Accounting Policy and Procedures
(Last Revised: June 16, 2008)
The Accounting Policy and Procedures Manual contains
information on accounting practices and fiscal processing for the
Department. The manual is designed to maintain good internal
controls, establish required fiscal standards for doing business, transmit
required procedures for fiscal transactions and documents, and comply with
federal financial policy.
The Accounting Policy and Procedures are organized by
topics as shown below.
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Table of Contents by Section
BUSINESS STANDARDS - Section 1
1.0 Basic Standards for Financial
Transactions (Revised July 26, 2002) (PDF, 17 KB)
2.0 Standards of Business Conduct
(Revised February 7, 2003) (PDF, 17 KB)
3.0 Standards for Fiscal Personnel
(Revised January 10, 2003) (PDF, 10 KB)
4.0 Decentralized Accounting
System (Revised January 10, 2003 (PDF, 16 KB)
5.0 Delegation of Authority (Revised January
10, 2003) (PDF, 10 KB)
6.0 Safeguarding Assets (Revised January 10,
2003) (PDF, 21 KB)
7.0 Standards for Collecting Receivables
(Revised January 10, 2003) (PDF, 12 KB)
8.0 Lead Accountants (Revised November 9,
2007) (PDF, 22 KB)
CASH AND CASH EQUIVALENTS - Section 2
1.0 Handling of Cash Receipts (Revised
August 4, 1994) (PDF, 173 KB)
2.0 Deposits to the State Treasurer (Revised
October 1, 1996) (PDF, 664 KB)
3.0 Check Distribution and Non-Routine Voucher
Authorization (Revised October 31, 1992) (PDF, 8 KB)
4.0 Rush Checks (Revised September 9, 1994) (PDF,
70 KB)
5.0 Proof of Payment, Replacement and Forged Checks and
Check Retype Requests (Revised December 6, 2001) (PDF,
327 KB)
6.0 Depository Funds and Petty Cash Reports
(Revised May 31, 2007) (PDF, 170 KB)
6.1 Procedures for Contingent Accounts
(Issued May 31, 2007) (PDF, 85 KB)
6.2 Cash Reconciliation &
Certification (Issued May 31, 2007) (PDF, 41 KB )
7.0 Procedures and Contact for Lockbox Issues (Issued
February 7, 2003) (PDF, 9 KB)
8.0 Financial Institutions Asserting Holder in Due Course (Issued
August 2, 2005) (PDF, 469 KB)
REVENUES AND REFUNDS - Section 3
1.0 Accounting for Revenues and Refunds of Expenditure
(Revised December 16, 2005) (PDF, 31 KB)
1.1 Refunding Revenues and Expenditure
Refunds (Revised October 31, 1992) (PDF, 10 KB)
2.0 Gifts and Grants (Revised October
31, 1992) (PDF, 9 KB)
3.0 Accounting Procedures for Copying and Data Processing
Charges (Revised December 16, 2005) (PDF, 30 KB)
4.0 Pricing and Distribution of
Document (Revised October 31, 1992) (PDF, 20 KB)
RECEIVABLES - Section 4
1.0 Billing Procedures (Excluding BIS, Appropriation 831)
(Revised August 4, 1994) (PDF, 10 KB)
2.0 Debt Collection Policies -- External Parties (Revised
January 23, 2002) (PDF, 32 KB)
2.1 Receivables -- Other DHFS and State Agencies
(Revised January 23, 2002) (PDF, 9 KB)
2.2 Grants Receivables (Issued March 31,
1995) (PDF, 16 KB)
3.0 Salary Overpayment Procedures (Revised
September 13, 1999) (PDF, 20 KB)
3.1 Notification of Salary Overpayments (Revised
September 13, 1999) (PDF, 14 KB)
3.2 Collection of Salary Overpayments and Voluntary Deductions (Rescinded
September 13, 1999)
3.3 Repayment and Deposit of Salary Overpayments and
Voluntary Deductions (Reissued September 13, 1999) (PDF,
16 KB)
4.0 Recording Receivables on FMS (Rescinded January 23, 2002)
5.0 Accounts Receivable Aging Reports (Revised
April 5, 1996) (PDF, 33 KB)
5.1 Reporting Collection Agency Referrals (Revised
April 5, 1996) (PDF, 20 KB)
5.2 Annual Report of Receivables--Institutions and
Divisions (Issued April 5, 1996) (PDF, 22 KB)
5.3 Reconciliation of FMS Accounts Receivable Balances to
Annual Report of Receivables (Issued April 5, 1996) (PDF,
13 KB)
6.0 Write-off of Accounts Receivable (Revised
September 1, 1999) (PDF, 73 KB)
BUDGET CONTROL - Section 5
1.0 Administering GPR Annual Appropriation Laws and
Year-End Encumbrance Policies (Revised October 31, 1992) (PDF,
12 KB)
1.1 Allotment Transactions Under WiSMART (Issued
June 18, 1993) (PDF, 14 KB)
2.0 Budget Categories -- WiSMART Conversion (Revised
June 17, 1994) (PDF, 20 KB)
3.0 Allotment of DHFS Federal
Appropriations (Revised October 31, 1992) (PDF, 18 KB)
4.0 Procedures for Increasing PR-O/PR-S/PR-F Chapter 20
Budgeted Levels (Revised April 6, 1993) (PDF, 11 KB)
5.0 Budgeting for Federal Projects Requiring Federal
Match (Revised October 31, 1992) (PDF, 7 KB)
6.0 Space Management Supplements--Organization Moving
Expenses (Revised October 31, 1992) (PDF, 12 KB)
PURCHASING - Section 6
1.0 Optional Use of Purchase Orders (Revised
July 23, 1999) (PDF, 32 KB)
1.2 Encumbrance Processing (Issued July
23, 1999) (PDF, 8 KB)
2.0 Vendor Procedure (Revised March 7,
2002) (PDF, 980 KB)
3.0 Purchasing Processes (Revised March
27, 2008) (PDF, 468 KB)
PAYROLL - Section 7
1.0 Lost Payroll Checks for Entire Unit of DHFS (Revised
January 16, 2001) (PDF, 12 KB)
1.1 Distribution of Payroll Checks (Revised
January 16, 2001) (PDF, 13 KB)
2.0 Composite Rate for Fringe Benefits (Revised
August 22, 2007) (PDF, 263 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, 7 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, 11 KB)
10.0 Payroll-Related Deposits (Issued
February 10, 1995) (PDF, 11 KB)
11.0
Lump-Sum Payments for Unused Leave (Revised November 9, 2007) (PDF,
371 KB)
CAPITAL ASSETS - Section 8
1.0 Capital and Non-Capital Asset and Inventory Systems (Revised
September 24, 2004) (PDF, 16 KB)
1.01 Accounting Procedures for Capital Assets (cost $5,000 and
over) (Revised September 24, 2004) (PDF, 100 KB)
1.02 Accounting Procedures for Non-Capital Assets (Cost $1,000
to $4,999.99) (Revised September 24, 2004) (PDF, 9
KB)
1.03 Accounting Procedures for IT (Information Technology)
Assets (Revised September 24, 2004) (PDF, 7 KB)
1.04 Annual Physical Inventory
(Revised September 24, 2004) (PDF, 9 KB)
1.1 Use of Capital Account Codes (Revised
September 24, 2004) (PDF, 10 KB)
1.2 Guidelines for Capital Asset Valuation (Revised
September 24, 2004) (PDF, 15 KB)
1.3 Change in Capital Asset Threshold (Rescinded March 28, 2001)
2.0 State Capital Projects (Construction
Projects) Transaction & Monitoring Process (Revised July 19, 2002) (PDF,
14221 KB)
2.01 Fund 490-495 LTE Labor on Capital
Projects (Revised July 19, 2002) (PDF, 3936 KB)
2.02 Accounting for Delegated Projects (Rescinded March 28, 2001)
2.03 Agency Funded Projects/Repair and Maintenance Projects (Rescinded
March 28, 2001)
2.04 Approval of Final Payment Advice (Rescinded March 28, 2001)
2.1 Capitalization of Fund 490/495 Capital Projects
(Revised September 24, 2004) (PDF, 71 KB)
3.0 Capital and Operating Leases (Revised
May 26, 2005) (PDF, 344 KB)
4.0 Year-End Capital Asset Reporting (Revised
September 24, 2004) (PDF, 194 KB)
5.0 Disposition of State-Owned Assets (Revised
September 24, 2004) (PDF, 22 KB)
FMS PROCESSING - Section 9
1.0 Delegated FMS Keying (Revised January 21,
1998) (PDF, 10 KB)
1.1 Submission of Vouchers to the Bureau of Fiscal Services
(Revised February 17, 1995) (PDF, 12 KB)
1.12 Check Distribution/Attachments (Revised
June 26, 1998) (PDF, 34 KB)
1.2 Document Numbering (Revised April 15,
2008) (PDF, 39 KB)
1.3 Fiscal Cut-off Dates (Revised January 21,
1998) (PDF, 8 KB)
1.4 Erroneous Entries in the DHFS Fiscal System (Revised
January 21, 1998) (PDF, 8 KB)
2.0 Responsibility Area Designation Changes (Revised
May 15, 1997) (PDF, 7 KB)
2.1 Request for Project Codes (Revised
February 13, 1998) (PDF, 9 KB)
2.2 FMS Account Codes (Revised September
14, 2004) (PDF, 8 KB)
2.3 Appropriation Codes (Revised October 3,
1997) (PDF, 39 KB)
3.0 Transfer of Revenue for Grants and
Services (Revised October 31, 1992) (PDF, 12 KB)
4.0 General Service Billings (Revised
September 14, 2004) (PDF, 9 KB)
4.1 Bureau of Information Systems Billings (Revised
April 2, 2007) (PDF, 21 KB)
4.2 State Self-Funded Property Insurance Program (Revised
April 1, 1999) (PDF, 11 KB)
4.3 User Codes, Billing Numbers and Funding Packets for
Centralized Agencies (Issued February 13, 1998) (PDF,
14 KB)
5.0 Invoice/Voucher Approval and Certification of Goods and
Services Received (Revised April 14, 1997) (PDF, 11 KB)
5.1 Prompt Payment of Vendor Invoices (Revised
February 12, 2007) (PDF, 254 KB)
5.2 Use of Appropriation 975 for Prompt Payment (Revised
April 1, 1999) (PDF, 9 KB)
6.0 DMS Contingent Account Check Requests (Rescinded April 1, 1999)
7.0 Bad Check Processing (Revised April 1,
1999) (PDF, 106 KB)
8.0 Use of Repair and Maintenance Funds
(Revised October 31, 1992) (PDF, 17 KB)
9.0 Pre-Retirement Planning--Account
Code (Revised March 18, 2002) (PDF, 12 KB)
9.1 Legal Services Object Codes (Issued June
14, 1996) (PDF, 10 KB)
SPECIAL EXPENSE--RESTRICTIONS AND APPROVALS - Section 10
1.0 Membership Purchases (Revised May
22, 1998) (PDF, 11 KB)
2.0 Break Expense (Revised October
18, 2002) (PDF, 16 KB)
2.1 Meals Provided at Conference, Training or Meeting
Sites (Revised October 18, 2002) (PDF, 15 KB)
3.0 Cosponsored Workshops (Revised
May 22, 1998) (PDF, 12 KB)
4.0 Recognition Awards (Revised May
1, 2006) (PDF, 37 KB)
5.0 Employee Tuition Reimbursement (Revised
July 1, 1999) (PDF, 9 KB)
6.0 Authorization and Processing of Legal Settlements and
Other Unique Claims (Revised October 31, 1992) (PDF,
11 KB)
7.0 Funding Human Services During Residency
Disputes (Revised October 31, 1992) (PDF, 8 KB)
8.0 Cellular Telephone Policy
- Acquisition and Reimbursement (Revised February 28, 2005) (PDF,
270 KB)
9.0 Allowable Federal Rental Rates for
State-Owned Buildings (Revised June 16, 2008) (PDF,
213 KB)
10.0 Moving Stipend (Issued September 14, 2004) (PDF, 167 KB)
11.0 Honorarium (Issued March 1, 2006)
(PDF, 24 KB)
12.0 Employee Allowances for Work Related Items (Issued April 10, 2006)
(PDF, 130 KB)
INSTITUTION ACCOUNTING - Section 11
1.0 Procedures for Contingent Accounts
(Moved May 31, 2007 to Section 2--Cash and Cash Equivalents) (PDF,
85 KB)
2.0 Store Inventory Entries (Revised
October 31, 1992) (PDF, 18 KB)
2.1 Store Inventory Reconciliation (Revised
October 31, 1992) (PDF, 1311 KB)
2.2 Non-FMS Stores/Supplies Inventories (Issued
April 10, 1996) (PDF, 8 KB)
3.0 Depository Funds and Petty Cash Reports (Moved July 23, 1999 to Section 2--Cash
and Cash Equivalents)
3.1 Monthly Bank Reconciliation (Moved May
31, 2007 to Section 2--Cash and Cash Equivalents) (PDF,
41 KB)
4.0 Canteen Fund Policy and Procedures
(Revised October 31, 1992) (PDF, 20 KB)
4.1 Canteen Financial Statements (Revised May
31, 2007) (PDF, 108 KB)
4.2 Reimbursement of Canteen Operations
Expense (Revised October 31, 1992) (PDF, 8 KB)
5.0 Disposition of Patient/Inmate Accounts
(Revised October 31, 1992) (PDF, 7 KB)
6.0 Accounting for State-Owned Housing
Rentals (Revised October 31, 1992) (PDF, 7 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, 1959 KB)
TRAVEL - Section 12
1.0 Travel and Lodging Provisions (Revised
June 6, 2008) (PDF, 31 KB)
1.01 Submission of Employee Travel Vouchers--(TL
Documents) (Issued July 26, 2002) (PDF, 7 KB)
1.1 Exceptions to Lodging Cost Limitations (Revised
January 15, 2003) (PDF, 14 KB)
1.2 Maximum Reimbursement for
Lodging in High Cost Out-of-State Cities (Revised November 9, 2007) (PDF,
26 KB)
1.3 Special Eligibility for Reimbursement of Meal Expense
(Revised April 17, 1998) (PDF, 10 KB)
1.4 Coding of Training Expense and IRS
Reporting (Revised January 12, 2007) (PDF, 18 KB)
1.41 Coding of Non-Overnight Meals,
Moving Reimbursements, IRS Reporting, and Withholding of Taxes (Revised
January 12, 2007) (PDF, 326 KB)
1.5 Sales Tax Status of State Employees: Purchase of Meals,
Lodging and Other Costs While Traveling on State Business (Revised August
29, 2003) (PDF, 29 KB)
1.6 Headquarters City Meals and Meeting
Locations--Delegation of Authority (Revised April 17, 1998) (PDF,
13 KB)
1.7 Weekend Expenses: Approval and Airfare Discounts
(Revised June 3, 1997) (PDF, 18 KB)
2.0 Turndown Rates--Business Use of Personal Vehicle
(Revised June 6, 2008) (PDF, 17 KB)
2.1 State Car Non-Availability Certifications--Field
Locations Only (Revised April 17, 1998) (PDF, 7 KB)
2.2 Vehicle Rental Approvals--Mandatory Use Bulletin
(Revised August 22, 2007) (PDF, 1069 KB)
2.3 DOA Fleet Car Reimbursement (Revised
May 12, 2005) (PDF, 237 KB)
2.4 Reimbursement of Expenses to Pick up Fleet Cars
(Revised April 12, 2004) (PDF, 9 KB)
2.5 DHFS Purchase and Payment of Airline Tickets (Revised
May 15, 2007) (PDF, 21 KB)
2.51 Discount on Purchase of Air Travel Tickets Due to Antitrust Settlement
(Rescinded April 24, 1998)
2.6 Use of Privately-Owned Aircraft by DHFS
Employees on
State Business (Revised February 24, 2004) (PDF, 8 KB)
2.7 Use of Bus Service between Madison and Milwaukee
(Revised April 17, 1998) (PDF, 7 KB)
2.8 Overnight Pool Car Use
(Revised August 22, 2007) (PDF, 26 KB)
2.9 Reimbursement for Personal Use of State
Vehicles (Revised August 22, 2007) (PDF, 965 KB)
3.0 Out-of-State Travel Approval (Revised
September 22, 2004) (PDF, 16 KB)
4.0 Expense Reimbursement for Non-State
Employees (Revised April 24, 1998) (PDF, 13 KB)
5.0 Reimbursement of Costs to Employees
Outside of State
Agencies (Revised April 24, 1998) (PDF, 9 KB)
6.0 American Express Corporate Card Program -- Alternative
to Travel Advance (Rescinded May 4, 2001)
6.1 Travel Advances (Revised February
24, 2004) (PDF, 135 KB)
7.0 Charges for Restricted Use of State-Owned Vehicles and
Aircraft (Revised August 18, 2003) (PDF, 16 KB)
7.1 Use of State-Owned Aircraft
(Issued July 25, 2003) (PDF, 8 KB)
8.0 Benefits of Discounts from Travel Promotions (Revised
April 24, 1998) (PDF, 8 KB)
9.0 Employee Moving Expenses (Revised
January 12, 2007) (PDF, 14 KB)
TAX - Section 13
1.0 Internal Revenue Service or Department of Revenue
Vendor Levies (Revised August 17, 2006) (PDF, 21 KB)
2.0 Department of Revenue Tax Set-off
Program (Revised October 31, 1992) (PDF, 13 KB)
3.0 Filing Department of Revenue Sales Tax Returns (Revised
March 8, 2005) (PDF, 364 KB)
4.0 Internal Revenue Service 1099 Reporting (Revised
November 11, 1997) (PDF, 209 KB)
5.0 IRS Request Information: Interest
Payments (Revised March 9, 2001) (PDF, 13 KB)
6.0 Sales Tax Exempt Numbers (Issued May
15, 1997) (PDF, 137 KB)
FEDERAL FUNDS - Section 14
1.0 Administering Federal Funds (Revised
August 22, 2007) (PDF, 24 KB)
2.0 Administration of Joint Funded Programs and Excess
Federal Revenue (Revised October 31, 1992) (PDF, 13 KB)
3.0 Definition of Administrative Costs for Block
Grants (Revised May 16, 2005) (PDF, 22 KB)
3.1 Expending Funds from Concurrent Block Grants (Revised
September 16, 1994) (PDF, 9 KB)
4.0 Indirect Cost Reimbursements (Revised
January 16, 2001) (PDF, 17 KB)
4.1 Indirect Cost Negotiation Agreement (Revised
October 8, 2007) (PDF, 1561 KB)
4.2 Indirect Rates--Wisconsin Indian Tribes (Revised
February 14, 2008) (PDF, 21 KB)
5.0 Ratios for Processing and Reporting Grant Expenditures
(Issued June 14, 1993) (PDF, 9 KB)
6.0 Data Universal Numbering System (DUNS) Number (Issued September 22,
2004) (PDF, 6 KB)
CONTRACT ADMINISTRATION - Section 15
1.0 Contract Administration for Aids/Grants
(Revised October 31, 1992) (PDF, 27 KB)
2.0 Required Standard Contract Language (Revised
September 14, 1995) (PDF, 29 KB)
2.1 Contract Supplements (Issued September
16, 1994) (PDF, 9 KB)
3.0 Review of Contract Financial Provisions
(Revised January 8, 2007) (PDF, 16 KB)
3.1 Prepayment Criteria--Aids to Organizations and Local
Assistance Contracts/Grants (Revised January 8, 2007) (PDF,
17 KB)
3.2 Prepayments and Community Aids Contracts
(Revised January 10, 2003) (PDF, 10 KB)
4.0 Standard Procedures for Developing, Issuing and
Processing Aids Contracts (Revised September 27, 2007)
Attachment 10 (CARS Processing Dates) (Revised September 27, 2007) (PDF
, 610 KB)
4.1 State-Generated CARS Adjustments--Required Supporting
Documentation (Issued January 1, 1993) (PDF, 8 KB)
4.2 Sign-off on CARS Adjustments, Ratios and Schedules
(Issued February 5, 1993) (PDF, 8 KB)
4.3 Contracts Required for Check Generation (Issued
February 1, 1993) (PDF, 10 KB)
4.4 CARS Processing Based on Schedules in Lieu of Contracts
(Issued March 31, 1993) (PDF, 14 KB)
4.5 Rush Pre-Contract Packet Review (Issued
June 14, 1993) (PDF, 10 KB)
4.6 Sum Sufficient Profiles (Issued September
16, 1994) (PDF, 8 KB)
4.7 Lengthening Contracts (Issued September
16, 1994)(PDF, 9 KB)
5.0 CARS Close Out Procedures: Non-Municipal
Contracts (Revised October 31, 1992) (PDF, 16 KB)
5.1 Processing Late Final Expenditure Reports (Issued
August 1, 1993) (PDF, 10 KB)
5.2 CARS Processing: Cut-off for Calendar Year
Reconciliation (Issued April 11, 1994) (PDF, 10 KB)
AUDIT - Section 16
1.0 Audit Liaison and Resolution--DHFS
Organizations (Revised October 31, 1992) (PDF, 12 KB)
2.0 Disallowance Reporting and
Control (Revised October 31, 1992) (PDF, 16 KB)
3.0 Audits of Non-Profit Agencies (Circular
A-133) (Revised October 31, 1992) (PDF, 13 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, 26 KB)
5.0 Source of Funds for Audit
Resolution (Revised October 31, 1992) (PDF, 9 KB)
6.0 Financial Coverage for
Disallowances (Revised October 31, 1992) (PDF, 13 KB)
7.0 Payment of External Audit
Disallowances (Revised October 31, 1992) (PDF, 15 KB)
8.0 Audit Waiver (Issued August 11,
1995) (PDF, 13 KB)
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Last Revised: June 26, 2008
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