Systems and Procedures
A Division of The Office of Budget and Finance
A Division of The Office of Budget and Finance
For budgetary purposes, the State College Regional Airport utilizes Airport Operations, fund number 1120000012 to include various cost centers including 6536810000 through 6536810004. The activity booked to these cost centers includes hangar and tie-down rentals, fuel and oil sales, aircraft maintenance, spare parts inventory, landing fees, maintenance of runway, etc.
Gallons of fuel pumped to, and any oil placed in, Aircraft are recorded on Fuel Delivery Tickets (Exhibit "A"). All information is completed by Line Service Employees on duty for the day. The ticket(s) is/are forwarded to the front desk Customer Service Representative for billing purposes to customers. Each evening, fuel is closed out and a daily fuel inventory sheet is prepared comparing fuel truck inventory to sales. The daily comparison of sales and inventory is reviewed the next day by the Accounting Manager or by the Accounting Assistant.
Daily, the Customer Service Representative or Accounting Staff posts the usage number to the appropriate fuel inventory sheets. Usage sheets are shared with the Airlines generally weekly and mid-month or as often as requested.
A daily sales file is maintained by those working at the front desk throughout the day and that file includes all Point-of-Sale (POS) invoices, check payment collections, and our fuel inventory reconciliation to include all fuel tickets. A Journal Entry Upload Template is prepared at least once monthly to upload sales to the System for Integrated Management, Budget, and Accounting (SIMBA) with an offset to Accounts Receivable, Acct #13010200 Accounts Receivable External Systems.
The hangar and tie-down space is rented on a monthly or long-term lease basis. Customers are required to sign a Hangar Use Agreement (Exhibit "B") and Lease Amendment for Airport Security Matters (Exhibit "C") or an Aircraft Tie-Down Space Agreement (Exhibit "D"). The Assistant Treasurer signs the agreement(s) for the University.
The customer is given a copy, and the original is held electronically by the Airport Accounting Staff. These serve as support for monthly billings.
Transactions for credit sales are processed through the airplane fuel supplier HUB system with copies of all invoices generated filed in a daily support file.
There are several on account sales billed at month-end via TotalFBO only to include airline entries and air cargo transactions. "TotalFBO," is an industry specific accounting software, and is installed for the State College Regional Airport operation. The system is set up to capture the assorted services provided by the airport such as fueling, parking & landing, line services, aircraft maintenance, hangar rental, etc. The system is also used to track receivable balances.
All checks must be payable to "The Pennsylvania State University" and immediately restrictively endorsed per University Policy FN01 Cash Revenues. Collection for checks returned by banks is handled in accordance with Procedure FN2002 Processing Returned Checks.
Two copies of all invoices are printed from the Airport’s POS Airplane Fuel Supplier HUB system. One goes to the customer and the other is filed in the daily file.
Refer to "Electronic Funds Transfer/Point of Sale" regarding the processing of transactions through the POS system.
As checks are received for sales, the payments are recorded in the TotalFBO system by the Airport’s Customer Service Reps. These checks are deposited by the Accounting Assistant. The Daily Cash Count worksheet (Exhibit "E") is prepared daily to manually record check receipts.
Invoices from the Airplane Fuel Supplier HUB are entered into the TotalFBO system. The invoice will have a detailed record of service performed, fuel quantity sold, applicable sales taxes, and payment amount. If the payment is for an open account, the transaction is recorded in the system as payment on account and is applied to customer's outstanding balance.
A "Sales Receipt Report" (Exhibit "F") and a "Closed Credit Card Batch Report" (Exhibit "G") from TotalFBO are ran each night or the next day to show collections for the day. Sales entered TotalFBO are compared with those that have settled per the Airplane Fuel Supplier HUB system. The customer's account balance will be automatically updated for any payment received for the day.
At the end of each month, the Accounting Assistant or Accounting Manager will post TotalFBO sales and related Account Receivable to SIMBA using a Journal Entry Upload Template.
The monthly sales summary report, cash receipts reports, and aging accounts receivable report are generated from the TotalFBO and are the basis for preparing the journal entry template.
Monthly, the Accounting Manager reconciles the closing accounts receivable balance reported from TotalFBO to the General Ledger Airport Accounts Receivable Control, Account. In addition, sales per TotalFBO are reconciled to SIMBA Revenue. Any differences are resolved.
At the end of each fiscal year, the Airport is required to prepare an Accounts Aging Report recording all unpaid accounts in the Airport Accounts Receivable file by the number of months they are outstanding. The format and supporting documents for this annual filing is requested by Financial Reporting. One copy of the Accounts Aging Report is sent to the Accounting Manager of Financial Reporting, and another is retained by the Airport for reference.
The Accounting Manager will provide the aging accounts receivable report from TotalFBO at the end of each month. Copies of the report are sent to Airport Director, A&BS Associate Vice President, and the Financial Officer for review and included with support for the monthly sales via email.
Overdue accounts are noted, and reminder emails are sent to specific customers.
The airport has arranged for scheduled pick up by A&BS personnel and Security Agency to transport the deposits to the bank on an as needed basis. For further details regarding credit card sales, refer to the section, Electronic Funds Transfer/Point of Sales.
A Journal Entry for Incoming Funds (formerly Cash Deposit Journal Entry) is processed to record deposits for Airport related transactions with this function being completed by the Accounting Assistant or Accounting Manager. Various reports from our TotalFBO accounting software are utilized to confirm the total amount of checks received for deposit.
The total amount of the checks is credited to Accounts Receivable Account Number 13010200 Accounts Receivable External Systems, Fund 1120000012, Business Area 6530.
All fuel sales will be made only for accepted credit cards, or approved credit customers. The only exception is a month-end invoice for fuel to Geisinger Life Flight for their fuel purchases. It is more efficient to bill this customer once monthly than daily.
All credit card sales slips must be signed by the customer when the pilot is present.
Only customers who have aircraft based at State College Regional Airport, or who have been approved, are allowed to have an open charge account. This applies only to hangar rent and maintenance shop invoicing.
All other sales (such as pilot supplies, maintenance on transient aircraft, etc.) are made on a credit card basis only, unless otherwise approved by the Airport Director.
Monthly, the Airport Director reviews the accounts receivable for delinquent and slow paying accounts.
Any account not paid in full within 60 days of initial billings is contacted in writing stating that no additional service will be provided until such balance is paid in full.
Any account not paid in full within 90 days, or the customer is not making consistent payment on account, is contacted in writing stating that the account is being turned over to a collection agency and that no additional service will be provided.
Monthly, the accounts receivable results are shared with the Financial Officer who reviews the accounts receivable file to determine the status of all accounts, consults with the Airport Director for other pertinent information, and reports such findings to the Associate Vice President for Auxiliary and Business Services.
To grant credit to any other customer, authorization must be obtained from the Associate Vice President for Auxiliary and Business Services.
If it becomes necessary to write-off a delinquent receivable (one-year or older), approval must be received from the Associate Vice President for Auxiliary and Business Services. The approval memo is placed in the receivable file authorizing any write-offs.
Future service will be denied to any business or individual who has caused a monetary loss to the University. Repayment of the amount(s) written off will reinstate services to the party involved.
Most of the repair parts are either in stock or purchased via Penn State Purchase Order or Purchasing Card. As necessary, repair part purchases are requested via Purchase Orders of which are completed by the Accounting Manager or Accounting Assistant on behalf of the Repair Station.
The Office of Central Procurement will place the order with the supplier using a Penn State Purchase Order.
The parts are received by the Repair Station Staff. If items were purchased against a Purchase Order, the Manager will notify the Airport Accounting Staff who will confirm receipt which will generate payment to the supplier.
The Manager will verify the supplier invoices against the packing slip and Purchase Order Form for quantity and pricing and will record the item received in TotalFBO inventory module.
All copies of the invoices, except one retained for the Airport files, are sent to the Office of Central Procurement when request for payment is made against the Purchase Order.
The shop order module in TotalFBO is used to track and bill the maintenance repair work. This module is integrated with the inventory module so parts cost can be assigned to a specific shop order. The Labor rate and the consumable supplies fee are predefined in the module and are used to calculate labor cost and consumable cost for a specific shop order. The shop order will be closed upon completion of the repair services. A billing statement is generated and forwarded to the customer for payment.
When repair, maintenance, or inspection work is requested, a shop order is created in TotalFBO with customer contact information, aircraft type, aircraft number, aircraft serial number, and descriptions of services requested.
The Mechanic will use the Discrepancy Sheet (Exhibit "H") to log the hours, problems discovered, and action taken for a repair order. At the completion of the repair order, the Mechanic will forward the Discrepancy Sheet to the Manager to review.
The Manager will retrieve the Parts Sign Out Sheet (Exhibit "I") from the stock room for the specific repair order. Both the Parts Sign Out Sheet and Discrepancy Sheet information are entered into TotalFBO for the specific shop order. After the update, the Manager will print a copy of the shop order and forward the copy along with supporting documents to a Customer Service Representative, Accounting Assistant, or Accounting Manager for close-out of the Shop Order. The person closing the shop order will print the final invoice. All paper documents submitted by the Manager are returned to the Manager for filing.
Payment is recorded in the Airplane Fuel Supplier HUB and TotalFBO as appropriate. A copy of the shop order and invoice reflecting payment is given to the customer. The invoice/shop order are the basis for input to the Airport Sales/Accounts Receivable Accounting System as defined above.
The State College Regional Airport uses the inventory module in TotalFBO to track major spare parts used for aircraft maintenance and specifically ordered parts for aircraft. The inventory valuation methods are FIFO (first in, first out basis). Inventory records are not kept on miscellaneous items of minimal value which are routinely used in maintenance work, and which are not critical to maintenance work.
The parts inventory is in the stock room of the maintenance hangar at the Airport. The stockroom is a secure area with limited access. Any item taken from the stock room would need to be recorded on the "Parts Sign Out Sheet." Any item received by the stock room is marked with PO number for FAA inspection. Special order parts are in a specific section and identified with a parts tag. Miscellaneous items are in a specific section. To assure a continuous supply of these items, the location (bin, shelf) is identified with a parts tag that is marked with a double green stripe. The inventory system notes the description of the part, location in inventory and other data considered necessary by Airport personnel.
The Manager of the Aircraft Repair Station is responsible for maintaining the inventory system. The inventory system is posted when parts and invoices are received, listing the date received, units received, and unit cost. The inventory system is also posted when an item is issued to a Shop Order. The units balance system is also posted when an item is issued to a Shop Order. The unit’s balance is updated each time an entry is posted when parts are either received or issued.
The procedure over the last few fiscal years is to define roughly 33% of inventory based on value and have those units counted. The list is generated by the Accounting Manager from TotalFBO with counts done by the Aircraft Repair Station Manager or by a Mechanic. This process is started anytime from March through June.
The inventory quantity is adjusted with the actual physical count quantity and variance report can be generated from TotalFBO. This is done by the Accounting Manager.
The Financial Officer is responsible for reviewing variance report with the Associated Vice President for Auxiliary and Business Services. If the variance is considered material, additional steps must be taken to retain control of the inventory.
Prior to and after delivery by the fuel supplier of aircraft fuel to the above ground tanks, and when aircraft fuel is transferred from the above ground tanks to trucks, the Line Service Employee prints the Veeder Root meter reading (Exhibit "J"). In addition to the above, the Veeder Root meter readings are also printed every evening. All Veeder Root meter reading printouts are forwarded to the Front Desk Customer Representative or the Accounting Staff.
When the trucks deliver aircraft fuel to aircraft, the quantity is recorded on a three-part delivery ticket (Exhibit "A"). The filament (original) may be given to the customer or filed with various accounting documents. The yellow (middle copy) and the cardstock (copy) is filed sequentially in the airport business office daily.
At the end of each business day and typically between 9-10 pm, a line service employee completes the daily fuel truck sheets which involve inventory sales for the day in gallons. The line service employee dates, initials, and turns the form over to the Customer Service Representative. The Customer Service Representative will complete a daily fuel reconciliation for both types of fuel which compares gallons pumped per truck inventory to gallons sold. See these daily forms (Exhibit "H" and Exhibit "I"). This is typically completed by 10:30 PM EST and if not, it is completed the next morning. This reconciliation is reviewed by Accounting Staff daily.
These daily fuel reconciliations serve as support for ordering fuel for PSU and on behalf of the Airlines and the current airplane fuel supplier. The Accounting Manager monitors fuel daily and does all ordering.
This daily reconciliation also serves as the basis for the accrual done monthly by the Accounting Manager to update fuel asset value. A final adjustment is performed at year-end by the Accounting Manager. Various required fuel support is sent to the Accounting Manager of Financial Reporting at year end.
The Airport Director supervises the Monthly Physical Airport Inventory and is available for periodic reviews and consultation on fuel ordering.
Due to limited sales, oil is not inventoried. Oil is ordered by the Repair Station Manager and paid for using a check payment or Penn State purchasing card.
Gasoline pumps of auto gas and diesel fuel are located at the Airport for use in Airport vehicles/equipment owned by Penn State University and by the Airlines. The gasoline pumps are secured by a keyed digital padlock. An employee pass code must be entered to pump fuel. All sales are also downloaded by Airport Accounting monthly to complete billing monthly.
When the storage tank is filled, the gallons delivered are recorded under the "delivered" entry on paper inventory sheets for both types of fuel. After recording the gallons delivered, the Line Service Personnel forward the delivery tickets to the Accounting Staff. Accounting Staff will watch for invoicing by the fuel vendor and will prepare an After the Fact Purchase Order to pay for fuel.
As gas is pumped to Airport vehicles, Line Service Personnel enter the date; gallons pumped, equipment serviced, and initial the appropriate form.
Monthly, the Accounting Staff reconciles ground fuel The opening remaining gallons are verified to the previous month report's closing remaining balance. The gallons pumped for the month are totaled. The opening remaining, plus delivered minus pumped total must equal the remaining gallons The reconciliation and billing is completed by the Accounting Assistant and reviewed by the Accounting Manager.
A contract has been entered via a PSU Purchase Order, between Avfuel Corporation, 47 W. Ellsworth Rd., Ann Arbor, Ml 48108, and the Pennsylvania State University for payment of the State College Regional Airport's purchases of Avfuel products, receiving payments, and processing the State College Regional Airport's credit card sales. This new system is electronic and effectively reduces the workload of salespeople as well as expediting the authorization and settlement of sales and purchases. The term of this contract is concurrent with the term of the "Aviation Dealer Products Sales Agreement." The terms and conditions for renewal, cancellations, etc., are detailed in the "Aviation Dealer Products Sales Agreement."
There are two aspects to the contract: the Electronic Funds Transfer (EFT) system via Automated Clearing House (ACH), and the Point of Sale (POS) system.
According to the EFT system, the State College Regional Airport purchases Avfuel products and informs Central Procurement to make a payment via ACH to Avfuel. A Purchasing Order is completed after the fact for all fuel loads delivered. Payments are made per delivery, which is once or twice per month. The State College Regional Airport predominantly purchases aviation gasoline (Avgas 100LL) and jet fuel (Jet A) from Avfuel.
Avfuel processes and reimburses the State College Regional Airport electronically every 3-4 business days for all customer credit card purchases via ACH. Currently, Avfuel accepts AVCARD, VISA, MasterCard, Discover, American Express, Multi-Service credit cards and the Government Aircard. In addition, Avfuel processes and reimburses weekly for all Contract Fuel card sales.
Purchase Orders are created "after the fact" by Airport Accounting staff for all fuel purchases. Once fuel is delivered and the quantity of delivery confirmed, the invoice is sent Central Procurement for payment.
The State College Regional Airport receives Airplane Fuel products per the "Aviation Dealer Procedures Sales Agreement" established between the Airplane Fuel Supplier and the State College Regional Airport.
All fuel received from supplier at the State College Regional Airport are verified to a Trucking Slip, which is received with the shipment, and indicates the delivery date, the type of product delivered, the quantity delivered, and Supplier's Invoice number.
The State College Regional Airport continues to maintain an Inventory Control System for all purchases received. A Jet-A Inventory and Reconciliation (Exhibit "K") and AVGAS 100LL Daily Fuel Inventory and Reconciliation (Exhibit "L") file issued to record the receipt of fuel and that report is compared to the fuel received per TotalFBO.
Supplier prepares an invoice, which states the date the invoice is prepared, and includes the date the fuel was delivered, invoice number, and net amount due.
Supplier emails the invoice to the State College Regional Airport.
Once verified, the Trucking Slip is matched to the emailed Invoice and a complete package (Trucking Slip and a copy of the emailed Invoice) for each purchase is retained by the State College Regional Airport as an audit trail.
Any adjustments to the invoice are communicated immediately to the full-time Avfuel customer service/marketing representative assigned to the State College Regional Airport. All adjustments to correct the invoicing are made by the Supplier representative through a Supplier Credit Slip and documented for review by the Airport Director.
After the State College Regional Airport compares the total amount on the Invoice to the date, quantity, and type of fuel on the Trucking Slip, an after-the-fact requisition is entered into SIMBA and the Supplier is paid.
The State College Regional Airport receives a monthly statement from the supplier which details the invoices billed, invoices paid, and invoices outstanding for the month. The State College Regional Airport reconciles this statement to their records.
In order for the State College Regional Airport to accept various credit cards for sales activity at the State College Regional Airport, several general provisions must be followed:
Refer to Policy FN07 Electronic Payments: Credit Cards for the University's policy statement regarding credit card sales.
This section establishes the University's fiscal controls necessary to report to the University and reconcile the credit card activity. In addition, refer to the Avfuel Card Guide (Aviation), and the Terminal Operator's Manual, both available from Avfuel, which provide detailed instructions on using the POS system.
All credit card transactions are reported to the University via a Journal Entry Template upload.
Discount fees and Avtrip Points ("processing fees") are derived from the Credit Card Remittance Report (Exhibit "M"), emailed from Avfuel to the State College Regional Airport. The fees are to include credit card fees and Avtrip point fees and are reported when the ACH is entered to SIMBA by the Customer Service Representative. The SIMBA general ledger account used is 52575500 Credit Card Fees as well as Cost Center 6536810001. Fees are reported on the Journal Entry for Incoming Funds (formerly the Cash Deposit Journal Entry).
Credit card fees are also derived from the daily ACH reports related to Avfuel CF sales. These fees are accumulated and booked weekly when Avfuel emails the ACH Payment Report (Exhibit "N"). The same SIMBA account and cost center details are utilized as noted above.
It is the responsibility of the State College Regional Airport to assure that all sales are recorded on the University’s accounting systems. All Reported income (or reductions of income) must be reconciled by comparing TotalFBO via the Monthly Sales and Receivable report and compared to Sales per SIMBA. It is especially important for reconciliation purposes that credit card transactions processed through the POA terminal balance with the credit card transactions reposted via a Journal Entry for Incoming Funds (formerly Cash Deposit Journal Entry). To facilitate such reconciliation, it is imperative that clean processing time frames be observed and that these time frames are synchronized, dollar-wise, between both reposting systems.
Airport staff reconciles daily sales for all bank and aviation cards excluding contract fuel sales through nightly batch settlements. Contract fuel sales are reconciled as reports are received each business day from Avfuel. A final reconciliation is done when the ACH is submitted weekly.
Any voided sales slips must be retained to maintain proper sequencing of transaction numbers and maintain accountability.
Processing errors do happen despite numerous checks and balances. The Airport may be notified by the pilot or by the airplane fuel supplier.
When errors are discovered, Airport Accounting staff collaborate with the pilot and/or the airplane fuel supplier and corrections are made in a timely manner.
Financial Reporting is responsible for reconciling the credit card bank accounts. Financial Reporting will work with the Airport Accounting staff if there are issues. In addition, the Accounts Receivable reconciliation will flag any issues between ACH payments and the University.
Whenever the State College Regional Airport receives notice from a cardholder of a claim involving a credit card transaction, the State College Regional Airport must maintain a written record of the cardholder's name and address, the account number, the date, and time the cardholder asserted the claim, the nature of the claim, and the action that the State College Regional Airport took to resolve the dispute.
Handling of cardholder complaints/disputes must comply with the Fair Credit Billing Act. Contact the airplane fuel supplier with any questions regarding the handling of cardholder complaints.
Two criteria exist for the repossession of credit cards: (1) if the Authorization Center instructs the salesperson to repossess the card; or (2) if the card is left by the customer. See the Avfuel Card Guide Aviation for further details on repossessing credit cards.
See Procedure FN2002 Processing Returned Checks for complete details on this business process.
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for collaborating with Internal Audit when audits are being performed in the administrative area. Audits relating to sponsored activities or other audits performed by external auditors may also be performed. The Financial Officer would also be responsible for collaborating with the external auditor and/or a central university office related to these procedures.
University Records retention must be managed in accordance with Policy AD35 University Archives and Records Management, and retention schedules approved by the Records Management Advisory Committee, the Office of General Counsel, and Senior Vice President and Chief of Staff. These records retention schedules are derived from - or based upon - federal, state, and local statutes or regulations, University Policy, industry standards, and business needs. All University Records must be maintained in such a manner to provide ease of access, establish a suitable audit trail for all transactions, and to be reviewed prior to disposition.
University Records and Transitory/Disposable Record are defined below. See Policy AD35, Definition of Terms for additional information.
Upon completion of the retention period, University Records must be disposed of via secure destruction or transfer to University Archives, unless an exception to the disposition process set forth below applies. If the disposition method for University Records states "Review by Archives" on the records retention schedule, the employees responsible for those records should consult the University Archivist for a final determination of disposition. For University Records that must be securely destroyed, units may arrange for shredding services by either contacting the Blue/White Shredding Program or the Inactive Records Center.
Exceptions to the disposition process are as follows:
To safeguard the privacy of individuals, records that contain Personally Identifiable Information (PII), as defined in University Policy AD53 Privacy Policy, or student records, as defined in University Policy AD11 Confidentiality of Student Records, must be destroyed beyond recovery. For additional information regarding privacy and the protection of an individual's personal information, see Policy AD53 Privacy Policy.
Additional questions may be directed to the Office of Records Management.
For questions or additional details, please contact the Director of the State College Regional Airport.
To request changes to this procedure, please contact the Office of Systems & Procedures by submitting a GURU Technical Support Request form.
July 1, 2024