N.Y. Comp. Codes R. & Regs. tit. 9 § 1642-2.4

Current through Register Vol. 46, No. 25, June 18, 2024

Section 1642-2.4 - Accounts payable vouchers

(a) Description of accounts payable voucher form. The authorization for the issuance of a check shall be an accounts payable voucher, prepared in advance of the drawing of the check and recorded in the cash disbursements-voucher register (see § 1642-3.3 ). A specimen form of accounts payable voucher is shown as Exhibit 1 of Appendix S-8. These forms should be printed in an original only and are to be provided by the local agency. The former requirement for the printing of these forms in an original and duplicate, with the duplicate reserved for submission to the division has been eliminated. The forms should not be prenumbered when printed. A separate series of accounts payable vouchers shall be used for each type of fund. Thus, for each single or multiple development project, there shall be one series of account payable vouchers for the development fund, another for the administration fund, etc., regardless of the number of bank accounts constituting each fund. The vouchers in each such series shall be numbered in sequence. Vouchers shall be filed by series and by number. It is suggested that the vouchers for the various series be printed on different colors of paper and that the voucher number be preceded by some identifying character, such as D for development fund, A for administration fund, etc. The name of the local agency, the name and number of the project, the name of the fund and the name of the bank on which the checks are to be drawn, if known at the time the printing order is given, may be preprinted on the form. In this connection, it may be well to bear in mind that only limited quantities, relatively, of voucher forms will be required for the reserve and security deposits funds and that, in lieu of ordering the printing of separate series, therefore, consideration may be given to using administration fund voucher forms, suitably modified, for vouchering disbursements from these funds.

(b) Preparation of accounts payable vouchers.

(1) All the information set forth in the specimen form of accounts payable voucher shall be furnished. The original invoice, or other claim for payment shall be attached to the voucher. Each voucher shall be supported by the following evidence:

(i) evidence that the expenditure has been duly authorized before it was incurred;

(ii) evidence that the services have been rendered or that the materials, in the specified quantity, quality and kind, have been received;

(iii) evidence that the claim represents a proper charge to the project.

(iv) evidence that the claim is correct as to prices and amount and that all calculations, extensions, and footings have been verified;

(v) evidence that the amount of the claim contained in the voucher or any part thereof has not been included in or made part of any voucher previously approved for payment;

(vi) evidence that the terms of any contract applicable thereto have been complied with;

(vii) evidence of division approval, where such approval is required.

(2) The person designated by the local agency to approve vouchers for payment shall satisfy himself that the required supporting evidence is attached to or forms part of the voucher before affixing his approval thereto. The forms that such evidence may take are described in subdivision (c) below.

(c) Invoices and other claims for payment. Invoices should be based on purchase orders or contracts. Exceptions are claims for payment for travel expenses, utility services, payrolls, payroll withholdings, reimbursement of petty cash fund, rent refunds, security deposit refunds, and transfers of funds. All extensions and footings shall be checked in detail and the initials of the employees responsible for the computations shall be indicated on each invoice or other claim for payment. The project or projects affected and the accounts to be charged as well as the amounts to be so charged shall be entered on the invoice or other claims for payment as a basis for preparing the accounts payable voucher. Instructions in connection with the various types of claims for payment follow:

(1) Invoices based on purchase orders.

(i) Where the invoice is based on a purchase order, the copy of the purchase order received by the accounting department at the time of issuance shall be filed alphabetically by vendor. The receiving and inspection report, when received, shall be filed with the copy of the purchase order. When an invoice is received from the vendor, it shall be checked against the purchase order and the receiving and inspection report for propriety of payment and accuracy of billing.

(ii) If vendors are requested to submit invoices in duplicate, the duplicates may be used to maintain a vendors file of paid invoices filed alphabetically by vendors, and appropriately cross referenced by voucher and check numbers, for checking for duplication of billing and payment. Further control over the duplication of payments may be achieved by maintaining a creditors ledger with accounts for each vendor. This device has the merit of providing a historical record, in summary form, of invoices received and payments made. After preparing the voucher, the original invoice, the copy of the purchase order and the receiving and inspection report shall be attached to the voucher. Separate vouchers shall be prepared for each vendor but individual vouchers need not be prepared for each invoice. Purchase orders shall be in agreement with invoice or differences satisfactorily explained. Appropriate procedures, which will depend on the structure and organization of the local agency's staff, should be adopted to control the payment of invoices in the event that partial shipments are received on purchase orders.

(iii) Local agencies are enjoined to pay bills promptly and to take advantage of all discounts. Where bills are discounted, only the net amounts, after the discount, shall be charged to the applicable cost, expense, or inventory accounts.

(2) Invoices based on contracts.

(i) Construction and demolition contracts. Contracts for demolition and clearing and for structures, equipment and improvements (see account 1460) represent special cases in that the contractor submits his claim for payment on a special form provided by the division (form DH-356, Periodical Estimate for Partial Payment) rather than on his own invoice. A list of the documents required to support an accounts payable voucher drawn to make payments to such contractors, and instructions in connection with the preparation thereof, will be found in Part 1646. Development Period Accounting.

(ii) Contracts for the purchase of land. Contracts for the purchase of land also represent a special case in that the local agency is not invoiced by the vendors, but payments are made in accordance with the contract terms. Such payments, as well as the contract itself, must have the prior approval of the division. Instructions for the vouchering of payments on land contracts will be found in Part 1646. Development Period Accounting.

(iii) Other contracts. Upon receipt, contracts shall be filed alphabetically by contractor. Active contracts may be segregated from inactive. A contract record card containing pertinent information as to payment terms may be established for contracts involving recurring payments. However, where the contract falls within the group of development contracts to which contract numbers are assigned (see the definition of account 1460, Structures, Equipment and Improvements, in Part 1641) the contract shall be recorded in a contractors ledger (see § 1642-3.12 ), the maintenance of which is mandatory. A receiving and inspection report shall be received by the accounting department for all deliveries of materials and for all services claimed to have been rendered. When an invoice is received from the contractor, it shall be checked against the contract and the receiving and inspection report, if required, for propriety of payment and accuracy of billing. After preparation of the voucher, which shall bear reference to the contract, the invoice and the receiving and inspection report shall be attached to the voucher.

(3) Travel expenses. Travel claims shall be prepared by the person desiring to be reimbursed and shall be submitted to the local agency together with the required supports for audit in accordance with the travel regulations of the local agency (see § 1640-10.1, Travel regulations, for the required supports and for the maximum travel expenses chargeable to State-aided projects). The travel claim shall be approved, after audit, by the person designated by the local agency prior to being vouchered for payment. The travel claim and the supports shall be attached to the accounts payable voucher.

(4) Utility services. When a bill for utility services is received, the bill, prior to payment, shall be checked against the contract or rate schedule (or the extract or summary thereof) to make certain that (i) the schedule approved by the division is correctly applied, and (ii) consumption figures are correct, and (iii) all discounts, such as those for prompt payment of the bill, etc., have been applied. After this is done, all calculations on the face of the bill should be checked for mathematical accuracy. If any substantial discrepancies not due to changes in project operating conditions or to seasonal factors are observed, a detailed investigation, including a check of previous bills by the utility company, should be undertaken. Where the review of the billing is satisfactory, a voucher shall be prepared for the amount and the utility bill shall be attached to the voucher.

(5) Payrolls.

(i) The authorization for the preparation of an accounts payable voucher to pay salaries and wages of local agency officers and employees shall be a duly certified and approved payroll, prepared in accordance with Subpart 1642-8. The payroll shall be attached to the voucher. In the accounting information on the voucher, the gross amount of the payroll is distributed to the applicable cost or expense accounts in accordance with the payroll summary analysis (Exhibit 30, Appendix S-8), and the difference between this amount and the actual net cash disbursements credited to the appropriate accounts for deductions, such as income tax withholdings, etc. Individual pay checks may be issued to each employee.

(ii) The use of a separate payroll fund bank account is ordinarily indicated only where the authority is operating more than one project or a central office. After the payroll and accounts payable voucher have been prepared, a check is drawn, on the particular fund applicable, to transfer the net amount of the payroll to the payroll fund. Individual pay checks are then drawn on the latter. In the accounting information on the voucher, the net amount of the payroll is charged to account 1640, Payroll Clearance. The gross amount of the payroll is later distributed by means of a journal voucher based on the payroll summary analysis (see Subpart 1642-8 and Exhibit 30) to the applicable cost or expense accounts. The credit entries for the same journal voucher are obtained from the payroll (Exhibit 29, Appendix S-8); the next amount paid (column 9) is credited to account 1640, Payroll Clearance; and payroll deductions such as retirement fund, income taxes withheld, etc. (column 8) are credited to the appropriate accounts, 2138 and 2117.1, etc.

(6) Payroll withholdings. Accounts payable vouchers prepared to authorize disbursements of amounts withheld from salaries for income taxes, pension fund contributions, etc., shall be supported by the appropriate documents such as are required by law or by an original invoice or other claim for payment of the organization to whom the payments are to be made, listing the individual amounts. The supporting material shall be attached to the voucher. In the accounting information on the voucher, the account previously credited with the deduction shall be charged.

(7) Reimbursement of petty cash fund. Accounts payable vouchers prepared to reimburse the petty cash fund shall be supported by the petty cash vouchers and attached invoices and by an analysis sheet, based on the petty cash vouchers, distributing the amount of the reimbursement to the applicable cost or expense account. The reimbursement shall be for the total of the petty cash vouchers and all the supports mentioned shall be attached to the accounts payable voucher. In the accounting information section of the latter, the applicable cost or expense accounts shall be charged in accordance with the supporting analysis of the petty cash vouchers and development fund or administration fund, whichever is applicable, shall be credited. See section 1642-2.5 for the operation of the petty cash fund.

(8) Rent refunds. Formal requests for rent refunds approved by the project manager or other designated official shall be attached to the accounts payable voucher prepared to authorize the issuance of a check for such refund. Computation of the amount of the refund shall be verified prior to preparation of the voucher. In the accounting information section of the voucher, the amount refunded shall be charged to account 1122, Tenants Accounts Receivable.

(9) Security deposits refunds. Formal requests for security deposit refunds approved by the project manager or other designated official shall be attached to the accounts payable voucher prepared to authorize the issuance of a check for such refund. The request for security deposit refund should show the amount of the security deposit, interest earned and unpaid charges deductible from the security deposit (but not in excess of the security deposit plus interest thereon) and the balance, if any, payable to the tenant. In the accounting information section of the voucher, account 2114, Tenants Security Deposits, is charged with the gross amount of the security deposit balance before any deductions, and account 1114, Security Deposits Fund, is credited with the sum of the two charges. Separate checks are drawn for the amount deductible for unpaid charges, which check is drawn to the order of the administration fund, and for the net amount to be refunded to the tenant. The check for the unpaid charges deducted is credited, when deposited, to account 1122, Tenants Accounts Receivable, which will have already been charged.

(10) Transfers of funds. Accounts payable vouchers authorizing transfers between funds shall be supported by a full explanation, attached to the voucher, of the reason for the transfer.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1642-2.4