This procedure explains how to review and approval expense reports in e-Reimbursement, the Expense module of the Shared Financial System (SFS), from the perspective of an Approver or Auditor.
All payments made to employees and non-employees for reimbursement of out-of-pocket expenses are initiated in e-Reimbursement, the Expenses module of the Shared Financial System (SFS). Expense reports are reviewed by an approver and an auditor prior to payment. Approval routing is based on the Department ID referenced in the funding allocation for each expense line. When an expense report is ready for approval, approvers and auditors will receive an email notification prompting them to take action. Approvers and auditors must review expense reports for policy compliance, appropriateness of expenses, accuracy of accounting, and necessary supporting documentation.
This document details the required procedures for reviewing and approving an expense report in the Shared Financial System.
To get started, sign into the Shared Financial System (SFS), click the Expense WorkCenter tile, then click the link for Approve Transactions in the Approve Transactions and Reassign menu along the left side of the window. This will populate a list of expense reports, cash advances, and travel authorizations requiring your approval.
Overview Screen: After clicking Approve Transactions, the Overview screen of the approval queue will appear. In Overview format, the queue may contain expense reports as well as cash advances, and less commonly, travel authorizations. The tabs along the top of the page allow you to narrow your queue visibility to see only Expense Reports, Travel Authorizations, or Cash Advances. You may search for pending transactions by clicking the arrow next to Search Pending Transactions near the top of the page; searching by Transaction ID (10-digit expense report number) often proves helpful, but other columns may be selected for search terms as well, such as Name (employee/non-employee claimant name). You may also change the sort order of reports in your queue by clicking the arrow next to Change Sort Order. You may then sort your queue by any selected field (e.g. Total, Date Submitted) in ascending or descending order.
Review columns in the Transactions to Approve table (click image below to enlarge):
Select: The checkboxes in this column can be used to Send Back or Hold multiple transactions as long as they do not contain an alert icon in the Alert column.
Send Back: If sending back multiple reports at this screen, the same comments will be included with each transaction that is sent back to the Traveler for modification and resubmission. Note: Expand the Comments section at the bottom of the list of expense reports to enter a comment.
Hold: Placing a transaction on hold will make it inaccessible to other approvers/auditors and System Administrators. The only way to remove the hold status is to approve or deny the report or send it back to the Traveler. Be aware of these limitations should you choose to put a report on hold.
Urgency: The Urgency column provides a visual guideline to help you prioritize your approval queue based on the number of days from submission. The categories are defined as follows: green circle (low priority): 0 – 7 Days; yellow triangle (medium priority): 8 – 29 Days; red square (high priority): 30 – 999 Days.
Alert: The Expenses module is programmed to highlight certain alerts to approvers and auditors, e.g. accountable plan violation, lodging limit exceeded, Foundation billing utilization. A yellow triangle with an exclamation point in this column indicates that this report is flagged for having at least one alert.
Transaction Type: Approvers/auditors will see expense reports, travel authorizations and cash advances in their approval queues.
Total: This amount represents the total dollar amount of the report, regardless of the payment mechanism used for each expense line.
Unit: This column displays the form of currency used to enter the expenses.
Name: This column displays the name of the individual claiming reimbursement/payment. Verify that this is the appropriate individual to be reimbursed for the expenses claimed.
Employee ID: This column displays the employee or non-employee ID of the individual claiming reimbursement/payment.
Bus Unit: Business Unit/Institution of the claimant
Description: This column displays the report name entered by the claimant/alternate.
Transaction ID: This column displays a unique 10-digit number that identifies the transaction.
Date Submitted: This column displays the date the claimant/alternate submitted the report.
Status: This column displays the status of the report, which will be Approvals in Process in most cases.
Role: If an approver/auditor is assigned to multiple approval roles, it is important to verify which level of approval the transaction is pending.
Navigate to an individual transaction and review the report:
Click on the Description or Transaction ID link of the report you would like to review.
The content within the displayed Expense Summary section should provide details necessary to determine the appropriateness of the expense lines in an expense report. Review the Business Purpose (See Appendix), Description, Reference, and Dates for accuracy; field should be checked in reference to attachments and supporting documentation at the header level of the expense report. Next, verify that the Justification and Supporting Details section contains a valid and complete UW-Madison business purpose. The UW Summary Report link is available near the top of the expense report and can be used to quickly review the accounting distribution for the expense report.
To review individual expense lines in full detail and to be able to make changes to expense lines, select the Expense Details link in the upper right corner of the expense report. This will take you to the Expense Details page, where each expense line should be reviewed for:
Policy Compliance: It is helpful to refer to the specific policy that pertains to the expense line being reviewed.
Expense Type and Reference/Billing Type: In the Expense Module, account codes are automatically determined by selecting the appropriate Expense Type and Billing Type. The Expense Type selected also drives the required field completion in the Expense Details panel.
If the Expense Type is incorrect, approvers and auditors can click on the Expense Type field and select the correct Expense Type from the list.
Note Billing Type is coded based on the Reference selection in the header section of the expense report and cannot be changed at the line-item level. Approvers and auditors can correct the Billing Type for the expense report as a whole by returning to the Expense Summary page and selecting the correct Reference for the expense report.
Payment Type: The payment type determines who will receive payment for the expenses claimed.
US Bank Corporate Card: The My Corporate Card is an individual-liability VISA credit card issued by U.S. Bank to UW-Madison employees for University business use only. For employees who have an open My Corporate Card account, reimbursable expenses are paid directly to US Bank by the University, on behalf of the cardholder when an expense report is submitted and approved.
Personal Funds: When this option is selected, the employee will be reimbursed via the payment mechanism on file. If direct deposit has been set up by the employee, the payment will be delivered via ACH. If not, a paper check will be mailed to the employee. Non-employee payments are issued via a mailed check or via a wire payment (for nonemployees with addresses outside of the U.S. and Canada).
Prepaid Purchasing Card: Expenses paid on the Purchasing Card. The traveler will not be reimbursed for these expenses. It is not required to include expense lines for prepaid items.
Funding: Verify that the funding string has budget and funds available for the expenses listed. Confirm expenses are allocable to and allowable on the funding string.
To change the funding on an individual expense line, click on the Accounting Details to expand the funding string for the expense line. Change the funding as appropriate. To use multiple funding sources, click the Plus (+) sign button at the far right of the funding string, enter the additional funding string, and modify the distribution of the expense across the lines.
Additional Required Details (varies by Expense Type): Individual expense types may require verification of additional information, such as Number of Nights, Number of Attendees, Attendees Lists, Currency Exchange Rate, etc.
Tax Compliance: Each expense line should be reviewed for tax compliance. The University of Wisconsin–Madison is exempt from payment of Wisconsin sales and use tax on items purchased within Wisconsin. Additionally, Universities of Wisconsin has tax exempt reciprocity agreements with some other states. if an e-Reimbursement approver or auditor notes an expense line with sales and use tax paid in error, the following steps should be taken, depending on the dollar amount paid in error:
$25.00 or less: If the amount of sales tax paid in error is $25 or less, the approver or auditor may note the non-compliant amount, but approve the amount for reimbursement, citing the following immateriality clause: “Sales tax paid in error for this transaction does not meet the materiality threshold of $25 for the University of Wisconsin-Madison; as such, immaterial sales tax will be reimbursed.”
Greater than $25:
Includes a documented attempt to obtain exemption: If the amount of sales tax paid in error is greater than $25 and the claimant has documented an attempt to either obtain exemption or obtain a refund (without success), the approver/auditor may approve the amount for reimbursement.
Does not include a documented attempt to obtain exemption: If the amount of sales tax paid in error is greater than $25, but the claimant did not document an attempt to either obtain exemption or obtain a refund, the approver/auditor must reduce the reimbursable amount to the pre-tax total.
Marking an expense line non-reimbursable: Generally, expenses that do not comply with UW–Madison policies will not be reimbursed. Additionally, Policy UW-3026, Non-Payable/Non-Reimbursable Expenses, outlines expenses that are not payable or reimbursable by the University. Expense lines in e-Reimbursement may be marked non-reimbursable by unchecking the box underneath Approve in the upper-right section of an expense line on the Expense Details page. After unchecking the box, a drop-down selection menu will appear, and a reason for not approving the expense for reimbursement must be selected. Reasons in the drop-down list include: Already Paid/Duplicate, No Receipt, Out of Policy, and Personal Expense.
Once line-item review is completed, you must switch back to the Summary and Approve screen to review final summary items and to take action on the expense report. Select the Summary and Approve link in the upper right corner of the expense report.
Note the Expense Report Totals section. The amounts listed indicate the payments to be made to the following:
Employee Expenses: Total of all expense lines, regardless of payment type
Non-Reimbursable Expenses: Total of all expenses marked as non-reimbursable
Prepaid Expenses: Total of all expenses with a payment type of University Prepaid
Amount Due to Employee: Total of all reimbursable expenses with a payment type of Personal Funds
Amount Due to Supplier: Total of all reimbursable expenses with payment type of Corporate Card
Note the Approval History (timeline): This graphic displays the names and roles of all approvers/auditors required to review the report prior to payment/reimbursement. A green check mark indicates that an approval step is complete. If the approver is listed as “Pooled”, multiple individuals are able to approve at this level, but only one is required. If auditor is listed as “Multiple”, all auditors must approve for the report to advance to payment.
Note the Approval History (table): This table shows the history of the report after it was submitted, including a date/time stamp and comment bubbles containing approver/auditor remarks. Be sure to review any comment bubbles listed.
If ready to approve the report, click Approve. On the confirmation pop-up page, click “OK”. If approving as Prepay Auditor, note the report cannot be changed, modified, or returned once this final approval step is complete. If a report has been approved at final audit in error and the report should not be paid, email expensereimbursement@bussvc.wisc.edu to close the report.
If you are not ready to approve the expense report, other actions that may be taken include:
Send Back: Click the Send Back button to save changes and send it back to the submitter. This button sends the report back to the submitter for edits, revisions, and additions. A comment must be entered in the Comments box prior to sending back the report; this comment should outline the reasons for the send-back and the steps the submitter needs to take prior to resubmitting the report.
Hold: Click Hold to put an expense report on hold; this prevents any other individual from acting on the report other than the approver/auditor who placed the report on hold.
Deny: To eliminate an expense report that will not be paid, click the Deny button. Once an expense report is denied, the expense report cannot be resubmitted.
Save Changes: Click the Save Changes button. This saves any changes made to the expense report and routes you back to your approval queue.
After clicking on one of the action buttons above, you will be routed back to your approval queue to select a new report to work on.
Traveler/Claimant/Recipient: the person receiving reimbursement. Note: Employees are responsible for submitting their own expense report and following all applicable UW travel policies. An employee may assign an alternate to create and modify an expense report on their behalf, but the employee is ultimately responsible for submitting their own expense reports.
Alternate: responsible for creating and submitting expense reports on behalf of others. Employees who seek reimbursement can assign an alternate to create and modify expense reports for them, but the employee must submit their own. Expense reports for non-employees or recently terminated employees are created and submitted by alternates.
Approver: Upon submission, expense reports are first reviewed by an approver. Approvers are responsible for reviewing supporting documentation, reviewing expense reports for policy compliance, and reviewing funding being charged.
Auditor: Expense reports are reviewed by an auditor after the approver and prior to final payment. Auditors are responsible for reviewing expense reports for policy compliance.
e-Reimbursement: the Expenses module of the Shared Financial System (SFS), used to create, submit, and approve expense report/reimbursement claims.
Purchasing Card: University-liability credit card that can be used for travel and non-travel expenses.
Corporate Card: individual-liability credit card that can be used for travel and non-travel expenses.
Expense report: contains a categorized and itemized list of expenses that were made on behalf of University of Wisconsin–Madison. This report helps the employer or finance team determine what money was spent, what was purchased, and how much of the expenditure is approved for reimbursement.
Business Purpose: When using University funds or requesting a reimbursement from University funds, documentation of a clear business purpose is required so an approver, auditor, site manager, and/or post-payment auditor may reasonably conclude and agree the expenditure is an appropriate business expense. The business purpose, which is defined as one that supports or advances the goals, objectives and mission of the University, adequately describes the expense as a necessary, reasonable, and appropriate business expense for the University. All expenses must support a University business purpose.
Non-employee: an individual who does not have an active appointment at the University. Non-employees can be reimbursed for business-related expenses through e-Reimbursement. Generally, non-employees are subject to the same policy requirements as employees.
Business – Expenses for routine business travel not better classified in another category.
Conference – Expenses incurred to attend or host a conference.
Fundraising – Expenses incurred for University fundraising.
Job candidate hosting – Expenses incurred for hosting job candidates.
Local travel – Expenses incurred when traveling within the headquarter city or surrounding area. Expenses can be accumulated and filed weekly, bi-weekly or monthly.
Non-Travel – Expenses incurred for low-dollar purchases made in compliance with UW purchasing policies.
Professional development – Expenses incurred by employees for education or job/professional training.
Recruiting – Expenses incurred for recruiting employees and students to the University.
Relocation – Relocation stipends for employee relocation.
Research – Expenses incurred for research or research-related activities including fieldwork or faculty presentation of papers.
Student travel – Expenses incurred by students for business or educational travel. Does not include study abroad or International Education programs. Employee expenses to accompany students on student travel.
Study abroad – Expenses incurred by travelers (faculty or students) for study abroad or other international education programs.
Team travel – Expenses incurred for sport team travel.
The purpose of this document is to provide guidance on the accounting and reconciliation of clearing accounts. A clearing account is a temporary place (e.g., fund, department identification (DeptID), account code, project ID, etc.) to hold revenues or expenses until the appropriate place where the revenues or expenses should be distributed is determined
Effective date: July 1, 2023
Functional Owner: Division of Business Services, UW–Madison Controller Contact: UW–Madison Controller, David Honma (david.honma@wisc.edu)
Definition
Clearing account: a temporary place (e.g., fund, department identification (DeptID), account code, project ID, etc.) to hold revenues or expenses until the appropriate place where the revenues or expenses should be distributed is determined, and the clearing account should be reconciled to zero at some point.
Clearing accounts are utilized to deposit funds to or pay bills from when the correct funding string may be unknown, or an allocation will be made to various funding strings. The goal for using a clearing account is to ensure timely deposit to the state treasury and prompt payment to a supplier.
Clearing account reconciliations should be prepared for all clearing accounts at least semi-annually. A formal reconciliation should be prepared annually for fiscal year-end balances. The reconciliation must be signed and dated by a preparer and reviewer, and either prepared or reviewed by an individual not involved with processing the transactions in the clearing account.
No formal template needs to be followed, but the reconciliation should contain a screenshot of the ending balance from WISER. If there is an ending balance, the reconciliation must include details and supporting documentation of the open items.
A listing of clearing accounts and balances will be provided to the Dean’s/Divisional Business Offices twice per year (after December close and fiscal year-end close). The clearing account listing is based on the following criteria:
Department IDs with “Clearing” in the department description
Project IDs with a UW Project type of NS_15 Suspense/Clearing
At least two attempts should be made to determine the correct funding string for any deposit. After two attempts, the unidentified revenue can be transferred to a funding string for use at the discretion of the applicable division.
For expenditures, the expense should be transferred to the funding string identified by the department or division. It will be the responsibility of the division that owns the clearing account to obtain the correct funding string for the expense. At least two attempts should be made to determine the correct funding string for an expense by June 30 of the current fiscal year. It will be at the discretion of the division that owns the clearing account if they prefer to keep the expense in the clearing account for continued reconciliation and follow up, or transfer the expense to a funding string of their own.
Items outstanding more than 180 days should be reviewed to determine if those funds should be transferred elsewhere.
Clearing accounts should be periodically reviewed to determine if the account is still needed. If an account is no longer needed, it should be closed.
The UW–Madison Controller can grant an exception to the above stated procedures on a case-by-case basis.
The University of Wisconsin–Madison allows units to pay relocation stipends for new and presently employed personnel assigned to new locations by transfer or promotion, in accordance with IRS regulations. This procedure documents steps to complete two payment options; via the Human Resource System (HRS/Payroll) or the Shared Financial System (SFS / E-Reimbursement).
The University of Wisconsin–Madison allows units to pay relocation stipends for new and presently employed personnel assigned to new locations by transfer or promotion, in accordance with IRS regulations. Relocation stipends may be processed via the Human Resource System (HRS/Payroll) or the Shared Financial System (SFS / E-Reimbursement). This procedure documents steps to complete either payment option.
Employees who are awarded a relocation stipend; administrative staff who process payroll or financial transactions; Divisional Business Officers and others who have approval authority.
Processing a Relocation Stipend via Payroll
Relocation stipends may be processed via payroll after an employee’s start date using the workflow for additional pay. Appropriate documentation should be provided for the payment. Documentation is not stored in the Human Resource System (HRS), so all supporting documentation must be retained outside of HRS by the unit for audit purposes. To get started, sign into HRS.
Navigate to Payroll for North America > Employee Pay Data USA > Workflow Addl Pay Create.
Click the Add a New Value tab.
Empl ID – You can enter an additional pay record for both active and inactive employees.
Empl Record – The empl record needs to be entered. If employees have/had more than one position at a time this number will tie the payment to the correct record.
Earnings Code – Use earnings code RRE – Relocation Reimbursement
Effective Date – This date defaults to today’s date. Update it to correspond to the “Begin Date” of the pay period in which the payment was earned. This can be in a prior, current, or future pay period. Refer to the UW Payroll Calendar for pay period begin dates. Note: If the Empl Rcd is a new appointment and the employee was hired in the middle of that pay period, enter the effective date equal to their start date and click Enter.
Click the Add button.
You will be taken to the Additional Pay entry page, and the Empl ID, Empl Record, Earnings Code, and Effective Date information you entered on the previous page will be brought in. Enter the appropriate information for the lump sum payment in the fields below:
Addl Seq Nbr: Enter a 1 in this field.
End Date (Optional): Enter an end date for the payment. The best practice is to use an end date equivalent to the last day of the pay period in which the last payment should occur.
Earnings: Enter the dollar amount to be paid to the employee each pay period.
Goal Amount: Enter the total dollar amount you want to pay the employee.
For example, a one-time payment of $100 is accomplished using a matching Earnings and Goal Amount. If five equal payments of $100 were the result being sought, the Earnings should be entered as $100 and the Goal Amount should be entered as $500.
Relocation stipends are taxable and may be split between multiple pay periods to reduce the tax impact from one large payment.
It is best practice to enter a goal amount for both one-time and multi-period payments alike. If no goal amount is entered, the nightly load job will consider the payment to be multi-period, even if it is not, and will load the payment to the Create Additional Pay page. If this occurs after pay sheets are created, it is possible that the payment will not pay on the intended paycheck.
If content is entered in both the Goal Amount and the End Date fields, the payments will stop at whichever occurs first.
OK to Pay: This field will default to checked, indicating the payment should be paid on the employee’s on-cycle check. If you are entering a record that will stop a payment, you will need to uncheck this box.
Applies to Pay Periods: Validate the applicable check boxes are checked. “First”, “Second”, and “Third” boxes correspond to the A, B, and C payroll designations, respectively.
Description: Enter comments regarding this payment. Approvers will be able to view these comments when approving the payment. This is a free form field and is required to submit the additional pay record.
Click the Submit button.
The submitted record will now update to a Workflow Status of Submitted and a Workflow Approval ID will be assigned to the record. Each additional pay entry will have a unique Workflow Approval ID. Additionally, the approver workflow will now appear at the bottom of the page showing the assigned approvers at each level and the status of each approval.
Processing a Relocation Stipend via e-Reimbursement Relocation stipends may be processed prior to an employee’s start date using a non-employee profile or after their start date utilizing their employee profile.
To get started, employees/alternates must sign into the Shared Financial System (SFS), click the Expenses tile, then click Create Expense Report. If acting as an alternate for another traveler, click the drop-down arrow next to the employee’s name in the upper left corner of the screen, then select Change Employee. Select the appropriate employee from the resulting list and proceed to the next step.
General Information: The first page is the General Information page, also commonly referred to as the header information. Information entered here applies to the entire expense report.
Business Purpose – Choose Relocation
Default Location – Choose the employee’s headquarter city (typically Madison, WI)
Reference – Choose Not a Travel Related report.
Attachments
Attach relocation stipend authorization letter or equivalent form. This letter or form must include the following information: name of relocating employee, reason for the move, position, specific amount of the standard relocation stipend, and if the employee/ new hire is eligible for a supplemental stipend.
Justification
Example: Relocation stipend for [employee name] to relocate from [origin] to [destination] on [date of relocation – MM/DD/YY] to assume the role of [position].
The relocation date should be included to ensure the relocation stipend is made no more than 30 days in advance of the employee’s actual relocation date, per UW-Madison relocation policy.
Expense details: This section is where users enter the details of their expenses.
Choose Add expense lines from the Expense Report Action drop-down menu.
Choose the Expense Type Relocation-Stipend for the expense.
Description: Enter “Relocation” or preferred information
Reimbursement Method: Select “Personal Funds”
Amount: Enter the stipend amount on the authorization letter or equivalent form. Note: In accordance with IRS regulations, this stipend payment is considered taxable income and subject to applicable income and employment taxes. The amount entered will be offset by required withholding (typically 30%), and the relocating employee will receive the resulting net payment.
Enter Originating Location [ORIGIN]
Enter Expense Location [DESTINATION]
Click the (+) Add button to add an expense line.
Choose the Expense Type E-Re Estimated Withholding
Description: Enter “Required withholding” or preferred information
Reimbursement Method: Select “Personal Funds”
Amount: Manually calculate the withholding amount by multiplying the “Relocation-Stipend” amount by 0.30. (i.e. $10,000 x 0.30 = $3,000). The amount should be entered as a negative amount (i.e. -3,000.00). Click “Save” in the upper right-hand corner of the screen.
Note: a red-flag warning will appear indicating “Negative expense amount – Credit reference information required.” Click the box Credit Reference Required in the Section “Exception Comments” at the bottom of the page. Enter the following text: Required e-Reimbursement withholding.
Click Review and Submit – Alternates and travelers must ensure the accuracy of the expense report prior to submission.
Expense Report Summary – Note the amount due to the Employee is the relocation stipend amount less the withholding.
Click Submit.
Current UW employees must submit their own expense reports.
Alternates can submit expense reports on behalf of non-employees and recently-terminated employees.
Payment
Employee Profile
Payment will be made via the payroll method of payment on file. If direct deposit information has been entered, payment will be made via direct deposit. If no direct deposit information is on file, a system check will be issued to the address on file, usually the office address. System checks are mailed within 2-5 business days of payment, and ACH deposits take up to 3-5 business days to post. E-Reimbursement payment is separate from payroll processes and will not occur on a paycheck direct deposit payment.
Non-employee Profile
The default payment method for non-employees with addresses within the U.S. and Canada is a mailed check. Check pickup at 21 N. Park Street is also an option; email expensereimbursement@bussvc.wisc.edu to arrange for the relocating employee to pick up their check at the Division of Business Services. Wire payment is required for non-employees with addresses outside the U.S. and Canada.
Relocating employee: Responsible for understanding and complying with relocation policy and procedure.
Employing Department: Responsible for communicating relocation policy and procedures to employees; relaying tax withholding information; providing information about household moves and directing employees to Purchasing Services and Property Control for business and laboratory equipment moves; and setting up the new employee profile as soon as the offer is accepted and finalized
Approving Authority: e-Reimbursement approvers, auditors and Additional Pay Approvers – Responsible for reviewing relocation expenses and withholding entries and ensuring funding, supporting documentation, and justification are sufficient to pass audit
Tax Compliance: Responsible for monthly tax compliance reporting for relocation expenses
Additional Pay Enterer: Responsible for entering the Relocation Stipend in HRS and tracking the stipend through the approval process and payment
Approving authority – Chancellor, Vice Chancellor, or delegated division dean or director who approves expenses for relocation or temporary work assignments.
Authorization letter – A letter specifically outlining and approving university funding and amounts for relocation stipends.
Employee – Any individual who holds a faculty, academic staff, university staff, or limited appointment at UW–Madison.
Relocation Stipend – Lump-sum, tax-reportable payment to employee for relocation costs.
The University of Wisconsin–Madison conducts research studies that are 1 year or longer and the research participants are compensated with payment by reloadable debit card. Reloadable Debit Card Accounts are used for these research participant studies.
This procedure applies to all Deans, Directors, Financial Officers, and staff involved with research participant studies that provide payments by reloadable debit card to research participants.
Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening a reloadable debit card account.
Custodian composes a Letter of Justification explaining the purpose of the study and how it is linked to the project.
Custodian completes the following forms and obtains the necessary departmental approvals:
Custodian routes the Letter of Justification and signed forms to the Dean/Director’s office.
Dean/Director’s office verifies that the Custodian needs a Reloadable Debit Card Account by verifying that:
The research study will be for 1 year or longer.
The research study has an Institutional Review Board (IRB) Number or self-certification paperwork showing that no IRB approval or certification is necessary.
Each payment to a research participant will be $249 or less.
The payment(s) to the research participants will be made by reloadable debit card.
At least 10 payments will be made per month.
Dean/Director’s office verifies accurate funding information.
Dean/Director’s office reviews the documentation and signs the necessary forms.
Dean/Director’s office keeps a copy of the forms for internal records.
Dean/Director’s office sends the original forms to Cash Management via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
Cash Management processes the request.
Cash Management will notify the department and Dean/Director’s office when the US Bank reloadable debit account is set up and cards are ordered.
The Custodian can check WISER using account code 6167, on the balance sheet, to see if the request has been processed. On the Transaction Search page in WISER, ensure the Show Balance Account checkbox is checked.
Maintaining Reloadable Debit Card Account
Reconciliations
Reconciler completes and documents monthly account reconciliations between the US Bank Account Reconciliation Report and the Card Load Report on the US Bank Account Reconciliation Worksheet within 30 days of month end.
Reconciler submits the monthly reconciliation, Account Reconciliation Report, and Card Load Report via the Custodian Fund System within 30 days of month end.
Replenishments
Reconciler obtains the research participant log, without HIPAA or sensitive information, and completes the Custodian Fund Accounting Form to replenish the Reloadable Debit Card Account at least every 90 days, based on activity.
Reconciler obtains necessary departmental approvals for the Custodian Fund Accounting Form.
Custodian routes the completed/signed Custodian Fund Accounting Form, along with the research participant log, reconciliation(s), Account Reconciliation Report, and Card Load Report from US Bank Prepaid Administrative Website to the Dean/Director’s office for review and approval.
Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
Department keeps a copy of the forms for internal records. Department is the official record holder.
Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
Cash Management processes the replenishment request.
Other
Any errors on the account are to be reported by the Reconciler via email to Cash Management (cstdnfnd@bussvc.wisc.edu) and their Dean’s/Business Office within 30 days of month-end.
Notify the Dean/Director’s office and Cash Management when there is a change in Custodian, Reconciler, and/or Coordinators and prepare applicable Custodian Fund forms.
Respond to Cash Management’s periodic review request.
Closing Reloadable Debit Card Account
Custodian completes the Custodian Fund Accounting Form and obtains the research participant log.
Custodian obtains the necessary departmental approvals for the Custodian Fund Accounting Form.
Custodian routes the completed/signed Custodian Fund Accounting Form, research participant log, and card shred confirmation to the Dean/Director’s office.
Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
Dean/Director’s office keeps a copy of the documents for internal records.
Dean/Director’s office sends the original documents via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
Custodian: UW–Madison employee who is responsible for monitoring the cash advance for research participant studies.
Coordinator: UW–Madison employee responsible for registering and funding cards to the appropriate recipient and responsible for ensuring all payments are logged and accounted for.
Reconciler: UW–Madison employee who is responsible for performing and submitting monthly reconciliations and replenishments.
The University of Wisconsin-Madison has merchant accounts which accept payment for goods sold and services rendered via payment card transactions. All merchants who accept payments via payment card must comply must comply with Policy UW-3031 and the Payment Card Industry Data Security Standards (PCI DSS). The purpose of this procedure is to provide a framework for the disciplinary steps that will be taken in the event a UW–Madison merchant account is found to be non-compliant with Policy UW-3031 and the PCI DSS. Persistent noncompliance after the enactment of the disciplinary steps described in this procedure may result in the suspension or termination of the non-compliant merchant account.
This procedure applies to all UW–Madison departments that accept payment cards via payment card terminals. This procedure should be understood by all relevant personnel including Divisional Business Representatives (DBRs), Site Managers, and Operators of the merchant accounts.
If a merchant does not appropriately store, process, or transmit cardholder data as defined by Policy UW-3031, deficiencies exist in that merchant account’s standard operating procedures. As a result, these deficiencies deem the merchant account non-compliant with the PCI governance framework. Deficiencies in a merchant’s ability to appropriately secure cardholder data is the foundation of a potential data breach. Acts of PCI noncompliance and data breaches may result in reputational damages, loss of customer confidence and loyalty, and a potential loss of gift and grant donors.
The ability to accept payment card transactions is a convenient and efficient method of collecting revenue owed to the University. This method of payment is a privilege granted to the University by the contracted acquirer, Elavon, and the payment card brands Visa, MasterCard, Discover, and American Express. If a merchant account is not in compliance with the PCI DSS or a data breach occurs, these agencies have the authority to assess fines for noncompliance. These fines begin anywhere between the range of $5,000 to $100,000 per month for violating PCI DSS, depending on the length of noncompliance. These fines would accumulate quickly and could result in hundreds of thousands of dollars in monetary damages.
Further, if Elavon or the payment card brands find the University noncompliant, UW–Madison’s ability to accept payment cards could potentially be revoked. This decision would require departments to find alternative ways to collect revenue and could result in a decline in sales.
The Division of Business Services Cash Management team and Division of Information Technology (DoIT) Cybersecurity team will jointly conduct a review of campus merchant accounts’ level of compliance on an annual basis and complete a risk assessment. Each risk assessment will document the review team’s opinion of the merchant’s level of compliance with the PCI DSS. A disciplinary step would be implemented if any non-compliant practices are identified.
All risk assessments which have a level of noncompliance will be presented to the merchant’s Divisional Business Representative for review and signature. Below are examples of possible noncompliance:
Level 0 – No instances of noncompliance identified.
Level 1 – Minor instance(s) of noncompliance identified. Compliant procedures must be implemented as of the next annual review.
Incomplete PCI Security Awareness Training
Incomplete PCI Operator Training
Missing or incomplete device inspection logs
Missing merchant standard operating procedures
Level 2 – Significant instance(s) of noncompliance identified. Compliant procedures must be implemented as of a designated deadline which has been agreed upon with the merchant.
Working with unsupported technology or non-approved Service Providers
Lack of security regarding access to physical devices and technology
Inability or neglect to provide documentation indicating appropriate security of e-commerce merchant accounts(s); missing the signed Service Provider’s Attestation of Compliance (AoC)
Unauthorized or unsecured storing of cardholder data
Inappropriate use of e-commerce merchant accounts or inappropriate use of in-person or over-the-phone transaction processing
Failure to implement appropriate procedures to resolve Level 1 noncompliance
Failure to complete the annual Self-Assessment Questionnaire (SAQ)
If a deficiency in compliance was identified and agreed upon by the merchant in a previous review, the PCI review team will follow up and evaluate the merchant’s progress towards achieving compliance. If measurable progress has not been made towards achieving compliance, the following disciplinary steps will be executed in this order:
Requirement to attend an in-person PCI Training
Notification from PCI review team of Level 1 noncompliance
Notification from PCI review team of Level 2 noncompliance
Temporary suspension of merchant account for up to 9 months
Expenses may be charged to the Wisconsin Foundation Alumni Association (WFAA) when appropriate. E-Reimbursement Approvers are responsible for entering WFAA funding. Upon approval of the expense reimbursement, the claimant receives one payment from the University. Accounting Services then bills WFAA for their portion.
Procedure # 3024.8; Rev.: 1 (Effective June 30, 2020) Related Policy:UW-3024 Expense Reimbursement Policy Functional Owner: Accounting Services, Division of Business Services Contact: Expense Reimbursement Program Manager – Allie Watters, expensereimbursement@bussvc.wisc.edu, (608) 263-3525
Expenses may be charged to the Wisconsin Foundation Alumni Association (WFAA) when appropriate. e-Reimbursement approvers are responsible for entering WFAA funding. Upon approval of the expense report, the claimant receives one payment from the University. Accounting Services then bills WFAA for their portion.
Employees who seek reimbursement for out-of-pocket or Corporate Card expenses; alternates who prepare expense reports in the Shared Financial System (SFS)/e-Reimbursement; approvers and auditors; Divisional Business Officers and others who have approval authority.
For expenses with food and/or drinks, claimants/alternates must enter the number of attendees and their names into e-Reimbursement. This is required for the “Meal-Hosted” and “Event-Catering” expense types (PDF). When entering expenses:
Enter the total number of attendees in the “How many people” field.
A list of meeting participants for whom expenses are to be covered, indicating name and affiliation, i.e., institution, state agency, business, etc. must be attached to the expense report. Alternately, meeting participants’ names and affiliations may be listed in the “Add Additional Attendees” link within the expense line
Claimants submit expense reports without entering WFAA funding. Include in the justification notes the amount being charged to WFAA and the name and number of the WFAA account, if known.
Entering Foundation Funding Information (Approver Role)
e-Reimbursement approvers are responsible for entering WFAA funding information. Claimants, alternates, and auditors do not have this ability.
Access the expense line funding for the expense being charged to WFAA funding.
While in the summary view of an expense report in your approval queue, click the Expense Details link.
View the expense line funding by expanding the two grey arrows. The first is to the left of the expense date, the second is above “Accounting Details”.
If expense is split between UW funding and WFAA funding, add additional funding lines as needed. Funding lines are added by using the plus sign at the far right end of the funding string (may require using the scroll bar below the funding string).
Expenses must be split at the funding line level within one expense line. Do not enter multiple expense lines for the same expense.
For Hosted Events and Business Meals, alcohol and meal overages must be split onto separate funding lines. Meal expenses which include alcohol and meal overages will have three funding lines.
Portion allowable on UW funding
Alcohol to WFAA
Meal overages charged to WFAA
For WFAA funding lines, change the account code to 6240. Hit tab. Click the “Foundation” link that appears at the far left of the funding string.
UW Fund Account Type: leave as “UW Foundation” unless instructed to change by Athletics Business Office.
UW Foundation Account Number: enter the 9-digit WFAA account number.
Account Description: enter the title of the WFAA account.
Reason for Foundation Use: enter justification for why WFAA funding is appropriate and/or UW funding is not appropriate.
Click “OK”
Enter any other relevant information in the Description box of the expense line. This Description box and the “Reason for Foundation Use” box are the only justifications WFAA has access to when reviewing these expenses. The billing process may be delayed if necessary information is included elsewhere in the expense report.
Reimbursement payment
Claimants receive one payment from the University, even for expense reports split between UW and WFAA funding.
Billing process
Accounting Services bills WFAA for their portion of e-Reimbursement payments after the reimbursements have been paid. Even though these WFAA expenses have already been reimbursed to the claimant, WFAA has the final authority to deny any submitted non-compliant expenses for payment, which could require reimbursement from the claimant.
Claimant/Alternate: Responsible for understanding and complying with Business Meals, Hosted Events, Official Functions and University travel and purchasing polices. Responsible for entering number of attendees and their names and affiliations. Responsible for retaining all required documentation.
Approver: Responsible for entering WFAA funding information, ensuring amounts split between WFAA and UW funding are accurate, and providing sufficient justification for e-Reimbursement auditors and WFAA personnel to approve expenses.
Accounting Services: Responsible for reviewing WFAA expenses, billing expenses to WFAA and processing payments from WFAA.
Claimant: individual claiming reimbursement for expenses.
Alternate: individual granted authority to enter expense reports on behalf of a claimant.
Approver: the first reviewer of expense reports , also known as “Required Departmental Approver.”
Auditor: the final expense report reviewer, also known as “Required Final Approver.”
WFAA: Wisconsin Foundation and Alumni Association. WFAA is a separate, non-profit entity which solicits and accepts gifts on behalf of the University and invests and protects those gift funds until needed by the University.
e-Reimbursement: the Expenses module of the Shared Financial System (SFS), used to create, submit, and approve expense report claims.
Expense report: An expense report contains a categorized and itemized list of expenses that were made on behalf of University of Wisconsin–Madison. This report helps the employer or finance team determine what money was spent, what was purchased, and how much of the expenditure is approved for reimbursement.
I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions
I. Procedure Statement
This procedure for refunding a payment is specifically for transactions that have been processed through centralized Accounts Receivable. Refunds may become necessary as a result of duplicate or over payments made by customers or adjustments and cancellations of invoices that result in over payments.
II. Who is affected by this Procedure
Any department that sells goods or services for non-sponsored activities should use this procedure.
The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services (DoBS).
III. Procedure
The following steps represent the overall process for requesting a refund:
If the refund is a result of an adjustment or cancellation of a bill, clearly indicate on the Cancel_Adjust Form that a refund needs to be processed.
Any duplicate payments received by customers will be placed on account for the customer in SFS. DoBS will work collaboratively with departments to determine if the payment needs to be refunded or can be applied to other open invoices.
Weekly, DoBS will request refunds to be processed through Accounts payable.
The following journal entry is a sample of what will post when a payment is refunded:
Debit: Selling Department Accounts Receivable (#6200) XXXX
Credit: Central funding string for payments XXXX
IV. Definitions
Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
Refund – The process of returning money to a customer as a result of over payment for goods or services.
I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions
I. Procedure Statement
This procedure is for handling customer payments that have been declined for any reason including insufficient funds, closed bank accounts, etc.
II. Who is affected by this Procedure
Any department that sells goods or services for non-sponsored activities should use this procedure.
The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services (DoBS).
III. Procedure
The following steps represent the overall process for a declined payment:
Notification received that a credit card or check payment has been declined.
Business Services will reverse the payment in SFS and will reinstate the debt outstanding.
Business Services will apply an NSF fee of $25 to the customer account for the declined payment.
The customer will receive an updated invoice reflecting the additional fee.
The NSF fee will be used to offset the bank fees UWMSN incurs. The NSF fee will not be distributed to the department.
The following journal entries are samples of what will post when a declined payment is posted:
Credit: Central funding string for bank fee transactions $25.00
IV. Definitions
Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
Refund – The process of returning money to a customer as a result of overpayment for goods or services.
NSF – Non-sufficient funds. This term is commonly used for when a credit card or check payment is declined. This could be the result of many different reasons such as insufficient funds or closed bank account.
I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions
I. Procedure Statement
(Non-Sponsored receivable balances will be managed centrally by the Division of Business Services.)
Once an invoice is generated the customer will receive a monthly statement. If payment is not received, the customer will receive dunning letters each month after the due date. Once the invoice reaches 90 days past due, write offs and collection activities will be managed centrally by the Division of Business Services (DoBS) in collaboration with UW-Madison divisions and departments. Write off and collection activities need to be processed timely to ensure responsible stewardship of UW-Madison resources.
Write offs and collection activities are only for External customers. All intra-unit invoices are paid immediately so no collection activities are needed.
II. Who is affected by this Procedure
Any department that has an invoice outstanding in the SFS AR module and has become a doubtful account.
The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services.
III. Procedure
The following steps represent the overall process for collection efforts:
Statements will be sent for all outstanding invoices regardless of due date on or around the 15th of the month.
Dunning letters (reminder notices) will be issued by DoBS monthly on or around the 15th. Dunning letters will begin after 30 days past due and will continue to be sent until the debt is cleared.
At 90 days, DoBS will reach out to the billing department to discuss collections. Decision needs to be made at that time if the invoice should be sent to a collection agency, the state of Wisconsin Department of Revenue or written off. If the department is working with the customer on payment, a note can be placed on the account providing detail on the expected date of resolution.
The following steps represent the overall process for requesting a write off:
Write -off transactions are initiated through workflow in SFS. Follow instructions on how to initiate a write-off.
Write-offs over $1,000 require Dean or Director and DoBS approval.
Write offs must include explanation.
The following journal entry is a sample of what will post after a write off has been processed:
Debit: Selling Department contra-revenue account (#9312) XXXX
Credit: Selling Department accounts receivable account (#6200) XXXX
IV. Definitions
Doubtful account – a doubtful account refers to outstanding balances that we do not expect to be paid. Typically, a doubtful account takes many things into consideration such as age of the invoice, ability to make contact with the customer or bankruptcy notification.
Dunning letter – The word dunning stems from a 17th century word dun which means to demand payment of a debt. Dunning letters are reminder notices that are sent periodically when an accounts receivable balance is past due.
Write-off – Write off relevant to this policy means that we cannot collect on the outstanding balance for an invoice. Examples of reasons for a write off would include a customer in bankruptcy or deceased, or the debt has reached the age where we can legally no longer attempt to collect payment (statute of limitations).
Cancelations and adjustments of open invoices are processed centrally in the Division of Business Services (DoBS). Adjustments and cancelations need to include explanation for the adjustment.
Cancellation or Adjustment of an Invoice Procedure Procedure #3077.3
Rev.: 7.1.20
Effective Date: July 1, 2020
I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions
I. Procedure Statement
Cancellations and adjustments of open invoices are processed centrally in the Division of Business Services (DoBS). Adjustments and cancellations need to include explanation for the adjustment. This procedure should not be used to write off a debt. For instructions on how to write off a debt, please refer to “Write off and Collection Procedure”. Please review the definitions section of this procedure to help determine which process to use.
II. Who is affected by this Procedure
Any department that has an invoice outstanding in the SFS AR module and has found an error in the bill.
The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services.
III. Procedure
The following steps represent the overall process for requesting a cancelation or adjustment of an invoice:
Fill out the Invoice Cancel_Adjust Form including your signature and the signature of the reviewing party for your area.
Adjustments and cancellations over $1,000 need additional review from the Dean or Director and DoBS.
DoBS will create a credit memo in SFS. The credit memo will be matched up to the original invoice to correct the balance due. The customer will receive a copy of the credit memo.
The following journal entries are samples of what will post after a cancellation or adjustment is processed:
Internal customer:
Debit: Selling Department Revenue XXXX
Credit: Buying Department Expense XXXX
External customer:
Debit: Selling Department Revenue XXXX
Credit: Selling Department Accounts Receivable (#6200) XXXX
IV. Definitions
Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
Write-off – Write off relevant to this policy means that we cannot collect on the outstanding balance for an invoice. Types of reasons for a write off would include a customer in bankruptcy or deceased, or the debt has reached the age where we can legally no longer attempt to collect payment (statute of limitations).
