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Amounts paid under an accountable plan are excluded from the individual's income. Accurate recording includes adequate descriptions of transactions, as well as the correct use of chart of account codes and all other chart fields.Īccountable Plan An accountable plan requires that reimbursements and/or other expense allowance arrangements meet certain IRS requirements related to business-connection and substantiation, and requires that amounts in excess of substantiated expenses be returned in a timely manner. Units must record transactions accurately, in a timely manner, and completely within financial system guidelines and applicable external agency rules (including federal agencies funding University programs, the Internal Revenue Service, and the Minnesota Department of Revenue). Units need not repeat information in the justification that is already included in the transaction or supporting documentation. Rather to comply with policy, the justification must provide an explanation about the allowability, allocability, reasonableness and benefit to the project/University not already apparent within the transaction or supporting documentation.
![financial transaction financial transaction](https://www.blockbit.com/wp-content/uploads/2020/11/finances.jpg)
WHERE did/will the activity take place (if applicable)?.
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WHO initiated the transaction and who are the affected individuals or units?.Units must ensure that the transaction justification and supporting documentation includes complete and transparent information about the transaction, to include: University faculty and staff initiating, preparing, completing or approving any sponsored or non-sponsored financial transactions must comply with the justification and documentation standards established by this policy, all other associated policies, procedures and job aids. Justification standards help ensure that the benefit to the institution and compliance with regulatory requirements is clearly documented and can be understood by both internal and external reviewers (e.g., managers, auditors, IRS, the public) for all financial and accounting transactions.