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Policy: VI.F.1 (inactive)

Issued: September 9, 1988

Owner: Director of Procurement Services

Latest Revision: July 1, 2001


For Current Policies:
Policy Table of Contents


This policy has been replaced and migrated to the standardized format.


1.0 Purpose

This policy applies to all University of Virginia expenditures and is intended to provide a guideline for
the payment of invoices for goods and services provided by vendors.

2.0 Policy [Top]

2.1 General Overview

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.

Departments are responsible for monitoring their budgets carefully and making sure in advance that department financial resources are sufficient to pay for any good or service they order.

Departments are also responsible for ensuring that all eligible discounts are earned and that the payment of late charges is avoided.

As a non-profit institution, the University of Virginia is exempt from sales tax on all goods and services except lodging and prepared foods. University purchases are also not subject to Federal excise and transportation taxes. It is the department's responsibility to claim these exemptions whenever submitting an LPO to a vendor. The University of Virginia will not accept liability for such over-payments.

State law stipulates that all goods and services purchased by the University be properly identified. The source of funds for every purchase must also be identified.

Departments should appropriately explain and document all expenditures.

All payments for goods and services must be handled according to State and Federal law as well as University policies and procedures. Invoices for goods and services not obtained in accordance with these rules will not be processed.

All checks issued by the University 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.

University employees who make an unauthorized purchase may have their purchasing responsibilities suspended or revoked, may face additional disciplinary action including termination of employment, and may be held personally liable for any charges incurred.

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. Use of approved private funds for these occasions is permitted.

2.2 Authorization for Payment

In most situations, a departmental manager or supervisor's approval is sufficient to authorize the processing of a transaction. However, the University Comptroller and the Director of Procurement Services have 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.

2.3 Adding and Registering Vendors

Every vendor or individual receiving a non-payroll check from the University must have been added and registered in the Oracle Supplier List before payment can be made. Vendors must provide complete and accurate tax, address, and contact information.

See the instructions provided in "Adding and Registering Vendors" (Procedure 7-101).

2.4 Timely Payments to Vendors -- see Policy VI.F.3
2.5 Invoice Requirements

All invoices must include the Purchase Order number. Invoices sent without a Purchase Order number will be thrown away. The vendor will have to provide a new invoice with a Purchase Order number. The payment will be made 30 days from the receipt of the new invoice.

Vendors must send all invoices to the Accounts Payable division of Procurement Services, not to the department making the purchase.

If the vendor sends an invoice to a department, the department must forward this document to Accounts Payable immediately.

Vendors should not send photocopies or faxes of invoices. Payments will be made from original invoices except when an invoice is more than 30 days past due. In that case, the vendor can send a fax of the invoice and Accounts Payable will process it as an original invoice.

2.6 Document Retention

In general, departments must record the Purchase Order number and receipt date on the packing slip or other shipping documents of all received goods. Departments must retain these documents in their files for a minimum of three years plus the current fiscal year.

Goods and services purchased with a Payment Voucher or the University Purchasing Card, however, have separate requirements which must be followed.

3.0 Definitions [Top]

4.0 References [Top]

Please see the following closely related Policies:

5.0 Approvals and Revisions [Top]

Previous version in effect from 9/9/98 to 7/1/01 available in policy archive.

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© 2000 by the Rector and Visitors of the University of Virginia