Overview of New Financial Record Retention Policy,
Effective February 1, 2018
What is the new policy on how long to retain financial records?
The new policy is detailed in the graphic below.
Are there any changes regarding which financial records must be retained?
Yes, there is a change for Procurement Card receipts/backup. Previously, all ProCard receipts needed to be retained. With the new policy, you will only need to retain receipts/backup for ProCard purchases over $75 or for business meeting meals.
For packing slips on B2P POs, note that under both the old and new policy, the B2P Receive function can be used in lieu of retaining a packing slip.
When does the new policy take effect?
The new policy applies for reports or requests submitted on or after Feb. 1, 2018. Records from reports or requests submitted prior to that date must be retained per the previous policy.
What happens if I submit a scanned receipt and then discard it, and later am informed that the image is illegible or incomplete?
First, try to obtain a duplicate receipt from the supplier. If you are unable to do so, submit a Missing Receipt Affidavit along with the transaction. The charge will need to be processed as a non-recoverable item and cannot be charged to a sponsored account.
Procurement Card (ProCard) Receipts and Backup
What should I do with my Procurement Card (ProCard) receipts/backup?
For ProCard purchases $75 and below, you only need to keep receipts for business meeting meals. (To qualify as a business meeting, a non-MIT individual must be in attendance.)
For ProCard purchases above $75, the paper receipt can be discarded after a legible and complete electronic image has been uploaded to the Procurement Card Inbox.
Is it mandatory to electronically image and attach paper receipts for ProCard?
No. However, uploading electronic images is a best practice. If you prefer, you can retain the original paper receipt for the current fiscal year plus four additional FYs.
Can ProCard holders send electronic receipt/backup images to their verifiers instead of giving them paper receipts?
Yes, but verifiers must confirm the images are legible/complete and upload to the ProCard Inbox before the cardholder can discard the paper original.
Travel Card Receipts and Backup
What should I do with my Travel Card receipts/backup?
For Travel Card purchases $75 and below, you only need to keep receipts for purchases that include alcohol or for business meeting meals. (To qualify as a business meeting, a non-MIT individual must be in attendance.)
For Travel Card purchases above $75, the paper receipt can be discarded after a legible and complete electronic image has been uploaded to Concur.
For more information, see Avoid Common Expensing Mistakes on the VPF website.
Are electronic images of receipts/backup required for Travel Card?
Yes. Electronic images of receipts must be uploaded to Concur and submitted along with a travel expense report.
Request for Payment/Reimbursement Receipts and Backup
When are receipts required for reimbursement requests?
Receipts are always required for reimbursement requests, regardless of the dollar amount.
What should I do with backup when submitting a request for payment or reimbursement?
Submit legible and complete electronic images (scans or photos) of the receipts, invoices, or other backup to the RFP system in Atlas. You can then discard the paper.
Packing Slips
What should I do with paper packing slips?
The best practice for recording receipt of goods is to use the Receive feature in the B2P system to mark the date/quantity received and confirm the items are in satisfactory condition. Once you have done so for all items listed on the packing slip, you may discard the paper packing slip. Note that invoice approvers in B2P are able to see whether orders have been marked Received.
You also have the option to retain paper packing slips, or upload an electronic image to B2P and discard the original.
What if I need to receive an order in B2P on behalf of someone else?
When you mark an order “Received” in B2P, you are confirming that the items have been received and are in satisfactory condition. If you are recording receipt on behalf of someone else (e.g., that person told you the order was received and is in satisfactory condition), be sure to note that person’s name and indicate that you are confirming on his/her behalf in the Comments section of the requisition.
Financial Review and Control
How do these changes affect the Financial Review & Control (FRC) process?
If you make use of the Procurement Card Inbox receipt attachment feature:
- The electronic image will be available in SAP. (From the DTR, open the expense posting, then go to Environment > Additional Assignments > Object Links.)
If you make use of the B2P Receive feature:
- The receipt information is available in the B2P PO. (Open the PO in B2P and click the link under Received on the order line.)
What does this mean for audits?
Note that these policy changes were developed in consultation with MIT's Audit Division, Office of Sponsored Programs* (OSP), and Office of the General Counsel (OGC). The Audit Division will audit your records based on this revision to the MIT policy. If an external auditor were to disallow a charge due to lack of a receipt, as long as you show you have followed MIT policy, MIT will cover the disallowed charge.
*UPDATE: November 2019
OSP is now Research Administration Services (RAS)