Issued: March 29, 2000
Latest Revision: April 7, 2004
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:
Demand Payments to vendors for some types of commodities where competition is not practical (e.g., membership dues). The types of commodities permitted, along with the allowable dollar value, are specified in the Goods & Services Procurement Guide.
- 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 some types of payments, procedures may require that the original paper documents with all appropriate signatures be forwarded to Procurement Services. In these cases, departments should retain copies of the documents sent in order 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 all documentation in Voucher number order. These files must be made available when requested by Procurement Services for internal review or external audits.
See the Procurement Services website for Payment Voucher procedures in general, and for specific procedures relating to various types of expenditures paid on Payment Vouchers, such as Petty Cash Replenishment, Travel, and Business Meals.
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.
Previous version in effect from 5/29/02 to 4/06/04 available in policy archive.