• Use resources prudently in fulfillment of department mission and in compliance with the university policies and guidelines
• Be aware of the appropriate University process for ordering, receiving and paying for goods and services
• For smaller purchases the department is responsible for the complete process
• Larger purchases need to be ordered through the Purchasing Office
• Establish responsibilities so internal controls are strong
• A minimum of two department employees should be involved in the ordering, receiving, entry and approval process, more if possible
• Ensure all goods and services are received and acceptable before payment
• Pay invoices accurately and timely
• Establish procedures so all vendor early payment discounts are used and no late payments are made
• Retain invoices and other supporting documentation in accordance with NDSU Records Retention requirements
• Purchases should be shipped to an NDSU address to establish good internal controls regardless of payment method

The Accounting Office guidelines relating to university expenses, such as donations, promotional, work environment, and various other expenses, are intended to assist departments in distinguishing between allowable and unallowable expenses. In certain situations where the Accounting Office disagrees with a department’s interpretation that a payment is an allowable expense under these guidelines, the payment may be routed to the appropriate Vice President for approval. If the Vice President does not support the purchase, the employee will need to personally fund the expense. In some cases the expenses may be more appropriately paid for by the NDSU Development Foundation. The situations where the department may seek approval from their Vice President, in order to pay the expense, must be a reasonable and justifiable expense of the university. The dispute resolution cannot be used for payments that are not in compliance with:

• North Dakota Century Code (state law)
• North Dakota University System and State Board of Higher Education Policies
• North Dakota State University Policies
• IRS or other federal regulations

If the payment is questionable in regards to whether it is legal, an opinion from Legal Council will be suggested. The Accounting Office may also consult with NDUS Internal Audit especially on matters related to board policy interpretations, in order to get a second opinion.

The following are guidelines for distinguishing between ‘employee’ and ‘independent contractor’ and safeguarding the University and its employees from potential liability related to incorrect classification.

It is the department’s responsibility to ensure the appropriate evidence has been gathered to support the position that the University has engaged an independent contractor.

The Independent Contractor Determination form can help in determining the correct classification.

Complete the form and submit to Lisa Ripplinger, Controller - NDSU Accounting Office, for review.

If it is determined that the classification is ‘independent contractor’ the department will need to complete a Contract Service Agreement, before any services are performed, and submit to the Purchasing Office for approval. When the service has been completed, the approved Contract Service Agreement will need to be attached to an Accounts Payable Voucher and submitted for audit, entry and payment processing.

If it is determined that the classification is ‘employee’, the payment will be made via payroll, and the department will need to contact the HR/Payroll Office.

Independent Contractor Determination Form

Expense Types

Accounts payable transactions require explicit segregation of duties. The recording of assets or expenses, and the related liability, should be recorded by employees who are not involved in the ordering and receiving functions. Many of NDSU’s accounts payable transactions are processed and audited centrally through the NDSU Accounting Office. Transactions that are processed only in departments through Oracle/PeopleSoft, are subject to random audit sampling by either the NDSU Internal Auditor or the Office of ND State Auditor.

Payment Methods

General rule – At NDSU there is a minimum of one year time period for retaining original documents that are scanned and attached to accounting transactions in PeopleSoft. Further details and guidance is described below:

Guideline for departments outside of central accounting - The NDSU Accounting Office recommends a one year time period for retaining original documents that are scanned and attached to transactions in PeopleSoft. This includes: 1) documents (such as: lodging receipts, supplier invoices) scanned and attached to employee Expense Reports in the PeopleSoft Travel Expense Module, and 2) supporting documents (invoices, etc.) for Accounts Payable Vouchers that are entered by departments directly to PeopleSoft. The one year retention period does not apply to documents that are not scanned and attached to a transaction in PeopleSoft.

In July 2018, the Accounting Office began scanning and attaching to PeopleSoft transactions the paper forms for Inter-departmental Billings, Cost Transfers, Cash Transfers, as well as supporting documentation. Since those documents and support is scanned and verified in the Accounting Office, the one-year retention period applies to both the originating departments and the Accounting Office. The one-year retention period does not apply to these type of transactions prior to July 2018.

Guideline for central accounting departments (Accounting Office, Grant & Contract Accounting, Ag Budget Office, etc.) - A one year time period will be used for retaining original documents that are scanned and attached to transactions in PeopleSoft by the Accounting Office. Examples include: Inter-departmental Billings, Cost Transfers, Cash Transfers, Journal Entries, Journal Vouchers, Signature Forms, and Supplier documents (such as: W9’s, ACH forms).

(Accounting Office Guideline - For purposes of defining the retention period: after scanning and uploading these documents, the accounting office will retain all original documents for the current fiscal year plus one previous fiscal year. After that time, paper documents will be destroyed.)

Exceptions:

• PeopleSoft Trial Balances, Inquiries, etc., where the information is already stored elsewhere in PeopleSoft. No one-year retention needed.
• Accounts Payable Vouchers, discussed below.

Paper Accounts Payable Vouchers, Wire Transfers and Receiving Reports (along with invoice support) prepared by departments and entered in Accounting – In early fiscal 2019, the Accounting Office began scanning and attaching the Account Payable Vouchers, along with supporting documentation, to the PeopleSoft transaction. The support can be viewed in the Accounts Payable module. At this time the retention period is 10 years on these transactions until further notice. Also note that there is a records retention freeze on any documents related to the U.S. Department of Agriculture and National Institute of Health – no documents are to be discarded if they are related to those federal agencies, until further notice.

As we continue to collect electronic copies of AP documents, it is important to keep two things in mind: the sensitive information included on these documents and the method of delivery. In order to protect this information the Accounting Office will be asking departments to start using our File Transfer for all files related to Accounts Payable. This includes W9s, ACHs, wires, banking information, invoices, and AP vouchers. Below is the link to our File Transfer page.

ndsu.accounting Filedrop | NDSU Secure File Transfer