Accounts Payable Policies and Procedures In order to aid the campus community in understanding Accounts Payable policies and in the prompt and effective processing of forms/requests, the following policies and procedures should be followed. Contact Information Questions and Comments If you have questions dealing with Accounts Payable issues, please contact one of the individuals listed below, either by phone or e-mail. Fax documents to 714-662-5233. Accounts Payable Manager x.4361 Sharon Pouryad spouryad@vanguard.edu Accounts Payable Clerk x.4360 Crystal Valverde cvalverde@vanguard.edu Forms and related documents may be found on Vanguard s Campus Connect by going to http://www.vanguard.edu/cc Frequency of Check Runs/Checks processed outside normal cycle The Accounts Payable team processes checks one time each week. If checks must be printed outside the normal processing schedule, the department requiring the additional check must have approval from the Director of Business Services. Procedures for Submitting Invoices and Expenditure Reimbursement Requests The Accounts Payable Department wants to provide the best service possible to our customers. Your compliance with the procedures below will ensure that all invoices and reimbursement requests are processed in a timely and efficient manner. Material Requisition/Purchase Orders Accounts Payable requires a Purchase Order for all purchases over $500.00 and for all contracts entered into by the University that require a payment or multiple payments to be made by the University. To acquire a Purchase Order, University departments are required to complete a Material Requisition form. For purchases, the department is responsible for obtaining 3 quotes from various vendors. When one quote is approved, attach the quote to the Material Requisition form and send to accounts payable for processing. A Purchase Order number will be assigned. For contracts, please submit a copy of the contract outlining the financial obligations of the contract to the Accounts Payable Department. Thereafter, follow the Accounts Payable policies and procedures for invoice submission. The Accounts Payable team processes purchase orders one time each week. If purchase orders must be processed outside the normal processing schedule, the department requiring the purchase order must have approval from the Accounts Payable Manager or Director of Business Services.
Delivery of Invoices to Accounts Payable Invoices should be sent directly to the accounts payable department by the vendor and will then be forwarded to the originating department. Account managers are responsible for approving the invoices in a timely manner. Should you receive an invoice in error, please let accounts payable know immediately so that it can be forwarded to the appropriate department. Processing Time/Check Distribution for Invoices Properly authorized and coded invoices will generally be paid 60 days from the Invoice date. Account signers are not authorized to negotiate different terms or make special arrangements concerning payment terms. Variances from this policy can only be approved by the Director of Business Services. Processing Time/Check Distribution for Reimbursements Properly authorized and coded requests for reimbursement will generally be issued within 30 days of receipt, or by due date, by the Accounts Payable Department. All checks will be mailed unless otherwise stated. Checks issued to Vanguard University employees will be mailed to their campus address. Original Invoice Required Payment will not be made from anything but an original invoice in order to prevent duplicate payments. Packing slips and statements should not be submitted for payment. It is the responsibility of each department to provide an original invoice. If for any reason a copy must be submitted, the top of the invoice should be marked "Original Lost". Make sure that the original has not already been submitted for payment before sending a copy of an invoice to Accounts Payable for processing. Do not submit a check request with an invoice; all authorizations, account coding and purchase order numbers for purchases over $500.00 should be written on the face of the invoice. Approval signatures and account coding should not be made on the remittance portion of the invoice. Approvals Required A full, legible signature of the individual authorizing payment is required with printed name underneath. Initials will not be accepted. Only Budget Unit Managers or individuals to which that responsibility has been delegated may approve invoices or expenditure requests. Budget Unit Managers may delegate signature responsibility within their unit, within the limits shown below. The Manager must provide written authorization for the individuals within their assigned unit with the authorized individual s signature, as well as the approval of the responsible administrator as indicated by their signature. Budget Unit Managers and designated individuals are allowed to approve up to the following amounts (alternate limits below the authorized amounts may be designated by the Budget Unit Manager or Vice President/President; any questions related to position will be left up to the discretion of the Vice President/President): Routine Up to $500 Assistants Up to $2,500 Departmental Budget Managers Up to $5,000 Directors/Officers, Deans Up to $20,000 Provost/Vice Presidents Up to $30,000 Vice President for Business & Finance Over $30,000 President Over $100,000 Business & Finance Committee/Board of Trustees Special No Limit No Limit Director of Planning & Construction, Utilities Vice President for Business & Finance or Director for Business Services, Food Services Board Payments 2
Individuals with budgetary responsibility cannot approve their own expense reimbursements. In these situations, the individual s immediate supervisor must approve the Expense Report. Please avoid placing approval signatures on the remittance portion of any invoice, as this part of the invoice must be returned to the vendor. Reason for Purchase All purchases must include a brief description of the business purpose. Invoices and reimbursement requests without a stated business purpose will be returned. Account Coding Invoices and reimbursement requests must be coded with the correct account number and object code. Any request over $500.00 must also include a PO number (see Material Requisition/Purchase Orders for directions). Invoices and reimbursement requests submitted with incorrect account coding will be returned. Account coding should not be written on the remittance portion of any invoice. Remittances Requiring Enclosures with Checks Any forms to be included with the check when mailed should be stapled to the invoice. The Accounts Payable Department will be responsible for enclosing the document with the check. When submitting subscriptions, dues payments, or any other payment request without an invoice number, the original of the invoice must be attached to send with the payment. This will assist the vendor in crediting the University with payment of the invoice. Voided Checks Please do not destroy voided checks. If a check is no longer needed, send to Accounts Payable for tracking purposes. (Audit Requirement) Payments to an individual or group other than Corporation (Partnerships, etc.) W-9 required A completed W-9 form must be on file in the Accounts Payable Department for new vendors who are not incorporated, including, but not limited to individuals, partnerships, and attorneys. The Accounts Payable Department will be responsible for faxing W-9 forms to new vendors. This form must be completed before payment can be made. For individuals, the Tax ID number is generally the individual's social security number. Partnerships and other business organizations are assigned a Federal Employer Identification Number (FEIN) by the IRS. Payments to individuals It is extremely important that any payment for work done by a student or employee of the University be processed through Payroll rather than through Accounts Payable. Payments in excess of $600.00 made to individuals through Accounts Payable are reported annually to the IRS on form 1099. If you are unsure as to the proper handling of payments to be made to an individual, please call Sharon Pouryad, Accounts Payable Manager at x.4361. Honorariums An honorarium is a gift, not a form of payment for services. If a person is deemed to be earning and/or expecting payment, then an honorarium is not appropriate. In situations where an honorarium is appropriate, e.g. to express gratitude to a guest speaker who has not requested payment, submit a check request to Accounts Payable with the name, address, and social security number of the individual receiving the check. Honorariums greater than $600 will be reviewed for their nature (i.e. gift or payment for services). Employees may not receive honorariums. 3
Petty Cash Petty Cash and Order for Cash are not to be used to pay for personal expenses or normal operating expenses within your department. For all other requests a check request must be submitted. See Accounts Payable policy & procedure for submitting a Staff/Faculty Check request. Department Petty Cash Petty Cash requests under $100 are distributed by the Cashier but must have the approval of the Director of Business Services or the Manager of Accounts Receivable in his/her absence. A check request must be submitted to Accounts Payable for any amount $100 or more and should have an approved Purchase Order (PO). Petty Cash requests must reference a ten digit account number and must have an original signature by both the requester and the authorized account signer. For information on authorized signers, contact Account Payable in Business Services. The requester is responsible for returning receipts and/or unused funds to the Cashier s office one week after the date funds were originally made available. Please note Petty Cash will not be distributed to any departments if there are any outstanding Petty Cash receipts. Petty cash will be reimbursed one time per event. Departments must be specific of their request for petty cash. The requester is responsible for returning receipts and/or unused funds to the Cashier s office no later than one week after the event. Cash Order This process is strictly reserved for student service departments: Athletics, Mailroom, Student Life, Residence Life, and Outreach. Each department submits a schedule of funds to be ordered with description, account number and a breakdown of cash to Business Services. Other requests not on the schedule provided must submit the Cash Order form (available on Campus Connect) to the Cashier s office by Friday at 12:00pm to receive funds the following Wednesday after 1pm. The requester is responsible for returning receipts and/or unused funds to the Cashier s office no later than one week after the event. Only authorized Vanguard employees can pick up cash ordered; cash will not be given to student workers. The employee picking up cash at the Cashier s office must sign a Cash Ordered Received form prior to releasing funds. Credit Card Policies and Procedures Credit cards may be issued to employees if their position requires frequent travel. Credit cards are not intended to replace purchase orders and check payments to vendors for goods and services purchased. Misuse of credit cards will be cause for immediate revocation. Requests for credit cards should be made through the vice president over the requester s area and then sent to the Director of Business Services. At the end of each billing cycle, the Cardholder will receive from the bank a monthly statement of account listing the Cardholder s transactions for that period. Each transaction listed on the statement should be checked against the Purchasing Log (available on Campus Connect), receipts and any shipping documents to verify the monthly statement. In order to keep track of all invoices and eliminate double payment to vendors, invoices billed to Vanguard University are NOT to be paid by credit card. Please contact the Accounts Payable staff for more information regarding invoice payments. Note a detailed explanation on the purchasing log of the reason for the purchase and the object code and Account Number for the charge to be applied to. If statements contain numerous transactions, a Purchasing Log will be required to document all the charges listed on the statement. The purchaser should identify the business purpose of each purchase. If related to hospitality expenses, please see regulations detailed in these Policies and Procedures. 4
The cardholder will attach the original sales documents (packing slip, invoice, cash register tape and credit card slips, etc) for all items listed on the monthly statement. This data attachment is CRITICAL to enable audit substantiation. The careful matching of complete support documents, including receipts, to the log and statement is vital to the success of this program. After this review, sign and date the statement and present the monthly statement to the approving supervisor for approval and signature. It is the Cardholder s responsibility to submit the signed and reconciled statement, along with the original receipts to Accounts Payable by the 10 th of each month. Individual cardholder s statements are used in reconciling the monthly University Visa bill. If your credit card statement is not received by the 10 th your card usage will be suspended. The approving supervisor will check the Cardholder s monthly statement and Purchasing Log and confirm with the Cardholder the following items: Receipts and shipping documents exist for each purchase The goods were received or the services performed Detailed explanations for purchases are included on the Purchasing Log The approving supervisor s signature on a Cardholder s monthly statement and Purchasing Log indicates that the Cardholder s purchases are authorized, and that those purchases were made in accordance with applicable procedures. Account managers may only approve expenses pertaining to their own department. If expenses are shared between Account numbers, written approval, including email authorizations, must be obtained from the manager of the account indicated on the statement summary. If the Cardholder does not have documentation for a transaction listed on the monthly statement, an explanation should be attached that includes a description of the item(s) purchased, date of purchase, vendor s name and reason for the lack of supporting documentation. THIS SHOULD BE A RARE OCCURRENCE. Revocation of the privilege of carrying a University credit card will occur should a cardholder routinely fail to follow these requirements. More than two reminders to a Cardholder that an approved monthly statement is delinquent will be grounds for withdrawing the Credit Card from that user. Returns/Disputes If an item is not satisfactory, the wrong item is received, damaged and/or defective, order is duplicated etc.; the Cardholder should make contact with the vendor to explain the problem and inquire about return policies. If items purchased by the use of Purchasing Cards are found to be unacceptable, the Cardholder is responsible for obtaining replacement or correction of the item as soon as possible. If the Vendor has not replaced or corrected the item by the date the Cardholder receives his/her monthly statement, then the purchase of that item will be considered in dispute. The Cardholder should fill out the Customer Statement of Disputed Item found on back of the visa card statement. Once the form has been filled out completely, please mail to California Bank and Trust, PO Box 30833, Salt Lake City, UT, 84130-0833. Any fraudulent charges should be reported immediately by calling 1-800-621-7476. When disputing a charge, note on the monthly statement that the item is in dispute prior to submitting to Accounts Payable. Please code the item in dispute that will then be credited the following cycle. If an item has been returned and a credit voucher received, verify that this credit is reflected on the monthly statement when it is forwarded to Accounts Payable. Again, credit must be coded properly. 5
If purchased items or credits are not listed on the monthly statement, documentation for these items or credits should be retained by the Cardholder until the next monthly statement. If the purchase or credit does not appear on the statement within 30 days after the date of purchase, the Cardholder or Approving Supervisor shall notify the vendor. Compliance Review and Training The Accounts Payable department will conduct training for Cardholders on an as-needed basis. Periodic review of individual statements and receipts will be conducted to insure that Cardholders are complying with procedures. Travel Reimbursements/Expense Reports Vanguard University will reimburse its employees for authorized expenses incurred while fulfilling their responsibilities as employees after proper University procedures are followed. Expense reimbursements should be requested using the Expense Report form (available on Campus Connect) and completed by following the instructions noted on the bottom of the form. Attach appropriate expenditure receipts to the Expense Report. Expenditures will not be reimbursed without appropriate receipts. Expense Reports are to be submitted no later than five days after each trip ends or every two weeks if expenditures are incurred on an ongoing basis. Your supervisor must sign the Expense Report before reimbursement will be made. Travel expenses consist of the following: Mileage and Gas Reimbursements Mileage will be reimbursed at the IRS approved rate, currently $0.585 per mile, for business related travel when using a personal vehicle. This includes transportation from home or work to the airport. Normal transportation to and from work is not reimbursable. An explanation of mileage or gas reimbursements is required and must be recorded with individual trip locations and miles traveled. Employees should consider renting a car for out of town travel if it is less expensive than utilizing one s own vehicle at the current reimbursement rate. Please reference Enterprise Car Rental Procedures under the Campus Connect site. Gas purchases will only be reimbursed for rental or courtesy cars, and receipts must be provided. If a trip of considerable distance is involved and employees elect to drive versus fly, only an amount equivalent to an airline coach class fare will be paid. Car Rentals/Enterprise Determine whether the need for a rental car actually exists. Is the rental a matter of convenience or necessity? Employees should choose the most economical method of car rental (flat rate vs. mileage rate) and make reservations through Enterprise Rent-A-Car. Employees should not purchase any rental car insurance since the University has adequate coverage. Convention/Conference Registration Fees The University will reimburse expenses charged to University employees while attending approved conventions and conferences. The University does not pay for other family members to attend unless that person is a university employee and attends the conference for professional reasons. Any expenses of family members should be deducted from the charges submitted to the University for reimbursement. Hotel Expenses Advance planning must be done in order to locate modest accommodations. Rates should not exceed the equivalent of Courtyard by Marriott, Hampton Inn, etc., except when necessitated for conventions and conferences where rooms are a part of the package. Laundry Expenses Actual and reasonable Laundry/Dry Cleaning services will be reimbursed for trips longer than seven days. Telephone Expenses 6
Reasonable costs of long distance telephone calls and messages while traveling are reimbursable but must be described and cannot exceed $5 per day. Allowable calls include those that are necessary for university-related business and one personal call, of reasonable length, per day. Please do not use the hotel room telephone for making direct long distance calls. Calls from hotel rooms are much overpriced. Airtime and roaming charges for business related calls are reimbursable when other options are unavailable. Meals Meals are reimbursed based on actual expenses; however, a meal expense target of $38 per day is used as a benchmark for costs while traveling on university business. If more than $38 is spent, the costs will be reviewed for prudency and may result in the suspension of the credit card. The following breakdown is the University s guide Breakfast: $8.00 must depart prior to 6:30 am Lunch: $10.00- must depart prior to 11:30 am and return after 1:30 pm Dinner: $20.00- must depart prior to 5:00 pm and return after 7:30 pm Alcoholic beverages are not reimbursable. In the event an employee entertains for business purposes while traveling, a receipt must be submitted which also documents the people in attendance and the business purpose of the expense. See Hospitality Expenses for detailed procedures. Hospitality Expenses Hospitality charges include entertaining visitors for business purposes. Meals including outside individuals, such as donors, should be for the primary purpose of fostering positive university relations. The meals may not be for social purposes, nor merely reciprocal. Alcoholic beverages are not reimbursable without the approval of the President or his designee. The following details, according to Internal Revenue Service regulations, must be documented in order to be a viable business expense. Amount Date Place and description of entertainment Purpose and nature of discussion Names, titles and business relationships of all persons attending Receipts are required for reimbursement and details must be written on each receipt or described in the appropriate area of the Expense Report if reimbursement is needed Individuals within the University will not be reimbursed for meal or entertainment expenses with other employees. There is no provision for expenditures to celebrate special occasions such as Secretaries Day, birthdays, etc. This policy extends to gift-giving. A department manager may apply an allowance to those who have approval to work extreme hours. An employee is eligible for a food allowance of $20 for dinner or $10 for lunch when working three hours overtime into or past meal times or five hours on holidays or weekends. This allowance is limited to actual expenditures. Miscellaneous Reimbursable Expenses Miscellaneous reimbursable expenses include tolls, postage, faxes, baggage handling fees, valet expenses, tips for porters, bellhops, taxi drivers, etc. Non-Reimbursable Expenses Incidental expenses such as personal recreation, movies, and snacks or any other expense not directly related to, or necessary for, the performance of the travel assignment will not be reimbursed. This includes personal travel while on official University business, and travel expenses for family members. 7
Lost Receipts A traveler who loses a required receipt should seek a duplicate. When an acceptable duplicate is unobtainable, the traveler should submit a statement itemizing the expenditure with the Expense Report. 8