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Wisconsin Department of Health Services

Accounting Policy and Procedures

(Last Revised:  April 9, 2014)

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.

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

Quick Links by Topic:

Audit FMS Processing Special Expense
Budget Control Institution Accounting Tax
Business Standards Payroll Travel
Capital Assets (was Fixed Assets) Purchasing Updates
Cash and Cash Equivalents Receivables Rescinded
Contract Administration Reconciliation
Federal Funds Revenues & Refunds

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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, 74 KB)

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)

 

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 August 30, 2012) (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 for Establishing and Processing E-Payments including Electronic, Lockbox and Credit/Debit Cards (Revised September 1, 2013) (PDF, 120 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 February 19, 2014) (PDF, 113 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

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

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

3.0 Salary Overpayment Procedures (Rescinded March 5, 2014 - Payroll 12.0 consolidates and eliminates previous outdated Receivables 3.0, 3.1, and 3.3)

3.1 Notification of Salary Overpayments (Rescinded March 5, 2014 - Payroll 12.0 consolidates and eliminates previous outdated Receivables 3.0, 3.1, and 3.3)

3.3 Repayment and Deposit of Salary Overpayments and Voluntary Deductions (Rescinded March 5, 2014 - Payroll 12.0 consolidates and eliminates previous outdated Receivables 3.0, 3.1, and 3.3)

5.0 Annual Report of Receivables (Revised December 4, 2013) (PDF, 87 KB)

5.1 Reporting Collection Agency Referrals (Rescinded December 4, 2013)

5.2 Annual Report of Receivables--Institutions and Divisions (Rescinded December 4, 2013)

5.3 Reconciliation of FMS Accounts Receivable Balances to Annual Report of Receivables (Rescinded December 4, 2013)

6.0 Write-off of Accounts Receivable (Rescinded December 4, 2013)

 

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 (Revised September 5, 2013)  (PDF, 65 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 Federal Appropriations - Allotments and Budgeting (Revised February 27, 2014) (PDF, 180 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)

 

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)

3.01 Submission of Purchasing Card Statements (P-Card Statements) (Issued December 6, 2013) (PDF, 133 KB)

 

PAYROLL - Section 7

1.0 Distribution of  Payroll Checks (Revised January 15, 2014-Payroll 1.0 and Payroll 1.1 consolidated into Payroll 1.0) (PDF, 122 KB)

1.1 Distribution of Payroll Checks (Rescinded January 15, 2014)

2.0 Composite Rate for Fringe Benefits (Revised August 26, 2013) (PDF, 96 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 January 16, 2014)(PDF, 85 KB)

12.0 Salary Overpayments (Revised March 19, 2014 - consolidates and eliminates previous outdated Receivables 3.0, 3.1, and 3.3) (PDF, 100 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)

2.0 State Capital Projects (Construction Projects) Transaction & Monitoring Process (Revised April 1, 2014) (PDF, 532 KB)

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

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 April 1, 2014) (PDF, 128 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)

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)

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 December 11, 2013) (PDF, 96 KB)

2.0 Break Expense (Revised August 13, 2013) (PDF, 135 KB)

2.1 Meals Provided at Conference, Training or Meeting Sites (Revised December 4, 2013) (PDF, 113 KB)

3.0 Cosponsored Workshops (Revised January 2, 2014) (PDF, 131 KB)

4.0 Recognition Awards (Revised November 18, 2013) (PDF, 141 KB)

5.0 Employee Tuition Reimbursement (Revised December 16, 2013) (PDF, 117 KB)

6.0 Authorization and Processing of Legal Settlements and Other Unique Claims (Revised November 18, 2013) (PDF, 87 KB)

7.0 Funding Human Services During Residency Disputes (Rescinded February 12, 2014)

8.0 Cellular Phone Policy and the DHS Internal Cellular Procedures, Acquisition and Reimbursement (Revised January 20, 2014) (PDF, 204 KB)

9.0 Allowable Federal Rental Rates for State-Owned Buildings (Revised July 31, 2013) (PDF, 108 KB)

10.0 Moving Stipend (Revised January 27, 2014) (PDF, 84 KB)

11.0 Honorarium (Revised January 15, 2014) (PDF, 115 KB)

12.0 Employee Allowances for Work Related Items and Taxable Fringe Benefits (Revised September 1, 2013) (PDF, 89 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 March 26, 2014) (PDF, 92 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 April 9, 2014) (PDF, 104 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, 2013) (PDF, 320 KB)

1.01 Submission of Employee Travel Vouchers--(TL Documents) (Revised February 20, 2013) (PDF, 68 KB)

1.1 Exceptions to Lodging Cost Limitations (Revised October 25, 2013) (PDF, 112 KB)

1.2 Maximum Reimbursement for Lodging in High Cost Out-of-State Cities (Revised December 18, 2013) (PDF, 90 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 March 20, 2014) (PDF, 127 KB)

1.41 Coding of Non-Overnight Meals, Moving Reimbursements, IRS Reporting, and Withholding of Taxes (Revised January 1, 2014) (PDF, 132 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, 559 KB)

1.6 Headquarters City Meals and Meeting Locations--Delegation of Authority (Revised August 13, 2013) (PDF, 128 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, 121 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, 1111 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 January 29, 2014) (PDF, 94 KB)

2.5 DHS Purchase and Payment of Airline Tickets (Revised May 15, 2007) (PDF, 102 KB)

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, 116 KB)

2.9 Reimbursement for Personal Use of State Vehicles (Revised August 22, 2007) (PDF, 1010 KB)

3.0 Out-of-State Travel Approval (Revised December 18, 2013) (PDF, 96 KB)

3.1 Border Travel (Issued July 15, 2013) (PDF, 104 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, 211 KB)

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)

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)

10.0 Wireless and Mobile Device and Equipment Checkout When Traveling (Issued March 19, 2014) (PDF, 97 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 and Budgeting for GPR Match (Revised February 27, 2014) (PDF, 92 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 February 4, 2014) (PDF, 88 KB)

3.1 Expending Funds from Concurrent Block Grants (Revised February 4, 2014) (PDF, 90 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 (Revised February 14, 2014) (PDF, 118 KB)

6.0 Data Universal Numbering System (DUNS) Number (Revised February 27, 2014) (PDF, 101 KB)

 

CONTRACT ADMINISTRATION - Section 15

1.0 Contract Administration for Aids/Grants (Revised September 16, 2013) (PDF, 132 KB)

2.0 Required Standard Contract Language (Revised September 16, 2013) (PDF, 91 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 July 15, 2013) (PDF, 110 KB)

3.2 Prepayments and Community Aids Contracts (Rescinded July 15, 2013)

4.0 Standard Procedures for Developing, Issuing and Processing Aids Contracts (Revised January 29, 2010) (PDF, 220 KB)
Attachment 10 (CARS Processing Dates) (Revised January 24, 2014) (PDF, 28 KB)

4.1 State-Generated CARS Adjustments--Required Supporting Documentation (Rescinded August 20, 2013)

4.2 Sign-off on CARS Adjustments, Ratios and Schedules (Rescinded August 20, 2013)

4.3 Contracts Required for Payment Generation (Revised June 26, 2013) (PDF, 100 KB)

4.4 CARS Processing Based on Schedules in Lieu of Contracts (Rescinded June 26, 2013)

4.5 Rush Pre-Contract Packet Review (Rescinded August 20, 2013)

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

4.7 Lengthening Contracts (Revised August 14, 2013) (PDF, 90 KB)

5.0 CARS Close-out Procedures and Processing Late Expenditure Reports (Revised August 14, 2013) (PDF, 570 KB)

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

5.2 AIDS Appropriations:  Cut-off for Calendar Year Contract Reconciliation (Revised August 14, 2013) (PDF, 91 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)

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

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Last Revised:  April 09, 2014