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Longwood University |
Policy
4102
DISBURSEMENTS:
GENERAL REQUIREMENTS
I. PURPOSE
The purpose of this policy is to establish a guideline for the payment of invoices for materials, supplies, equipment, or services provided by various vendors or individuals.
II. POLICY
A. Compliance Requirements: All expenditures of institutional funds must be necessary, reasonable, and directly related to the goals and missions of the institution. All persons authorizing expenditures should be mindful that such expenditures may be subjected to scrutiny by State authorities, sponsors, auditors, and other interested parties. To ensure prompt payment, departments and activities should appropriately explain and document all expenditures.1. Longwood policies and procedures related to expenditures may be based on State or Federal rules or guidelines by the institution's administration in fulfillment of its responsibility for the prudent management of all resources.
2. Compliance with State law and Longwood policy necessitates properly identifying the nature of any goods or services being purchased, as well as the source of funds.3. An individual's failure to adhere to these policies and procedures may result in he or she being held liable for any unauthorized expenditure he/she has made.
B. Other Situations:
1. In most situations, the dean's or vice president's approval will be sufficient to authorize the processing of a transaction. However, the Director of Accounting and Financial Reporting has ultimate responsibility for expenditure transaction processing and may, on occasion, seek additional approvals.
2. All payments for goods or services must be handled according to these policies. Invoices for goods and services not obtained in accordance with Longwood policy will not be processed.
3. Receivers or invoices must be submitted immediately after the receipt of any goods or services. It is the responsibility of the department to ensure that all eligible discounts are earned and that the payment of late charges is avoided.
4. State law requires a vendor receive payment within thirty (30) days from the time the department receives the vendor's goods, services or invoice, whichever is later, or by a pre-agreed date established in the contract with the vendor. If payment is not received on time, the vendor can bill for interest at the prevailing ninety (90) day U.S. Treasury Bill rate. Any interest penalty must be paid out of existing departmental funds.C. Documentation: All original copies of receipts, bills, vendor's invoices, contracts, letters, or other related documents must be attached as documentation for any demand payment or receiver at the time it is submitted.
Revised and approved by the Board of Visitors, September 7, 2002.