IntraState Transfer Vouchers (ISTVs)

PURPOSE

This policy states the terms under which the payment for goods and services sold and received by state agencies occurs and provides for the collection of delinquent payments for goods and services.

Scope

The terms of this policy apply to all state agencies, boards, and commissions for expenditures made from funds within the state treasury.

Definitions

Provisions

ORC section 131.34 (A) states that no moneys shall be transferred between funds or between state agencies unless the transfer is a payment for goods or services, or the transfer is required or authorized by law. An intrastate transfer voucher (ISTV) is used for all payments between state agencies when the funds involved are created in the state treasury and are accounted for in OAKS. Agencies do not have the option of requiring warrants. Agencies must use revenue and expenditure account coding that is specific for ISTV transactions.

It is only appropriate to use an ISTV when the paying and receiving funds are both in OAKS. If the agency receiving the payment must deposit to a fund outside of OAKS, the payment shall be processed by warrant or EFT. Examples of these types of transactions are payments to state colleges and universities, or unemployment payments to the Ohio Department of Job and Family Services. The expenditure or payment would be reflected in OAKS while the payment received by the payee would be deposited in an account/fund outside of OAKS.

The selling agency is responsible for entering the ISTV in OAKS FIN and submitting any supporting documentation necessary to initiate the bill to the buying agency. The selling agency is required to provide the buying agency with an invoice that includes an itemized list showing delivery of the good or performance of the service, the date of the purchase or rendering of the service, and the sum due pursuant to the contract or obligation.

The selling agency should attach the invoice and necessary supporting documentation in OAKS or provide the buying agency online, on-demand access to retrieve this information. If a selling agency does not attach the invoice to the ISTV or provide on-demand access to the invoice and supporting documentation, then it is the selling agency’s responsibility to ensure that the invoice is received by the buying agency for processing the payment in OAKS within 30 days. The ISTV is not considered due or payable until the buying agency is in receipt of the invoice; therefore, attaching the invoice in OAKS or providing an on-demand system to retrieve this information provides the selling agency assurance that payment will be received within 30 days.

If the selling agency determines that an ISTV must be deleted, then the agency must contact OBM Financial Support Services in accordance with the procedures outlined in the OAKS FIN Process Manual.

The buying agency is responsible for processing the payment in OAKS within 30 days. Prior to doing so, the agency must be in receipt of a proper invoice so that it can validate that the goods or services have been received and that the terms of the contract or agreement have been satisfied. If a proper invoice is not received and the buying agency cannot pay, the buying agency should contact the selling agency.

Payment cards can be used for agency-to-agency transactions under very limited circumstances. If an agency utilizes a payment card to pay an inter-agency obligation, the selling agency must ensure no accounts receivable entry (ISTV) is recorded in OAKS and that proper billing documentation is provided to the buying agency as payment support.

Intergagency Transactions for grants, subsidies, or shared revenue must use an ISTV to transfer funds. For these types of transactions, the awarding or revenue distributing agency is deemed the buying agency and the funding recipient is deemed the selling agency. Grants, subsidy, or shared revenue transactions still require the selling agency to provide an invoice, which may be in the form of a request for cash against a grant award. The authority for these transactions should be supported by an interagency agreement, memorandum of understanding, notice of award, law, or other authorizing document. When transferring federal funds between agencies, both agencies must agree as to whether the relationship is that of a contractor or sub-recipient prior to making any transfer of funds.

If a selling agency does not receive payment from the buying agency within 30 days of delivering the goods or service (or initiating an ongoing service) and submitting an ISTV in OAKS with all necessary documentation, then the agency may certify the amount to the Director of Budget and Management. Agencies wishing to certify must do so in OAKS FIN within Accounts Receivable. Procedures for this are outlined in Steps for Dealing with Nonpayment in the OAKS FIN Process Manual. If the director determines all or part of the certified amount should have been paid by the buying agency and that the buying agency has available appropriation for payment, then the director may transfer the amount that should have been paid from the appropriate fund of the buying agency to the appropriate fund of the selling agency on an ISTV.