Accounts Payable Policy 301
|Policy 301||Approved: November 28, 2016|
|UNIVERSITY OF NORTH CAROLINA SCHOOL OF THE ARTS
Accounts Payable Policy
|Source of Authority:||Office of State Budget and Management (OSBM) Budget Manual;
Office of the State Controller (OSC);
N.C.G.S. § 116-34(a);
UNC Code § 502(A)
|History:||First Issued: February 17, 2011
Revised: August 18, 2011; November 28, 2016
|Related Policies:||OSBM Budget Manual;
Cash Management Policy 302;
Cashier Policy 303;
Honorarium Policy 305;
Independent Contractor Policy 306;
Purchasing Policy 308;
Travel Policy 310
|Responsible Offices:||Financial Services Department|
|Effective Date:||November 28, 2016|
This policy is to effectuate OSBM and OSC policies and procedures with respect to the management, processing, and disbursement of State money.
This policy applies to all payments or goods and services received by UNCSA.
1. Budgeted funds must be available before requisitions, purchase orders, P-Card purchases or Direct Pay requests are prepared.
2. All vendors should send invoices directly to: UNCSA's Accounts Payable Unit.
a. Via Mail: University of North Carolina School of the Arts, ATTN: Accounts Payable Office, 1533 S. Main Street, Winston-Salem, North Carolina 27127.
b. Via Email: firstname.lastname@example.org
c. Via Fax: 336-631-1233
3. Required Documentation
a. Disbursements must be from original source documentation (e.g. invoices, agreements, contracts, and requests) which sufficiently describes the purpose of the disbursement.
b. Documentation must identify the payee’s name, address, and UNCSA’s purchase order number (if applicable).
c. Documentation must be sent to Accounts Payable (AP).
d. Under special circumstances when the original invoice is not sent directly to AP by the vendor, the campus department in receipt of the invoice must forward the invoice to AP in a timely manner and before the due date.
4. Payment Approved
a. Disbursements must be approved by authorized UNCSA personnel.
b. Contract payments must be approved by the designated contract administrator or Vice Chancellor for Finance and Administration, or designee.
c. In limited cases, items may be purchased with personal funds (i.e. credit card or cash) if approved by the Vice Chancellor for Finance and Administration or designee in advance of the purchase.
5. Receipt of Goods and Services
Each department is responsible for declaring receipt of goods or services to demonstrate that the goods or services were recorded and counted by receipting the goods electronically through the Banner Receiving Email-box.
6. Allowable and Eligible
A disbursement must be for an allowable activity per State regulations and UNCSA's Basic Spending Guidelines by Fund Source.
7. Purchase and Contract Regulations
The disbursement must comply with State purchase and contract rules and regulations as listed in the State Purchasing Manual and UNCSA’s Purchasing Policies and Procedures.
B. Tax Reporting Policy
The University is required to file a 1099-MISC form with the IRS (due Feb. 28), the NC Department of Revenue and payee (due Jan. 31) for each vendor (payee) paid the following amounts:
1. Rents of $600.00 or more
2. Any royalties of $10.00 or more
3. Other income of $600.00 or more
4. Non-employee compensation of $600.00 or more
C. Funds on Deposit with Private Banks
1. Board of Trustees of the Endowment Fund
a. Must use state funding guidelines for administrative related operations for University employees.
b. May purchase items falling outside the state funding guidelines for entertainment and travel with approval of the Vice Chancellor for Finance and Administration or designee.
c. The primary purpose of the expenditure must be for the benefit of the University and not for the direct benefit of an employee.
a. Funds may be held by the University as fiscal agent for student, faculty and staff organizations where it has been deemed in the best interests of the University to provide an accounting service.
b. These funds do not belong to the University and the University does not determine what they can be spent for, except:
i. The University requires a formal process to ensure, to the extent possible, that funds in these accounts are not misused.
ii. The funds should not be spent for any purpose, which would be detrimental to the image of the University.
V. Revision History
A. February 17, 2011 – Adopted by Board of Trustees as part of UNCSA Policy Manual
B. August 18, 2011 - Revised to update titles.
C. November 28, 2016 - Revised to update titles and contact information, and to clarify scope.
UNIVERSITY OF NORTH CAROLINA SCHOOL OF THE ARTS
Accounts Payable Procedures
I. Accounts Payable Policy Manual
A. Financial Services will establish and maintain an Accounts Payable Policy Manual which will contain more information and procedures for implementing the Accounts Payable Policy.