Accounting Policy and Procedures

(Last Revised:  June 7, 2013)

The Accounting Policy and Procedures Manual contains information on accounting practices and fiscal processing for the Department.  The manual is designed to maintain good internal controls, establish required fiscal standards for doing business, transmit required procedures for fiscal transactions and documents, and comply with federal financial policy.

The Accounting Policy and Procedures are organized by topics as shown below.

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Table of Contents by Section

BUSINESS STANDARDS - Section 1

1.0 Basic Standards for Financial Transactions (Revised July 26, 2002) (PDF, 65 KB)

1.2 Invoice/Payment Approvals - Basic Standards (Issued, January 20, 2012) (PDF, 64 KB)

2.0 Standards of Business Conduct (Revised March 14, 2013) (PDF, 31 KB)

3.0 Standards for Fiscal Personnel (Rescinded March 11, 2013)

4.0 Decentralized Accounting System (Revised January 10, 2003) (PDF, 56 KB)

5.0 Delegation of Authority (Revised March 14, 2013) (PDF, 21 KB)

6.0 Safeguarding Assets and Custodianship (Revised March 18, 2013) (PDF, 30 KB)

7.0 Standards for Collecting Receivables (Rescinded March 6, 2013)

8.0 Lead Accountants (Rescinded December 17, 2012)

CASH AND CASH EQUIVALENTS - Section 2

1.0 Handling of Cash Receipts (Revised September 12, 2011) (PDF, 236 KB)

2.0 Deposits to the State Treasurer (Revised September 12, 2011) (PDF, 69 KB)

3.0 Check Distribution and Non-Routine Voucher Authorization (Revised September 23, 2011) (PDF, 59 KB)

4.0 Rush Checks (Revised September 12, 2011) (PDF, 66 KB)

4.1 Cutoff Dates for Check Processing (Issued 8/30/12) (PDF, 57 KB)

5.0 Proof of Payment, Stop Payment, Replacement and Forged Checks (Revised December 12, 2011) (PDF, 102 KB)

6.0 Depository Funds and Petty Cash Reports (Revised September 12, 2011) (PDF, 59 KB)

6.1 Procedures for Contingent Accounts (Revised September 23, 2011) (PDF, 108 KB)

6.2 Cash Reconciliation & Certification (Revised September 12, 2011) (PDF, 31 KB )

7.0 Procedures and Contact for Lockbox Issues (Revised November 28, 2011) (PDF, 35 KB)

8.0 Financial Institutions Asserting Holder in Due Course (Revised September 22, 2011) (PDF, 462 KB)

REVENUES AND REFUNDS - Section 3

1.0 Accounting for Revenues and Refunds of Expenditure (Revised December 16, 2005) (PDF, 96 KB)

1.1 Refunding Revenues and Expenditure Refunds (Revised October 31, 1992) (PDF, 80 KB)

2.0 Gifts and Grants (Revised October 31, 1992) (PDF, 100 KB)

3.0 Accounting Procedures for Copying and Data Processing Charges (Revised January 22, 2013) (PDF, 78 KB)

4.0 Pricing and Distribution of Document (Revised October 31, 1992) (PDF, 89 KB)

RECEIVABLES - Section 4

1.0 Billing Procedures (Excluding BIS, Appropriation 831) (Rescinded February 14, 2013)

2.0 Invoice and Collection Procedures (Revised February 14, 2013) (PDF, 217 KB)

2.1 Receivables -- Other DHFS and State Agencies (Rescinded February 14, 2013)

2.2 Grants and Aid Payment Receivables (Revised March 6, 2013) (PDF, 33 KB)

3.0 Salary Overpayment Procedures (Revised September 13, 1999) (PDF, 98 KB)

3.1 Notification of Salary Overpayments (Revised September 13, 1999) (PDF, 67 KB)

3.2 Collection of Salary Overpayments and Voluntary Deductions (Rescinded September 13, 1999)

3.3 Repayment and Deposit of Salary Overpayments and Voluntary Deductions (Reissued September 13, 1999) (PDF, 66 KB)

4.0 Recording Receivables on FMS (Rescinded January 23, 2002)

5.0 Accounts Receivable Aging Reports (Revised April 5, 1996) (PDF, 132 KB)

5.1 Reporting Collection Agency Referrals (Revised April 5, 1996) (PDF, 75 KB)

5.2 Annual Report of Receivables--Institutions and Divisions (Issued April 5, 1996) (PDF, 171 KB)

5.3 Reconciliation of FMS Accounts Receivable Balances to Annual Report of Receivables (Issued April 5, 1996) (PDF, 87 KB)

6.0 Write-off of Accounts Receivable (Revised September 1, 1999) (PDF, 73 KB)

BUDGET CONTROL - Section 5

1.0 Administering GPR Annual Appropriation Laws and Year-End Encumbrance Policies (Revised November 29, 2012) (PDF, 74 KB)

1.A Managing Appropriations and Spending (Issued February 2, 2012)  (PDF, 248 KB)

1.1 Allotment Transactions Under WiSMART (Revised April 10, 2013) (PDF, 109 KB)

2.0 Budget Categories -- WiSMART Conversion (Revised June 17, 1994) (PDF, 71 KB)

3.0 Allotment of DHFS Federal Appropriations (Revised October 31, 1992) (PDF, 57 KB)

4.0 Procedures for Increasing PR-O/PR-S/PR-F Chapter 20 Budgeted Levels (Revised April 6, 1993) (PDF, 57 KB)

5.0 Budgeting for Federal Projects Requiring Federal Match (Revised October 31, 1992) (PDF, 43 KB)

6.0 Space Management Supplements--Organization Moving Expenses (Rescinded February 12, 2013)

PURCHASING - Section 6

1.0 Optional Use of Purchase Orders (Revised July 23, 1999) (PDF, 90 KB)

1.2 Encumbrance Processing (Issued July 23, 1999) (PDF, 47 KB)

2.0 Vendor Procedure (Revised March 7, 2002) (PDF, 520 KB)

3.0 Purchasing Processes (Revised February 11, 2013) (PDF, 34 KB)

PAYROLL - Section 7

1.0 Lost Payroll Checks for Entire Unit of DHFS (Revised January 16, 2001) (PDF, 13 KB)

1.1 Distribution of Payroll Checks (Revised January 3, 2013) (PDF, 48 KB)

2.0 Composite Rate for Fringe Benefits (Revised October 8, 2012) (PDF, 35 KB)

3.0 Accounting for the Temporary Interchange of Personnel (Revised January 16, 2001) (PDF, 8 KB)

4.0 Employment by More than One State Agency (Revised January 16, 2001) (PDF, 8 KB)

5.0 Re-Establishing Retirement Rights and Creditable Service (Revised October 31, 1992) (PDF, 8 KB)

6.0 Student Field Placement Program (Revised October 31, 1992) (PDF, 11 KB)

7.0 Payroll Withholding and Fringe Benefit Reconciliation and Remittance (Issued January 3, 1995) (PDF, 15 KB)

8.0 Payroll Fringe and Withholding Adjustments in WiSMART (Issued August 26, 1994) (PDF, 75 KB)

9.0 Manual Payroll Checks (Issued January 3, 1995) (PDF, 12 KB)

10.0 Payroll-Related Deposits (Issued February 10, 1995) (PDF, 13 KB)

11.0 Lump-Sum Payments for Unused Leave (Revised November 9, 2007) (PDF, 376 KB)

CAPITAL ASSETS - Section 8

1.0 Capital and Non-Capital Asset and Inventory Systems (Revised March 27, 2013) (PDF, 21 KB)

1.01 Accounting Procedures for Capital Assets (cost $5,000 and over) (Revised March 27, 2013) (PDF, 34 KB)

1.02 Accounting Procedures for Non-Capital Assets (Cost $1,000 to $4,999.99) (Revised March 27, 2013) (PDF, 19 KB)

1.03 Accounting Procedures for IT (Information Technology) Assets (Revised March 27, 2013) (PDF, 20 KB)

1.04 Annual Physical Inventory (Revised March 27, 2013) (PDF, 23 KB)

1.1 Use of Capital Account Codes (Revised March 27, 2013) (PDF, 20 KB)

1.2 Guidelines for Capital Asset Valuation (Revised March 27, 2013) (PDF, 29 KB)

1.3 Change in Capital Asset Threshold (Rescinded March 28, 2001)

2.0 State Capital Projects (Construction Projects) Transaction & Monitoring Process (Revised July 19, 2002) (PDF, 14222 KB)

2.01 Fund 490-495 LTE Labor on Capital Projects (Revised July 19, 2002) (PDF, 3939 KB)

2.02 Accounting for Delegated Projects (Rescinded March 28, 2001)

2.03 Agency Funded Projects/Repair and Maintenance Projects (Rescinded March 28, 2001)

2.04 Approval of Final Payment Advice (Rescinded March 28, 2001)

2.1 Capitalization of Fund 490/495 Capital Projects (Revised September 24, 2004) (PDF, 72 KB)

3.0 Capital and Operating Leases (Revised June 14, 2012) (PDF, 38 KB)

4.0 Year-End Capital Asset Reporting (Revised March 27, 2013) (PDF, 103 KB)

5.0 Disposition of State-Owned Assets (Revised May 24, 2012) (PDF, 48 KB)

FMS PROCESSING - Section 9

1.0 Delegated FMS Keying (Revised September 23, 2011) (PDF, 30 KB)

1.1 Submission of Vouchers to the Bureau of Fiscal Services (Revised December 2, 2011) (PDF, 22 KB)

1.12 Check Distribution/Attachments (Revised December 2, 2011) (PDF, 40 KB)

1.2 Document Numbering (Revised March 1, 2013) (PDF, 120 KB)

1.3 Fiscal Cut-off Dates (Revised December 2, 2011) (PDF, 20 KB)

1.4 Erroneous Entries in the Fiscal Management System (Revised November 28, 2011) (PDF, 21 KB)

2.0 Responsibility Area Designation Changes (Revised September 23, 2011) (PDF, 25 KB)

2.1 Request for Project Codes (Revised November 28, 2011) (PDF, 32 KB)

2.2 FMS Account Codes (Rescinded December 2, 2011)

2.3 Appropriation Codes  (Rescinded November 28, 2011)

3.0 Transfer of Revenue for Grants and Services (Revised December 2, 2011) (PDF, 15 KB)

4.0 General Service Billings (Revised December 12, 2011) (PDF, 19 KB)

4.1 Bureau of Information and Technology Services Billings and IT Direct Purchases (Revised March 27, 2013) (PDF, 26 KB)

4.2 State Self-Funded Property Insurance Program (Revised December 12, 2011) (PDF, 20 KB)

4.3 DOA Use Codes and BITS Billing Numbers (Revised December 12, 2011) (PDF, 30 KB)

5.0 Invoice/Voucher Approval and Certification of Goods and Services Received (Revised March 8, 2011) (PDF, 49 KB)

5.1 Prompt Payment of Vendor Invoices (Revised December 2, 2011) (PDF, 49 KB)

5.2 Use of Appropriation 975 for Prompt Payment (Revised November 28, 2011) (PDF, 22 KB)

6.0 DMS Contingent Account Check Requests (Rescinded April 1, 1999)

7.0 NSF (Not Sufficient Funds) Check and Other Returned Items Processing (Revised December 12, 2011) (PDF, 20 KB)

8.0 Use of Repair and Maintenance Funds (Moved December 12, 2011 to Section 11 --Institution Accounting) (PDF, 24 KB)

9.0 Pre-Retirement Planning--Account Code (Revised November 28, 2011) (PDF, 31 KB)

9.1 Legal Services Object Codes (Revised November 28, 2011) (PDF, 26 KB)

SPECIAL EXPENSE--RESTRICTIONS AND APPROVALS - Section 10

1.0 Membership Purchases (Revised May 22, 1998) (PDF, 19 KB)

2.0 Break Expense (Revised October 18, 2002) (PDF, 16 KB)

2.1 Meals Provided at Conference, Training or Meeting Sites (Revised October 18, 2002) (PDF, 23 KB)

3.0 Cosponsored Workshops (Revised May 22, 1998) (PDF, 13 KB)

4.0 Recognition Awards (Revised May 1, 2006) (PDF, 38 KB)

5.0 Employee Tuition Reimbursement (Revised July 1, 1999) (PDF, 10 KB)

6.0 Authorization and Processing of Legal Settlements and Other Unique Claims (Revised October 31, 1992) (PDF, 18 KB)

7.0 Funding Human Services During Residency Disputes (Revised October 31, 1992) (PDF, 8 KB)

8.0 Cellular Telephone Policy - Acquisition and Reimbursement (Revised February 28, 2005) (PDF, 316 KB)

9.0 Allowable Federal Rental Rates for State-Owned Buildings (Revised July 1, 2012) (PDF, 32 KB)

10.0 Moving Stipend (Issued September 14, 2004) (PDF, 168 KB)

11.0 Honorarium (Issued March 1, 2006) (PDF, 24 KB)

12.0 Employee Allowances for Work Related Items (Issued April 10, 2006) (PDF, 131 KB)

INSTITUTION ACCOUNTING - Section 11

1.0 Procedures for Contingent Accounts (Moved May 31, 2007 to Section 2--Cash and Cash Equivalents) (PDF, 108 KB)

2.0 Store Inventory Entries (Revised October 31, 1992) (PDF, 18 KB)

2.1 Store Inventory Reconciliation (Revised October 31, 1992) (PDF, 1312 KB)

2.2 Non-FMS Stores/Supplies Inventories (Issued April 10, 1996) (PDF, 9 KB)

3.0 Depository Funds and Petty Cash Reports (Moved July 23, 1999 to Section 2--Cash and Cash Equivalents) (PDF, 59 KB)

3.1 Monthly Bank Reconciliation (Moved May 31, 2007 to Section 2--Cash and Cash Equivalents) (PDF, 41 KB)

4.0 Canteen Fund Policy and Procedures (Revised October 31, 1992) (PDF, 20 KB)

4.1 Canteen Financial Statements (Revised May 31, 2007) (PDF, 108 KB)

4.2 Reimbursement of Canteen Operations Expense (Revised October 31, 1992) (PDF, 8 KB)

5.0 Disposition of Patient/Inmate Accounts (Revised October 31, 1992) (PDF, 7 KB)

6.0 Accounting for State-Owned Housing Rentals (Revised October 31, 1992) (PDF, 8 KB)

8.0 Compensation to Injured Inmates (Revised October 31, 1992) (PDF, 9 KB)

8.1 Crime Victim and Witness Surcharge (Revised October 31, 1992) (PDF, 8 KB)

9.0 Repair and Maintenance Projects (Issued March 28, 2001) (PDF, 1966 KB)

9.1 Use of Repair and Maintenance Funds (Revised December 12, 2011) (PDF, 29 KB)

TRAVEL - Section 12

1.0 Travel and Lodging Provisions (Revised July 1, 2012) (PDF, 126 KB)

1.01 Submission of Employee Travel Vouchers--(TL Documents) (Revised February 20, 2013) (PDF, 64 KB)

1.1 Exceptions to Lodging Cost Limitations (Revised September 9, 2010) (PDF, 65 KB)

1.2 Maximum Reimbursement for Lodging in High Cost Out-of-State Cities (Revised December 1, 2011) (PDF, 61 KB)

1.3 Special Eligibility for Reimbursement of Meal Expense (Revised May 14, 2009) (PDF, 60 KB)

1.4 Coding of Training Expense and IRS Reporting (Revised January 12, 2007) (PDF, 63 KB)

1.41 Coding of Non-Overnight Meals, Moving Reimbursements, IRS Reporting, and Withholding of Taxes (Revised December 27, 2012) (PDF, 73 KB)

1.5 Sales Tax Status of State Employees: Purchase of Meals, Lodging and Other Costs While Traveling on State Business (Revised June 4, 2013) (PDF, 554 KB)

1.6 Headquarters City Meals and Meeting Locations--Delegation of Authority (Revised April 17, 1998) (PDF, 57 KB)

1.7 Weekend Expenses: Approval and Airfare Discounts (Revised June 3, 1997) (PDF, 93 KB)

2.0 Turndown Rates--Business Use of Personal Vehicle (Revised July 1, 2012) (PDF, 62 KB)

2.1 State Car Non-Availability Certifications--Field Locations Only (Revised April 17, 1998) (PDF, 52 KB)

2.2 Vehicle Rental Approvals--Mandatory Use Bulletin (Revised December 7, 2011) (PDF, 1107 KB)

2.3 DOA Fleet Car Reimbursement (Revised May 12, 2005) (PDF, 292 KB)

2.4 Reimbursement of Expenses to Pick up Fleet Cars (Revised April 12, 2004) (PDF, 60 KB)

2.5 DHFS Purchase and Payment of Airline Tickets (Revised May 15, 2007) (PDF, 82 KB)

2.51 Discount on Purchase of Air Travel Tickets Due to Antitrust Settlement (Rescinded April 24, 1998)

2.6 Use of Privately-Owned Aircraft by DHFS Employees on State Business (Revised February 24, 2004) (PDF, 56 KB)

2.7 Use of Bus Service between Madison and Milwaukee (Revised April 17, 1998) (PDF, 51 KB)

2.8 Overnight Pool Car Use (Revised August 22, 2007) (PDF, 81 KB)

2.9 Reimbursement for Personal Use of State Vehicles (Revised August 22, 2007) (PDF, 995 KB)

3.0 Out-of-State Travel Approval (Revised June 24, 2011) (PDF, 112 KB)

 4.0 Expense Reimbursement for Non-State Employees (Revised April 24, 1998) (PDF, 29 KB)

5.0 Reimbursement of Costs to Employees from Outside Agencies (Revised May 6, 2013) (PDF, 120 KB)

6.0 American Express Corporate Card Program -- Alternative to Travel Advance (Rescinded May 4, 2001)

6.1 Travel Advances (Revised February 24, 2004) (PDF, 212 KB)

7.0 Charges for Restricted Use of State-Owned Vehicles and Aircraft (Revised August 18, 2003) (PDF, 72 KB)

7.1 Use of State-Owned Aircraft (Rescinded)

8.0 Benefits of Discounts from Travel Promotions (Revised April 24, 1998) (PDF, 57 KB)

 9.0 Employee Moving Expenses (Revised January 12, 2007) (PDF, 51 KB)

TAX - Section 13

1.0 Internal Revenue Service or Department of Revenue Vendor Levies (Revised February 23, 2010) (PDF, 14 KB)

2.0 Department of Revenue Tax Set-off Program (Revised October 31, 1992) (PDF, 14 KB)

3.0 Filing Department of Revenue Sales Tax Returns (Revised March 8, 2005) (PDF, 365 KB)

4.0 Internal Revenue Service 1099 Reporting (Revised November 11, 1997) (PDF, 216 KB)

5.0 IRS Request Information: Interest Payments (Revised March 9, 2001) (PDF, 20 KB)

6.0 Sales Tax Exempt Number (Revised June 4, 2013) (PDF, 108 KB)

FEDERAL FUNDS - Section 14

1.0 Administering Federal Funds (Revised August 22, 2007) (PDF, 25 KB)

2.0 Administration of Joint Funded Programs and Excess Federal Revenue (Revised November 5, 2012) (PDF, 45 KB)

3.0 Definition of Administrative Costs for Block Grants (Revised May 16, 2005) (PDF, 22 KB)

3.1 Expending Funds from Concurrent Block Grants (Revised September 16, 1994) (PDF, 17 KB)

4.0 Indirect Cost Reimbursements (Revised February 11, 2011) (PDF, 24 KB)

4.1 Indirect Cost Negotiation Agreement (Revised May 13, 2013) (PDF, 946 KB)

4.2 Indirect Rates--Wisconsin Indian Tribes (Revised February 14, 2008) (PDF, 22 KB)

5.0 Ratios for Processing and Reporting Grant Expenditures (Issued June 14, 1993) (PDF, 9 KB)

6.0 Data Universal Numbering System (DUNS) Number (Issued September 22, 2004) (PDF, 7 KB)

CONTRACT ADMINISTRATION - Section 15

1.0 Contract Administration for Aids/Grants (Revised June 6, 2013) (PDF, 125 KB)

2.0 Required Standard Contract Language (Revised June 6, 2013) (PDF, 125 KB)

2.1 Contract Supplements (Issued September 16, 1994) (PDF, 14 KB)

3.0 Review of Contract Financial Provisions (Rescinded June 6, 2013)

3.1 Prepayment Criteria--Aids to Organizations and Local Assistance Contracts/Grants (Revised January 8, 2007) (PDF, 22 KB)

3.2 Prepayments and Community Aids Contracts (Revised January 10, 2003) (PDF, 13 KB)

4.0 Standard Procedures for Developing, Issuing and Processing Aids Contracts (Revised January 29, 2010) (PDF , 219 KB)
Attachment 10 (CARS Processing Dates) (Revised June 11, 2012) (PDF , 28 KB)

4.1 State-Generated CARS Adjustments--Required Supporting Documentation (Issued January 1, 1993) (PDF, 8 KB)

4.2 Sign-off on CARS Adjustments, Ratios and Schedules (Issued  February 5, 1993) (PDF, 9 KB)

4.3 Contracts Required for Check Generation (Issued February 1, 1993) (PDF, 13 KB)

4.4 CARS Processing Based on Schedules in Lieu of Contracts (Issued March 31, 1993) (PDF, 19 KB)

4.5 Rush Pre-Contract Packet Review (Issued June 14, 1993) (PDF, 10 KB)

4.6 Sum Sufficient Profiles (Issued September 16, 1994) (PDF, 12 KB)

4.7 Lengthening Contracts (Issued September 16, 1994)(PDF, 13 KB)

5.0 CARS Close Out Procedures: Non-Municipal Contracts (Revised October 31, 1992) (PDF, 17 KB)

5.1 Processing Late Final Expenditure Reports (Issued August 1, 1993) (PDF, 17 KB)

5.2 CARS Processing: Cut-off for Calendar Year Reconciliation (Issued April 11, 1994) (PDF, 14 KB)

AUDIT - Section 16

1.0 Audit Liaison and Resolution--DHFS Organizations (Revised August 10, 2012) (PDF, 21 KB)

2.0 Federal Disallowance/Deferral Reporting and Monitoring (Revised September 20, 2012) (PDF, 18 KB)

3.0 Audits of Non-Profit Agencies (Circular A-133) (Revised October 31, 1992) (PDF, 17 KB)

4.0 Audit Resolution Policy: Sub-recipient Audits
(A-128 and A-133) (Issued November 30, 1992) (PDF, 35 KB)

4.1 Fiscal Sanctions for Failure to Meet Audit Requirement (Issued November 30, 1992) (PDF, 29 KB)

5.0 Financial Coverage of External Audit Disallowances or Non Compliance Sanctions (Revised August 27, 2012 - Audit 6.0 & 7.0 incorporated) (PDF, 19 KB)

6.0 Financial Coverage for Disallowances (incorporated into Audit 5.0 August 27, 2012)

7.0 Payment of External Audit Disallowances (incorporated into Audit 5.0 August 27, 2012)

8.0 Audit Waiver (Issued August 11, 1995) (PDF, 17 KB)

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Last Revised:  June 07, 2013