  • Verifies lost time wage information and reimbursement checks received from the Division of Risk Management before releasing them to the Office of Payroll Accounting.

.240 Office of Public Safety

Safety Engineer

  • Maintains files of "First Report of Injury" forms forwarded by Human Resources.
  • Reviews incidents, classifies related reports either as "reportable" or "recordable."
  • Conducts follow-up investigations and inspections when and where necessary.
  • Provides analysis, makes recommendations, issues pertinent directives. Consults Human Resources, Risk Management and/or the Department of Labor and Industry when appropriate.
  • Compiles related annual and semi-annual reports.

Police

  • Investigates vehicular accidents involving state-owned vehicles within their jurisdiction.
  • Completes FR-300P accident report form and submits it to the Department of Motor Vehicles.
  • Completes SP209 accident report form and submits it to the Virginia State Police.
  • Maintains related files on station.

.250 University Employees

  • Contact the Safety Engineer to review any perceived risks and to report immediately any loss or occurrence that could require insurance coverage.
  • Contact Facilities Management Operations to report accidents with state-owned vehicles. Completes the Accident Report Form and returns it to Facilities Management Operations within five days of the accident.
  • Contact Human Resources regarding Workers' Compensation claims.

.300 Insurance Coverage

.310 Automobile Insurance

.311 State-Owned Vehicles

COVERAGE

The Automobile Plan covers liability claims against the university and the driver and medical payments. This Plan also provides coverage, with a deductible, for comprehensive and collision damage on state owned vehicles. The Automobile Plan insurance covers the vehicle. It does not cover occupants personal possessions. Workers' Compensation insurance covers work related injury to state employees.

LOSS REPORTING

Claim reporting procedures "IF YOU HAVE AN ACCIDENT" should be in a packet in the glove compartment of each State vehicle. If a packet is not in the vehicle, please request one from the James Madison University Facilities Management, Motor Pool Office, or download the forms directly from the Office of Risk Management Website:

http://www.jmu.edu/riskmgmt/autoinspkts.shtml

Certificate of Coverage information and form is found at:

http://www.jmu.edu/riskmgmt/riskmgmt/certvoc.shtml

Employees must report all accidents that occur off campus and involves university vehicles immediately to the State Police. If the accident occurs on a state university or college campus in Virginia, report the accident to the Office of Public Safety or Police Department for the campus where it occurs. The vehicle operator must also contact James Madison University Facilities Management, Motor Pool Office, within five days. The vehicle operator should not admit fault or liability when discussing the incident.

.312 Personal Vehicles Used for University Business Purposes

COVERAGE

When an employee of the university is driving his or her personal vehicle on university business, The Automobile Plan applies only after the employee's personal insurance limit of liability is reached. The Automobile Plan does not apply toward comprehensive, collision damage, or medical coverage.

LOSS REPORTING

Employees should contact the Office of Risk Management, if a claim occurs and they believe they may exceed their own insurance liability limits.

.313 Rental Cars Used for University Business Purposes

COVERAGE

Coverage applies only in the United States, its territories or possessions, Puerto Rico or Canada.

The State's automobile insurance is applicable only toward the liability portion when employees of the university use rental vehicles for university business. The coverage applies only after exhausting the rental agency's liability coverage. While the employee is on university business, the Automobile Plan is responsible for all costs of collision and/or comprehensive damage. The Automobile Plan coverage does not apply to personal possessions.

Employees using rental vehicles should not buy additional insurance offered by the car rental agency when traveling on university business. The cost of additional insurance is not reimbursable.

LOSS REPORTING

The State Division of Risk Management has issued accident instruction packets for university travelers. The packet provides the number of an insurance agency to call if there is physical damage to a rental vehicle, as well as forms needed to file an accident claim. Extra packets are available upon request at the Office of Risk Management, or by downloading the forms directly from their website:

http://www.jmu.edu/riskmgmt/guideproploss.shtml

For additional information, please refer to Section 4215, subsection .300, "Travel Regulations".

.320 General Liability

COVERAGE

The Risk Management Plan provides coverage to employees for errors or omissions of any nature while acting in the authorized governmental capacity in the course and scope of employment or authorization. Coverage is subject to the terms of The Risk Management Plan. The Division of Risk Management decides specific coverage issues. The State Attorney General's Office provides legal defense.

This coverage has no deductible. As of July 1, 1990, the upper limit for employees is $2,000,000 and has a $100,000 limit, by law, for the university.

LOSS REPORTING

Contact the Office of Risk Management to report the incident. Employees should not admit fault or liability when discussing the incident.

.330 Property Insurance

COVERAGE

The Property Insurance Plan provides coverage for the buildings of the university and all contents belonging to the university and the Commonwealth. More specifically, The Property Insurance Plan insures items such as furniture, computers, software, accounts receivable records, property on exhibit, musical instruments, and leased equipment. The coverage insures against such perils as theft, vandalism, fire, wind, earthquakes, floods, etc. The Property Insurance Plan does not cover personal articles belonging to employees or students.

Each property loss claim is subject to a $10,000 deductible. If a claim is projected to be $0.00 - $9,999, there would be no reimbursement for the loss or damage. In such cases, no claim should be submitted.

The university must follow procurement guidelines for replacement or repair of lost or stolen items.

The university will obtain coverage for articles exhibited on the campus. Departments that sponsor exhibits may request insurance coverage by contacting the Office of Risk Management before making any commitments concerning the exhibit. The department must provide the following information for this insurance coverage:

  • Description and value of articles for exhibit;
  • Location and inclusive dates of the exhibit;
  • Name, address, telephone and fax numbers of owner and agent, if any; and
  • Dates and method of shipment if the university is to provide coverage for articles in transit.

Departments that need to ship items or have loan items shipped, and are contractually obligated, may obtain insurance coverage by contacting the Office of Risk Management, prior to shipment. The department must provide the destination and bill of lading number for overseas shipments.

LOSS REPORTING

Report all losses immediately to the university Office of Public Safety.

Report any loss or damage to university property, (buildings and contents) from theft, vandalism, fire, wind, electrical, water, etc. to the Office of Risk Management. Prompt reporting and documentation will allow faster reimbursement from the State Division of Risk Management. Late reporting or delays in repair or documentation can delay or forfeit reimbursement.

Insurance coverage is for the replacement cost of a like item. Departments may upgrade the item of equipment, but any amount over the replacement cost must be at departmental expense. For example, a department replaces a stolen Model 386 computer that has a replacement cost of $2,500 with a Model 486 at a cost of $3,500. The $3,500 cost of the Model 486 is a charge to the departmental budget. The check for insurance coverage on the stolen equipment, $1,500 ($2,500 less $1,000 deductible) is a credit, leaving a net charge of $2,000 ($1,000 cost to upgrade and $1,000 insurance deductible) to the department.

Departments may start repairs to damaged property immediately. When an item is not repairable, the department must obtain a statement from a technician (such as a computer repair technician from the Office of P. C. Repairs for computers) stating that the item is not repairable. The department must retain damaged items that are not repairable, until they receive notification from the Division of Risk Management releasing the items.

Refer to subsection .500 "Procedures for Reporting Losses and Filing Reimbursement Claims," for additional information.

.340 Other Insurance

The university and the State also provide other insurance coverage. This subsection provides a brief overview of some of the coverage.

.341 Workers' Compensation

The Workers' Compensation Plan provides coverage for employees injured during working hours. The State insurance coverage for workers' compensation fully conforms to statutory requirements. Employees may obtain information and specific coverage by calling the Office of Human Resources.

.342 Boiler and Machinery

The State procured policy provides specialized insurance coverage for some failures of heating, ventilation and air conditioning equipment. Departments should address questions regarding loss reporting or coverage of boiler or machinery to the Office of Risk Management.

.343 Money and Securities

The Property Plan covers the university for losses of money, securities, or checks by the actual destruction, disappearance, or wrongful abstraction. It does not cover employee dishonesty or accounting errors. The Plan includes a deductible of $10,000. Employees should address all questions concerning money and securities coverage, losses or filing of claims to the Office of Risk Management.

.344 Medical Malpractice

The Medical Malpractice Plan provides coverage to the university and to employees in the medical or medical related professions. Employees should address all questions concerning medical malpractice, coverage, losses or filing of claims to the Office of Risk Management.

.400 Coverage for Students

.410 Individual Students

For insurance purposes, the university may consider registered and enrolled university students, required by the curriculum to participate in supervised and graded practicum or periods of service outside the school, as agents of the Commonwealth. This insurance coverage applies to students participating in state, local government, federal or private agencies, organizations or entities. The coverage is under the Automobile, General Liability and Medical Malpractice Plans. Address all questions concerning coverage for students, as agents of the Commonwealth, to the Office of Risk Management.

.420 Student Groups

The Commonwealth of Virginia Risk Management Plans or university procured insurance does not provide specific coverage for organized student groups. These groups should address any questions concerning coverage to the Office of Risk Management.

.500 Processing Procedures for Property Losses and Filing Reimbursement Claims

.510 Department

  • Reports loss or damage immediately to the Office of Public Safety.
  • Reports loss or damage, within forty-eight (48) hours of discovery, to the Office of Risk Management.
  • Completes two copies of the "Property Loss Notice," maintains one copy for departmental files and forwards the original copy, within forty-eight hours of discovery, to the Office of Risk Management. Documents the urgency for making repairs or replacing the equipment on the form.
  • Retains damaged property in a secure location to protect it from further damage. Provides access to the damaged property for insurance inspection purposes.
  • Maintains all information that documents the loss. Examples of information that could be useful are:
    • Copies of original purchase documents and vendor invoices (if available).
    • Sunflower number assigned to damaged or lost equipment.
    • Inventory (list) of items destroyed, damaged or lost.
    • Copy of police report for stolen items.
    • Names and telephone numbers of individuals familiar with the damage or loss.
    • Itemized invoice or report of repair costs. Repairs completed by university employees should include an itemized description of labor used, the nature of the work provided, hours, base labor rate and justification for any overtime. For damage caused by lightning, provide verification of such, from the repair service.
    • If items are replaced, provide verification from repair service that the items cannot be repaired or estimates showing that repair costs exceed replacement costs.
    • If exact item is not available, provide verification of unavailability from the vendor and that the replacement is comparable.
  • Prepares appropriate documents (Purchase Requisition, DPO, Work Order, etc.) for replacement or repair of the property. Charges equipment repairs or replacement to the departmental organization and has the signatory authority for the organization approve the transaction document.
  • Upon receipt of the replaced item (new or repaired) forwards all available information, to include items one through six listed above, to the Office of Risk Management.

.520 Office of Risk Management

  • Reports losses estimated to exceed $10,000, immediately by telephone to the Department of the Treasury, Division of Risk Management.
  • Upon receipt of information documenting the loss, forward this information and a copy of the completed Property Loss Notice to the Department of the Treasury, Division of Risk Management.
  • Provides Division of Risk Management with correct contact information and mailing address for disbursement of funds (insurance payment) by check.
  • Maintains copies of Property Loss Notice and supporting loss documentation in the Office of Risk Management insurance files.

.600 Form Preparation and Submission

.610 Property Loss Notice

.611 Required:

The university requires this form to report any loss or damage to university property (buildings and contents) from theft, vandalism, fire, wind, electrical, water, and certain other causes.

.612 Where to Obtain Blank Forms

A blank electronic copy of this form is available @ http://www.jmu.edu/riskmgmt/guideproploss.shtml.

.613 Number of Copies

Complete two copies.

.614 Where to Send Completed Copies

Send one completed copy to the Office of Risk Management. Retain one completed copy.

.615 Form Preparation Instructions

Following are detailed instructions for the preparation of the Property Loss Notice. When entering information to the form, the tab key should be used, not the enter key, to keep the format of the form correct.

  Agency Name: Enter James Madison University.
  Date Reported: Enter the reporting date of the loss or damage.
  Time Reported: Enter the reporting time of the loss or damage.
  Agency Code: Enter JMU's agency code - 216.
  Date of Loss: Enter the date the loss or damage occurred. If you do not know the actual date, enter the best estimate.
  Time of Loss: Enter the time the loss or damage occurred. If you do not know the actual time, enter the best estimate.
  Kind of Loss Enter the kind of loss, theft, vandalism, etc.
  Location: Enter the location, where the loss or damage occurred.
  Estimate of Loss: Enter the estimated dollar value of the loss or damage.
  Description of Loss or Damage Enter a description of the loss or damage.
  Contact Information Enter the name, title, address, telephone number and fax number of the contact person.
  Reported by: Enter the name, address, telephone number and fax number of the person reporting the incident.
  Comments: Enter any additional information concerning the incident.

 

.700 Summary - Insurance Coverage and Reporting Instructions

The following summary provides a brief description of coverage and reporting instructions. Please use this information as a "quick reference" only.

INSURANCE COVERAGE AND REPORTING INSTRUCTIONS

CATEGORY BRIEF DESCRIPTION COVERAGE REPORTING INSTRUCTIONS
Automobile State Owned Vehicles Liability claims against University and Driver. Medical Payments, Comprehensive and collision damage.

Deductible applies.
Off Campus: Report Immediately to the State Police.

On Campus: Report to the Office of Public Safety on the campus where the accident occurs.

Contact Facilities Management Motor Pool within 5 days
Automobile Personal Vehicle

Used for JMU Business
The Automobile Plan covers liability after reaching the limit of liability on the employee's insurance policy. No Comprehensive, Collision or Medical. Contact Office of Risk Management.
Automobile Rental Cars used for JMU business purposes The Automobile Plan covers liability only after exhausting the rental agency's liability. Covers collision and comprehensive Contact our Insurance Carrier as indicated in Accident Packet.

Contact Office of Risk Management.
General Liability Insures the University and its employees Damages resulting from claims against JMU, departments, Employees, etc. for errors or omissions of any nature while acting in official capacity Contact Office of Risk Management within 48 hours to report incident.
Property Insures all property belonging to the university, the Commonwealth or authorized exhibitors. Loss of or damage to university buildings and contents against theft, vandalism, fire, flood and other perils.

Does not cover personal items belonging to employees.
Theft or Losses: Contact Public Safety Immediately.

Theft, loss or damage to property: Contact the Office of Risk Management within 48 hours of discovery to report and to obtain "Property Loss Notice" form.
3045 Local/Agency Funds Financial Management and Control (3000)

.100 General

This section provides guidelines for Local/Agency Funds. James Madison University is the custodian or fiscal agent for Local/Agency Funds held for students, faculty, staff members and other activities. The University includes the front-end budgeted Student Government Association organizations in this Fund Group. Local/Agency Funds may include organizations designed to ease administrative handling of special transactions. Department numbers are also set up for conferences and events that benefit or promote the University while not qualifying as official University activities. As per the Department of Accounts, Chart of Accounts structure, Local/Agency Funds are outside of the Commonwealth policy for funds deposited in and expended from the State Treasury. Responsibility for the proper business reason for expenditures rests with the individual or activity for which JMU is acting as the Fiscal Agent.

The University assigns Financial Information System (FIS) Department Numbers in the 8xxxxx series of numbers to Local/Agency Funds. All department numbers are available online numerically and alphabetically.

.200 Control Responsibilities

This subsection outlines the control responsibilities of the departments/activities involved in processing transactions using Local/Agency Funds.

.210 Local/Agency Funds Department/Activity

  • Collects and deposits revenues according to University procedures.
  • Comply with Virginia Retail Sales and Use Tax Collection requirements once authorized by the Assistant Vice President for Finance to sell merchandise or rent university facilities.
    • Contact the Cash & Investments Office for specific procedures prior to initiating any sales/rentals.
  • All locations accepting payment cards must obtain written authorization from the Assistant Vice President for Finance prior to implementing a payment card option.
  • Upon approval of the Departmental Request to Process Payment Cards and after merchant numbers are received, any required processing equipment will be procured and programmed by University Business Office. (Equipment costs are charged to the department requesting authorization to process payment cards.)
  • Department Head (Merchant) must review, complete and return the JMU Merchant Agreement (annual process) to University Business Office.
  • Department requests training and access, from the University Business Office, for online transaction management sites.
  • Department contacts the University Business Office to schedule mandatory Payment Card Acceptance Training for all individuals designated to handle any area of payment card processing.
    • Department submits documentation for background checks on appropriate staff (including students)
  • All payment card deposits must be processed daily regardless of the amount.
  • Insures that an adequate cash balance is available in the account before processing expenditure transactions.
  • Complies with procurement procedures for the purchase of goods and services.
  • Complies with JMU Policy No. 4401 University Supported Travel. This policy applies to university-supported travel regardless of the source of funds. The Financial Procedures Manual, Section 4215, "Travel" provides detailed travel procedures.
  • Complies with JMU Policy No. 4101 Contractual Agreements-Student Clubs & Organizations (3/1/99).
  • Prepares appropriate documents for payments to vendors, students and employees. Forwards completed documents to the appropriate office for processing.
  • Prepares written monthly reconciliation of transaction amounts shown on University FIS monthly reports (including Ledger 5xxxxx payroll accounts) to the department or activity internal records. Contacts Cash & Investments Office to resolve discrepancies or submit an online request for transaction research assistance.
  • Maintains Signature Authorization forms to document current approved signatory authority. See Section 3020, Signature Authorization for additional information.
  • Complies with University policies and procedures for awarding scholarships to students. (See Subsection .500 of this section "Classification of Payments to Students.")
  • Complies with University policies and procedures for hiring employees and compensating for work performed. (See Subsection .500 of this section "Classification of Payments to Students," and Subsection .700 of this section "Processing Procedures - Employment and Payment for Work Performed.")
  • Prepares "Action Request for Department ID" form to setup a new FIS Department Number, change or close an existing Department. (This form is available online.)

.220 Accounts Payable

  • Reviews purchase documents for restricted items and purchases costing more than $5,000 for propriety (See Subsection .400 of this Section "Processing Procedures - Purchases and Payments,"). Approves and forwards complete documents to the Office of Procurement Services.
  • Reviews JMU Accounting Voucher or Local Funds Transfer Request Form (with accompanying backup documents) for proper signature and back up documentation and processes/routes documents.
  • Provides assistance to departments regarding proper expenditure of funds and form preparation.

.230 Accounting

Financial Reporting

  • Assigns payroll account numbers for Local/Agency Funds payroll expenditures and advises departments or activities of their payroll department number.
  • Processes "Action Request for Departments/Accounts," form.
  • Prepares and processes JMU Accounting Voucher to transfer funds from the department or activity to the appropriate payroll department/account.
  • Processes ATV's between Local/Agency Fund Departments/Activities. (NOTE: Each Department Number used must be in the 8xxxxx series.)

Cash & Investment 

  • Completes online transfer of funds per A/P approved form via online banking module to pay other JMU state funded departments for goods or services purchased.
  • Assists in resolving problems encountered in monthly reconciliation process.
  • Provides assistance to departments/activities regarding financial reports, University policies, procedures, etc.
  • Reconciles University's FIS records to the University's Commercial Bank and Investment Statements.

.240 University Business Office

  • Provides Payment Card Acceptance Training to university employees (including students).
  • Facilitates approved requests for payment card merchant numbers.
  • Assists in acquiring appropriate payment card processing equipment or implementing approved online payment sites.
  • Processes deposits and recoveries according to University deposit procedures.
  • Authorizes exception to daily depositing requirements, with approval from the Assistant Vice President for Finance.
  • Prepares UBO Check Request Form for scholarship payments.
  • Applies scholarships to student's records.

.250 Financial Aid and Scholarships

  • Processes memos requesting student scholarships.
  • Notifies University Business Office of scholarships awarded.
  • Cancels payment of scholarships that students refuse, or the University reduces or stops.

.260 Payroll Services

  • Processes contracts for hiring student employees.
  • Enters student employee data into the Payroll System
  • Administers proper taxing of scholarships awarded to non-resident aliens.

.270 Faculty Advisor for Student Activity

  • Directs and advises student officers concerning University policies and procedures published in this JMU Financial Procedures Manual and the JMU Manual of Policies and Procedures (Faculty Advisors should contact the Director of the University Center if they do not have access to these manuals.)
  • Approves the JMU Accounting Voucher/Invoice.
  • Authorizes scholarships to students in leadership positions.
  • Approves PAR forms for permanent and temporary employees.
  • Approves student and temporary employee Time Authorization forms to certify correctness of hours worked and availability of funds in the Department Number shown.

.280 Assistant Vice President for Finance

  • Authorizes departments to sell goods and services and to implement payment card acceptance.

.300 Processing Procedures - Revenues

The Commonwealth of Virginia requires the University to deposit revenues collected, daily. The Assistant Vice President for Finance may approve exceptions to this requirement if amounts collected daily are typically less than $200. Payment card deposits must be processed daily regardless of the amount. In those cases where exceptions are granted, the University must make deposits whenever accumulated receipts exceed $200, but NEVER less than weekly (unless an exception is given by the Assistant Vice President for Finance).  All checks collected are to be made payable to "JMU" or "James Madison University".  The Local/Agency Funds department/activity must keep all monies in the most secure location available, until deposited. When making deposits, the Local/Agency Funds Departments/Activities should secure all monies in a locked deposit bag. Departments/Activities should contact the University Cashier in the University Business Office to obtain a deposit bag.

Local/Agency Funds Departments/Activities may make deposits directly to the University Bank, if authorized by the Assistant Vice President for Finance, or the University Cashier. The Assistant Vice President for Finance must approve requests to make deposits directly to the University Bank.

.310 Revenues Deposited with the University Cashier

.311 Local/Agency Funds Department/Activity

  • Collects revenues.  All checks collected are to be made payable to "JMU" or "James Madison University".
  • Prepares Financial Information System Deposit Transmittal form.
  • Forwards completed form and monies by the most secure means possible to the University Cashier.
  • Reconciles monthly, revenue recorded on University FIS monthly reports to internal records.

.312 University Business Office

  • Receives deposit information from Departments/Activities, receipts deposit, and forwards a copy of the receipt to the originating department or organization.
  • Makes deposits to the University Bank.

.313 Financial Reporting

  • Receives deposit information from University Cashier and records in the FIS records.
  • Reviews FIS reports for accuracy.

.320 Revenues Deposited Directly With the University Bank

.321 Local/Agency Funds Department/Activity

  • Requests authority from the Assistant Vice President for Finance to deposit revenue collected directly to the University Bank.
  • Completes Deposit Ticket according to instructions provided in Section 4105, "Deposits" Subsection .420 "Deposit Ticket (University Bank Deposit Ticket)."
  • Deposits funds with the University Bank.
  • Completes Financial Information System Deposit Transmittal Form.
  • Forwards one copy of the Deposit Ticket (Verified by Bank) and a completed Financial Information System Deposit Transmittal Form to Financial Reporting.

.322 Financial Reporting

  • Receives deposit information from Local/Agency Funds Department/Activity and records in the FIS.
  • Reviews FIS reports for accuracy.

.330 Payment Card Acceptance Processing

  • Requests authority from the Assistant Vice President for Finance to accept payment cards.
  • All payment card refunds MUST be placed back on the same payment card as used in the original sale.  Only in cases that the original card has since closed, the department should contact the University Business Office at x87908 for further instruction in how to proceed with the refund process
  • Ensures appropriate security controls are in place related to payment card transactions:
    • All individuals given access to payment card information have completed training.
    • No customer payment card or personal information is stored on JMU servers, workstation hard drives, or in hard copy/paper form in departmental offices.
    • All customer receipts show only truncated card numbers — the last four digits.
  • Receives payments from customers.
  • Prepares and retains documentation supporting receipts and deposits
  • Prepares a completed FIS Deposit Transmittal Form using Deposit Certificate numbers assigned to the department by the University Business Office. The payment card version of the Deposit Transmittal Form will be provided by the University Business Office. The original payment card version of the Deposit Transmittal Form is sent to the Financial Reporting Office at MSC 5715. The department must keep a copy for departmental files. Complete instructions for completing the Deposit Transmittal Form can be found in subsection .810.

.400 Processing Procedures - Purchases and Payments

.410 Purchases

All purchases, including those funded by Local/Agency Funds, must comply with Procurement requirements. The University outlines these requirements in Section 7005, "Procurement". Departments/Activities procuring goods, supplies and services with a value of $5,000 or less, charged to Local/Agency funds, must use the JMU Accounting Voucher. The use of the Departmental Purchase Order (DPO) referenced in Section 7005 "Procurement," Subsection .810 does apply to Local/Agency Funds department/activity.

.411 Purchases - Restricted Items

Departments/Activities must complete a James Madison University Purchase Requisition, regardless of the dollar value, to procure the following items:

Unapproved printing;
Payments to students or state employees;
Alcoholic beverages;
Cellular phones;
Firearms and ammunition;
Furniture;
Lease purchases;
Narcotics and dangerous drugs;
Office equipment maintenance agreements;
Radioactive chemicals and materials;
All services provided by professionals, nonprofessional and consultants. These services require a signed contract before delivery of service.

.412 Purchases

Complete the "JMU Accounting Voucher," form (Refer to Section 4205, Subsection .610, "Expenditures, Accounting Voucher" for preparation instructions).

.413 Contract Purchases

Refer to Policy 4201 Procurement of Goods, Supplies & Services Contract (6/1/97) in the James Madison University Manual of Policies and Procedures.

.414 Travel/Travel Related Expenses

State Travel regulations require the use of the Travel Reimbursement Voucher to itemize travel expenses for all individuals traveling on official business of the University. Local/Agency Funds department/activity may obtain travel guidelines, in Section 4215, "Travel".

.415 Purchases from JMU Departments

Local/Agency Funds departments/activities may purchase services and items from various on-campus offices and departments. Follow the procedures listed below for purchases from the following areas:

Bookstore

The department/activity must give the cashier their Local/Agency Fund Department Number for charging purposes. The bookstore will accumulate charges and bill the department/activity using a JMU Accounting Voucher and deposit transmittal form.

Facilities Management

The department/activity must complete a Work Request (via the Facility Focus System). Facilities Management will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Postal Services

The department/activity may send mail, with the Ledger "8" Department number printed in the lower left-hand corner of the envelope or item being mailed. Postal Services will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Catering and Special Events

The department/activity may contact the Office of Catering and Special Events to request services. The faculty advisor for the activity must sign a contract form confirming that sufficient funds are available to pay for the goods and services. Catering and Special Events will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

P.C. Services

The department/activity may contact the Office of P.C. Services to request an Annual Service Agreement for equipment that is included in the JMU Fixed Asset System. P.C. Services will complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Media Production Center

The department/activity must complete a memo detailing the services requested and the Local/Agency Fund Organization Number to the Media Production Center. The Media Production Center will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Events and conferences

The department/activity may request use of vehicles and use of Wilson Hall Auditorium by contacting the Office of Events and Conferences. The Office of Events and Conferences will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Athletics

The department/activity may request services by contacting the Office of Intercollegiate Athletics. The Athletics Office will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Public Safety

The department/activity may request services by contacting the Public Safety office. The Public Safety Office will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Publications

The department/activity may request services by completing the JMU Printing Request Worksheet available on the Office of Communications & Marketing web site. The Publications Office will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

University Copy Centers

The department/activity may request services at the various JMU Copy Centers. The Copy Centers requires the department/activity to use their Duke Card for payment of charges.

.420 Payments

This section outlines the requirements for processing payments for goods, supplies and services provided by vendors.

.421 Local/Agency Funds Department/Activity

  • Verifies that an adequate cash balance is available in the department before processing expenditure transactions.
  • Completes an accounting voucher to initiate payment to vendors for prepayments and other payments upon receipt of an invoice.
  • Completes a receiving report upon receipt and acceptance of goods, supplies and services greater than $5000.
  • Forwards payment documents to the Office of Accounts Payable. (Payment documents could include invoices, payment receipts, or contracts.)
  • Prepares ATV's to transfer funds between 8xxxxx Activities. If each department/activity Department Number does not begin with an "8", refer to subsection .415, "Purchases from JMU Departments," for examples of how to initiate these payments.
  • Requests meal and travel reimbursements using the Travel Reimbursement Voucher. Travel guidelines, Meal and Lodging Rates and Personal Vehicle Mileage Rates are available in Section 4215, "M&IE Rate Table" and "Personal Vehicle Mileage Rates" respectively.
  • Uses the "information only" copy of charges from JMU Departments to verify amounts posted to FIS Records.
  • Resolves billing discrepancies with JMU Departments. (See Subsection .423 "JMU Departments Providing Services" for required methods to resolve discrepancies that results in a refund.)

.422 Accounts Payable

  • Reviews JMU Accounting Voucher/Invoice for propriety, approves and processes documents. Returns incomplete documents to the originator.

.423 JMU Departments Providing Services

  • Send each Local/Agency Funds department/activity a copy of their current month charges once a month. Stamps the copy "INFORMATION ONLY - DO NOT PAY."
  • All JMU Departments providing Local/Agency Fund departments/activities with goods and services will submit a Local Funds Transfer Request Form charging the organization number and account provided, along with a completed State Funds Transfer Request Form to be used to deposit the payment into the appropriate JMU department's budget.
  • Resolves billing discrepancies with Local/Agency Funds department/activity. Uses one of the following two methods to resolve discrepancies that result in a refund to the local department/activity:

    1. Issues a credit to the Local Agency Funds department/activity on the following month's billing

    2. When no charges occur during the next billing cycle, requests a refund check for the amount charged.(Complete accounting voucher for refund check and deposit transmittal form) Deposits the refund check to the appropriate Local Agency department/activity and Account Code.

.500 Classification of Payments to Students

Effective November 11, 1992 University Administrators approved the following position paper for classification of payments to students from University Local Funds (Ledger 8).

CLASSIFICATION OF PAYMENTS TO STUDENTS - FROM UNIVERSITY LOCAL FUNDS (LEDGER 8)

Payments to students from University maintained local funds are made in the following ways:

Awards/Scholarships - for elected and appointed leadership positions, typically in the Front-End Budgeted (funds) Activities. Payment is not contingent upon performance or fulfillment of expected job duties. Award payments are made at the beginning of the semester in one lump sum. This practice is in consonance with the University's philosophy of encouraging participatory student leadership. Leadership awards of this nature are recognized by the University as scholarships and treated as financial aid. [Note: Payments for awards should be documented as "Leadership Scholarships" and coded as Account code 142500, Undergraduate Scholarships].

Compensation - for work performed. In these cases, payment is contingent upon the recipient's performance of expected, assigned job duties. Accordingly, compensation payments are not made until fulfillment of the assigned job duties. Compensation is treated as payroll (i.e., wages, salaries) and the individuals are viewed as employees of the Activity, not officers or leaders of the Activities. Subsequently, the student employees must be selected through the appropriate University hiring procedures related to student employment, must complete appropriate tax and immigration documentation related to employment, and must follow appropriate state guidelines concerning documentation of hours worked.

.600 Processing Procedures - Scholarships and Payments

.610 Awarding Scholarships

The University may award scholarships to full-time Degree Seeking students elected and appointed to leadership positions in Student Activities. Scholarships awarded to students in leadership positions are in consonance with the university's philosophy of encouraging participatory student involvement.

.611 Student Activity

  • Prepares a memo to the Financial Aid and Scholarships Office for each "Leadership Scholarship" to include:
  • The recipient's full name and Social Security Number.
  • Amount of Award for the Academic Year.
  • DeptID Number to charge.
  • Account Code - 142500.
  • The signature of Faculty Advisor, authorizing the scholarship.
  • Forwards/delivers the memo to Financial Aid and Scholarships Office by July 1, for Fall Semester and by October 15 for Spring Semester.
  • Immediately advises the Financial Aid and Scholarships Office by memo if a student refuses the scholarship or the donor reduces or stops funding for the scholarship.

.612 Financial Aid and Scholarships

Processes a scholarship memo to notify University Business Office of scholarships awarded.

.620 Payments

The University makes scholarship payments at the beginning of the semester in a lump sum. Payment is not contingent upon performance or fulfillment of expected job duties.

.621 University Business Office

  • Prepares UBO Check Request form for scholarships awarded and forwards to the office of Accounts Payable.
  • Applies scholarships awarded to each student's Accounts Receivable record.

.622 Accounts Payable

Receives UBO Check Request form, approves and processes.

.700 Processing Procedures - Employment and Payment for Work Performed

.710 Employment

All Activities must follow university employment requirements when employing students, temporary employees and current University employees.

.711 Student Employees

Contact the Human Resources and Student Employment Office to obtain procedures for hiring student employees and to get a copy of the University Student Employment Handbook. The University will make semi-monthly payment for hours worked through the University Payroll System. Payroll Procedures are available in this Manual, Section 5005,"Payroll".

.712 Temporary Employees

Requests to hire temporary employees must be processed through the Office of Human Resources and Student Employment. Contact this office to obtain procedures. The Local/Agency Funds department/activity may not hire full-time degree seeking students as temporary employees.

.713 Current University Employees

Requests to hire current University employees must be processed through the Office of Human Resources. Departments should contact this office to obtain procedures.

.720 Payment for Work Performed

Payment to individuals as compensation for work performed is contingent upon the recipient's performance of expected, assigned job duties. Accordingly, the Office of Payroll Services does not make these payments until assigned job duties have been satisfactorily completed. Individuals performing specific job duties for a department/activity are considered an employee of the department/activity.

.721 Department/Activity

  • Requests payroll department number from Financial Reporting.
  • Includes the payroll department number on all Local/Agency Funds payroll documents.
  • Follow payroll procedures documented in Section 5005, "Payroll." of this Manual.
  • Verifies that an adequate cash balance is available in the department/activity Department Number before processing payroll transactions.

.722 Financial Reporting

  • Assigns FIS Department Number 9xxxxx for processing Local/Agency Funds payroll payments.
  • Informs department/activity of assigned Department ID Number.
  • Prepares DTF Forms for bank transfer charging the 8xxxxx activity and depository to the 9xxxxx Department ID.

.800 Forms Preparation and Submission

.810 FIS Deposit Transmittal Form

.811 Required

The University requires this form to transmit deposit information and payment card refund information for input to the Financial Information System.

.812 Where to Obtain Blank Forms

Blank Deposit Transmittal Form for CASH
Blank Deposit Transmittal Form for CHECKS

The blank Payment Card version of the Deposit Transmittal Form is only available from the University Business Office and is not available online.

.813 Number of Copies

The original Deposit Transmittal Form is sent to the Financial Reporting Office at MSC 5715. The department must keep a copy for departmental files.

.814 FIS Deposit Transmittal Form Preparation for Cash and Check Deposits

Note: * DTF revised June 2012 to show error messages when Bank Code, Bank Acct and/or DEPTID not completely entered or coordinated as required. Be sure to look for error messages when completing form.

Following are detailed instructions for the preparation of the Financial Information System Deposit Transmittal Form. Enter information in the following categories only; leave all other areas blank.

  DC # : (For direct bank deposits only.) Enter the deposit number from the University bank deposit ticket. Attach the University bank deposit slip to the back of the form. (Please see Section 4105, Subsection .425 for preparation instructions for bank deposit tickets.)
  Prepared By: Name of the person completing the form, initial beside typed name.
  Dep. Date: Enter the date the deposit is made.
  Date: Enter the date the form is prepared.
  Phone/E-Mail: Phone number and/or e-mail address of the preparer.
  * Bank Code: Enter WELLS for JMU local deposits.
  MSC: Enter the MSC of the preparer.
  * Bank Acct: Enter WDEP, WPAY, WSRT, WPRK, WFNL, WINT, WDLN, WSCN, WADV, or WFRS for JMU local deposits. Ensure you are using the account as specified by the University Business Office.
  Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Line Count: This field will automatically populate.
  Explanation: Indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.
  Cash or Checks: Use the DTF for the tender type you are depositing. 
Do not combine cash and checks on the same deposit.
  * Dept. ID#: The Local/Agency Funds six(6) digit Activity or Department number. Refer to the "Department Organization Numbers - Numerical Listing" for a list of codes and definitions.

Account #: Enter the six(6) digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.

  Account # Enter the six (6) digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions for a list of codes and definitions.
  Description of Deposit: Indicate the origin and/or nature of the deposit.
  Amount: Summarize the receipts by deptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately.
  D/C: Enter a "C" if the deposit is a credit to Dept. ID # ; enter a "D" if the deposit is a Debit to the Dept. ID.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

 

.815 FIS Deposit Transmittal Form Preparation for Payment Card Deposits

Following are detailed instructions for the preparation of the Financial Information System Deposit Transmittal Form for payment cards. Enter information in the following categories only; leave all other areas blank.

  DC # Enter the Deposit Certificate number on the Deposit Transmittal Form using a sequence of numbers provided by the University Business Office. The department should maintain an Excel spreadsheet of these numbers to keep track of the DC # used, deposit date, amount, and card type deposit. The department must only use the numbers within their sequence and restart the sequence each July 1. If a department runs out of numbers within their designated sequence within the Fiscal Year, contact the University Business Office for another set of numbers—do not go past your designated numbers!
  Prepared By: Name of the person completing the form, initial beside typed name.
  Dep. Date: Enter the date the deposit is made.
  Date: Enter the date the form is prepared.
  Phone/E-Mail: Phone number and/or e-mail address of the preparer.
  Bank Code: Enter WELLS for JMU local deposits.
  MSC: Enter the MSC of the preparer.
  Bank Acct.: Enter WDEP or ECPM for JMU local deposits.Amount:Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.Line Count:This field will automatically populate.
  Amount: Enter and verify the total amount of the deposit; if completed electronically this total is automatically calculated.
  Line Count: This field will automatically populate.
  Explanation indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.
  Payment Cards: Only option available.
  Discover/MasterCard/Visa: Select if the deposit is for Discover/MasterCard/Visa transactions. The deposit will arrive from FNBO (First National Bank of Omaha).
  American Express: Select if the deposit is for American Express. The deposit will arrive from American Express.
  Dept. ID #: The Local/Agency Funds six-digit Activity or Department number. Refer to the "Department Organization Numbers - Numerical Listing" for a list of codes and definitions.
  Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.
  Description of Deposit: Indicate the origin and/or nature of the deposit.
  Amount: Summarize the receipts by DeptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately. Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.
  D/C: Enter a "C" if the deposit is a credit to Dept. ID # ; enter a "D" if the deposit is a Debit to the DeptID.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

 

Notes for payment card processing:

Payment card terminal sales are normally batched once a day at the end of the day for every payment card machine within an authorized location. If more than one batch is settled in one day or there is more than one machine, all batches must be added together and combined in one transmittal form for each card type.

All refunds must be made by payment card only — no refund checks. If the deposit you are making has refunds included in the total, list the sales on the deposit transmittal as a "C" credit and the refunds as a "D" debit to get a "net" total.

.820 Accounting Voucher

See Section 4205, subsection .610    Expenditures, "Accounting Voucher"

.900 Deposit Reconciliation

.910 Required

A written reconciliation is required comparing revenue deposited to University monthly FIS reports.

NOTE:     Payment card chargebacks (when the bank retrieves funds from the university's local bank account due to a customer disputed payment card charge) must be reimbursed by the department immediately regardless of resolution issues. The University Business Office will prepare a deposit transmittal form to record the debit transaction to the local bank account. An accounting voucher will be prepared charging the department that the chargeback belongs to and forwarded to the department for coding completion and authorizing signature. The department must then forward these forms to Accounts Payable at MSC 5712 for payment processing.