For budgetary purposes, the University Park Airport is divided into two areas. The areas and budget numbers are: Airport Operations, budget number 08-040-20, which covers hangar and tie-down rentals, fuel and oil sales, aircraft maintenance, spare parts inventory, landing fees, maintenance of runway, etc., and University Park Airport, Special Aircraft budget number 06-033-54, which covers charter flight service utilizing University-owned aircraft or outside contracted charter service, (refer to the section "Charter Flights" for further detail).
Usage rates for University aircraft are approved by the University Corporate Controller.
Gallons of fuel pumped to, and oil place in, Aircraft is recorded on Print-O-Matic Delivery Tickets (Exhibit "1A"). All information is completed by a Line Service Employee. The ticket(s) is/are forward to the Staff Assistant VI.
Daily, the Staff Assistant VI posts the usage number to the appropriate fuel and oil perpetual inventory sheets (Exhibits B, C, and D). The Staff Assistant VI forwards the ticket(s) applicable to the Staff Aircraft to the Staff Assistant, and retains and files all other ticket(s).
The Staff Assistant VIII maintains separate folders for each aircraft, and files the Print-O-Matic delivery documents in the appropriate folder after verifying the usage amounts. At the end of each month, the Print-O-Matic delivery documents are summarized, priced, and an IDCC is prepared charging the University Airport budget, with credit going to the Airport Operations budget.
Hangar and tie-down space is rented typically on a monthly basis. Long-term leases are an option, too. Customers are required to sign a Hangar Use Agreement (Exhibit "1B"), or an Aircraft Tie-Down Space Agreement (Exhibit "1C"). The Associate Treasurer signs the agreement for the University. The customer is given a copy and the original is held by the Staff Assistant VI and is used to initiate monthly billings.
Client Request Report (Exhibit "1D") is created in TotalFBO for advanced service request to better meet customer needs. The form is used to manage the expected arrivals and departures, special customers requests for rental car, hotel reservation and food services. Invoice can be generated from the concierge request form. The TotalFBO application is an industry specific software that the airport has installed to manage its various operations.
Change Fund - The Staff Assistant VIII is the custodian of the $200 change fund used in conducting cash transactions at the airport. The change fund is the responsibility of a single employee at any time during operation of the airport. Transfer of accountability for the change fund is documented by signing the appropriate column on the Daily Cash Count form (discussed later).
Petty Cash Fund - The Staff Assistant VIII is also custodian of a $200 petty cash fund, which is administered in accordance with University Policy FN04 - Petty Cash and Change Funds.
All transactions for cash and/or credit sales are processed through the Auto-graphic Register or the POS system and are documented by the use of an Auto-graphic Register Receipt (Exhibit "1E"), or the appropriate credit card Sales Slips.
NOTE: The Auto-graphic Register Receipt is the sequentially numbered receipt used at the University Park Airport.
All checks must be payable to "The Pennsylvania State University" and immediately restrictively endorsed per University Policy FN01 - Processing Cash Revenues. Collection for checks returned by banks is handle in accordance with Procedure CR2002 - Processing Returned Checks
The original (white) Auto-graphic Register Receipt is given to the customer. For cash sales, the yellow copy (1st carbon) is attached to the Daily Cash Count form, which documents the ROCR document number. If the transaction deals with an approved charge sale or payment of a previous charge, the yellow copy is filed in the customer's account receivable folder. The pink copy (2nd carbon) is filed numerically.
Refer to "Electronic Funds Transfer/Point of Sale" regarding the processing of transactions through the POS system.
Daily Cash Count - Change in Employees at 4:00 P.M. - At 3:30 p.m., the Staff Assistant VI removes all cash, except the $200 change fund, and checks from the cash drawer and completes a Daily Cash Count form (Exhibit "1F"). The Staff Assistant VI enters the date, denominations of cash and individual check amounts, adds the numbers and enters the totals. In addition, the last form number of each of the following is listed on the appropriate line of the Daily Cash Count form: AvCard Sales Slip, Auto-graphic Register Receipt, and POS transaction.
The Staff Assistant VI totals the individual Auto-graphic Register Receipts identified as "cash sales" or "received on account," which must agree with the "Total Cash and Checks" shown on the Daily Cash Count form. If the totals are out of balance, an explanation must be attached.
The Staff Assistant VI initials the Daily Cash Count form indicating that the cash and detail supporting the Auto-graphic Register Receipts are in agreement, and records the time. The Staff Assistant VI places the cash, checks, AvCard Sales Slips, Auto-graphic Register Receipts, and POS Slips in a secured bag which is placed in the airport safe.
The Line Service Employee verifies the $200 change fund and initials the Employee Daily Cash Count form beside the Staff Assistant Vi's initials indicating acceptance of responsibility for the change fund.
Daily Cash Count - Closing 11:00 P.M. - The Line Service Employee performs the cash count functions and completed the Daily Cash Count form following the procedures detailed for the Staff Assistant VI in the previous section. The $200 change fund remains in the cash drawer, which is placed in the airport safe. The nightly balancing data, check, cash and Daily Cash Count form are placed in a secured deposit bag and placed in the airport safe.
Daily Cash Count - 7:00 A.M. - The Staff Assistant VI removes the previous day's secured deposit bags (4:00 p.m. and 11:00 p.m.) and the cash drawer, which contains the change fund, from the airport safe. The Staff Assistant VI verifies the 11:00 p.m. closing numbers by counting the monies and adding the Auto-graphic Register Receipts for cash sales and amounts received on account; verifies the beginning numbers of the appropriate form by referencing the last number of each form used listed on the Daily Cash Count form and the first unused blank form; counts the change fund; and initials the Daily Cash Count form beside the initials of the employee who closed out at 11:00 p.m.
The Staff Assistant VI attaches the yellow copy of the Auto-graphic Register Receipts covering cash sales, and appropriate credit card back-up, to the Daily Cash Count form and files it in a pending file.
Weekends and Holiday Periods - If supervisory or clerical staff is not on duty, Line Service Personnel complete a Daily Cash Count form. The procedures detailed for the Staff Assistant VI in this section under the heading, "Daily Cash Count - Change in Employees at 4:00 p.m." are followed. The Daily Cash Count form, supporting documents, cash and checks are placed in a secured deposit bag, which is placed in the airport safe. When secured deposit bags are removed from the safe, the Staff Assistant VI follows the procedures detailed in this section under the heading, "Daily Cash Count - 7:00 a.m."
The airport has arranged for scheduled pick up by University Police to transport the deposits to the bank on a week day basis. The Staff Assistant VI signs the Originating Office Cash Transfer Log (Exhibit "1G"), which documents the transfer of accountability for the secured deposit bag. This log is retained by the Staff Assistant VI. For further details regarding credit card sales, refer to the section, Electronic Funds Transfer/Point of Sales.
The Staff Assistant VI prepares a ROCR in accordance with the instructions available in the IBIS document titled "Report of Cash Receipts," for cash and checks received. The total amount of cash deposited is entered, which is the total of the "Total Cash" lines posted on the Daily Cash Count Forms. The number of checks and the total of the check amounts are entered which agrees with the "Total Checks" line totals on the Daily Cash Count form. The total of the Cash and Checks is credited to the Accounts Receivable - University Park Airport, Account Number 0230. Any shortage or overage is charged or credited to Account Number 0752.
The Staff Assistant VI prepares a separate ROCR for all credit card sales (POS and AvCard), with credit to Accounts Receivable - University Park Airport, Account Number 0230. The current discount is calculated and shown in parenthesis, charged to Department 08-040-20, Fund 1001, and Object Class 495.
"TotalFBO," an industry specific accounting software, is installed for the University Park Airport operation. The system is set up to capture the various services provided by the airport such as fueling, parking & landing, line services, aircraft maintenance, hangar rental, catering, etc. The system is also used to track receivable balances.
AvCard Credit Sales Slips - The Staff Assistant VI arranges all AvCard Credit Sales Slips in numerical order and accounts for each slip. An invoice is created in TotalFBO for each AvCard credit sales slip. The invoice will detail record of service performed, fuel quantity sold, applicable sales taxes, and credit card 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.
Auto-graphic Register Receipts - The Staff Assistant VI arranges the Auto-graphic Register Receipts in numerical order and accounts for each receipt. An invoice is created in TotalFBO for each auto-graphic register receipt. The invoice will have detail 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.
After credit sales slips and auto-graphic register receipts are entered in TotalFBO, the Staff Assistant VI can run the "Sales Receipts Report" for the day. This summary report is used to balance with the cash collection and credit card settlement for the day. Customer's charge account balance will be automatically updated for any payment received for the day.
At the end of each month, the Staff Assistant VI will notify the Business & Finance department when the daily sales postings are completed. The Business & Finance Department will pull the reports from TotalFBO to prepare monthly journal voucher request.
The airport sales, accounts receivable and sales taxes payable are recorded once a month in IBIS. 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 voucher. Adjustments are made to these reports for any IDCC, ROCR or Journal Voucher that are posted in IBIS on the individual transaction basis.
The Business and Finance Department reconciles the closing accounts receivable balance reported from TotalFBO to the General Ledger Airport Accounts Receivable Control, Account 0230. Differences are resolved with the Staff Assistant.
IDCCs - At month's end, the Staff Assistant VIII prepared IDCCs, crediting the Airport Operations Budget, 08-040-20, and charging the University Airport Budget 06-033-54, for fuel, oil, labor, parts, line service, office rental, hangar rental, and miscellaneous charges. Documentation for these charges, submitted by Line Service Personnel, is accumulated by the Staff Assistant.
Yearly Aging of Accounts Receivable - At the end of each fiscal year, the Airport is required to prepare an Accounts Aging Report (Exhibit "1H"), recording all unpaid accounts in the Airport Accounts Receivable file by the number of months they are outstanding. One copy of the Accounts Aging Report is sent to the University Auditor and another is retained by the Airport for reference.
The Staff Assistant VI will print the aging accounts receivable report from TotalFBO at the end of each month. Copies of the report are sent to the Staff Assistant VIII and the Airport Director for review. Overdue accounts are noted and reminder letters sent to the specific customers.
- All fuel sales will be made only for cash; accepted credit cards, or approved credit customers:
- All credit card sales slips must be signed by the customer.
- Only customers who have aircraft based at University Park Airport, or who have been approved are allowed to have an open charge account.
- All maintenance Work Order forms must be signed by the customer prior to work beginning, or prior to the time the aircraft is released to the customer after the work has been completed.
- All other sales (such as pilot supplies, maintenance on transient aircraft, etc.) are made on a cash or 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 30 days of initial billing is contacted in writing in an attempt to collect the balance due.
- 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.
Quarterly, the Assistant to the Financial Officer 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.
In addition to the foregoing, authorization must be obtained from the Associate Vice President for Auxiliary and Business Services in order to grant credit to any other customer.
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 financial loss to the University. Repayment of the amount(s) written off will reinstate services to the party involved.
Purchases are requested by initiating a three part internal Purchase Order Form (Exhibit "2A"). Standing Orders are utilized for a significant portion of aircraft maintenance items. Releases on standing orders for aircraft maintenance items are initiated by the Manager of the Aircraft Repair Station on the white copy of the Purchase Order Form. Standing Orders are also used to purchase operating supplies, consumables (such as gas and oil), and other items. Releases for these are verbally communicated to the Staff Assistant VIII.
The Manager for the Aircraft Repair Station will place the order with vendor using either standing order or purchasing card, If a new Penn State Purchase Order is required to be set up, the Manager will forward a copy of the Purchase Order Form to Staff Assistant. The yellow copy of the Purchase Order From is forwarded to stock room clerk.
When the Staff Assistant VIII receives a copy of the Purchase Order Form, a Purchaser Order Form (PURC) is prepared and processed according to the instructions available in the IBIS document titled "Purchase Order (PURC)."
The parts are received by the stock room clerk and matched with the yellow copy of the Purchase Order Form. The packing slip is then forwarded to the Manager. The clerk must notify the mechanic for the receipt of parts. The part is released to the mechanic and recorded on the Purchase Order Control Form (Exhibit "2B") for repair work.
The Manager will verify the vendor invoices against the packing slip and Purchase Order Form for quantity and pricing and will record the item received in TotalFBO inventory module. The item will then be available to be assigned to a repair order. After verification, the white copy of the Purchase Order Form, the packing slip, and the vendor invoices are forwarded to the Staff Assistant VIII to process payment.
When material is received against a regular Purchase Order, the Receiving Report is pulled from the file, checked against the materials to assure correct shipment, and completed in accordance with instructions for Receiving Report. If the shipment represents only part of the order, a Partial Receiving Report is completed in accordance with instructions for Partial Receiving Report. Packing slips signed by receiving personnel, and copies of vendor invoices received from the vendor are placed in the Purchase Order file.
Receipt of materials against Standing Orders is noted on the Purchase Order Control Form. When the Staff Assistant receives copies of vendor invoices from the Manager for Aircraft Repair Station, he/she verifies receipt and completes a Partial Receiving Report, which is sent to Purchasing Services. Invoice copies are filed with the Purchase Order and the Purchase Order Control Form.
Vendor send invoices directly to the Airport due to the resale of items, therefore, the Procedure PC2007 - Pay Vendor Invoice Unless Notified Otherwise" is not applicable to the Airport's operations. The procedures detailed above apply except that all copies of the invoices, but the one retained for the Airport files, are sent with the Partial Receiving to Purchasing Services.
Charter flights are schedules after approval is received in accordance with University Travel Policy. The Chief Staff Pilot schedules and assigns all requests for charter flights for University personnel.
Charter flight service provided to any authorized University personnel is charged to the University Airport Budget (06-033-54).
When University aircraft are fully scheduled, charter flights are contracted through non-University charter flight services by the Chief Staff Pilot. The Airport establishes an annual Standing Order with each non-University charter company.
The Corporate Controller establishes the applicable method of payment (IDCC or JV) for the approved departments for charter flights.
For all charter flights, the Chief Staff Pilot completes the Charter Flight Information Form (Exhibit "3A"), which details charges for the charter flight. Additionally, for all charter flights on University owned aircraft, the Chief Staff Pilot completes a Flight Log (not exhibited).
Weekly, a Staff Pilot completes an Aircraft Charter Flights Weekly Report (Exhibit "3B"), which summarizes the charter flights. This report lists each flight and its details for the week. A Staff Pilot forwards this report, with all the Charter Flight Information forms attached, to the Staff Assistant VIII.
Monthly, the Staff Assistant VIII completes a Monthly Flight Cost Report (Exhibit "3C") for each University owned aircraft and for non-University owned aircraft. This report is forwarded to the Airport Director.
After the Airport Director reviews the documents, he/she forwards them to the Airport Staff Assistant VIII.
Weekly, the Staff Assistant VIII initiates a separate IDCC for each of the applicable departments. The IDCC document number is recorded on the Charter Flight Information Form. The documents are held in a pending file until credit is received on the monthly budget report, and then filed by date and aircraft.
When the method of payment is by Journal Voucher, the Airport Staff Assistant completes and forwards a Request for Journal Voucher for the month to the Corporate Controller. A Monthly Flight Cost Report (Exhibit "3C") for each University owned aircraft and for non-University owned aircraft is attached to the Request for Journal Voucher as supporting documents. A copy of the above documents are held at the Airport in a pending file until credit is received on the monthly budget report, and then files by date and aircraft.
On an exception basis, and at the request of the department (when an outside vendor is paying for the charter flight), the Staff Assistant VIII prepares an Airport Invoice (Exhibit "3D") detailing charter flight charges. Three copies of the invoices are made: one is sent to the applicable department, another is attached to the Charter Flight Information Form and files as stated above, and the other is forwarded to Chief Staff Pilot.
Vendor will send the invoice directly to Purchasing and fax a copy to Chief Staff Pilot. After verification for accuracy, the Chief Staff Pilot will forward the copy to the Staff Assistant VIII. The Staff Assistant VIII processes the vendor's (charter company's) Invoice for payment with a Partial Receiving Report against the standing Purchase Order.
The shop order module in TotalFBO is used to track and bill the maintenance repair work. This module is integrated withe 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 "4A") 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 "4B") 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 shop order and forward the copy along with supporting documents to the Staff Assistant for final review.
The Staff Assistant VIII will check the accuracy of the shop order entries to ensure correct parts and correct labor hours are entered by the Manager. The Staff Assistant VIII then closes the sop order in TotalFBO and prints the final invoice. All paper documents submitted by the Manager are returned to the Manager for filing.
The Shop Order covering University-owned aircraft is held until month end when an IDCC is prepared charging the University Airport budget for completed Work Orders and crediting the Airport Operations budget. The document reference number of the IDCC is recorded on the "Customer" copy of the Work Orders and filed.
When payment is by cash, check, or charged (Invoiced), an Auto-graphic Register Receipt is prepared, recording/billing outside customers for the amount listed on the Work Order. A copy of the shop order is attached to the original Auto-graphic Receipt, which is given to the customer. The Auto-graphic Register Receipt is the basis for input to the Airport Sales/Accounts Receivable Accounting System as defined in section one.
The University Park Airport uses the inventory module in TotalFBO to track major spare parts used for aircraft maintenance and specifically ordered parts for special aircraft. The inventory valuation methods is 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 located in the stock room of the main hangar at the Airport. The stock room is a secured 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 located in a specific section and identified with a parts tag (not exhibited). Miscellaneous items are located in a specific section. In order 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 units balance is updated each time an entry is posted when parts are either received or issued.
At the beginning of April or May of each year, the Manager for the Aircraft Report Station designates personnel responsible for taking a physical count of the spare parts inventory. Physical inventory count sheets are generated from TotalFBO.
Inventory personnel take the physical inventory in accordance with Personnel instructions detailed in the "University Park Airport-Inventory Procedures memo" (Exhibit "5A"). If the physical unit count and the unit count of the inventory system are different, a second count is required to confirm the quantity on hand.
The inventory quantity is adjusted with the actual physical count quantity and variance report can be generated from TotalFBO.
The Budget Accountant tests the physical inventory as specified in the instructions memo.
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 "6A"). In addition to the above, the Veeder Root meter readings are also printed every evening. All Veeder Root meter reading print-outs are forwarded to the Staff Assistant Vi.
When the trucks deliver aircraft fuel to aircraft, the quantity is recorded on a two-part Print-O-Matic delivery ticket (Exhibit "1A"). The filament (original) may be given to the customer or filed with various accounting documents. The cardstock (copy) is filed sequentially in the airport business office.
At the start of each business day, a line service employee enters the current meter readings from the truck on the Fuel Vehicle Verification Sheet (not exhibited). The line service employee dates, initials, and turns the form over to the Staff Assistant VI.
The Staff Assistant VI records the current meter reading from the Fuel Vehicle Verification Sheet onto the "Meter Readings" section of the Daily Jet Fuel Inventory Form (Exhibit "6B") and an Aviation Fuel Inventory Form (Exhibit "6C"). The Staff Assistant VI enters the previous meter reading in the "Meter Readings" sections and calculates the daily and month-to-date gallons pumped. The "Sales/Usage" section is completed from various source documents and the total daily and month-to-date gallons used is calculated. The usage vs. pumped variance is calculated for the daily and month-to-date numbers. The variance should be negligible; if not, variances are reconciled.
Accounting for the numeric sequence of Print-O-Matic delivery tickets, and verification of the gallons pumped on Print-O-Matic delivery tickets to accounting sales/usage documents, is one procedure to follow in reconciling variances. If irreconcilable, variances are called to the attention of the Airport Director.
The "Daily Perpetual Inventory" section is completed. Based upon the meter readings, the Staff Assistant VI and/or the Staff Assistant VIII order fuel from the supplier.
On the last day of each month, the fuel trucks are filled to capacity and the Veeder Root meter readings are taken of the above ground storage tanks, The gallons contained in the trucks and the meter readings are entered in the "Month Closing Physical Inventory" section of the applicable form, and are the final numbers for the current month.
The Airport Director supervises the Monthly Physical Airport Inventory.
At month end, the Staff Assistant VI calculates the daily perpetual inventory (as defined above), the total physical inventory, and completes the "Comparison of Closing Inventories" section of the Jet Fuel and Aviation Fuel Inventory forms. A copy of each monthly form which shows the comparison of the physical inventory to the perpetual inventory is given to the Airport Director for review and action if variances warrant.
All inventory forms reflecting the current month;s activity have the previous month's closing physical inventory listed as the current month's opening physical inventory in the "Daily Perpetual Inventory" section. Inventory forms are filed in date sequence by month and must be available for review by airport management.
The Airport Director forwards the fiscal year's final monthly report to the Associate Vice President for Auxiliary and Business Services.
Daily, the Staff Assistant posts numbers to the "Sales/Usage" section of the Oil Inventory Form (Exhibit "6D") from various source documents.
Line service personnel take the month-end physical inventory and report the Personnel numbers to the Staff Assistant. The inventory of oil in the maintenance area includes oil used on uncompleted work orders.
The the end of each month, the Staff Assistant VIII completes the "Monthly Inventory" section of the final Oil Inventory report for each month. The closing perpetual inventory is calculated, the closing physical inventory numbers are supplied by line service personnel, and the monthly variance perpetual to physical is calculated.
At the end of each month, the Staff Assistant VIII also completes the "Fiscal Year to Date Comparison" section of the final Oil Inventory report for each month. A copy of the month's final report is given to the Airport Director for review and action if variances warrant.
Oil Inventory reports are filed in date sequence by month, and are available for review by airport management.
The Airport Director supervises the monthly physical inventory.
The Line Service Employee, by being knowledgeable of the month-opening physical inventory, month-to-date receipts and, by referencing the most recent daily Oil Inventory report which reflects month to date usage, can, by inspection, inform the Supervisor, Airport Operations when oil should be ordered from suppliers.
The Airport Director forwards the fiscal year's final monthly report to the Associate Vice President for Auxiliary and Business Services.
Gasoline pumps of auto gas and diesel fuel are located at the Airport for use in Airport vehicles. The gasoline pumps are secured by a keyed padlock.
When the storage tank is filled, the gallons delivered are recorded under the "delivered" entry on the Auto Gas Inventory form (Exhibit "6E") and the Diesel Fuel Inventory form (Exhibit "6F"). After recording the gallons delivered, the Line Service Personnel forward the delivery tickets to the Staff Assistant.
As gas is pumped to Airport vehicles, Line Service Personnel enter the date; gallons pumped, equipment serviced, and initial the appropriate form.
The Airport, on occasion, sells gasoline to the airlines for use in airline-owned vehicles which are used at the Airport and not for over-the-road use. An Auto-graphic Register Receipt is completed and signed by the airline employee. The Airport invoices the airlines monthly.
Monthly, the Staff Assistant VIII reviews the Auto Gas and Diesel Fuel inventory forms and verifies the gallons delivered and pumped based upon the delivery tickets and the Auto-graphic Register Receipts. 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 as determined by the Staff Assistant. The completed Auto Gas and Diesel Fuel Inventory forms are initialed by the Staff Assistant VIII and forwarded to the Airport Director.
Monthly, the Staff Assistant VIII completes an Auto Gas Inventory Report (Exhibit "6G") and a Diesel Fuel Inventory Report (Exhibit "6H"). The report reflects current and fiscal year-to-date variances. A copy of the report is given to the Airport Director for review.
The Airport Director forwards the last Auto Gas Inventory Report and Diesel Fuel Inventory Report for the fiscal year to the Associate Vice President for Auxiliary and Business Services.
The University is exempt from federal and state excise taxes for fuel the University uses, and must submit the appropriate forms in order to receive a refund.
Annually, the Staff Assistant VIII submits the jet fuel usages for university aircrafts to Tax Manager for the federal tax refund. The aircraft fuel sales report is pulled from TotalFBO and forwarded to the Tax Manager.
Annually, Accounting Operations completed and submits the appropriate forms (form 8849 and form 4136) requesting the refund. When the refund check is received, Accounting Operations prepares an ROCR crediting the various University Airport budgets for the amount of the refund.
A contract has been entered via a PSU Purchase Order, between Avfuel Corporation, 47 W. Ellsworth, Ann Arbor, MI 48108, and the Pennsylvania State University for payment of the University Park Airport's purchases of Avfuel products, receiving payments, and processing the University Park Airport's credit card sales. This new system is totally electronic and effectively reduces the workload of sales people as well as speeds 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 Electronics Funds Transfer (EFT) system, and the Point of Sale (POS) system.
According to the EFT system, the University Park Airport purchases Avfuel products and informs Accounting Operations to make a payment via EFT to Avfuel (a notation is included on the Receiving Report). Payments are made per delivery, which is approximately once per week. The University Park Airport predominantly purchases aviation gasoline (Avgas 100LL) and jet fuel (Jet A) from Avfuel.
According to the POS system, Avfuel processes and reimburses the University Park Airport electronically within 24 to 36 hours after settlement for all customer credit card purchases. Currently, Avfuel accepts AVCARD, VISA, MasterCard, Discover, American Express, Multi-Service credit cards and Government Aircard.
This procedure, because of the change in payment method for this contract, establishes the necessary accounting procedures and controls.
The University Park Airport prepares a Standing Purchase Order Requisition (per Policy BS10, Blanket or Standing Orders) to Avfuel with a special vendor number for the EFT system. Funds are encumbered by the Standing Purchase Order Requisition to the University Park Airport's budget for the total amount of the estimated fiscal year's activity. The Standing Purchaser Order Requisition is forwarded to Purchasing Services and, when approved, becomes a Standing Purchase Order sent to Avfuel.
Due to the type of payment (EFT to Avfuel initiated by Accounting Operations) for purchases against this Standing Purchase Order, the following must be performed to prevent a check (duplicate payment) from being generated when the Avfuel Invoices are processed through the Accounts Payable System.
- Upon notification from the University Park Airport, Accounting Operations processes a Credit Receiving Report to the same special Avfuel vendor number/Standing Purchase Order number through the Accounts Payable System for the exact amount of the encumbrance on the Standing Purchase Order. The distribution section of the Credit Receiving Report credits Suspense Account (0755), not the University Park Airports' budget. The resulting entry is a debit to the Accounts Payable Account (0503) and a credit to the Suspense Account (0755). This produces a credit balance to the special Avfuel vendor number in the Accounts Payable System. This credit balance prevents a check from being generated when the Avfuel invoices are processed for recording through the Accounts Payable System.
- The University Park Airport is responsible for monitoring the total actual year-to-date remittance amount of the Invoices received by fax from Avfuel (discussed later). If the total actual remittance amount indicated by the Invoices received from Avfuel becomes larger than the original encumbered amount of the Standing Purchase Order, than a Purchase Order Change Form must be completed by the University Park Airport to increase the encumbrance for the original Standing Purchase Order to the University Park Airports' budget.
- The University Park Airport notifies Accounting Operations of the increased encumbrance amount to the Standing Purchase Order by way of a memo and a copy of the Purchase Order Change Form. This instructs Accounting Operations to process another Credit Receiving Report, crediting Suspense Account (0755), not the University Park Airports' budget, for the increased encumbrance amount of the original Standing Purchase Order. The resulting entry is a debit to the Accounts Payable Account (0503) and a credit to the Suspense Account (0755). This increases the credit balance to the Avfuel special vendor number in the Accounts Payable System and prevents the Accounts Payable System from generating a check (duplicate payment) when the Invoices are processed through the Accounts Payable System.
The University Park Airport receives Avfuel products per the "Aviation Dealer Procedures Sales Agreement" established between Avfuel and the University Park Airport.
All purchases received from Avfuel at the University Park 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 Avfuel's Invoice number.
The University Park Airport continues to maintain an Inventory Control System for all purchases received.
Avfuel 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.
Avfuel emails the invoice to the University Park 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 University Park Airport as an audit trail. A copy of the Journal Voucher is attached.
Any adjustments to the Invoice are communicated immediately to the full-time Avfuel customer service/marketing representative assigned to the University Park Airport. All adjustments to correct the invoicing are made by the Avfuel representative through an Avfuel Credit Slip, and documented for review by the Airport Director.
After the University Park Airport compares the total amount on the Invoice to the date, quantity, and type of fuel on the Trucking Slip, they complete a Partial Receiving Report. The amount of the partial Receiving Report should match with the amount of electronic EFT withdrawal. The completed Partial Receiving Report must have a note stating "This is for EFT Withdrawal Only" and "Support Details on File in University Park Airport." This statement must stand out to ensure Accounting Operations verifies the correct special Avfuel vendor number on the form and submits the amount to Financial Management. The completed Partial Receiving Report with the emailed Invoice attached is forwarded to Purchasing Services.
Purchasing Services verifies the net remittance amount of the Avfuel Invoice to the Partial Receiving Report received from University Park Airport, and forwards the Partial Receiving Report with the Invoice to Accounting Operations.
Accounting Operations verifies that the amount of the authorized payment to the Avfuel special vendor number on the Partial Receiving Report does NOT exceed the credit balance to that special Avfuel vendor number in the Accounts Payable System. Once verified, Accounting Operations processes the Partial Receiving Report with the Invoice through the Accounts Payable System. Because of the credit balance to the special Avfuel vendor number in the Accounts Payable System, a Check is not generated, but a charge is made to the University Park Airport's budget. An audit trail of the transactions appears on the Vendor File in the Accounts Payable System for review and retention as is standard practice. The net amount of the Avfuel Invoice is forwarded to Financial Management by Accounting Operations so that the data is received by 8:00 AM on the tenth day after the date on the Invoice.
Financial Management is responsible for assuring that the specified bank account has sufficient funds for Avfuel withdrawal.
Each time a payment is made, Accounting Operations prepares a Journal Voucher for the net remittance amount of the Avfuel Invoice to reflect the charge (debit) against the Suspense Account (0755) and a credit to cash (0178) for the EFT withdrawal. At the end of the fiscal year, a Journal Voucher is completed by Accounting Operations to clear (reverse) any unused amount of the credit balance in the Suspense Account (0755) with an offsetting amount to the Accounts Payable Account (0503).
The University Park Airport receives a monthly Statement from Avfuel which details the Invoices billed, Invoices paid, and Invoices outstanding for the month. The University Park Airport reconciles this Statement to their records.
In order for the University Park Airport to accept various credit cards for sales activity at the University Park Airport, several general provisions must be followed:
- The University Airport must adhere to the specific procedures as required by the Credit Card Information Act.
- Cash or check refunds are not permitted for credit card sales.
- Special charges resulting in a higher price for a credit/debit card transaction over a transaction paid by cash or check are not permitted.
- With the exception of telephone sales, a valid credit/debit card must be presented. All transactions must include the purchaser's signature.
- For security reasons, not part of a form, including carbons, containing a customer's credit card number should ever be discarded without first obliterating the number to prevent unauthorized persons from taking advantage of the discarded information. (Carbons must be offered to the customer before being discarded).
- MasterCard and VISA regulations prohibit assigning a minimum or a maximum credit card purchase amount for their customers.
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 AvfuelCard Guide (Aviation), and the Terminal Operator's Manual, both available from Avfuel, which provide detailed instructions on using the POS system.
When the POS terminal is not operating (power outage, system is down, etc.,), all sales are processed using the "Paper Ticket" procedures outlined in the Avfuel Card Guide (Aviation). When the POS terminal is returned to operation, the sales are manually entered into the POS terminal. The signed copy of the "Paper Ticket" must be attached to the POS receipt and retained by the University Park Airport.
All credit card transactions are reported to the University via an ROCR. The ROCR is completed with the following expansions:
The "Details sections (screen 3 of 4) of the ROCR should indicate the type of credit card transactions reported (e.g., American Express, Avfuel, etc.) and the date of the Settlement Report (and consecutive number if more than one Settlement Report is generated that day).
Cash and checks are not to be reported on the same ROCR with credit card sales.
Discount fees and Avtrip Points ("processing fees") are derived from the Avfuel Remittance Summary (Exhibit "8A"), faxed from Avfuel to the University Park Airport. The "gross amount" should equal "sales." The "fee total" will be reported on the ROCR as "credit card discount fee."
It is the responsibility of the University Park Airport to assure that all sales are recorded on the University Park Airport's and University's accounting systems. All reported income (or reductions of income) must be reconciled to the University's Monthly Budget Reports.
It is very important for reconciliation purposes that credit card transactions processed through the POS terminal balance with the credit card transactions reported via an ROCR. In order to facilitate such reconciliation, it is imperative that clean processing cutoffs be observed and that these cutoffs are synchronized, dollar-wise, between both reporting systems.
Avfuel faxes a Daily Transaction Report (DTR) (not exhibited), to the University Park Airport Monday through Saturday, which details all the activity through the POS terminal for the previous day.
Keep in mind the reporting dates assigned to the data by each system. For example, sales/credit transactions are dated for the calendar date on which they were entered on the POS terminal. The Settlement Report is dated for the calendar date on which the Settlement Report was generated. ROCRs are dated for the date the deposit is made to the bank.
Any voided sales slips must be retained in order to maintain proper sequencing of transaction numbers and maintain accountability.
Do not post terminal identification numbers and merchant passwords.
Occasionally, a problem may exist with a credit card transaction that necessitates Avfuel notifying the selling unit. The notice requires the selling unit to submit a copy of the sales or credit slip in question by the date indicated. If Exxon does not receive the copy within the specified time period the University Park Airport receives a charge-back for the amount of the sale.
If an adjustment to a selling unit's account is made, notification of the adjustment is sent to the Financial Reporting Department. A detailed description of adjustments/charge-backs appears on the Bank Account Statement for reconciliation purposes.
The Financial Reporting Department prepares a Journal Voucher to make the appropriate adjustments to the general ledger accounts and Airport budgets as necessary, and forwards it to Accounting Operations.
Financial Reporting is responsible for reconciling the credit card bank accounts.
Accounting Operations forwards a copy of each such Journal Voucher to the University Park Airport, as appropriate.
Whenever the University Park Airport receives notice from a cardholder of a claim involving a credit card transaction, the University Park 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 University Park Airport took to resolve the dispute.
Handling of cardholder complaints/disputes must comply with the Fair Credit Billing Act. Contact Avfuel 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 sales person 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 CR2002 - Processing Returned Checks.
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 working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management, and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
- Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
For questions, additional detail, or to request changes to this procedure, please contact the Director of University Park Airport.
Date Approved: 9/9/2008
Most recent changes:
- 8/14/2008 - To reflect current updated computerized operations
Revision History (and effective dates:)
- Rev 5 -9/1/1995
- Rev 4 - 3/1994
- Rev 3 - 2/1983
- Rev 2 - 7/1975
- Rev 1 - 4/1972
- Original - 6/1967