SUBSECTION 2.2.3.4
DISBURSEMENT PROCESSING

2.2.3.4.1

Treasury Account Requirements

Effective Date:

Sept. 1, 1998

2.2.3.4.1

For the purpose of this section, the term Treasury Account refers to both Treasury and Treasury Trust Accounts.

2.2.3.4.1.a

The following documents are generated when processing Treasury Account disbursements:

• Warrant - The payment instrument for each invoice voucher or other evidence of indebtedness validated by the Office of the State Treasurer (OST) for payment.

• Warrant Register (A1) - The document used to record expenditure/expense vouchers and account classifications of each transaction in detail, certified and released by the OST. It is also used to summarize the information documented on the detailed warrant register.

• Vendor's Remittance Advice - The document used to accompany each warrant to notify the payee of what is being paid. The Vendor's Remittance Advice is to reference the warrant number and the invoice number as appropriate.

• Outstanding Warrant Record - The document used to record warrants issued by the agency which are not yet redeemed by the OST, canceled by the agency, or canceled by statute of limitation.

2.2.3.4.1.b

The following documents are controlled by the OST for validation and processing:

• Warrants

• Warrant Register Summary (A1)

• Warrant Register Detail (A1)

• Outstanding Warrant Record

2.2.3.4.1.c

The validated warrants are returned to the agency by the OST or, if authorized by OST, by the Department of Information Services (DIS). Copies of the Warrant Register Summary (A1) and the Warrant Register Detail (A1) are sent to the agency by DIS.

2.2.3.4.1.d

Upon validation by the OST, agencies are responsible for promptly forwarding warrants to the vendor or authorized payee.

2.2.3.4.1.e

The validated warrant and vendor copy of the Vendor’s Remittance Advice are to be released only to the vendor or other authorized payee.

2.2.3.4.1.f

The agency is to maintain the Warrant Register Summary (A1), Warrant Register Detail (A1) and a copy of the Vendor's Remittance Advice (A2) along with the detail source documents.

2.2.3.4.1.g

A payment file by vendor (payee) is to be maintained. Agencies that do not have an automated system (e.g., AFRS) capable of detecting duplicate payments, are to file a copy of the Vendor's Remittance Advice alphabetically by vendor (payee) name. When Vendor's Remittance Advices are filed, the file is to be reviewed for duplicate payments.

2.2.3.4.2

Local Account Requirements

Effective Date:

Sept. 1, 1998

2.2.3.4.2.a

The following documents are generated when processing Local Account disbursements:

• Check - The payment instrument used for each invoice voucher or other evidence of indebtedness.

• Check Register - The document used to record pertinent details relating to expenditure/expense vouchers and coding for each check issued.

• Vendor's Remittance Advice - The document used to notify the payee of what is being paid. The Vendor's Remittance Advice is to reference the check number and the invoice number as appropriate.

2.2.3.4.2.b

Agencies are to maintain a file (may be in electronic form) containing copies of Vendor's Remittance Advices for each Check.

2.2.3.4.2.c

A payment file by vendor (payee) is to be maintained. Agencies that do not have an automated system capable of detecting duplicate payments are to file a copy of the Vendor's Remittance Advice alphabetically by vendor (payee) name. When Vendor's Remittance Advices are filed, the file is to be reviewed for duplicate payments.

2.2.3.4.2.d

The signed check and vendor copy of the Vendor's Remittance Advice are to be released only to the vendor or other authorized payee.

2.2.3.4.3

Recording

Effective Date:

Sept. 1, 1998

2.2.3.4.3.a

The approved Warrant Register Summary (A1) or local account Check Register constitute the basis for recording expenditures/expenses. Expenditure/expense transactions are to be recorded in the General Ledger and the Subsidiary Allotment and Expenditure/Expense Ledgers. (Refer to Section 2.2.3.8.3 for an illustrative entry to record expenditure/expense disbursements.)

2.2.3.4.3.b

The following information, at a minimum, is to be recorded in the Subsidiary Allotment and Expenditure/Expense ledgers:

• Warrant and/or Check Register Date;

• Warrant and/or Check Register Number Reference;

• Voucher Number Reference;

• Appropriate Expenditure Coding; and

• Amount of Disbursement.