In quite a few organizations, including those where appropriate segregation of duties principles are employed, the accounts payable manager has access to the entire system. They can update the master vendor file, print checks, process invoices, and a myriad of other tasks. Alas, this is not a good thing. Here's why.

1) All internal controls are negated.
2) The organization becomes too reliant on one individual.
3) This increases the potential for fraud.

Now, I know many AP managers like to do all the training when there is a new hire to ensure that the person learns correctly. This is the reason most commonly given for allowing the manager access to everything. But, this isn't sufficient to override standard controls. No one, not the AP manager nor the CFO should have complete access. It's potentially an invitation to disaster.

After having a conversation with an AP manager about the issue discussed above, it occurred to me that we had not done a Webinar on internal controls for quite awhile. And, the time is ripe. So I searched around for a professional who does things really well and came up with Diane Gee. On April 17th she'll provides some insights into this all important issue. Attendees will also receive a copy of our white paper, "Really Bad AP Practices."

I find the way gift cards are being treated in the Sharper Image bankruptcy fascinating. Equally intriguing is the fact that the California attorney general is going to do battle with the bankruptcy courts on this issue. We've got an update on this as well as a look at early payment discounts-another of my pet peeves. Okay, let me be clear, it's not the early payment discounts that annoy me but the way some organizations take them regardless of when the payment is made. We're examining some of the issues and invite readers to throw in their two cents.

An Accountable Plan

The key here is what's referred to as an accountable plan. To be an accountable plan, the company's reimbursement or allowance arrangement must include all three of the following rules:

1. The expenses must have a business connection; that is, the employee must have paid or incurred deductible expenses while performing services as an employee of the employer.
2. The employee must adequately account to the employer for these expenses within a reasonable period of time.
3. The employee must return any excess reimbursement or allowance within a reasonable period of time.

Needless to say, this definition raises more questions than it answers.

Reasonable Amount of Time

The innocuous words, reasonable amount of time, are the aforementioned carrot. Here's why. Although the definition of a reasonable amount of time is not set in stone, this is what most companies consider reasonable:

· Employees must account for their expenses within 60 days of when the expenses were incurred.
· Employees must return any excess reimbursement (cash advances) within 120 days after the expense was paid or incurred.

This excerpt comes from Travel & Entertainment Best Practices, a hardcover book published by John Wiley & Sons. For a limited time, we will include this $60 book with the purchase of any of our T&E related CDs. Specifically, T&E Best Practices and T&E Fraud Prevention and Detection.

We offer all issues as a single purchase. Simply check out our Web site and order away. We sell single issues of every issue of our newsletter for $29.95.

We are down to five rooms of our hotel block for the Unclaimed Property seminar in Chicago. If you have not made your reservation yet, please do. Tell them you are coming to the Accounts Payable Now & Tomorrow seminar. If you call and the rooms are all gone, please call our office (302 836 0540). We have made arrangements with a nearby hotel for additional rooms, albeit at a slightly higher price.

Are you either running a shared service or interested in finding out exactly how to make one work? If so, IQPC's Shared Service week, just might be the answer.

Thanks for listening.

Mary Schaeffer
Editorial Director
Accounts Payable Now & Tomorrow