.330 Advance Payments

Advance payments are defined as payments that are made before receipt of goods or services. After the department makes an advance payment, there is no absolute guarantee that the vendor will deliver the goods or perform the requested services, placing the University's assets at risk. Therefore, when considering making an advance payment, a department must conform to the following procedures.

A completed W–9 form must be on file before a payment is processed. Contact System Support @ 568-2941 to determine if the W–9 is on file. Departments must adhere to all receiving report requirements. Standard policy prohibits the approval of an invoice for payment without first obtaining an approved receiving report. For departmental purchases up to $4,999, only a vendor invoice will be needed to process a payment to a vendor. However, advance payments are allowed for expenditures normally prepaid as a standard practice or where such prepayments are considered cost beneficial. All prepayments must have an itemized original invoice and a copy of an order form, a registration form, or some other documentation to send to the vendor with the check. Documentation should be forwarded to the Office of Accounts Payable for review and to substantiate the decision to make advance payments. The following describes those payments, which under certain terms and conditions, may be prepaid. These lists are not all inclusive.

.331 Allowable Advance Payments

Allowable miscellaneous advance payments are subject to a maximum prepayment period of 90 days.

1.  Organization Memberships: Includes employee or agency annual membership dues for professional organizations.

2.  Publication Subscriptions: Includes initial and renewal annual subscriptions for technical and professional publications. Multiple–year subscriptions are permitted as long as documentation clearly shows it is a cost savings for the Commonwealth.

3.  Convention and Educational Services: Limited to advance registration fees for convention, conferences, seminars, and employee workshops. Departments must be reasonably sure that travel will occur as planned. Excludes other travel expenditures except for public carriers.

4.  Travel Public Carriers: Limited to prepayments for individual travel by aircraft (if other than JMU travel contracts), train and bus. Excludes rental vehicle expenditures.

5.  Mail Order Purchases: Limited to mail order purchases where payments must be included with the order.

6.  Human Subject Payments: Includes expenses for advance payments to individuals (human subjects) for experimental research, engineering projects, and medical projects.

7.  U. S. Postal Service Purchases: Limited to postage purchased from the U. S. Postal Service. Excludes courier service and freight expenditures.

8.  Hotel/Motel Deposits: Limited to one night deposit for direct bill payments on hotel/motel rooms for employees who travel on behalf of the University. Use of MasterCard travel card is encouraged to secure room confirmations. Actual advance payments using the travel charge card will not be reimbursed before the trip.

9.  Film Acquisitions or Rentals: Limited to payments for the acquisition or rental of educational training and development films.

10.  Advertising Expenses: Limited to prepayments for newspaper, magazine, journal, and periodical advertisements.

.332 Advance Payments for Written Contracts, Leases, or Agreements

Allowable advance payments pursuant to written contracts, leases, or agreements are subject to a maximum prepayment period of one year, where delivery, performance, or refund is assured based on written obligations. Vendors should be encouraged to invoice the agency on a monthly or quarterly basis in the absence of a sufficiently reduced annual pricing arrangement.

1.  Legal Services: Includes fees to retain outside legal counsel for the University. The University must have written approval from the Attorney's General's Office BEFORE obtaining any legal services.

2. Media Services: Limited to payments for radio and television advertising. May also include expenses paid to advertising firms for these services.

3.  Specialized Pharmaceutical Supplies and Rare Medical Drugs: Limited to payments for specialized manufactured pharmaceutical supplies and rare medical drugs. Excludes the purchase of ordinary supplies and drugs.

4.  Mechanical, Electrical, and Equipment Repair and Maintenance Contracts: Limited to payments for services provided to repair and maintain mechanical and electrical systems and equipment. Excludes material and equipment purchases.

5.  Computer Hardware and Software Maintenance Contracts: Limited to payments for services provided to repair and maintain computer hardware and software. Excludes computer hardware and software purchases.

6.  Licensing Agreements: Limited to payments for the licensing fees associated with the use of computer software.

7.  Specialized Equipment Purchases: Limited to payments for the purchase of specialized custom manufactured equipment. Excludes ordinary equipment purchases.

8.  Real Property & Equipment Rentals: Limited to payments for the use of buildings, land, and equipment.

9.  Insurance Premiums: Limited to premiums for insurance contracts.

.340 Services Provided by Individuals Not Employed by James Madison University

Occasionally the University finds it appropriate to use the services of individuals who are not university employees. A completed W–9 form must be on file before a payment is processed. Contact System Support @ 568–2941 to determine if the W–9 form is on file. These services include, but are not limited to, the following:

• Consulting fees
• Honoraria ("payments to professional persons for services for which fees are not legally or traditionally required")
• Artistic performance
• Human subjects ("payments to individuals participating in research activities")
• Game referee or official
• Physicians or medical centers
• The Internal Revenue Service requires the University to track these payments for each calendar year. When a payment to one individual reaches $600 for a calendar year, the University must report the payment on a 1099 form.

Timely Payment to Individuals for Services

To ensure timely payment to individuals for services performed and according to their contract/agreement a completed Accounting Voucher and all pertinent documentation must be sent to Accounts Payable or Grants Accounting, if applicable.  This must be in Accounts Payable at a minimum of 10 working days in advance of when the check is needed.

After Accounts Payable reviews the voucher and backup they will forward this to Human Resources for their approval for payment as an “Independent Contractor”.  Once approved Human Resources will send the voucher and documentation back to Accounts Payable for payment processing.  If the determination is made that the services performed are truly an employee status Human Resources will contact the requesting department and explain why the payment must be considered as being performed by an employee.  The voucher will be returned to Accounts Payable with a note stating the payment must be processed on a PAR form as well as have the department fill out the appropriate hiring paperwork (PAR) and schedule “On Boarding” if necessary.  Accounts Payable will then send this back to the requesting department.

.350 Cellular Telephone Expenditures

The appropriate Senior Vice President must authorize acquisition and use of cellular telephones before procurement. An approved written request justification and a copy of the approved requisition for purchase must be on file for each telephone. Recurring monthly billings must be received in the Telecommunications Office. Telephones are to use for conducting official business only, and should not be used for personal purposes.

.351 Cellular Phone/Internet Stipends

General Information

The Stipend Program was created to alleviate the significant administrative burden, on both employees and the university, of providing the extensive substantiation required to fulfill IRS reporting requirements.  James Madison University will now offer a taxable stipend for employees whose duties and responsibilities require wireless phone access and/or internet access.  Effective September 1, 2010 the University will NOT pay for additional services for I-PADS. (The only exception is if an individual does not have a phone stipend and they own an I-PAD then upon V.P.  APPROVAL a stipend can be approved.)  The Stipend Program is designed to compensate for the business use portion of the employees personal cell phone or internet. 

Pre-determined criteria and stipend amounts, including several levels of compensation, have been chosen.  A website has been created on Telecom’s home page to help employees and supervisors understand and comply with the new JMU Cell Phone and Internet Stipend Program.  The link has been included for convenience.

                                           http://www.jmu.edu/telecom/stipend/new/

Processing Procedures

Procedures for supervisors considering approval of a cell phone or internet stipend should follow the link below for specific instructions.

                    Summary Instructions 

Instructions for completing the PAR Form to initiate a cell phone or internet stipend is contained the in the link below. Please remember that cell phone and internet stipends are not retroactive and will begin with the first pay cycle after receipt of the PAR Form by Payroll Services.

                    Stipend PAR Instructions

To view a sample of a completed cell phone or internet stipend PAR Form follow the link below.

                     Stipend PAR Sample

Cancellation of Stipend

If the employee resigns, is terminated, transfers departments, or no longer qualifies for a university stipend, a PAR Form must be submitted to Payroll Services to discontinue the stipend. The stipend is based on the employee’s primary job, VP approval and recertification is required if the primary job changes. The supervisor from the old job should submit a PAR Form to discontinue the stipend and the new supervisor would need to recertify the need for the stipend as well as complete the supervisor worksheet and a new PAR form.

.360 Agency Transaction Voucher (ATV)

This form is required to record all transactions among University departments related to sales, services, recovery of costs, and transfers of expenditures and revenues among University Departments. Departments should forward Agency Transaction Vouchers to Financial Reporting.

.370 Declining Balance Cards

Declining Balance Cards may only be obtained by employees who have the SPCC (Small Purchase Credit Card) ex:  WalMart and Kroger

• A cap of $500.00 must be placed on each declining balance card.
• An employee may complete a “point of sale” purchase of a card with a declining balance for their department.
• All purchases must be documented and receipts retained for purchases made using the declining balance card. (Departments are responsible for any documentation that would be required in an Audit).
• These purchases must fall within the Accounts Payable and Procurement guidelines.

.380 International Wires

This section addresses international wires for payment to vendors for Accounts Payable disbursements. All wires related to International Studies Programs are facilitated through the International Accounting Office within Accounting and Reporting.

Departments may initiate an international wire payment by completing the Accounting Voucher as described in subsection 610 and forwarding the completed voucher with all appropiate supporting documentation to the Cash & Investsments Office, MSC 5711. Questions may be directed to Ramona Stevens at x85972 or by completing an online request.

.390 Miscellaneous Payments to Individuals/Participant Payments

This section addresses several different types of payments made to individuals. As detailed below, employees may receive a specific payment identified in this section but typically these payments are made to non-employees

Certain payments may require the completion of a Participant Worksheet and/or a W-9 and be forwarded to Accounts Payable within 5 business days of making payment and no later than January 10th for the prior calendar year. The chart at the end of this section illustrates when completion of these forms is necessary.

As indicated in FPM Deposits section 4105.210, departments storing cash of more than $200 are required to have a safe on the premises and access must be limited to those with a need to access funds related to their position: http://www.jmu.edu/finprocedures/4000/4105.shtml.

.391 Incentives

To encourage participation in campus surveys and focus groups, a non-monetary incentive with a value limit of $25 per item may be randomly awarded to a member of the group of participants.

Incentives funded by Sponsored Program awards and not governed by the IRB, where the award document specifically states more than $25 per item may be given as an incentive and that the incentive may be paid by gift card allows the department to do so. Gift card minimums start at $25 and there is a $2/charge service fee incurred by the department/sponsored program budget that must be allowable by the award or absorbed by the department’s F&A budget.  Only Wells Fargo gift cards may be purchased as specified below.

These incentive items should be coded to 141300.

.392 Non–monetary Recognition Awards

A non-monetary recognition award that is of nominal value (less than $100) may be given infrequently by the department to their students and employees.  Examples of  non-monetary recognition awards include: pencils, pens, desk items, cups and mugs and  plaques, certificates and trophies, purchased at a nominal cost to the department.  Recognition awards should be given based on specific, pre-determined criteria which is documented and maintained in department records either as departmental procedures or with the transactional records.  Longevity awards are not to be given by departments as these are given by the University and coordinated by the Office of Human Resources.  Gift cards may not be given as recognition.

These awards should be coded to 141300.

.393 JMU Student Prizes (Monetary & Non-monetary)

Student prizes may be distributed following departmental or Sponsored Program funded competitions supporting University mission-related and/or research purposes. The prizes may be non-monetary or monetary. Monetary prizes may be distributed via the options specified below. All options are tax reportable and require W9’s.  Monetary prizes randomly awarded must first be approved by the JMU Financial Aid Office.

These prizes should be coded to 141300.

.394 Research Subjects

This category of individuals works with investigators in research projects outside of the procedures for payroll and contractual arrangements and may be provided a stipend for their participation. Individuals who participate in a research project under the conditions set forth by the procedures governed by the University’s Institutional Review Board (IRB). These are volunteers who have signed consent/assent forms after being fully informed about the procedures, risks and benefits of their participation. Payment methods are discussed below and W9’s are required although benefits are not tax-reportable as long as the IRB approval documentation is on file.  Single accounting vouchers payable to faculty/staff to access bulk cash for distribution to subjects are limited to maximum of $500 or one month’s worth of research subject payment total, whichever is LESS, unless a written exception is requested and granted.  Monetary prizes randomly awarded must first be approved by the JMU Financial Aid Office.

Research Subject payments must be coded to 141320.

.395 Cooperating Professionals

Individuals who provide a service based on the agreement their employer and the University. Cooperating Professionals (CP’s) are not employees of the University and the University has no authority over their participation. CP’s may discontinue their participation without risking any future relationships with the University. One common example of a CP is a school teacher who provides information about a student, who is an intern or research participant, to the faculty coordinator or investigators on a one time or repeated basis as a result of an agreement between the University representatives or investigator and the school district.

Cooperating Professional payments should be coded to 126800.

.396 Faculty Members in Residence

Visiting Faculty Members in Residence provided short-term housing in JMU-owned or leased facilities, for which the department pays rental expenses. The Department is responsible for obtaining W9’s from each of these faculty members and completing Participant Worksheets with the value of the rent provided, for the calendar year, and submitting both documents to Accounts Payable no later than January 10th of the following year. The Department coordinates securing the housing and payment for same with the JMU Real Property and Space Management Office.

See JMU Participating Payments Chart below for information regarding whether or not W9’s and/or Participant Worksheets are required, as well as when to report employee payments or non-monetary payments to Payroll Services. The chart also illustrates the various payment options available for each of the different Participant Payment scenarios. Questions regarding which payment option is available to your department for a specific situation should be directed to the Accounts Payable Office.  Questions related to the purchase or handling of the Wells Fargo Gift Cards for Participant Payments may be directed to the Cash and Investments Office at iis.finance@jmu.edu. The form for ordering these cards is available in the JMU Financial Procedures Manual forms index located at: http://www.jmu.edu/finprocedures/1000/1020.shtml “Wells Fargo Gift Card Participant Payment Order Form”.

[SP] = SPONSORED PROGRAMS
[1] Email Payroll Services: Employee Recipient(s) name, employee id#, value amount, brief description. Inform employee value will be added to taxable earnings.
[2] Wells Fargo Gift Cards only allowable/acceptable gift card option. Fee of $2/card incurred by ordering department's budget. Must complete university pre-order form (Participant Payment Gift Card Order Form) and allow two weeks for processing. Department contact responsible for internal monthly card inventory/reconciliation. Returning sign out sheet to Accounts Payable.
[3] W9 required only if individual accounting voucher processed used for research subject payments.
[4] FLEX must be used for non-payroll related, monettary prizes and payments of less that $25 for all JAC cardholders. W9's and Participant Worksheets may still be required depending on the payment classification.

.400 Receiving Reports

.410 General

Before a vendor is paid for materials delivered, it is important to verify that the item delivered meet the standards and quantities specified in the order.

The receiving report copy of the purchase order or the Receiving Report form must be completed for all items purchased $5,000 and greater and must be signed by a different individual than the person originating the purchase. The employee who receives the goods and verifies the quantity and condition must enter the date received and his/her full signature. Initials or a signature stamp is not acceptable. A copy of the bill of lading or packing slip is required for any purchase $5,000 or greater.

.420 Inspection, Acceptance, and Rejection of Goods or Services

Departments are responsible for inspecting and accepting goods or services purchased. Inspection is the close and critical examination of goods or services delivered or picked up to determine conformance with applicable requirements or specifications.

.430 Lost or Damaged Shipments

It is the department's responsibility to promptly inspect deliveries for shortages and shipping damages at the receiving location. Shortages or shipping damages must be noted to Accounts Payable so that payment is not made until the vendor has replaced the damaged goods for departmental purchases. Otherwise note on the receiving receipt/packing slip concealed damage must be reported to the carrier and vendor within seven days of receipt and before removal from the point of delivery. Departments must keep the carton for concealed damage claims.

.440 Rejection of Goods

Rejection of goods or services is the responsibility of the requisitioning department whenever the goods or services do not meet contract requirements. In case of a partial or total rejection, the department must take immediate action to notify the vendor as to the reasons for rejection and to request prompt replacement with a mutually agreeable replacement date.

When a rejection is made against a purchase order or contract, the department must notify the appropriate buyer in the Procurement Services department by telephone.

.500 Processing Procedures

.510 Department

• Verifies that sufficient funds are available in the departmental budget before making any purchases or processing any procurement documents.
• Prepares appropriate procurement documents for purchases via eVA unless excluded from this process (see exclusion list on Procurement's eVA page).
• Receives goods and services from the vendor, completes a receiving report, if $5,000 or greater.
• Receives vendor invoice or a faxed copy from Accounts Payable with eVA DO# listed on invoice. Sends receiving report (if required) to the Office of Accounts Payable within five working days of receipt. Attaches the vendor invoice to an 8 1/2 x 11 size blank sheet of paper if the cash register slips or other vendor invoices are not standard letter size.
  
  Required information of each invoice:
  • Vendor name and address
  • Vendor Federal Identification Number of the vendor, or Social Security Number of the Individual being paid
  • Vendor Invoice Number
  • Vendor Invoice Date
  • Description of goods or services
  • Amount being paid
  • Maintains records of all expenditures and verifies charges to departmental budget report. Contacts the Cash & Investments Office to reconcile differences.
• For all invoices without an "eVA DO#" shown on it, completes an Accounting Voucher to initiate payment.

.515 Check Request

The University currently processes checks three times a week, so that even payments required within a few days [only for unique circumstances] can generally be produced in a timely fashion under normal business process.  The university participates in anti-fraud protection services that require  issued checks be reported to our financial institution 24 hours before a payee may present the item for payment, therefore only legitimate emergency check requests will be considered outside the university’s normal check processing schedule.  Inconvenience and failure to complete and submit paperwork im a timely manner or follow university procedures are not considered emergencies. 

All requests for express [emergency] checks must be in the Accounts Payable Office by 11:00am to receive a check that same day. Exceptions must be approved by John Knight, AVP Finance or Mark Angel, Associate Controller. 

Payments to JMU student vendors:  Must use student ID# or HR employee ID# and student home address (no local on campus MSC address). If student signed up for Direct Deposit through My Madison, they will be paid via ACH, otherwise via check mailed home.

.520 Accounts Payable

• Receives procurement documents for expenditures $5,000 or greater. Reviews for proper authorization signature, correct coding, and appropriateness of purchase.
• Receives Receiving Report and Bill of Lading from Department if $5,000 or greater.
• Receives invoice from Vendors, date stamps, and records in the Financial Information System.
• Matches invoice with procurement document, receiving report, and any other supporting documentation available.
• Forwards or Faxes the invoice to the department that originated the purchase.
• Receives completed accounting voucher (see subsection .615 - Forms Preparation Instructions) for all invoices without an eVA DO # shown on them. Reviews completed accounting voucher and documentation for completeness and correctness. If incorrect or incomplete, returns documents to department.
• The department would only contact Accounts Payable when an invoice should not be paid. If no response from the department, eVA invoices up to $4,999 will be paid within five (5) business days. Accounts Payable staff will use the coding and signature on the eVA DO as authorization to make payment.
• Calculates payment due date and processes invoice for payment. In the absence of contractual terms and in accordance with the Commonwealth's Prompt Pay Act, payment shall be due thirty (30) days after receipt of proper invoice or material/service, whichever is later.
• Inputs payment information into the Financial Information System, generates necessary reports to determine accuracy of postings, budget exceptions, accuracy of due dates, past due payments, etc.
• Initiates the payment posting process and generates journal entries. Verifies information, executes CARS EDI Transmittals and generates the Interface Transmittal Listing. Reconciles and distributes reports. Saves files for check processing.
• Provides assistance to University Campus for processing expenditures.

.530 Cash & Investments

• Processes university disbursements (including international wires).

.540 Financial Reporting

• Transmits files to the Commonwealth Financial Reporting System (CARS) system at the Department of Accounts in Richmond. Verifies accuracy of reports in CARS.
• Receives a manual copy of the Budget Exception Report, resolves exceptions not resolved by Accounts Payable.
• On a monthly basis reconciles CARS expenditure reports to Financial Information System expenditure reports.

.600 Forms Preparation and Submission

.610 Accounting Voucher

.611 Required

This form is required to initiate payment to vendors for all invoices without an eVA DO# listed on it and for all payments to vendors via international wire.

.612 Where to Obtain Blank Forms

An electronic form is available online.

.613 Number of Copies

Complete two copies.

.614 Where to Send Completed Forms

Send the Original form with supporting documentation to the Office of Accounts Payable, retain one copy for departmental files. Senitive data (i.e. social security numbers, etc) must not remain on departmental documents.
NOTE: Accounting Vouchers for payment by international wires are sent directly to the Cash & Investments Office, MSC 5711.

.615 Forms Preparation Instructions

Following are detailed instructions for the preparation of the Accounting Voucher. Enter the following information only; all other areas should be left blank.  Print a copy of an accounting voucher (with numbers to coincide with the instructions) to assist you with completing your voucher. For International Wire of Foreign Currency sample, click here. For sample of foreign wire of US Dollars, click here

#1 - Agency Name/Delivery Address: Enter the name and address of the department being charged.

#2 - Vendor Information: Enter the Vendor’s name, Address, City, State, and Zip Code. Enter the Federal Identification Number of the vendor, including the suffix or the Social Security Number of the individual being paid. (PS SA# for students providing skilled services or receiving a non-travel reimbursement)  Enter the Peoplesoft Vendor number, if known. For services provided by individuals not employed by James Madison University, a completed W-9 form must be on file before a payment is processed. Contact System Support @ x82941 to determine if the W-9 form is on file. 

For International Wires, the Vendor Information section should be completed as follows: 
              Name - James Madison University
              Address - JMU EDI Vendor
              PeopleSoft Vendor # - 0000002610                        

For all check requests from state deptIDs (1, 3, 4, 5, 7, 9) to be deposited into local/agency funds depts (8), the Vendor Information section should be completed as follows: 
              Name - James Madison University
              Address - JMU EDI Vendor
              PeopleSoft Vendor # - 0000002610                        

#3 - Date Voucher Prepared: Enter the date the voucher was prepared.

#4 - Contact Person: Enter the name of the person to call if questions arise.

#5 - MSC: Enter the Mail Stop Code (MSC) for the department preparing the voucher.

#6 - Phone No.: Enter the telephone number of the person to call, if questions arise.

#7 - Vendor Invoice: Enter the vendor's invoice number. Only 1 invoice number may be paid on this form. If no invoice # is present, enter a "meaningful" short description which will appear on the check advice.

#8 - Invoice Date: Enter the date of the vendors invoice.

#9 - P. O. No.: Enter the number of the Purchase Order, if applicable, or the Travel Authorization Number, if applicable.

#9a - eVA exclusion #: Select the exclusion number from the "pulldown" box (by using the "arrow" to display your selections) that matches the allowable, excludable items/categories that do NOT need to be procured through the eVA Procurement System.

#9b - Non-eVA purchase explanation Provide an explanation of non-eVA purchase if no exclusion # is provided in #9a.

#10 - Approving Signature and Date Signed: Enter the signature of the individual responsible for the departmental budget being charged. This signature must be an approved one on the Signature Authorization Listing maintained by the Office of Finance. The signature attests that the goods and services were received in good condition. Enter the date the individual signed as "approving signature".

#11 - Description: Enter a complete description of each item or service provided.

For International Wires, the description field must include all of the following:
beneficiary bank name
                         beneficiary bank address
                         beneficiary bank branch and address/number (if applicable)
                         beneficiary account number
                         the exact name of the beneficiary account
                         the purpose of the wire
                         the amount to be wired
                         the type of currency the payment is to be made in
               The SORT and/or SWIFT code(s) or IBAN must also be included in this space.

#12 - Quantity: Enter the quantity received.

#13 - Unit Price: Enter the price for each unit received.

#14 - Amount: Enter the amount. (Leave blank for international wires - Cash & Investments will complete after wire is finalized.)

#15 - Department ID #: Enter the Departmental ID Number.

#16 - Acct. #: Enter the expenditure account code that best describes the goods or services provided.

Total Amount: All total amounts are calculated. (Both places on the form)

.620 Receiving Report

.621 Required

This form is required ONLY for departmental purchases $5,000 or greater. A copy of a bill of lading or packing slip is also required for any purchase $5,000 or greater.

.622 Where to Obtain Forms

The form is available online.

.623 Number of Copies

Complete one form.

.624 Where to Send completed Forms

Send completed forms to the Office of Accounts Payable.

.625 Form Preparation Instructions

Date Prepared: Enter the date you prepared the form.

Vendor: Enter the Vendor's name.

P. O. No.: Enter the Purchase Order Number.

Requesting Department: Enter the name of the Department that requested the goods or services.

Attention: Enter the name of the departmental contact person.

Rec'd. at Dept By: Signature of the individual who received the goods or services.

Date Rec'd: Enter the date the goods or services were received.

Item Description: Enter a complete description of the goods or services received.

Quantity: Enter the number of items received, if applicable.

ETF Reference: Enter the ETF (Equipment Trust Fund) Reference number if receiving ETF equipment.

Shipment: Partial/Complete: Indicate if the shipment was partial or complete.