/Institutions/United-States-University/json/current/Policy-and-Procedure-Manual-local.json

/Institutions/United-States-University/json/current/Policy-and-Procedure-Manual.json

504 - Account Payable

Title:	Accounts Payable
Owner:	Chief Financial Officer
Last Updated/Revised	05/01/2024

Policy: Accounts Payable department (AP) responsible for the payment of the University's expenses.  AP shall review all invoices from external vendors, as well as, internal payments to students, faculty, and staff that are not payroll related. 

Purpose: To establish standard procedures to support all invoices' accurate and timely payment for the University. These include all check request, travel advances, employee expense reimbursement, petty cash, etc. 

Procedure: The following procedures are guidelines for processing all expenditure documents through Accounts Payable (AP). If you cannot find information related to your situation or need interpretive guidance, contact the university controller. 

Vendor Invoice Procedure

1. If a purchase is made locally, the department should obtain an invoice from the vendor. All invoices should be sent to AP at AP@usuniversity.edu to ensure accurate expense reporting and timely payment to the vendor. The following information should be included on the invoice or an email cover letter:
   1. Vendor Name
   2. Description of purchased goods or services
   3. Nominal Account code to be charged
   4. Department to be charged
   5. Program to be charged (if applicable)
   6. Authorized department head signature (indicates receipt of good or service and authorizes payment)
   7. Amount

NOTE: The department is responsible for supplying all the above information. If any of the above information is not provided to AP, the invoice will be returned, resulting in delayed payments.

If a purchase is not made locally, the invoice may be sent to the department or directly to AP (AP@usuniversity.edu or ATTN: Accounts Payable, c/o United States University, 404 Camino del Rio S., Suite 102, San Diego, CA 92108). If the department receives the invoices, the above process should be followed. If AP receives the invoice, a copy will be forwarded to the department and/or CFO to assign the account code, department, program, and provide the authorized signature.

To avoid duplicate payments to university vendors, payment of invoices via corporate credit card should be pre-authorized by the Chief Financial Officer. Invoices should only be sent once to AP. Reprinted invoices or invoices sent a second time should be clearly marked on the face of the invoice or the email subject line with the word "DUPLICATE." Vendor account statements should be marked as such.

W-9 Form Collection for All Vendors Procedure

1. As required by IRS regulations, a completed and signed W-9 Form or W-8BEN (for foreign payments) must accompany check requests when paying a new individual/business or for payments for services, honorariums, or stipends.
   1. Without the completed W-9 Form or W-8BEN Form, AP will be unable to process the payment. 
   2. Once you have submitted W-9 for specific vendor, there is no need to request a second one for services at a later date. If the vendor's Taxpayer Identification Number (TIN) is printed on their invoice or is a vendor you have used regularly for the past two years, a new W-9 Form is unnecessary.

Prepayment Procedure

1. A pre-paid transaction is when a vendor requires payment before the actual delivery of the goods or services. It is the University's policy not to make payments except as noted below.  All prepayments should be clearly marked on the vendor invoice and the expected delivery or time over which the service will be received (commencement and termination dates). Once a prepayment is made, the burden for ensuring delivery of goods and services rests solely on the ordering department. The related expense will be recorded based on the termination date. Exceptions:
   1. Membership Dues
   2. Subscriptions
   3. Publications
   4. Licenses
   5. Insurance Contracts
   6. Deposits or Retainer Fees

Employee Expense Reimbursement Procedure

1. Employees should submit their expense reimbursement requests promptly. Only expenses within the established University Travel and Expense Policy will be eligible for reimbursement. Appropriate supporting documentation must be attached. If the original receipt is not legible, a personal credit card statement or debit card transaction report may be used.

Corporate Credit Card Procedure

1. Corporate credit cards will be issued to the executive team. Department heads and/or vice-presidents may request a corporate card if there is a justifiable business need. The request for a corporate card must be approved by a member of the executive management team. Only the individual named on the card should use the credit card. Individual users will be responsible for providing appropriate supporting documentation for all expenditures made on their corporate credit card. Cardholders will also need to provide the account code, department, and program to be charged for all transactions every month. Only transactions that have been appropriately coded will be approved for payment. Credit card transactions will need to be reported using the Expense Reimbursement Form.
2. Corporate credit cards should typically be used to pay for small business purchases. Vendor invoices should never be paid by employees using a corporate credit card. If payment is made on a vendor invoice that has already been sent to AP, please contact Chief Financial Officer or designee immediately.
3. Credit limits will be established by the approving member of the executive management team.  The cardholder is responsible for reviewing their open transaction and the credit limit. Any necessary increases to the credit limit must be approved. 

Approval and Payment Procedure

1. The university desires to pay approved invoices timely and accurately. Vendor payments will be prioritized based on vendor classification and payment terms.  All invoices must be either approved by the CFO, COO, and/or CEO based on defined approval limits prior to payment. AP will generally prepare and mail checks for approved and authorized invoices each Friday. Invoices must be received by the close of business on Wednesday to be included in the weekly check run. Employees expense reimbursement requests will be processed on an as-needed basis. Additional cut-off times and/or payment delays may occur at the month-end.

Scope: This policy applies to all university employees, students, and faculty. 

Documents and Forms:

• Expense Reimbursement Form (available on the University Intranet)