ACCOUNTS PAYABLE:
1. Mail is received at the front desk. The district office secretary is responsible for picking up the mail at the post office.
2. The secretary stamps the invoice with a date stamp noting the day the invoice was received.
3. The accounts payable specialist matches the Payment Authorization, Purchasing Authorization form (purchase order), and packing slip forms to the vendor invoice.
4. All price quotes/bids are attached to the payment documentation verifying compliance to purchasing procedures.
5. The “Payment Approval Form” is matched to the documentation. This form is required for all disbursements, and the accounts payable specialist will not pay the vendor if the form is not filled out and signed with the appropriate authorization signatures per the district's purchasing procedures. This form contains the following information:
a. Invoice #
b. Vendor
c. Budget Account Code
d. Amount
e. Reason for Purchase
f. Required signatures as dictated by the district's purchasing procedures
Required Authorization Signatures on Accounts Payable Payment Approval Form: The purpose of obtaining the required signatures is to first and foremost insure proper communication has occurred between key personnel. In order to meet internal control, proper accounting, and record keeping requirements, the following signatures are required on the form:
6. All payments are entered into the district's accounting system for processing as a "batch".
7. The accounts payable specialist uses an adding machine to add up all the invoices/payments included in the batch. This is done outside of the accounting system and is used as a cross check against the accounting system total. She compares this tape total to the total in the accounting system to ensure complete accuracy before processing the check run.
8. Dual-Person Review: The A/P specialist meets with another person in the office to to review all payment requests together BEFORE the check run is processed. This review includes the following:
a. Verifies adherence to district accounts payable procedures
b. Verifies accuracy of budget account codes on each payment request
c. Verifies purchasing policy and procedures compliance
d. Verifies invoice amounts equal the amount being paid
e. Verifies all goods have been received first before payment is made, and the person who received the goods for each payment request has signed the payment approval form.
f. Follows up on any concerns and issues
9. The accounts payable specialist processes and prints the checks:
a. Check stock is kept in the safe. No bank account, routing number, or other identifying information is pre-printed on the check stock.
b. The accounts payable specialist and her backup specialist are the only ones who can process checks.
c. Checks are printed in numerical sequence.
10. The accounts payable specialist attaches a copy of the check stub to the documentation for each vendor for future reference and audit.
11. All documentation is filed in check sequence order for future reference and audit. A check detail report is generated from the system to be filed with the documentation backup to verify the amount paid equals the documentation.
12. The accounts payable specialist and other person in the office reviewing the batch signs and dates the check details report from accounting system and attaches it to the check batch. These signatures verify compliance to accounts payable and purchasing procedures.
13. The accounts payable specialist makes a request to the appropriate administrator for electronic transfer of funds to the district's checking account following the Electronic Transfer of Funds procedures.
14. The accounts payable specialist gives the check batch to the board president (or board designee) to review and sign within 2-4 weeks. This procedure provides board oversight of accounts payable expenditures.
15. Checks are mailed to the vendors to provide for security of the payment. Checks should not be mailed until the date funds are available in the district's checking account.
16. The payment packet and backup documentation is filed in the safe by check number order for future review and audit.
Bank Reconciliations: Bank reconciliations are performed monthly to review the accuracy of cash flows and records. District accounts payable specialist(s) should not perform district-level bank reconciliations. Normally, the Business Administrator performs the bank reconciliation as the Business Administrator is not authorized to issue accounts payable and payroll payments.
**Batch Checklist: The accounts payable specialist is encouraged to develop a check run batch checklist which helps to ensure accounts payable and purchasing procedure compliance.