PTO Today

Good afternoon. I would like to create an electronic version of our reimbursement request form. I think it will be easier to email the forms for approval than try to track people down. Obviously a check can't be released until we have the receipts (which could also be scanned and sent with the request form). This would also provide an email trail for the approval process. The email, forms and receipts are then filed for a trail.

My question - is there any legal concern with the approver typing their name in the "approved by" field?

Thank you,
Beth

Does anyone ever look at your audit trail? Do you have bylaws or established/written financial procedures?

I honestly doubt that the IRS would ever audit a PTO. You might have an internal audit to look for fraud, or just because it's a good idea, and it would be good to have your board/membership approve the typed "approved by" field so that the internal audit doesn't fault you -- or claim that person X didn't really approve it and you siphoned off funds to your friends. You might decide that electronic is sufficient for < $100, anything more needs a physical signature.

(Interestingly, the company where I work doesn't even require receipts for expenses < $25.)

The very large corporation I work for does almost all financial items electronically. There is special software to provide for 'electronic signatures', but I don' think you need to go that far. I think your idea of an electronic form and being able to scan and e-mail receipts is an excellent one. Think of the paper you will save?! I wouldn't, however, recommend it as the only option. You still need to keep the standard paper form available for those folks who don't have access to a computer or scanner.

You might initially try as gjcoram suggest and set a limit on what amounts can be done this way. It would be a good way to test the system and get bugs worked out before you make this method the status quo.

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Hey Rocky, watch me pull a rabbit out of my hat.

Thanks to both of you. I will have to find out what our bylaws state.

My companies never required receipts for anything over $25 either. That was one of my first questions.

We were going to allow people to do either, but I like the idea of requiring the actual signature for anything over $100

We have a TexFlex accounts at work where we can have funds put aside and then use them to pay for medical expenses with pre-tax income. So the process must meet both financial and IRS controls.

They have an online process where the information can be entered and scanned copies of reciepts include. Instead of a signature, the person has to check a box with this statement.

This can be for hundreds, even thousands of dollars in reimbursement. The statement below is specialized for medical stuff, but you might be able to use some of the generic parts.

>>>>>>>>>>>
[I]By checking this box I certify these eligible expenses have been incurred by me, my spouse or my eligible dependent and health care expenses are not for cosmetic purposes but for the treatment of an illness, injury, trauma, or medical condition. I understand "incurred" means the service has been provided that gave rise to the expense, regardless of when I am billed or charged for, or pay for the service. I also certify the expenses have not been reimbursed and I will not seek reimbursement elsewhere. I understand that any amounts reimbursed may not be claimed on my or my spouses income tax returns. I have received and read the printed material regarding the reimbursement accounts and understand all of the provisions.[/I]

I expect, though, that the process for the TexFlex stuff includes some sort of SSL secure web site with login and password, and probably in the sign-up agreement you physically signed that you agree that anyone with your password can legally be assumed to be you, and you accept responsibility.

E-mail is not nearly so secure (unless you cryptographically sign it with PGP or something).

But, I don't think it needs to be all that secure, as long as your by-laws say e-mail is OK and you can print out the e-mail for any internal audit.

gjcoram - you are right. I didn't mean to suggest the PTO system would be equally secure, just that they might use some sort of similar checkbox signature in lieu of signature.

Although, the fact is - if you are requiring receipts to be attached, those are most likely going to have to be scanned, saved, and attached as a file. If the user is doing that, the [I]could[/I] sign and scan a request form as well. (Not advocating that - just saying you could.)