KENTUCKY STATE UNIVERSITY POLICIES AND PROCEDURES

POLICY TITLE: Accounts Payable and Cash Disbursements Policy

VOLUME, SECTION & NUMBER:

ENTITIES AFFECTED: All Divisions and Departments

ADMINISTRATIVE AUTHORITY: Finance and Administration

APPROVED BY:

Kentucky State University Board of Regents

EFFECTIVE DATE:

August 9, 2024

POLICY STATEMENT:

The primary objective of accounts payable and cash disbursements is to ensure that disbursements are properly authorized, invoices are processed in a timely manner, and vendor terms and operating cash are managed for maximum benefit.

Internal control over disbursements is best maintained when the authorization, processing, check signing, recording, and bank reconciliation functions are clearly separated. Invoices will be supported by receipts and approvals indicating receipt of goods or services. The use of pre-numbered checks ensures numerical control. Persons authorized to approve expenditures will be identified, and threshold limits will be established.

This policy establishes the Kentucky State University (KSU) payment process to ensure good internal controls, prevent fraud and conflicts of interest, enhance administrative efficiency, and minimize costs.

PROCESS:

KSU's President and CFO have signatory authority to disburse funds from KSU accounts. Authorized check signers shall never sign blank checks.