Payment Policies and Procedures
General Policies
Effective Date: July 1, 2009
Board Approval: June 9, 2009
1. Purpose
The purpose of this policy is to provide an overview of the payment policies and procedures for goods and services paid for with TATC funds.
2. Payment Policy and Procedures Table of Contents
Policy Number | Description |
02-00 | General Policies |
02-01 | Invoices With Prior Approval |
02-02 | Invoices Without Prior Approval |
02-03 | Requests for Prepaid Goods and Services |
02-04 | Requests for Urgent Checks |
3. Policy
3.1. Approval Authority: All payments must be approved by the designated authority referenced in Purchasing Policies and Procedures, Procure to Pay Process 01-01.
3.2. Requirement for Prior Approval: Unless specifically exempted, approval should take place prior to the purchase of goods or services in the form of a purchase requisition, purchase order, check request, or written agreement.
3.3. Prior Approval via Purchasing: Purchase requisitions and purchase orders shall serve as prior payment approval as discussed in the Purchasing Policy and Procedures.
3.4. Prior Approval via Agreement: Written agreements shall serve as prior approval for goods or services related to contracts, leases, maintenance agreements, utilities, etc.
3.5. Prior Approval via Check Request: Check requests shall serve as prior approval for travel advances, memberships, subscriptions, postage, or other items which require prepayment. Note: For items that already have an internal approval form (like travel advances) or invoice (like subscriptions), a check request is not required, but the form/invoice must follow the same approval procedures as a standard check request.
3.6. Out-of-State Travel: Requests related to out-of-state travel must be approved by the Campus President.
3.7. Invoice Submission: All invoices should be sent by vendors directly to Accounts Payable in the Fiscal Services Office.
3.8. Unapproved Invoices: Invoices received for which prior approval was not received must be justified to the Vice President of Fiscal Operations by the purchaser before payment will be made.
3.9. Discounts: Every attempt should be made to take advantage of early payment discounts, rebates, etc., if the effort to obtain these is not greater than the benefit.
3.10. Tracking and Closing: The Accounting Clerk shall track invoices against purchase requisitions, purchase orders, and contracts to ensure proper approval and that purchase orders are closed out once all goods and/or services are received and paid for.
3.11. Tax Reporting: The Fiscal Services Office shall comply with all IRS Form 1099 reporting requirements.
3.12. Budget Overages: The Vice President of Fiscal Operations will check payments against available budgets. If payments cause a budget to be exceeded, a transfer of funds may be initiated to cover the overage (as described in the Budget Control Policy and Procedures).
3.13. Invoice/Order Mismatch: If an invoice amount exceeds the purchase requisition or order by an amount greater than $100, the purchase order or requisition must be amended and approved by the appropriate authorized signers.
3.14. Urgent Checks: Urgent checks may be requested in emergency situations or when payment is required under a short deadline. Urgent checks must be requested no later than 24 hours before needed if possible, and shall be approved by the Accounting Supervisor.