Attachment J - Citys Office of the Controller Accounting Policies & Procedures.pdf

CITY & COUNTY OF

SAN FRANCISCO –

OFFICE OF THE

CONTROLLER

January 2026 Accounting Policies & Procedures

Greg Wagner, Controller

Contact: Jocelyn Quintos, Jocelyn.Quintos@sfgov.org mailto:Jocelyn.Quintos@sfgov.org

City & County of San Francisco – Office of the Controller

A C C O U N T I N G P O L I C I E S & P R O C E D U R E S

City & County of San Francisco – Office of the Controller

A C C O U N T I N G P O L I C I E S & P R O C E D U R E S

Contents

1 | OVERVIEW

1.1 | Purpose of this Document

1.2 | Roles and Responsibilities

1.3 | General Principles

1.4 | Governing Laws, Rules & Regulations

1.5 | Revisions & Updates

1.6 | Exceptions to this Policy

1.7 | Internal Controls

1.7.1 | Internal Control Questionnaire

2 | BUDGETING & APPROPRIATIONS

2.1 | Overview

2.2 | Budgeting*

2.3 | Appropriations*

2.3.1 | Automatic Appropriations

2.3.2 | Supplemental Appropriations

2.3.3 | “De-Appropriation” of Capital Projects

2.4 | Cost Allocation*

2.5 | Surplus Transfers

2.5.1 | Controller’s Office Surplus Transfer Guidelines

2.5.2 | How Departments Request Surplus Transfer

2.5.3 | Controller’s Office Review of Surplus Transfers

2.5.4 | Reporting of Surplus Transfers

2.5.5 | Related Administrative Provisions of the Budget Ordinance

2.5.6 | Surplus Transfers Frequently Asked Questions (FAQs)

2.6 | Reserves*

2.6.1 | Release of Reserves

2.7 | Budget Corrections*

2.7.1 | Budget Correction vs. Surplus Transfer

2.8 | Midyear Actions*

2.8.1 | Budget Cuts

2.9 | Reporting*

2.9.1 | Calculation of Fund Balance

2.9.2 | Negative Fund Balance

3 | CONTRACTS & ENCUMBRANCES

3.1 | Overview

3.2 | Contracting Rules & Regulations, Admin. Code Chapter 6*

3.2.1 | General Contracting Procedures

3.2.2 | Consultant Contract Requirements Guide

3.2.3 | Formal Construction Contract Requirements Guide

3.2.4 | Formal Construction Contract Processing Timeline

3.2.5 | Informal Construction Contract Requirements Guide

3.2.6 | Informal Construction Contract Processing Timeline

3.2.7 | Processing Chapter 6 Contracts in PeopleSoft

3.3 | Contracting Rules & Regulations, Admin. Code Chapter 21*

3.3.1 | Delegated Departmental Purchasing (“Prop Q”)

3.3.2 | Reg. 21.5(a): Other Purchases: Commodities & Services Less Than the Minimum Competitive Amount

3.3.3 | Office of Contract Administration - Resources

3.4 | Becoming a City Supplier*

3.4.1 | Roles and Responsibilities

3.4.2 | Supplier Compliance Status

3.4.3 | Automated Clearing House (ACH) Payments

3.4.4 | Security and Internal Controls

3.4.5 | Searching for an Existing Supplier

3.5 | Technology Purchases

3.5.1 | Technology Marketplace Fee

3.6 | Blanket Purchase Order, Purchase Order & Direct Voucher*

3.6.1 | Encumbrances*

3.6.2 | Purchase Orders*

3.6.3 | Blanket Purchase Order*

3.6.4 | Direct Payment without Encumbrance*

3.7 | Sugar-Sweetened Beverage Purchasing Ban

3.8 | Commodity Procurement in PeopleSoft*

3.8.1 | Requisitions

3.8.2 | Purchase Order

3.9 | Gift Card Purchases

3.9.1 | Eligibility to Receive Gift Cards

3.9.2 | Gift Card Purchases by City Departments

3.9.3 | Separation of Duties

3.9.4 | Gift Card Inventory

3.9.5 | Gift Card Distribution

3.9.6 | Gift Cards for Nonprofit Organizations

3.9.7 | Gift Cards and 1099 Reporting Requirements

3.9.8 | Gift Card Usage by Recipients

3.9.9 | Gift Card Record Retention

3.9.10 | Gift Card Review and Compliance

3.9.11 | Prerequisites and Procedures on Purchasing Gift Cards

3.10 | Grant Agreements - Consensus

3.11 | Administrative Code 21G – Rules for Awarding Grants

3.12 | Administrative Code 21B – Core Initiatives

3.13 | Contracting Frequently Asked Questions (FAQs)

4 | EXPENDITURES

4.1 | Overview

4.2 | Invoices

4.2.1 | Forms of Invoicing (Electronic vs. Hard Copy)

4.2.2 | Information on Invoices Submitted Offline (Not Directly Submitted by Suppliers in PeopleSoft)

4.2.3 | Receiving

4.3 | Approval of Invoices

4.3.1 | Approval of Invoices Submitted Offline (Not Directly Submitted by Suppliers in PeopleSoft)

4.3.2 | Approval of Invoices Submitted by Suppliers in PeopleSoft

4.3.3 | PeopleSoft Voucher Approval Workflow

4.3.4 | Tolerance

4.4 | Payment Considerations

4.4.1 | Prompt Payment to Suppliers

4.4.2 | Construction/Contract Payment*

4.4.3 | Single Payment

4.4.4 | Advance Payment

4.4.5 | Late Payment

4.4.6 | Credit Memorandum

4.4.7 | Payment Disbursement

4.4.8 | Payment Cancellation

4.5 | Sales & Use Taxes

4.5.1 | Definition of Sales Tax and Use Tax

4.5.2 | Verify if Sales Tax or Use Tax is Appropriate for the Area

4.5.3 | Paying Sales Tax or Use Tax

4.5.4 | Accruing Sales Tax or Use Tax Liabilities

4.5.5 | City as a Seller

4.6 | IRS 1099 Reporting Rules

4.6.1 | Requirement of Encumbrances, Supplier IDs, Account Codes & Withholding Classes* 234

4.6.2 | 1099 Reportable Payments

4.6.3 | Entering Purchase Orders with 1099 withholding

4.6.4 | Entering 1099 Withholding Vouchers

4.6.5 | No 1099 Payments to City Employees

4.7 | Employee Travel & Business Expenses

4.7.1 | Business Travel Reimbursement Guidelines

4.7.2 | Automated Travel or Expense Processing

4.7.3 | Travel Reimbursement Frequently Asked Questions

4.7.4 | Non-Travel Expense Reimbursement Guidelines

4.7.5 | Continuous Monitoring of Employee Reimbursement

4.7.6 | Reimbursements Provided via MOUs

4.7.7 | Internal Control Matrix

4.7.8 | Guidelines for Submission and Review of Employee Reimbursements

4.7.9 | Non-Uniform Employee Reimbursement Claims

4.7.10 | Statewide Travel Program

4.8 | Employee Recognition Programs

4.9 | Nonprofit Sponsorships

4.10 | Guest Speakers and Honorarium Payments

4.11 | Payment Mechanisms

4.11.1 | Revolving Funds

4.11.2 | Electronic Fund Transfers

4.12 | CBO Payment Processing Policy

4.12.1 | Overview

4.12.2 | Definitions

4.12.3 | Roles and Responsibilities

4.12.4 | General Principles of Payment Processing

4.12.5 | Invoice Processing and Review

4.12.6 | Record Retention

4.12.7 | Advance Payments

4.12.8 | Payment Disputes

4.12.9 | Risk Assessment

4.12.10 | Fixed Assets

4.12.11 | Department Policies

4.12.12 | Appendix A: Documentation Table

4.13 | Payment-Related Frequently Asked Questions

5 | PROCUREMENT CARD (P-CARD)

5.1 | Overview

5.1.1 | Program Definitions

5.1.2 | General Information

5.1.3 | City Program Administration

5.1.4 | Department Roles and Responsibilities*

5.2 | Use of the Card

5.2.1 | Allowable Purchases

5.2.2 | Prohibited Purchases

5.3 | Program Compliance

5.3.1 | Contact Information

5.4 | Form Automation

5.4.1 | General Guidelines and Internal Controls

5.4.2 | To Request a New Card

5.4.3 | To Modify, Replace, or Cancel a Card

6 | INVENTORY*

6.1 | Policy Guidelines

6.2 | Accounting Guidelines

7 | INTERDEPARTMENTAL SERVICES

7.1 | Overview

7.1.1 | Memorandum of Understanding (MOU) / Interdepartmental Service Agreement (ISA)381

7.1.2 | Interdepartmental Services Billing Methods

7.1.3 | Budgeting

7.1.4 | Services to Outside Agencies

7.1.5 | Adjustments

7.1.6 | Liquidation / Carryforward

7.1.7 | Year-End Processes

7.1.8 | Exceptions

7.1.9 | Project Costing Recommended Structure

7.1.10 | Overhead Allocation

7.1.11 | IDS Frequently Asked Questions

8 | CASH RECEIPTS & REVENUE

8.1 | Cash Receipts

8.2 | Properly Handling Cash

8.2.1 | Department Documentation

8.2.2 | Cash Handling Segregation of Duties

8.2.3 | Security for Cash Receipts

8.3 | Properly Recording Revenue

8.3.1 | Cash Receipts

8.3.2 | Cash Difference / Overage

8.3.3 | Non-Sufficient Funds (NSF) Checks

8.3.4 | Interest Allocation*

8.3.5 | Chargebacks & Merchant Activity Reconciliation*

8.3.6 | Revenues in Outreach Advertising Fund for Official Advertising

8.4 | Revenue Transfer [TO BE UPDATED]*

8.4.1 | Definition of Revenue Transfers / Other Allocations

8.4.2 | Common Revenue Transfers & Other Allocations

8.4.3 | Review and Approval Path

8.4.4 | Compliance with City Policies, Guidelines & Regulations

8.5 | IRS 1098-F Reporting Rules

8.6 | Cash Handling and Revenue Recording FAQs

9 | INVESTMENTS HELD WITH TRUSTEES*

9.1.1 | Fiscal Agents

10 | FIXED ASSETS

10.1 | Overview of Fixed Assets

10.1.1 | Generally Accepted Accounting Principles

10.1.2 | Regulations & Contractual Arrangements

10.1.3 | Capital Asset Definitions, Thresholds, Valuations & Useful Lives

10.2 | PeopleSoft Asset Management Roles & Responsibilities

10.3 | Construction-in-Progress: Fixed Asset Acquisitions through Project Costing471

10.3.1 | Definition of CIP

10.3.2 | CIP in PeopleSoft

10.4 | Fixed Asset Acquisitions through Procurement

10.4.1 | Asset Acquisition

10.5 | Fixed Asset Acquisitions through Donations

10.5.1 | Developer Agreements

10.5.2 | In-Lieu of Donations

10.6 | San Francisco Finance Corporation

10.6.1 | Fixed Assets Purchased through SFFC

10.7 | Vehicle Leasing Program

10.7.1 | Fixed Assets – GSA Accounting

10.7.2 | Departments Recording VLP Transactions

10.8 | General Obligation Bonds

10.8.1 | GO Bond Fixed Assets

10.9 | Certificates of Participation

10.9.1 | COP Fixed Assets

10.10 | Commercial Paper

10.10.1 | Commercial Paper Fixed Assets

10.11 | Fixed Asset Valuation & Methodology

10.12 | Depreciation & Amortization

10.12.1 | Straight-Line Depreciation Method

10.12.2 | Depreciation Conventions

10.13 | Fixed Asset Disposals

10.13.1 | Disposal of Fixed Assets

10.13.2 | Transferring Fixed Assets

10.14 | Department Monitoring Procedures

10.14.1 | Asset Additions & Disposals

10.14.2 | Depreciation Review

10.14.3 | Inventory of Capital Assets

10.15 | Accounting for Leases

10.15.1 | Measuring the Lease

10.15.2 | Lease Accounting Resources

10.16 | Financial Reporting

10.16.1 | Government-wide Financial Statements & Accrual Basis Accounting

10.16.2 | Governmental Fund Financial Statements & Modified Accrual Basis Accounting

10.16.3 | Capital Assets Footnote

10.16.4 | Interest Capitalization

10.16.5 | Capital Asset Impairment

10.17 | Fixed Assets Frequently Asked Questions

11 | DEBT

11.1.1 | Scope and Application

11.1.2 | Mission of the Office of Public Finance

11.1.3 Independent Citizen Oversight – General Obligation Bond Oversight Committee

11.1.4 | Disclosure Practices Working Group

11.1.5 | Types and Purposes of Debt

11.1.6 | Debt Approval Procedures

11.1.7 | Debt Limitations

11.1.8 | Methods of Sale

11.1.9 | Debt Structuring Practices

11.1.10 | Derivatives Policy

11.1.11 | Permitted Investments

11.1.12 | External Consultants

11.1.13 | Counterparty and Fiduciary Relationships

11.1.14 | Post Issuance Debt Administration and Secondary Market Disclosure

11.1.15 | Post Issuance Arbitrage Rebate Tax Compliance

11.2 | General Obligation Bonds Accounting Procedures

11.2.1 | Overview of General Obligation Bonds Accounting

11.2.2 | GO Bond Stakeholders

11.2.3 | Overview of PeopleSoft Trees, Funds & Accounts for GO Bonds

11.2.4 | Steps for Recording New Issuance – GO Bond

11.2.5 | Reporting

11.2.6 | Compliance – GO Bonds

11.2.7 | GO Bond Frequently Asked Questions

11.2.8 | Refunding – GO Bond

11.3 | Commercial Paper Accounting Procedures

11.3.1 | Commercial Paper Debt Purpose

11.3.2 | Commercial Paper Authorization

11.3.3 | Commercial Paper Stakeholders

11.3.4 | Commercial Paper Reporting and Procedures

11.3.5 | Commercial Paper Administration

11.4 | | Certificates of Participation Accounting Procedures

11.4.1 | Certificates of Participation Purpose

11.4.2 | Certificates of Participation Authorization

11.4.3 | Certificates of Participation Stakeholders

11.4.4 | Certificates of Participation Reporting and Procedures

11.4.5 | Compliance – COPs

11.4.6 | COPs Administration

11.5 | Revenue Bonds Accounting Procedures

11.5.1 | Revenue Bonds Purpose

11.5.2 | Revenue Bonds Stakeholders

11.5.3 | Revenue Bonds Reporting and Procedures

11.5.4 | Compliance – Revenue Bonds

11.6 | Community Facilities District Bonds Accounting Procedures

11.6.1 | Community Facilities District Bonds Purpose

11.6.2 | CFD Formation Authority

11.6.3 | CFD Stakeholders (Some portions of this section are still under review)

11.6.4 | CFD Reporting and Procedures

11.7 | Infrastructure and Revitalization Financing District Bonds

11.7.1 | Infrastructure and Revitalization Financing District Bonds Purpose

11.7.2 | IRFD Formation Authority

11.7.3 | IFD/IRFD Stakeholders (Some portions of this section are still under review)

11.7.4 | IFD/IRFD Reporting and Procedures

12 | GRANTS & GIFTS

12.1 | Financial System Structure of Grants & Gifts

12.1.1 | Grant Fund & Budget Definition (Department/Fund/Project)

12.1.2 | Grant Authority ChartField

12.1.3 | Awards Types, Revenue Accounts & Recommended Structure

12.2 | Setting up Grants & Gifts in the Financial System

12.2.1 | Set up the Sponsor

12.2.2 | Create the Proposal

12.2.3 | Submit the Proposal

12.2.4 | Generate the Award

12.2.5 | Update the Award Profile

12.2.6 | Update Project Activities

12.2.7 | Update & Activate the Customer Contract

12.3 | The Grant Cycle

12.4 | Grant Application

12.5 | Grant Budget

12.5.1 | Accept & Expend Authority

12.5.2 | Budgeting Process

12.6 | Amendments

12.6.1 | Grant Award Modification by Grantor

12.6.2 | Grant Budget Line-item Transfer

12.6.3 | Grant Period Extensions

12.6.4 | Grant Budget Carryforward

12.7 | Revenue Recognition

12.7.1 | Reimbursement Grants

12.7.2 | Advance Grants

12.7.3 | Program Income

12.7.4 | Grant Interest

12.7.5 | Gift Revenues

12.7.6 | Subventions

12.8 | Non-Cash Contributions

12.8.1 | Contributed or Donated Capital Assets

12.8.2 | “In-kind” Donations

12.8.3 | Donated Investments

12.9 | Grant Expenditures

12.9.1 | General Principles for Spending Grant Revenues

12.9.2 | Grant-funded Personnel Expenditures

12.9.3 | Grant-related Procurement Procedures

12.9.4 | Grant-Funded Capital Expenditures

12.9.5 | Grant Sub-recipient Expenditures

12.9.6 | Indirect Costs

12.9.7 | Grant-Funded Interdepartmental Services

12.9.8 | Expenditure Allocations/Adjustments

12.10 | Grant Reconciliation

12.10.1 | Basic Principles of Reconciliation

12.10.2 | Documenting Reconciliation

12.10.3 | Controller’s Office Quarterly Grant Reconciliation

12.11 | Grant Close-out

12.11.1 | Basic Principles of Grant Close-out

12.11.2 | Grant Close Out in the Financial System

12.11.3 | Records Retention

12.12 | Grant External Audits

12.12.1 | Federal Single Audit

12.12.2 | Program Audits

12.13 | Uniform Guidance (UG)

12.13.1 | Implementation of Uniform Guidance

12.13.2 | Federal Emergency Management Agency (FEMA) Grants

12.14 | Treasury Offset Program

12.14.1 | Impact of Federal Offset to City & County Departments

12.14.2 | Federal Payments Exempted From US Treasury Offsets

12.14.3 | Notification of Offset

12.14.4 | Resolving an Offset

12.15 | Support “Friends of” Organizations

13 | FINANCIAL REPORTING & RECORDS RETENTION

13.1 | Overview

13.2 | Financial Reporting

13.3 | Financial Records Retention & Destruction Policy*

13.3.1 | Instructions for Departmental Adoption

13.3.2 | Retention Policy

13.3.3 | Supplemental Guidance to Financial Records and Retention

14 | EMERGENCY PROCEDURES

14.1 | Overview

14.1.1 | Definitions of Emergency

14.2 | Emergency Purchasing & Payment

14.2.1 | Emergency Supplier Set Up

14.2.2 | Emergency Supplier Check Writing

14.3 | Finance & Administration

14.3.1 | Controller’s Office 24-hour Duty Officer

14.3.2 | Cost Accounting

14.4 | SF Prepared

14.4.1 | SF Prepared Online Resources

14.4.2 | SF Prepared Academy

14.5 | SF Disaster and Emergency Response and Recovery Fund

15 | BANKING SERVICES

15.1 | Overview

15.2 | Bank Account Opening and Closing

15.3 | Collections and Deposits

15.4 | Stop Payments / Check Cancellations

15.5 | Revolving Fund Replenishment

15.6 | Fraud Controls

15.7 | Accounting & Reconcilement

15.7.1 | Instructions & Recommended Controls for Processing Returned Items

15.7.2 | Instructions for Accounting for Banking Services Charges & Credit Card Fees

15.8 | Third Party Contracts

15.9 | Notifications on Large Payments/Receipts

15.10 | Emergency Banking Procedures*

15.11 | Banking Services FAQs

16 | PROJECTS & PROJECT COSTING

16.1 | Understanding Projects

16.1.1 | Converted Projects

16.1.2 | Annual Appropriation Ordinance Projects

16.1.3 | New Projects

16.1.4 | Delivered Projects

16.2 | Using Project Costing

16.2.1 | Integration with Other PeopleSoft Modules

16.2.2 | Identifying Project Types

16.2.3 | Identifying Roles & Responsibilities

16.3 | Understanding Project Funding & Authority

16.3.1 | Regulations & Contractual Arrangements

16.3.2 | Current City Funding Sources

16.3.3 | Authority

16.4 | Understanding the Work Breakdown Structure

16.5 | Project Revenues & Expenditures

16.6 | Closing a Project in Project Costing

16.7 | Financial Reporting

16.7.1 | Generally Accepted Accounting Principles

16.7.2 | City & County of San Francisco Administrative Code

16.8 | Project Costing Frequently Asked Questions

17 | ALLOCATIONS & ABATEMENTS

17.1 | Allocations

17.1.1 | Terminology (per Oracle PeopleSoft Online Help)

17.1.2 | Examples

17.2 | Labor Abatements

17.2.1 | Policy

17.2.2 | Labor Abatement Timeline

17.2.3 | Labor Abatement Procedure

17.3 | Non-Labor Abatements

18 | HOW-TO & SCREENSHOTS*

18.1 | General

18.1.1 | Work Flow

18.2 | Accounts Payable

18.3 | Cash Receipts

18.4 | Inquiry/Report

18.5 | Journal/Budget Entry

18.6 | Employee Reimbursement

18.7 | Purchasing

18.7.1 | Purchase Order

18.7.2 | Contract (BPO)

18.7.3 | Requisition

18.7.4 | Information Technology

18.8 | Vendor (Supplier)

19 | APPENDICES*

19.1 | M&IE allowances per MOU (Travel Reimbursement)

19.2 | Robbery Procedures (Cash Handling)

19.3 | San Francisco Administrative Code, Chapter 6

19.4 | COVID-19 Related Procurement & Accounting Policies

19.4.1 | Emergency Purchase Suppliers (COVID-19) (Under Construction)

19.4.2 | Emergency Procurement (COVID-19) (Under Construction)

19.4.3 | Emergency Payments (COVID-19) (Under Construction)

19.4.4 | Cost Recovery (COVID-19)(Under Construction)

19.4.5 | Monetary Donation Guidelines (COVID-19)

19.4.6 | “In-Kind” Donation Guidelines

19.5 | Glossary

Sections in the Table of Contents marked with an asterisk (*) indicate that the topic is still under review.

List of Tables

Table 1-1. Internal Control Questionnaire Template

Table 2-1. When to submit surplus transfer request for Transfers/Reallocation of Funds

Table 2-2. Guidelines to Complete the Surplus Transfer Request Form

Table 3-1. Contract Types with Corresponding Admin. Code

Table 3-2. Consultant Contract Requirements

Table 3-3. Formal Construction Contract Requirements

Table 3-4. Formal construction Contracting Timelines

Table 3-5. Informal Construction Contract Requirements

Table 3-6. Informal Construction Contracting Timelines

Table 3-7. Supplier Types in the City Supplier Profile

Table 3-8. Gift Card Purchasing Procedures

Table 4-1. Prompt Payment Definitions

Table 4-2. Stop Notice Process Summary, Roles & Responsibilities

Table 4-3. Journal Entry to Record Advances

Table 4-4. Journal Entry to Recognize Expenditures

Table 4-5. Examples of Variations in Sales & Use Tax Rates (as of July 1, 2025)

Table 4-6. Sales/Use Tax Account Codes Table

Table 4-7. 1099-Reportable and Non-Reportable Payments

Table 4-8. 1099 Posting in PeopleSoft

Table 4-9. Examples of when a City Employee May Be Issued a 1099

Table 4-10. Flying vs. Long-Distance Driving Example

Table 4-11. Federal Domestic Meal & Incidental Expense (M&IE) Rates

Table 4-12. Federal Departure and Return Day M&IE Rates

Table 4-13. Non-allowable & Non-reimbursable Costs

Table 4-14. Non-allowable & Non-reimbursable Costs

Table 4-15. Supplier IDs for Statewide Travel Program Departments

Table 4-16. Revolving Fund Account Codes & Supplier ID Crosswalk

Table 4-16 Change Fund Account Codes

Table 4-18. Required Documentation Table for Reimbursement Contracts

Table 5-1. Supplier IDs for P-Card Departments

Table 7-1. IDS Mechanisms

Table 7-2. Chartfield Matrix For Billing Methods

Table 8-1. Cash Handling Internal Control Examples

Table 8-2. Payment Status Descriptions

Table 10-1. Capital Asset Types

Table 10-2. Maintenance Project Type Definition

Table 10-3. PeopleSoft Asset Management Roles & Responsibilities

Table 10-4. Project Types Available in Project Costing Module

Table 10-5. Fixed Asset Disposal Methods in PeopleSoft

Table 11-1. Standard Terms for General Obligation Bonds

Table 11-2. Standard Terms for Lease Revenue Bonds/Certificates of Participation

Table 11-3. Standard Terms for Variable Rate Bonds

Table 11-4. Permitted Investments: Investment Agreements

Table 12-1. Five Authorities for Grant Management

Table 12-2. Revenue Award Types & Descriptions

Table 12-3. Revenue Accounts & Their Recommended Financial System Structure

Table 12-4. Documents Required for Grant Accept & Expend Process

Table 12-5. Determination of Sub-Recipient Vs. Contractor

Table 12-6. Who Follows What Rule for a Post-UG Single Audit

Table 12-7. Type A Program Selection Criteria

Table 12-8. High-risk Type A Programs Based on Risk Assessment

Table 12-9. Type B Programs Based on Risk Assessments

Table 12-10. Audit Minimum Coverage Requirement Calculations

Table 12-11. UG Audit Requirements – Key Sections with Changes (CFR Title 2 §200.5XX)

Table 12-12. Guidelines for Implementation of Federal Grant Uniform Guidance

Table 12-13. Federal Agency Adoption of UG

Table 14-1. Local, State & Federal Disaster Declarations Summary

Table 14-2. Pre-Populated Emergency Work Projects

Table 14-3. Gift Fund PeopleSoft Codes

Table 16-1. Project Types Matrix

Table 16-2. Roles & Responsibilities in Recording Project Costs

Table 16-3. Example of Capital Project Work Breakdown Structure

List of Figures

Figure 1-1. Signature Authorization Form

Figure 2-1. Surplus Expenditure Budget Transfer Request

Figure 3-1. Overview of Contract to Payment

Figure 3-2. Bidder to Supplier

Figure 3-3. Creating a Sourcing Event

Figure 3-4. Invite Bidders

Figure 3-5. Awarding a Contract From Events

Figure 3-6. Example Contract in ADPICs

Figure 3-7. Example Contract in PeopleSoft

Figure 3-8. Contract Without Retentions Detail in ADPICS

Figure 3-9. Contract Without Retentions Detail in PeopleSoft

Figure 3-10. Contract Without Retentions Purchase Order in ADPICS

Figure 3-11. Contract Without Retentions Purchase Order in PeopleSoft

Figure 3-12. Setting Up Retentions in PeopleSoft

Figure 3-13. Purchase Order for Contract With Retention in FAMIS

Figure 3-14. Purchase Order for Contract With Retention in PeopleSoft

Figure 3-15. Receipts in PeopleSoft

Figure 3-16. Copying the PO Receipt in PeopleSoft

Figure 3-17. Supplier Onboarding Process Using PeopleSoft (TO BE UPDATED)

Figure 3-18. Bidder Registration Process Screenshots

Figure 3-19. IRS Form W-9

Figure 3-20. Equal Benefits Declaration Page

Figure 3-21. MCO Declaration

Figure 3-22. HCAO Declaration

Figure 3-23. Insurance Requirements

Figure 3-24. Payment (Labor & Material) Bond

Figure 3-25. Performance Bond

Figure 3-26. LBE Program Application

Figure 3-27. CMD 12B Waivers (ServiceNow)

Figure 3-28. Compliance Status Lookup

Figure 3-29. Supplier Change Request & Approval

Figure 3-30. Sample of How Expenditures & Encumbrances Affect Appropriation Balances

Figure 3-31. Requisition to Voucher in PeopleSoft

Figure 3-32. Creating Requisition by Searching for an Item

Figure 3-33. Creating Requisition Using a Catalog

Figure 3-34. Creating Requisition through Express Item Entry

Figure 3-35. Creating PO by Releasing from a Contract

Figure 4-1. Self-Service Invoice Tile

Figure 4-2. PeopleSoft voucher invoice number field

Figure 4-3. Direct Voucher Workflow Matrix

Figure 4-4. Invoice Receipt Date Illustration 1

Figure 4-5. Table of Pay Terms

Figure 4-6. Comment for Disputed Invoice

Figure 4-7. "Pushback" and "deny" options for voucher approvers

Figure 4-8. SF City Partner Page for Suppliers to Review Payment Information

Figure 4-9. Set Up Retention in Procurement Contract

Figure 4-10. Retention Pay Term in Accounts Payable Module

Figure 4-11. Retention Payment Options

Figure 4-12. Payments to Contractor & Escrow

Figure 4-13. Stop Notice Workflow

Figure 4-14. Applying Credit Memo for Citywide Supplier in Accounts Payable Module

Figure 4-15. Adjustment Voucher for Credit Memo in Accounts Payable Module

Figure 4-16. Check Pickup Request Form

Figure 4-17. Making Changes to a Voucher on the Payments Tab

Figure 4-18. Unpost a Voucher

Figure 4-19. Making Changes to a Voucher on the Invoice Information Tab

Figure 4-20. Cancel Payment in PeopleSoft

Figure 4-21. Cancel Payment and Close Liability

Figure 4-22. Lost Warrant Affidavit Form

Figure 4-23. Check Revalidation in PeopleSoft

Figure 4-24. PeopleSoft Purchase Order Sales/Use Tax Determination

Figure 4-25. Sales/Use Tax Manual Accrual Spreadsheet

Figure 4-26. Department sales / use tax processing flowchart

Figure 4-27. Travel Expense Approval & Reimbursement Overview

Figure 4-28. Authorized Travel Signatories for Travel Pre-approval

Figure 4-29. Travel Authorization Process Overview

Figure 4-30. International Travel Pre-Approval Workflow

Figure 4-31. Steps to Enter & Approve Expense Reports in PeopleSoft

Figure 4-32. Requesting Cash Advances in PeopleSoft

Figure 4-33. Cash Advance Processing in the Financial System

Figure 4-34. Cash Advance Report

Figure 4-35. Request for Employee Offset

Figure 4-36. Payroll Request for Employee Offset Repayment Agreement

Figure 4-37. Declaration of Offset Due to an Unliquidated Cash advance Letter

Figure 4-38. Reserving Allowable Conference Lodging

Figure 4-39. Employee Reimbursement Workflow

Figure 4-40. STP Workflow Process

Figure 4-41. DGS Department Fact Sheet

Figure 4-42. U.S. Bank Intake Form and Agency Agreement

Figure 4-43. Departmental Statewide Travel Program Policy Template

Figure 4-44. Revolving Fund Voucher Form & Instructions

Figure 4-45. Treasurer's EFT Request Template

Figure 4-46. Cancel Payment Screen in PeopleSoft

Figure 5-1. Cardholder Acknowledgement Disclosure

Figure 5-2. Travel Expense Form

Figure 5-3. Field Expense Form

Figure 5-4. Online P-Card Enrollment & Agreement Form

Figure 5-5. P-Card Cardholder Acknowledgment Disclosure

Figure 7-1. Interdepartmental Service MOU Template

Figure 7-2. Internal Billing in PeopleSoft

Figure 7-3. Direct Charge in PeopleSoft

Figure 7-4. Appropriation Control & Transaction Posting

Figure 7-5. Internal Billing in PeopleSoft

Figure 7-6. Direct Charge & Authority Transfer in PeopleSoft

Figure 8-1. Reconciling Bank Account Daily & Monthly

Figure 8-2. Automatic Reconciliation Screen

Figure 8-3. Semi-Manual Reconciliation Screen

Figure 8-4. Book-to-Bank Reconciliation Screen

Figure 8-5. Book-to-Bank Reconciliation Details

Figure 8-6. Cash Handling Receipt and Recording

Figure 8-7. “Regular Deposit—Totals” Page

Figure 8-8. “Regular Deposit--Payments” Page

Figure 8-9. “Payment Worksheet Selection" Page

Figure 8-10. “Payment Worksheet Application" Page

Figure 8-11. “Accounting Entries" Page

Figure 8-12. Finding All of a Department's Deposits

Figure 8-13. Sample Cash Difference / Overage Report

Figure 8-14. Sample NSF Check Collection Letter

Figure 8-15. Interest Allocation Mapping Form

Figure 10-1. Create new cip asset

Figure 10-2. Relate cip asset to project

Figure 10-3. Define PREVIOUSLY existing asset

Figure 10-4. Relate asset to project

Figure 10-5. Assign Project Costing Transactions to CIP Assets

Figure 10-6. Send Costs to Asset Management

Figure 10-7. Asset Approval/Rejection Screen

Figure 10-8. Asset Interface Table Preview

Figure 10-9. Asset Management Interface – Load Transactions to AM

Figure 10-10. Review Cost Screen

Figure 10-11. place a cip asset into service

Figure 10-12. Adjust the cost of an asset

Figure 10-13. Create a copy of an asset

Figure 10-14. Asset Capitalization Process

Figure 10-15. Asset Input form example

Figure 10-16. PeopleSoft Asset Basic Information Screen

Figure 10-17. Asset Acquisition Detail Tab

Figure 10-18. PeopleSoft Asset Basic Information Screen

Figure 10-19. PeopleSoft Acquisition Codes and Asset Valuation Methodology

Figure 10-20. Fixed Asset Disposal Process

Figure 10-21. peoplesoft Retired/Disposed Assets Form

Figure 10-22. PeopleSoft Asset Transaction Screen—Transfer

Figure 10-23. Fixed Asset Depreciation History by Month

Figure 10-24. Decision Tree for Identifying a Lease that should Follow GASB 87

Figure 10-25. 2020 ACFR Capital Assets Footnote

Figure 10-26. Suggested Capital Project Work Breakdown Structure [Placeholder]

Figure 10-27. Suggested Technology Project Work Breakdown Structure

Figure 10-28. Donation or Service Concession Agreement / Exchange Transaction Flow Chart

Figure 11-1. General Obligation Bonds Accounting Flow Chart

Figure 11-2. Example of Peoplesoft Tree Structure

Figure 11-3. Example of GO BOND project funds

Figure 11-4. Example of Accounts

Figure 11-5. Appropriation Ordinance

Figure 11-6. Example of PeopleSoft Entries

Figure 11-7. Commercial Paper Debt Accounting Process Overview

Figure 11-8. Example of PeopleSoft Commercial Paper Tree Structure

Figure 11-9. Example of Commercial Paper Funds

Figure 11-10. Example of accounts used in Commercial Paper Activities

Figure 11-11. Example of Approved Resolution for Commercial paper

Figure 11-12. example of Appropriation Ordinance for Commercial Paper

Figure 11-13. Certificates of Participation Accounting Process Overview

Figure 11-14. Example of Certificates of Participation Fund Rollup- Project funds and Debt Service

Funds

Figure 11-15. Example of Certificates of Participation Funds

Figure 11-16. Example of Accounts Used in Certificates of Participation activities

Figure 11-17. Appropriation Ordinance for COP

Figure 11-18. Example of COP ACCOUNTING Entries in PeopleSoft

Figure 11-19. Certificates of Participation Long-Term Obligations – Governmental Activities

Figure 11-20. Changes in Long-Term Obligations – including COP Debt Service Principal & Interest .. 617

Figure 11-21. Revenue Bonds Accounting Flow Chart

Figure 11-22. Revenue Bonds Fund Roll-Up

Figure 11-23. Example OF Revenue Bonds Funds

Figure 11-24. Example of Accounts Used Revenue Bonds Activities

Figure 11-25. Example Revenue Bond Appropriation Ordinance

Figure 11-26. Example of PeopleSoft Revenue Bond Entries

Figure 11-27. Long-term Obligations – Business-Type Activities

Figure 11-28. Changes in Long-Term Obligations (Including Revenue Bonds Debt Service Principal) . 631

Figure 12-1. Project Costing Module Award Tab

Figure 12-2. Grant vs. Gift Determination Process

Figure 12-3. List of Subvention Revenues

Figure 12-4. Overview of Setting Up Grants & Gifts in PeopleSoft

Figure 12-5. Grant Sponsor Type & Guideline Fields

Figure 12-6. Proposal Page

Figure 12-7. Grants Process Flow

Figure 12-8. PeopleSoft Generate Award Screen

Figure 12-9. Grant Award Profile Page

Figure 12-10. Grant Award Types

Figure 12-11. Grant Terms Look-Up

Figure 12-12. Project Activities Page

Figure 12-13. Billing Plan Status Screen

Figure 12-14. Contract Billing SCreen

Figure 12-15. Accounting Distribution Screen

Figure 12-16. Contract Status set to "Active"

Figure 12-17. Billing & Revenue Plans Set to "Ready"

Figure 12-18. Reimbursement Grant Cycle

Figure 12-19. SFEC Form 3.217

Figure 12-20. Sample Gift of Property and Goods Acknowledgement Letter

Figure 12-21. Accept & Expend Review Process

Figure 12-22. Sample Grant Ordinance Cover Memo & Checklist

Figure 12-23. Sample Grant Ordinance Template

Figure 12-24. Sample Grant Information Form & Disability Checklist

Figure 12-25. Format for Including Position Information in Ordinance [UNDER REVISION]

Figure 12-26. Grant Amendment Screen

Figure 12-27. Memo Format for Budget Revision Notification to Board

Figure 12-28. PeopleSoft's Billing Process

Figure 12-29. Letter of Credit Summary Screen

Figure 12-30. Selection of Grants Document Type

Figure 12-31. Setting Up the Purchase Order's Expenditure Account

Figure 12-32. Indicating a Supplier as a Sub-Recipient in PeopleSoft

Figure 12-33. Identifying the Sub-Recipient on the Grant Project's Award Profile

Figure 12-34. Sample Allocated Charges Expenditure Account

Figure 12-35. "Closed" Contract Status in the Contract Module

Figure 12-36. "Closed" Status in the Project Costing Module

Figure 12-37. Federal Funds Exempt from Treasury Offset Program

Figure 12-38. City & County of San Francisco W-9

Figure 12-39. Treasury Offset Program Notification Letter

Figure 12-40. Sample SAM Offset E-Mail

Figure 14-1. Emergency Supplier Check Request Form

Figure 14-2. Disaster Project Types in PeopleSoft

Figure 14-3. SF Prepared Intranet Page

Figure 16-1. Project Costing Hierarchy

Figure 16-2. Project Set-Up in Project Costing Module

Figure 16-3. Interactions Across Modules Supporting PeopleSoft Project Costing

Figure 16-4. PeopleSoft Table Maintenance Form for Setting Up a Project & Activities

Figure 16-5. Two Authority 2’s Set Up Under Authority 1 Code “10000”

Figure 16-6. Work Breakdown Structure Screens for Capital & Technology Projects

Figure 16-7. Project Costing vs. Expenditure-Related PeopleSoft Modules

Figure 16-8. Project Costing Revenues in Relation to PeopleSoft Modules

Figure 17-1. PeopleSoft Allocation Process

Figure 17-2. LDS Allocation Summary & Example

Figure 17-3. PUC Allocation Summary & Example

Figure 17-4. DTIS Allocation Summary & Example

Figure 17-5. Carbon Offset Allocation Summary & Example

Figure 17-6. Labor Abatement Authorization Form

Figure 17-7. Attachment to Labor Abatement Form

1 | OVERVIEW

1.1 | Purpose of this Document

This Controller’s Office Accounting Policies & Procedures is established by the Office of the Controller, Accounting Operations and Supplier Division (AOSD) to provide general guidelines to City departments on how to properly process accounting transactions. Departments can use this document when creating the more specific and detailed policies and procedures required for their operations. All department accounting guidelines must be submitted to AOSD for review through the annual internal control questionnaire (ICQ) process. All policy exception requests must be approved by the Director of AOSD or designee.

1.2 | Roles and Responsibilities

This policy and procedure manual is an important reference for department administrators, and it is intended to be supplemented by documents issued by other City control entities, including but not limited to the following:

▪ AOSD: Accounting Operations and Supplier Division (https://sf.gov/departments/controllers-office)

AOSD is responsible for ensuring that the City is in compliance with generally accepted accounting principles (GAAP) and standards (GAAS), applicable pronouncements established by

Governmental Accounting Standards Board (GASB) and by Financial Accounting Standards Board

(FASB), and internal control policies. The AOSD acts as the City’s main coordinator and liaison with auditors and the City's contracted independent Certified Public Accountant (CPA).

AOSD’s primary mission is to oversee the financial activities of the City. The division certifies contracts, pays vendors, approves personnel requisitions and reviews, monitors, controls, and projects department expenditures on a continuous basis to assess overall fiscal condition. The division assists departments to achieve fiscal compliance, accuracy, timeliness and meaningfulness for the resulting financial information. The division is also responsible for