02 - 210 Adequate Supporting Documentation

A. Summary of Administrative Procedure

This document explains the requirements for and purposes of keeping adequate supporting documentation for USNH accounting transactions.

1. Definition of adequate supporting documentation. Statement on Auditing Standards No. 106 defines evidence necessary to adequately support the assertions in the financial statements as underlying accounting data and corroborating information. Underlying accounting data includes journal entries (including cash receipts) and invoice documents. In the USNH environment the underlying accounting data is maintained within Banner Finance and the related subsidiary systems and can, therefore, be managed centrally. Corroborating information, on the other hand, is maintained within campus business offices and other centralized units and varies from unit-to-unit as well as from transaction-to-transaction.
2. Responsibility. UNH Business Service Centers and Campus Business Offices are responsible for the compilation and retention of corroborating information to ensure consistency and adequacy of support for the underlying accounting data across all units with the goal of addressing the 5Ws - who, what, when, where and why each transaction was processed. Documentation related to each transaction must adequately support the quantity of items received and associated costs, be easily retrievable for examination by authorized departmental and central administrators, auditors and other authorized individuals. In most cases, this can be accomplished by adding copies of the documentation into the USNH designated imaging system, BDMS.

B. Detailed Operating Procedure

1. Required Information:

For all document types the supporting documentation should include the following:

a. Evidence of approvals not applied electronically such as: Email correspondence or physical signature of approving official (for example an 'ok to pay' note on a vendor invoice)
b. Cost allocation/calculation sheets, if applicable
c. Other backup critical for third-party understanding of the transaction several years hence when the individuals involved may no longer be employed at USNH. In addition, if the business purpose is not readily apparent (for example, purchase of office supplies) it must be included with the documentation through one of the following:
d. Copy of internal email or other correspondence explaining the business purpose
e. Notation indicating who, what, when, where and why

2. Guidelines/examples adequate supporting documentation

a. Cash Receipts

i. Copy of deposit slip including:

• deposit date
• deposit detail
• deposit total (must tie to total of the detail)
• Banner document number notation
• Initials of depositor
• Bank deposit receipt

ii. Daily cash log(s)/batch posting sheet(s) and copies of receipts given
iii. Daily ledger from cash register(s) showing receipts collected for the day, or cash register tapes(s) if daily ledger sheet is not available
iv. Support for application of receipt(s) to outstanding receivables such as:

• Check stubs with notations of USNH invoice numbers
• Customer correspondence included with receipt(s)

v. If the individual receipt is being recorded as a reduction of prior expenditure (for example, a vendor refund check) a written explanation should be included on the check stub
vi. Copies of checks if receipt is over $50,000 or if significant to the individual transaction

b. Journal Entries

(including CSHR, IVEX/IVRV, JZRO, JE16, JE76 and JECO rule codes)

i. Appropriate narrative should be included in the document text section explaining the business purpose of each entry (in other words, why the entry is necessary)
ii. The document text should also include notation of any approvals not applied electronically

c. PCard/Convenience Check Transactions

i. One of the following should be attached to the account manager's copy of the monthly statement for each transaction:

• Vendor cash register receipt
• Supplier invoice
• Credit card slip (with itemized pricing)
• Copy of order/ registration form (that includes pricing)
• Packing slips are sufficient only when provided with pricing detail or in conjunction with one of the above

ii. If the business purpose is not readily apparent or the item purchased could be construed to be personal (for example, a television) the purpose must be noted on the above documentation
iii. Support for meals expense must include the date, time, location, names and titles of those in attendance, and business matters discussed. In cases where there are more than 6 people in attendance, the name of the committee or organization and the number of participants will suffice (e.g., Faculty Senate meeting, 12 in attendance).

d. Petty Cash/Imprest Checking Reimbursements:

i. Completed petty cash replenishment request including the following:

• Banner invoice number
• Supervisor's signature

ii. Petty cash vouchers with attached receipts or vendor invoices for all expenditures with business purpose noted
iii. Support for meals expense must include the date, time, location, names and titles of those in attendance, and business matters discussed. In cases where there are more than 6 people in attendance, the name of the committee or organization and the number of participants will suffice (e.g., Faculty Senate meeting, 12 in attendance).

e. Vendor Invoices

Each vendor invoice must be entered separately into Banner (i.e. not batched together).

i. Direct pay invoices:

• Vendor invoice with Banner document number noted
• Departmental approval signature
• Clear business purpose of the transaction including who, what, when, where and why

ii. Payments against POs²

• Vendor invoice with Banner document number noted
• Departmental approval signature (denoting receipt of goods or services only)

iii. Employee³ Reimbursements - Travel and Business Expenses 

• Completed USNH Personal Reimbursement Form with the following:
• Banner invoice number
• Business purpose including who, what, when, where and why
• Traveler/employee's signature
• Dean/Director/Department Head/Business Manager/Sponsored Programs review signatures as needed
• BSC/Campus Business Office review signature
• Receipts for all expenditures
• Support for meals expense except daily per-diem must include the date, time, location, names and titles of those in attendance, and business matters discussed. In cases where there are more than 6 people in attendance, the name of the committee or organization and the number of participants will suffice (e.g., Faculty Senate meeting, 12 in attendance).
• Taxi/bus/train/subway/toll/parking receipts required only when transaction exceeds $25

¹ If the IV document is applied to a PBOR/PBAD internal requisition entry that indicates the business purpose then the IV need not repeat that text. However, departments should make certain that names of attendees and business discussion are documented for all internal catering charges.

² Business purpose and appropriate approvals are recorded with the requisition/purchase order and, therefore, do not need to be filed with the actual vendor invoice

³ Nonemployees must have preapproval by their sponsor (including documented business purpose) before incurring travel costs

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.