CAPITAL FINANCIAL AND ACCOUNTING

POLICY STATEMENT
The objective of the Capital Financial and Accounting policy and procedures is to adequately control:
􀂄The review and payment of capital invoices
􀂄Recording and tracking all capital costs
􀂄The capitalization of assets, and
􀂄Reporting the status of capital accounts

These controls are intended to safeguard the investment in WISC capital assets to insure that WISC capital
Authorizations for Expenditures and resulting Projects are accurately valued and accounted for over the full life
cycle of their existence. It is the policy of WISC that any capital related costs and/or expenditures would be
reviewed, approved, recorded, paid and capitalized in accordance with the WISC Capital Financial and Accounting
policies and procedures ***YET TO BE FORMALLY DOCUMENTED IN FULL***.
The hierarchy of identifying capital activities begins with an Authorization for Expenditure (AFE), from which one
or more Projects may be created. Each Project then having one or more associated Contracts and/or Purchase
Order. The capital accounting process begins when an invoice for completed costs is presented for processing to a
specific Contract or Purchase Order. The policies and procedures provide for a thorough review of the costs in
question to insure that the related goods and/or services were acceptably received. In addition, they provide for the
controlled processing and posting of capital costs to fixed asset subsidiary ledger systems and general ledger
systems. Upon Project completion, each Project will be thoroughly reviewed and costs will be allocated in
accordance with accepted accounting principles to the fixed asset accounting system.
PROCEDURE
1. Invoice Review and Approval Process
1.1 Invoice Review and Approval
1.1.1 Without exception capital invoices will be remitted to _________ (identify best resource) for
ease in processing
1.1.2 A staff member at each location receiving invoices will be responsible to review and
disseminate the invoices to the Project Manager responsible for managing the Project for
which the invoice has been remitted.
1.1.3 The Project Manager will review the invoice to insure that the goods and/or services have
been received in an acceptable manner. If necessary, the Project Manager will adjust or
reject the invoice and notify the vendor.
1.1.4 After the value of the invoice is deemed appropriate, the Project Manager will code the
invoice to insure that it will be posted to the correct Project, Contract or Purchase Order.
1.1.5 If necessary, the Purchasing Agent will insure that the invoice has been adequately entered
as a line item in the respective Purchase Order.
1.1.6 The Project Manager or appropriate designee will review and insure that notification of
invoice receipt has been communicated to Capital Accounts Payable.
1.1.7 A copy of the approved invoice and invoice cover sheet will be filed in the respective project
management file.
1.1.8 Upon completion of the filing, the invoices will be scanned into a shared document network
and then be sent to the Capital Accounts Payable Clerk on a daily basis.
2. Invoice Payment Process
2.1 Once the Capital Accounts Payable Clerk receives the daily delivery of invoices, the invoices will be
entered into the Accounts Payable System.
2.2 The Accounts Payable System will perform a matching process to insure that the invoice is identifiable
to a Purchase Order or Contract and then the Capital Accounts Payable Clerk will verify that the
Project Manager has given proper notification of the invoice receipt.
2.2.1 The matching process will generate an exception list of invoices that failed the matching
function between the Accounts Payable and Corporate Purchasing aspects.
2.2.2 Invoices found on the exception report will be returned to the applicable project manager for
matching troubleshooting.
2.3 Invoices that successfully complete the matching process with no exceptions are then processed in the
Accounts Payable System consistent with the processing of all other approved invoices in the
system.
2.4 Upon the completion of payment processing, the original approved invoice will be filed in the
Accounts Payable Department in the respective vendor file.
3. Project Capitalization
3.1 Asset class lives will be determined by the Accounting Department pursuant to Generally Accepted
Accounting Principles.
3.2 The definition of an asset unit or any shall be done by the Finance Department in cooperation with all
Departments responsible for the management and maintenance of the asset or responsible for
revenue that results from the capital investment in the asset.
3.3 Upon the completion of indirect cost allocation, asset costs will be grouped by asset class.
3.4 Journal Entries will then be prepared to enter the costs by project and by class life into the Fixed
Asset System.