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, checking, recording and bank reconciliation functions are clearly segregated. 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 established.

This policy and related procedures establish the payment process to ensure good internal controls, prevent fraud and conflict of interest, enhance administrative efficiency, and minimize costs.

The President and CFO have signature authority to disburse funds from university accounts. Authorized check signers will never sign blank checks.

All invoices are subject to budget authority and approval limits as defined in the Purchasing policy and procedures. Authorized approvers are prohibited from approving their own transactions. Budget must be available, and approvals documented before invoices are paid.

Employees, suppliers and other payees will be paid in accordance with the terms set by the University or contractual agreement. The default payment terms are Net 30 days. Terms are calculated from the supplier's invoice date.

Vendors must provide taxpayer identification information before any payment will be issued to that vendor. Vendor invoices and credit memos should be sent directly to Accounts Payable, referencing the purchase order number, to ensure timely payment.

Checks and other forms of payment will be made directly to the payee. Checks may not be released to the requester to present to the payee. In infrequent or unique circumstances where special handling of a check is requested, this handling must be approved by the Controller.

Wherever possible and practical, vendor payments and employee reimbursement will be made by direct deposit.

Processing Incoming Mail and Electronic Invoices

All invoices, check requests and travel vouchers are delivered to accounts payable.

Responsible position(s):

Required documents and access: