This section provides detailed guidelines to all activities of the University for payment of vendor invoices. It includes payments for materials, supplies, equipment, and services purchased from vendors or individuals regardless of the procurement method. This section does not apply to Payroll, Travel Reimbursements and Moving and Relocation expenditures.
All expenditures from University funds must be necessary, reasonable, and directly related to the goals and mission of the University. All persons authorizing expenditures should be mindful that such expenditures might 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.
Departments must follow procurement guidelines to obtain goods and services. Refer to the Office of Procurement Web Page for general procurement requirements.
NOTE: An individual's failure to adhere to these procedures may result in the individual being held liable for any unauthorized expenditure made.
Proper approvals are necessary to assure all expenditure transactions are authorized and to assist in timely processing of documents. A person must be authorized to sign accounting documents. Departments may obtain signatory authority for individuals by completing a Signature Authorization form and submitting it to the Office of Finance.
University policies and procedures related to expenditures may be based on State or Federal rules or guidelines by the University administration in fulfillment of its responsibility for the prudent management of all resources.
The general policy of the University is to apply the Commonwealth's expenditure guidelines and limitations to all transactions irrespective of fund source. The Assistant Vice President for Finance has ultimate responsibility for expenditure transaction processing and may on occasion; seek additional approvals of the Senior Vice President for Administration and Finance and the President.
• Assure the propriety of vendor payments in accordance with commonwealth and University regulations.
• Certify and process vendor invoices for payment within five workdays after receipt of vendor invoice, and proper documentation, including receiving report.
• Researches problems that produce late payments and effects appropriate corrective action.
• Maintains records to assure that funds are available in the department budget to cover expenditures.
• Maintains departmental records of budgetary actions, expenditure commitments, and expenditures to assure funds are available in the departmental budget before starting any procurement action.
• Initiates proper procurement actions to obtain goods and services for the department.
• Inspects and accepts goods or services purchased to ensure that the items received meet the standards and quantities specified in the order.
• Ensures that the individual receiving and signing for materials is someone other than the person authorizing the purchase.
• Forwards immediately, to the Accounts Payable Office all Original invoices (when received by the department), prepayment documentation, subscription renewal type transactions, and any other payment related documentation. NOTE: Attach 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.
Routine expenditures are for purchases that occur on a daily routine basis, and support the operations of the University. Payments are initiated upon receipt of a vendor invoice and proper supporting documentation. Routine expenditures include purchases for office supplies and equipment, housekeeping supplies and materials, repair and maintenance materials, and printing services.
When making purchases, departments should instruct all vendors to send invoices to the Office of Accounts Payable, unless the department is a JMU designated satellite area. Currently, the Office of Finance has approved the following satellite areas: Library, Facilities Management, Facilities Planning and Construction, and WMRA. If a non-satellite department receives an invoice from a vendor, in error, they should immediately forward it to the Office of Accounts Payable.
Each department is responsible for determining its needs and for obtaining goods and services in accordance with the Virginia Public Procurement Act and procedures established by the Office of Procurement Services. The expenditure must be in support of the mission of the department.
The following lists contain examples of expenditures that are considered improper uses of public funds. These lists are intended to provide general guidance to departments in judging the appropriate use of public funds. However, any expenditure may be questioned, even those not included on the following lists.
→ Employee personal expenses such as:• Books for classes (unless they remain property of the University)
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.
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.
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.
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:
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.
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.
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.
Procedures for supervisors considering approval of a cell phone or internet stipend should follow the link below for specific 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.
To view a sample of a completed cell phone or internet stipend PAR Form follow the link below.
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.
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.
Declining Balance Cards may only be obtained by employees who have the SPCC (Small Purchase Credit Card) ex: WalMart and Kroger
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.
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.
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.
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.
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.
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.
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.
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 email@example.com. 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”.
|JMU MISCELLANEOUS PAYMENTS TO INDIVIDUALS/PARTICIPATING PAYMENTS||W9 Required||Participant Worksheet Required||Report to Payroll Services||Non-Monetary Only||Monetary Option||Individual JMU Accounting Voucher Payment Method Option||Wells Fargo Gift Card Option $25+||Cash/FLEX Payment Option - less than $25, bulk request one JMU Accounting Voucher|
|JMU Student||[SP] FUNDED ONLY||[SP] FUNDED ONLY||X||[SP]FUNDED ONLY||[SP]ONLY|
|JMU Employee [non -student]||[SP] FUNDED ONLY||X||[SP]FUNDED ONLY||[SP]ONLY|
|External Vendors||[SP] FUNDED ONLY||[SP] FUNDED ONLY||X||[SP]FUNDED ONLY||[SP]ONLY|
|Non-Monetary Recognition |
|JMU Employee [non -student]||X|
|JMU Student Prizes |
|Research Subjects |
|JMU Employee [non -student]||X||X||X||X|
|Cooperating Professionals |
|Faculty Members in Residence |
[SP] = SPONSORED PROGRAMS
 Email Payroll Services: Employee Recipient(s) name, employee id#, value amount, brief description. Inform employee value will be added to taxable earnings.
 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.
 W9 required only if individual accounting voucher processed used for research subject payments.
 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.
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.
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.
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.
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.
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.
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.
An electronic form is available online.
Complete two copies.
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.
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
|Highlight the Address line and the PeopleSoft Vendor # line to alert A/P that this is an EDI payment. Remaining fields left blank.|
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
|Highlight Address and Vendor # to alert A/P that this is an EDI payment. Remaining fields left blank. Attach original and one copy of completed Deposit Transmittal Form for Local/Agency DeptID (WDEP-Bank) and send entire packet to Accounts Payable.|
#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)
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.
The form is available online.
Complete one form.
Send completed forms to the Office of Accounts Payable.
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.