Policy: VI.F.4 x2 (inactive)
Issued: March 29, 2000
Latest Revision: May 29, 2002
USE OF THE PAYMENT VOUCHER AND DEMAND PAYMENTS
This policy describes the general guidelines for the use of Payment Vouchers.
2.0 Policy [Top]
The Payment Voucher allows payments to be made without the prior issuance of a Purchase Order, Limited Purchase Order, or the use of the University Purchasing Card. However, the Payment Voucher has very specific applications and should not be used to circumvent normal procurement procedures. The Payment Voucher is used for:
- Payments defined on the Demand Payment list for items where competition is not practical (e.g., membership dues)
- Payments requiring pre-audit, attachments, and/or original signatures as required under the State Department of Accounts or University policy and procedure (e.g., gifts)
- Reimbursements to individuals for small-dollar transactions.
Note: The Payment Voucher may not be used to process payments which require that the University execute a contract. Vendor-supplied contracts must be processed on a Purchase Requisition and submitted to Procurement Services.
2.2 Additional Payment Voucher Information
- All high risk demand payments are pre-audited by Accounts Payable.
- An individual's failure to adhere to these policies and procedures may result in their being held personally liable for any unauthorized expenditures made.†
- Knowingly "splitting" purchases or otherwise circumventing these procedures is not in accordance with University policy.
- If payments are not consistent with the expenditure guidelines and limitations applicable to State funds, and there is no University policy authorizing local funds exceptions, the Payment Voucher must include a complete description of the nature of the expenditure and the justification for the exception. For local funds exceptions, the dean's or vice president's approval of the transaction must be obtained prior to the submission of the Payment Voucher to Accounts Payable.
- The deanís or vice presidentís approval is also required for: alcohol; exceptions to local funds expenditure policy on meals, lodging, gifts, and flowers; holiday parties and related purchases; or any transactions of an unusual nature.
Departments must compile complete original paper documentation (e.g. receipts and forms requiring signatures) for all Payment Vouchers. Electronic submission in Oracle and the retention of paper documentation are both required for Payment Vouchers.
For travel and petty cash reimbursement, the original paper documents with all appropriate signatures must be forwarded to Procurement Services. Departments should retain copies of any documentation sent to Accounts Payable to provide a complete audit trail, and for use in performing monthly expenditure reviews.
In other cases, the paper documents must be retained in departmental files for a minimum of three years plus the current fiscal year. In some cases, the document retention requirements may be longer. Refer to "Records Retention and Disposition" (Policy II.C.1).
Departments are responsible for getting the appropriate signatures and maintaining a file of these documents in Voucher number order. These files must be made available when requested by Procurement Services for internal review or external audits.
See "Preparing Payment Vouchers" -- Procedure 6-101 for additional information.
2.4 Good and Services Procurement Guide
Note: The Demand Payment list has been superseded by the Goods and Services Procurement Guide on the Procurement Services web site.
2.5 Payments To Individuals
The Payment Voucher is also used to pay individuals not employed by the University but serving as consultants, guest lecturers, or providing some other specialized services up to the dollar limits on the demand payment list from approved sources of funds.
Payments to individuals require departmental approval and must be accompanied by the necessary supporting documentation for processing. Documentation might include other forms such as: the W-9, the Academic Consulting Agreement, Approval for Honoraria, Business Meal Certification, Employee/ Independent-Contractor Classification, plus any supporting documents required for non-resident aliens or foreign individuals.
See "Preparing Payment Vouchers", Procedure 6-101, for the steps that must be followed when paying individuals not employed by the University.
Compensation to individuals employed by the University, or to any other person who cannot otherwise meet the test of the necessary certifications, must be initiated through the Payroll System. Internal consulting or additional services provided by University faculty are normally considered part of their required duties. Refer to University policy and procedures on internal overload compensation.
See also Policy XI.A.1. "Faculty Overload Responsibilities for Supplemental Compensation."
2.6 Reimbursement to Employees
The Payment Voucher may also be used to reimburse University employees for expenses allowed on LPOs less than $2,000. Be sure to note the correct PTAEO for all reimbursements.
Payments other than reimbursement (such as human subject payments) can occasionally be made to University employees with a Payment Voucher, but such payments must fit the guidelines specified by State and University policy. You should consult the Transaction Manager in Accounts Payable with any question over payments to employees.
2.7 Travel Reimbursement for Employees
For reimbursements of business travel costs, University employees should use the Travel Workbook.
See Section 2.3 "Documentation" above and "Preparing Payment Vouchers" (Procedure 6-101) for the steps that must be followed when seeking reimbursement for travel expenses.
2.8 Payments in Foreign Currency
The University can make payments to vendors in foreign currency at the request of the vendor. If a vendor requests payment in foreign currency, departments should be aware of the additional cost in processing a foreign payment. Therefore, departments should make sure the vendor will not accept payment in U.S. dollars before submitting the request for payment in foreign currency to Accounts Payable in Procurement Services. See "Preparing Payment Vouchers" -- Procedure 6-101.
3.0 Definitions [Top]
4.0 References [Top]
This policy corresponds to, and should be read in conjunction with, "Preparing Payment Vouchers" -- Procedure 6-101.
Disbursements: General Requirements -- Policy VI.F.1
Restrictions on Local Funds Expenditures -- Policy VI.F.2
5.0 Approvals and Revisions [Top]
Previous version in effect from 7/1/96 to 4/27/00 available in policy archive.
Previous version in effect from 4/27/00 to 7/01/01 available in policy archive.
Previous version in effect from 7/02/01 to 5/28/02 available in policy archive.