Policy: VI.A.1x (inactive)
Issued: September 9, 1988
Owner: Procurement Services
Latest Revision: July 1, 2000
DISBURSEMENTS: GENERAL REQUIREMENTS
This statement is provided to all activities of the University as a guideline for the payment of invoices for materials, supplies, equipment, or services provided by various vendors or individuals.
These policies apply to all University of Virginia expenditures.
2.0 Policy [Top]
2.1 Compliance With Requirements
All expenditures of University funds must be necessary, reasonable, and directly related to the goals and missions of the University. All persons authorizing expenditures should be mindful that such expenditures may be subjected to scrutiny by State authorities, sponsors, auditors, and other interested parties. To ensure prompt payment, departments and activities should appropriately explain and document all expenditures.
University policies and procedures related to expenditures may be based on State or Federal rules or guidelines by the University administration in fulfillment of its responsibility for the prudent management of all resources.
Compliance with State law and University policy necessitates properly identifying the nature of any goods or services being purchased, as well as the source of funds. Refer to Procedure 6-40, "Object of Expenditure Codes and Definitions."
Note: An individual's failure to adhere to these policies and procedures may result in he/she being held liable for any unauthorized expenditure he/she has made.
The University's general policy is to apply the Commonwealth's expenditure guidelines and limitations to all transactions, irrespective of fund source. However, there are occasions when these guidelines and limits may prevent the University from carrying out its mission in the most effective and efficient manner. Due to the seriousness of these situations, the authority to approve exceptions for private funds may not be delegated.
2.2 Other Situations
In most situations, the dean's or vice president's approval will be sufficient to authorize the processing of a transaction. However, the University Comptroller has ultimate responsibility for expenditure transaction processing and may, on occasion, seek additional approvals. In the case of academic units, the approval of the Vice President and Provost or Vice President for Health Sciences may be sought. In the case of other units, the approval of the President may be required.
For a list of persons authorized to approve a voucher that is reimbursing them directly, see Policy VI.A.12, "Individuals Authorized To Approve Local Fund Exceptions to State Policies/Discretionary Accounts and Self Travel." To be included on the above list, requests must be made in writing to the Assistant Director of Accounts Payable.
All payments for goods or services must be handled according to these policies. Invoices for goods and services not obtained in accordance with University policy will not be processed.
Receivers or invoices must be submitted immediately after the receipt of any goods or services. It is the responsibility of the department to ensure that all eligible discounts are earned and that the payment of late charges is avoided.
State law requires a vendor receive payment within 30 days from the time the department receives the vendor's goods or invoice, whichever is later, or by a pre-agreed date established in the contract with the vendor. If payment is not received on time, the vendor can bill for interest at the prevailing 90-day U.S. Treasury Bill rate. Any interest penalty must be paid out of existing departmental funds.
All ORIGINAL copies of receipts, bills, vendor's invoices, contracts, letters, or other related documents must be attached as doumentation for any demand payment or receiver at the time it is submitted.
All checks are prohibited from being sent to departmental addresses. This prohibition applies especially to travel expense reimbursement vouchers, for which the checks must be mailed to home addresses.
Exceptions are allowed, but only if a department head provides written justification for each transaction and the request is approved by the Accounts Payable Manager. (Ledger 2 transactions must be approved by the Accounting Operations Supervisor.)
With the proper approvals, the following exceptions apply:
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]