Budget and Finance Procedures

TABLE OF CONTENTS

SCEIS Access

Signature Authorization

Grants

Time Limited and Temporary Grant Positions

Budget /Cash Transfer and Journal Entry Request

Petty Cash

Donations and Contributions

Agency Billings/Invoicing

Invoice Cancellation/Adjustment

Invoice Collection

Write-Offs

Refunds of Credits

Checks or Currency for Deposit

Invoice Payment

Direct Payment

Goods Receipt or Invoice Mismatch Report

Interdepartmental Transfers (IDTs)-Payables

Disbursement of Checks

Lease Agreements and Service Contracts

Capital Assets and Inventoried Assets

Capital Assets: Permanent Improvement Projects

Travel Guidelines and Regulations

Financial Reports

SCEIS Access

Purpose:

To establish procedures for handling role assignments and access to specific transactions in SCEIS.

Procedures:

Offices will send an email to the Office of Administrative Services General Ledger requesting access for individuals. The requirements or job duties should be described so that appropriate roles may be assigned. Also, the email must be approved by the Division Director or his/her designee as appropriate. Roles fall into several categories:

  1. Accounts Receivable
  2. Deposits
  3. Accounts Payable
  4. General Ledger
  5. Budgeting
  6. Reporting
  7. Business Warehouse
  8. Imaging

Please note that any subsequent changes to the roles must be sent to:

Department of Administration

Office of Administrative Services General Ledger

Attn: Renee Herndon ()

1200Senate Street, Suite 409

Columbia, South Carolina 29201

Signature Authorization

Purpose:

To establish procedures for Divisions to provide signatures for personnel authorized to approve transactions.

Annually, the Office of Administrative Services General Ledger will obtain signatures of all personnel from the Divisions who will approve transactions by signature or initials. The Divisions should also notify the Office of Administrative Services General Ledger when there is a change in an authorized approver. The Authorized Signature form is located on the Office of Administrative Services’ website

Grants

Purpose:

To define grant processes – application, approvals, awards and reporting

Applying for a New Grant

Program areas may search for available grants on grantor websites or may be contacted by grantors. Before a program area can formally apply for a grant, the program area must obtain appropriate approvals. The program area should communicate with its Division Director as soon as it decides to pursue a grant. Division Director prior approval is required before initiating a grant application. The Division Director will determine whether the grant is in alignment with the mission of the Division. The program area will provide all grant information – grantor, title, CFDA number, grant period, scope of services, match requirements, reporting requirements and indirect cost requirements on the Department of Administration Grant Approval form, located @ If the Division Director approves the request for grant application, he/she will forward the grant information to Administrative Services, Finance and Procurement – Grants Management for review and approval. Once approved by Finance, the request will be forwarded to the Budget division for approvals.

The Division Director and Administrative Services Finance and Procurement and Budgets should be included on all correspondence between the granting entity and the program area.

Recurring Grants

Administrative Services, Finance and Procurement – Grants Management should be copied on all grant award agreements, all grant budgets and any other information pertaining to the grant(s).

Grants and Contracts Review Process

The authority for and the requirements of the grants and contract review (GCR) process, are delineated in the S.C. CODE Ann. Title 2 Chapter 65 titled “The South Carolina Federal and Other Funds Oversight Act” (ACT) The grant review procedures are overseen by Administrative Services, Finance and Procurement – Grants Management.

The following information outlines what is required to obtain authority to expend grant funds:

Funding authorization through the GCR process is required when funds, we will be receiving or have received, are not part of the currently approved State budget. Consequently, funds cannot beexpended prior to approval of the GCR-1 Form-Federal/Other Financial Assistance Greater than $200,000 or the GS-7 Form-Federal/Other Financial Assistance $200,000 and Less.

The forms and instructions for both the GCR-1and the GS-7 are available on the Executive Budget Office website at The Administrative Services, Finance and Procurement – Grants Management will complete the forms for the divisions receiving the grant funds.

Allow approximately 10 business days for completion of the entire GCR process. Obligation and expenditure of funds cannot be made until the grant approval process and GCR process is complete and the appropriate master data and budgethas been established in SCEIS.

Procedures for establishing a grant in SCEIS

Once a program area receives the award notice, the program area should forward to Administrative Services, Finance and Procurement – Grants Management:

  1. Copy (paper or scanned) of the complete award document signed by grantor and recipient
  2. Copy of a detailed budget by fiscal year if the grant crosses State fiscal years

Award documents must provide:

  1. Title of the grant, award amount, match requirements and source, scope of services, reporting requirements, indirect cost recoveries or any other funding information.
  2. Catalog of Federal Domestic Assistance (CFDA) Program Information Number (if federal). To obtain or verify this information go to Web site: and select “Search for Assistance Programs” and then select “All Programs Listed Numerically”.
  3. Executive Order 12372 – Intergovernmental review of Federal programs, process status (if federal). The Executive Order requires certain intergovernmental consultation procedures be completed before a grant application is considered by certain Federal agencies. To obtain or verify this information go to Web site: and select “Search for Assistance Programs” and then select “By Programs Requiring Executive Order 12372 Review”.
  4. Funding period (start and ending dates of the grant).
  5. Amount by fund type (federal, state, other (identify the fund number)).
  6. Number of personnel funded, by personnel type – permanent, temporary, time limited or temporary grant positions. Contact Administrative Services, Human Resources for requirements on posting time limited and temporary grant positions.

Administrative Services, Finance and Procurement – Grants Management

  1. Administrative Services, Finance and Procurement – Grants Management will create a new grant master record in SCEIS and provide the grant number to the recipient division as well as add the SCEIS grant number to all forms required bythe ExecutiveBudget Office. The award documentation will be imaged and attached to the grant master record in SCEIS. The program area may view the grant master record and any attachments using GMGRANTD transaction in SCEIS.
  1. Administrative Services, Finance and Procurement – Grants Management will prepare and forward the appropriate forms and grant award to the ExecutiveBudget Office for approval.
  1. Administrative Services, Finance and Procurement – Grants Management will coordinate with the Budget Director and program staff to load the appropriate grant budget based on the award documents and grant funding period. The budgets will be loaded to the lowest level needed to facilitate monitoring and grantor reporting and expenditure requirements.
  1. Upon approval of the GCR-1/GS-7 and the D-38 Forms, the Executive Budget Office will send Administrative Services, Finance and Procurement – Grants Management an approval letter (GS-5 Form) and a signed, approved D-38 Form with the assigned project and phase number. The documents will be imaged and attached to the grant master record in SCEIS.
  1. Following receipt of the approved project and phase number, if a new Functional Area or Sponsored Program is required, Administrative Services, Finance and Procurement – Grants Management will establish the new master data.
  1. The Budget Director will notify the Program area when the budget has been established in SCEIS for the new grant. Expenditures may then be charged to the grant.

Changes to Existing Grants

When a change occurs to an existing grant (change in grant period, award amount or scope of services), the recipient Division must send the notice of change to Administrative Services, Finance and Procurement – Grants Management. All adjustment notices will be imaged and attached to the grant record in SCEIS.

Grant Draws

Funds should be drawn quarterly at a minimum. If and when expenditures are significant, funds will be drawn on a more frequent cycle. Administrative Services, Finance and Procurement – Grants Management will monitor cash balances and notify the Offices when draws are made. The grants manager in each Office should communicate with Administrative Services, Finance and Procurement – Grants Management relating to any cash issues.

Indirect Costs

Each grant award should allow for Indirect Cost Recoveries. Some grants may limit the amount of recoveries allowed and this should be communicated on the Grant Approval form, located @ ______The Office grant manager should indicate what expenditures are allowed to claim indirect costs on and if there is a limit, e.g. 10% of grant award total.

Sub-recipient monitoring

Sub-recipient monitoring will be done by the Grants Manager in Finance in conjunction with the staff in the division. Monitoring will include review of financial statements, bank statements and reconciliations, expenditures with review of invoices and periodic site visits.

Reporting

All financial reporting will be done by Administrative Services, Finance and Procurement – Grants Management. Any programmatic reports required must also be reviewed and approved by Administrative Services, Finance and Procurement – Grants Management.

Audits

All audits of grants, whether financial or programmatic, must be coordinated with Administrative Services –Finance and Procurement, Grants Management

Time Limited and Temporary Grant Positions

Purpose:

To establish a procedure for Divisions of the Department of Administration to request a time limited or temporary grant position.

Definitions:

  1. Time Limited Position – Established to perform work directly associated with a time limited project. The time limited position may not extend beyond the duration of the project.
  1. Time Limited Project – Specific work products or services provided by a State agency to another State agency, local government, public or private entity over a specified time period as a contractual arrangement. The contractual agreement defines the time limited project and must include the beginning and ending date, amountand source of any funds provided in support of the project.
  1. Temporary Grant Position – Established to perform work directly associated with Federal grants, public charity grants, private foundation grants, or research grants. Temporary grant positions will not extend beyond the duration of the grant.

Procedures:

  1. If a Division enters into a contract or receives a grant that includes a position dedicated to the contract or grant, the Division must complete a “Request for Temporary Grant or Time-Limited Position Request”form. This form and instructions for completing the form are located at

The Division must also contact their Department of Administration Human Resources Liaison for instructions related to the position description and posting of the new time limited/temporary grant position.

  1. The Request for Temporary Grant/Time Limited Action Form and all other documentation required by Department of AdministrationHuman Resources, such as the position description, must be sent to Office of Administrative Services Budget. Office of Administrative Services Budget will process the forms and forward to Executive Budget Office after Department of Administration Human Resources has approved the paperwork related to the position for posting.
  1. After approval of the time limited or temporary grant position by Executive Budget Office and once the position and grant are established in SCEIS, Office of Administrative Services Budget will notify the Division and Department of Administration HR of the position number and SCEIS grant number. The position may then be advertised for hiring.
  1. Any change in the grant or contract will also require an update to the time limited/temporary grant position information. See procedures for Grants and Contracts.
  1. Office of Administrative Services Budget will provide a listing of a Division’s time limited and temporary grant positions, to include filled and vacant positions and end dates associated with those positions upon request.

Budget /Cash Transfer and Journal EntryRequest

Purpose:

To establish procedures for Divisions of the Department of Administration to request a change in program budgets or torequest cash transfers or journal entries.

Procedures:

Budget Transfers:

Budget transfers require a completed "Budget Transfer Request" Form. This form is available in hard copy on theOffice of Administrative Services’ website Transfer Request.xls The request must be made by budget liaisons or Division Directors and comply with all statewide guidelines established by Executive Budget Office and the Comptroller General’s Office.

Completed forms should be sent or e-mailed to Office of Administrative ServicesBudget. If Office of Administrative ServicesBudget is unable to record the transfer within the next two business days, appropriate personnel will be notified.

Cash Transfers:

Cash transfers may be requested via email to Renee Herndon at . Cash transfer requests must be requested by finance/budget liaisons or Division Directors and comply with all statewide guidelines established by the Comptroller General’s Office. The transfer request must include an explanation, including any references to provisos if applicable, for the transfer. Explanations should be as clear and complete as possible.

The Office of Administrative ServicesGeneral Ledger will notify appropriate Division staff of the transfer(s) document number(s) and date(s) posted via email after the transfer(s) completion.

Journal Entries:

Journal entry requests should be made by email to Renee Herndon at . The request must be made by budget/finance liaisons or Division Directors and comply with all statewide guidelines established by the Comptroller General’s Office. The request should include the reason for the change, the document number(s) affected by the requested change and all required account assignments (General Ledger Account, Cost Center, Functional Area, Fund, Grant, Internal Order, WBS). Divisions may also use the Journal Entry Template General Ledger will provide the SCEIS document number to the requesting division once the entry has been made.

Petty Cash

Establishing a Petty Cash or Change Fund

Purpose:

To establish procedures for Divisions of the Department of Administration to set up a petty cash or change fund (for cash registers) or change the authorized amount of an existing petty cash or change fund.

Procedures:

  1. Prepare a letter of request from the Division Director on letterhead providing the following:
  1. Type of request: petty cash fund, change fund (cash register), or change in amount of either. The maximum allowable amount is $200.00 (provided the need justifies the amount)
  2. Reason for the fund
  3. Amount requested
  4. Source of funding
  5. Name of authorized custodian
  1. An outline of the internal controls over the funds.
  1. Forward the signed letter and internal controls procedures to:

Department of Administration

Office of Administrative Services

Attention: General Ledger

1200Senate Street, Suite 409

Columbia, South Carolina 29201

  1. Office of Administrative ServicesGeneral Ledger will review and forward the letter and internal controls procedures to Department of Administration’s Internal Audit Services.
  1. Upon approval of the internal controls by the Department of Administration’s Internal Audit Services, Office of Administrative ServicesGeneral Ledger will request approval for the fund or change in the amount of the fund from the State Auditor's Office (SAO). If the SAO approves, Office of Administrative ServicesGeneral Ledger will set up the fund in accordance with the Comptroller General's Policies and Procedures in the amount requested, or increase the existing fund.
  1. Office of Administrative ServicesGeneral Ledger will notify the requesting Division in writing when the fund has been established. The check, made payable to the authorized custodian, will be sent to the requesting Division upon receipt from the Treasurer’s Office.
  1. The authorized custodian must cash the check and secure the funds.

Disbursements from a Petty Cash Fund

Purpose:

To establish procedures for disbursing funds from a petty cash fund.

  1. Disbursements of petty cash must be limited to small disbursements.
  1. Petty cash disbursements must follow the intent of the Comptroller General’s Policies and Procedures, section 4.2.20.1. Specifically, petty cash should only be used in situations where emergency purchases of small items must be made immediately. Whenever possible, Divisions should arrange to be billed for items purchased or use the purchasing card.

Procedures:

  1. The employee seeking reimbursement must present a cash receipt for all items purchased to the custodian of the fund.
  1. The custodian will prepare a pre-numbered petty cash voucher and attach the cash receipt. The voucher mustthen be signed by the Division Director or his or her authorized designee.
  1. Once the petty cash voucher has been approved for payment, cash in the amount of the voucher is disbursed to the requesting employee, who will sign the voucher acknowledging receipt of the cash.
  1. The custodian will retain all copies of the petty cash voucher documentation to support replenishment.

Replenishment of Petty Cash Fund

Purpose:

To establish procedures for replenishing a petty cash fund.

Procedures:

  1. Replenish the petty cash fund when approximately 50% of the fund has been expended or at fiscal year-end.
  1. Prepare a disbursement request in the appropriate amount, payable to the custodian. Indicate the account assignments (Cost Center, Functional Area, Fund, Grant, Internal Order, WBS) and amount for each expenditure general ledger account (GLA) to be reimbursed.
  1. Scan each cash receipt with the disbursement request as one document and forward to Office of Administrative Services Finance. The Division must retain a copy for its records.
  1. Accounts Payable will process the voucher for payment
  1. Upon receipt of the contingent check from Office of Administrative Services Finance, the custodian should cash the check and secure the funds.
  1. Upon receipt of the funds and if all petty cash documentation has been imaged in SCEIS, the cash receipt copies may be destroyed.

Donations and Contributions