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Governor Mike Braun
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For additional compliance guidelines issued through SBOA Bulletins, please see this page.

Preface

General Information and Appendix

Chart of Accounts

Library Board of Trustees

Budgets and Appropriations

Financial Accounting and Record Keeping Procedures

  • Purchase Order - General Form No. 98

    This form is used in conjunction with The Library Financial and Appropriate Record, Library Form No. 1, provision is made for certification of an unobligated balance being available in the appropriation from which purchase is to be made, in compliance with the law.

    This will require the encumbering of appropriations for each order as it is issued.

    It is necessary that all orders pass through the hands of the person responsible for appropriation accounting, even if purchasing is not centralized.

    The original will be delivered to the vendor, the duplicate copy filed with the purchasing authority and the triplicate copy filed with the person responsible for appropriation accounting.

    The purchase order number must appear on all invoices and claims or original order prepared by the vendor.

    Provision is made on copies for certificate of the party receiving the merchandise. In case of centralized purchasing, a copy should be delivered to the department for execution of this certificate, to be signed and returned to the purchasing authority upon receipt of the merchandise.

    Purchase orders issued on bids and contracts must be delivered to the vendor within thirty (30) days after acceptance by the board. [IC 5-22-18-5]

    The original copy of a purchase order must be given to the vendor at the time of purchase.

    The original purchase order issued to the vendor at the time the purchase is made must accompany the bill or invoice and accounts payable voucher to the department before payment is made, or the number thereof must be shown on the bill or invoice and accounts payable voucher.

    An itemized accounts payable voucher covering the purchase must be filed with the department after delivery is made.

    It will be observed that there is a sequence of time that must be followed. The order comes first, in the same manner as though an order was being made from a catalog. The person responsible for appropriation accounting must be advised of the order so that the fund will be encumbered and not obligated more than once. The bill or invoice and accounts payable voucher must be fully prepared, not just a statement of account.

    It is to the advantage of the person responsible for appropriation accounting to know at all times what purchases have been entered into and how the appropriation ledger stands, for purposes of anticipating the year's needs.

    This form is illustrated in The Appendix. Page A-27.

    Completion of Form and Accounting for Funds

    Certification that a sufficient unobligated appropriation balance is available to cover the purchase must be made on the purchase order form. This will require the encumbering of appropriations with each order as it is issued.

    It is necessary that all purchase orders pass through the hands of the person responsible for appropriation accounting, even if purchasing is not be centralized.

    The person receiving the merchandise or services must certify such on the purchase order form. In case of centralized purchasing, a copy should be delivered to the department for execution of this certificate and returned to the purchasing authority.

Financial Accounting and Record Keeping Procedures - Continued

  • Ledger of Appropriations, Encumbrances Disbursements and Balances - General Form 359

    Posting of Appropriations

    The treasurer or designated treasurer of the library board should use a separate ledger sheet for each appropriation in the same detail as the "Resolution for Appropriations," Library Budget Form No. 4, adopted by the library board. Each ledger sheet will then be credited in the "Encumbrance" section with the full amount of the original appropriation plus any additional appropriations that may be made, in accordance with the statutes, during the calendar year. Both the balance in the "Encumbrance" section and the balance in the "Disbursement" section will be increased by the amount of each such credit.

    Posting of Purchase Orders

    Each appropriation account will be debited with the amount of each purchase order issued, on verification of the proper purchasing authority, and the balance extended under the "Encumbrance" section to show the amount of appropriation still available for disbursement. When the claim for each purchase order is allowed and paid, the warrant number and amount will be posted under "Disbursement" section on the same line opposite the corresponding purchase order showing the transaction completed. The balance of the "Disbursement" section should be extended in order to show the amount of the appropriation still unexpended.

    Adjustments

    Adjustments will be necessary to correct the unencumbered balance in cases where the estimated expenditures shown on the purchase order is different from the actual cost shown on the claim filed for allowance and payment. If the payment is less than the purchase order, the difference is entered in the credit column and the balance extended under the "Encumbrance" section. If payment is more than the amount of the original purchase order, the difference is entered in the debit column and the balance extended under "Encumbrance" section. In either case, reference is made to the original purchase order number.

    Balances

    The "Balance Column" under encumbrance will show the unencumbered appropriation. The "Balance Sheet" under disbursements will show the balance of the appropriation unexpended. The difference between the unencumbered balance and the unexpended balance will represent the unpaid purchase orders.

  • Group Insurance

    A library may provide programs of group insurance for its employees and retired employees. A library may exclude part-time employees and persons who provide services to the library under contract from such group insurance programs. A library may provide programs of group insurance through either or both of the following methods:

    1. By purchasing policies of group insurance.
    2. By establishing self-insurance programs.
    3. By electing to participate in the local unit group of local units that offer the state employee health plan under IC 5-10-8-6.6.

    A library may pay a part of the cost of group insurance, but shall pay a part of group life insurance for its employees. [IC 5-10-8-2.6(c)]

    An insurance contract for library employees may not be canceled by the library during the policy term of the contract. [IC 5-10-8-2.6(d)]

    IC 5-10-8-2.6 also requires group health insurance to be made available to retired employees and their spouses retiring after June 30, 1986 who are fifty-five (55) years of age who are not eligible for Medicare coverage. A library may require the retired employee to pay both the employer's and employee's premiums for such coverage.

    IC 5-10-8-5 allows two (2) or more local public employers to establish a common or unified plan of group insurance for their employees and retired employees. Such plan shall be affected through a trust, agency or other local arrangement with careful accounting and fiscal responsibility.