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Procedures (by Category)

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Finance Procedures (by Category)

Procedure Number Procedure Name Category Content
1005 Preface General (1000)

.100 Purpose of the Financial Procedures Manual

The JMU Financial Procedures Manual is written and published by the Division of Administration and Finance to provide authoritative guidance on the application of financial related procedures and systems for the University Campus.

The manual provides a standardized approach to financial and accounting topics for the University by:

  • Documenting detailed procedures for use in preparing, distributing and processing accounting, procurement and financial related information between departments, the Administration and Finance Division, and the Commonwealth of Virginia.
  • Documenting University and State Accounting Policies and Procedures so that data accumulation, form preparation, distribution, and processing is standardized.
  • Providing information and reference material to assist users.
  • Provide information to assist departments in accessing and using the University's Financial Information System.

The University's Financial Information System operates through the interaction and cooperation between departments and the Division of Administration and Finance. In order to function properly, it is necessary that all users adhere to the procedures documented in the Financial Procedures Manual.

.200 Organization of the Manual

The manual is organized into sections, sub-sections, and subjects.

.210 Section

Sections are included for major topics such as Travel, Moving and Relocation, and Deposits. Each section includes the effective date of the procedure.

.220 Sub-section and Subject

Sub-sections divide the sections into meaningful topics and are numbered in hundreds (.100, .200, etc.) The subsections are further divided into subjects, if needed and are numbered by tens (.110, .120, etc.). Numbered and bulleted lists divide detailed procedures into categories for easy access.

.300 Revision and Maintenance of the Manual

The Office of the Assistant Vice President for Finance is responsible for maintaining and revising the manual. Procedures are revised to incorporate changes implemented by the University and the Commonwealth of Virginia. All users of the manual are encouraged to recommend revisions to the manual. Submit recommendations to the Office of the Assistant Vice President for Finance. The University's Financial Procedures Manual is published on the web.

1010 Introduction General (1000)
 

.100 Accounting Concepts

.110 Basis of Accounting

The University follows GASB Statement 34 requirements for "reporting by special–purpose governments engaged only in business–type activities." Accordingly, the financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. All significant intra–agency transactions have been eliminated.

The University's accounting policies conform with generally accepted accounting principles as prescribed by the GASB, including all applicable GASB pronouncements, as well as applicable FASB statements and interpretations, Accounting Principles Board opinions, and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The University has the option to apply all FASB pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The University has elected not to apply the FASB pronouncements issued after the applicable date.

.200 Responsibility

The University Assistant Vice President for Finance is responsible for all financial data classifications and coding structures for JMU. All changes to any established financial related code or set of codes for JMU must be approved and/or issued by the Assistant Controller - Accounting Operations and Disbursements.

.300 Account Categories

This sub-section provides general information for the different categories of accounts included in the Financial Information System. The information is not intended to provide details of the generally accepted fund groups for the reporting of Higher Education financial data.

Separate accounting entities are maintained for Educational and General (E&G), Student Financial Assistance, Auxiliary Enterprises, Financial Assistance for E&G Services (Grants and Contracts), Capital Outlay and Agency/Local funds.

.310 Educational and General

Educational and General provides instruction, research, and public service and includes Instruction, Research, Public Services, Academic Support, Student Services, Institutional Support, and Operation and Maintenance of Plant.

The source of funds is partially from the General Fund of the Commonwealth of Virginia, student tuition and fees, sales and services of educational activities and miscellaneous, such as library fines.

.320 Student Financial Assistance

Student Financial Assistance provides financial assistance to Higher Education students. Scholarships and Fellowships are given in the form of outright grants and trainee stipends to individuals enrolled in official courses, either for credit or not.

.330 Financial Assistance for E & G Services (Grants & Contracts)

Financial Assistance for E & G Services provides resources for educational and general services through supplementing other activities within the system. This category includes all funds received or expenditures reimbursed under the terms of a grant or contract. Receipt and expenditure of funds must be made in compliance with federal and state regulations and within the grantor specifications.

.340 Auxiliary Enterprises

Auxiliary Enterprises provide essentially self-supporting goods or services to students, faculty, and staff. Auxiliary Enterprises includes Food Services, Bookstores and Other Stores, Residential Services, Parking and Transportation Systems and Services,Telecommunications Systems and Services, Student Health Services, Student Unions and Recreational Facilities, Recreational and Intramural Programs, Other Enterprise Functions, and Intercollegiate Athletics.

The source of these funds is exclusively from student fees and from the sale of goods and services. The General Fund of the Commonwealth provides no support to auxiliary enterprises.

.350 Capital Outlay

Capital Outlay accounts are established to record revenues and expenditures of construction, renewal and replacement, and acquisition of physical properties for University use. The source of funds is from University reserves, General Funds of the Commonwealth, proceeds from General Obligation Bonds, Revenue Bonds and from grants and gifts.

.360 Agency/Local

Agency and Local funds are held by JMU as custodian or fiscal agent for students, faculty, staff members, and organizations.

.400 Accounting Codes

Accounting codes are a series of numbers established to facilitate the systematic recording and reporting of accounting information pertaining to the financial activities of the University.

.410 Fund/Fund Detail Codes

Fund/Fund Detail Codes classify financial data according to appropriate funding source.

.420 Program Codes

Program codes accumulate financial information related to activities or sets of activities aimed at achieving specific objectives. This component reports program costs across agency and fund lines and provides for program budget formulation and control, on a statewide and university basis.

.430 Department Organization Codes

Department organization codes are assigned to individual departments to accumulate data related to the department's activities. This component accumulates budget, revenue (if appropriate) and expenditure information for a department.

.440 Expenditure Account Codes

Account codes classify expenditures into different categories and collects expenditure data in a systematic manner.

.450 Revenue Source Codes

Revenue source codes identify specific types of revenues and receipts collected to support University activities.

.500 Reports

Various financial information reports are available to the University Campus via the Financial Information System. Departments may contact System Security to determine the type and availability of reports and request access to their organization's data. Information Technology Computing Support provides training for accessing and using the Financial Information System.

.600 Departmental Responsibilities

It is incumbent upon all University personnel to adhere to the procedures outlined in the Financial Procedures Manual. The Division of Finance must assure that the University complies with applicable state and federal laws and their supporting administrative requirements. Further, adherence will support the responsibility of the Assistant Vice President for Finance to report, on an accurate and timely basis, the University's financial position to Senior Administrators, the President, Board of Visitors and various state officials.

1015 Definitions General (1000)

.100 General

This section provides definitions for accounting terms, acronyms, and information pertaining to the various forms used within the campus and this manual.

.200 Definitions

Accounts Receivable Amounts owed to the University or a department of the University by individuals or organizations (other than state agencies and institutions) for goods and services rendered, tuition and other fees, and other obligations. Refer to Section 4115, Receivables, for additional definitions and information.
ATV See Agency Transaction Voucher.
Account Number The expenditure or revenue code that best describes the transaction being processed. Refer to Section 2015 for expenditure codes and Section 2020 for revenue codes.
Accounting Voucher The form used to initiate prepayments and other payments that do not require a purchasing document. Refer to Section 4205.
Agency Funds See Local/Agency Funds.
Agency Transaction Voucher The form used to distribute, adjust and/or correct revenue and expenditure transactions from one University account to another and to record recoveries from one university account to another. Refer to Section 4230. To use the form for Agency/Local Fund accounts, refer to Section 3045.
Autonomy The ability/authority to operate independently. Generally applies to the University operating independent from the State.
Auxiliary Enterprises Nonacademic services furnished directly or indirectly to students, faculty, or staff for which there is a charge or fee that is related to, but not necessarily equal to, the cost of the services. Organization Numbers 3xxxxx.
Budget A financial plan projecting revenues and expenditures.
Capital Outlay (Capital Project) An acquisition, construction or improvement related to property, plant or equipment (including plans) for state agency use as owner or lessee. Organization Numbers 7xxxxx.
CAPP (Commonwealth Accounting Policy and Procedures) Manual A policy and procedures manual maintained and distributed by the Department of Accounts for the Commonwealth.
Cardinal The State's centralized accounting system operated by the Department of Accounts (DOA).
Classified Employee A permanent or temporary staff employee.
DOA (Department of Accounts) The central State agency that serves as the State Controller's Office.
DPO (Department Purchase Order) The form that a department may use to purchase certain items with a value of $4,999.99 or less. Refer to Section 7005.
Debt Set-Off See Set-Off Debt Program.
Department ID Number The six-digit code assigned to identify a University department in the Financial Information System. Refer to Section 2010 for a listing of active numbers.
Deposit Transmittal Form The form used to transmit deposit information for revenue items and expenditure credits/recovery transactions for input to the Financial Information System. Refer to Section 4105.
EIN (Employer Identification Number) Nine digit number assigned by the IRS to identify taxpayers required to file various business tax returns.
ETF See Equipment Trust Fund.
Educational and General
(E & G)
The classification used to describe all operations related to the university's educational objectives. Programs authorized for use by James Madison University are Instruction, Research, Public Services, Academic Support, Student Services, Institutional Support and Operation and Maintenance of Plant. Organization Numbers 1xxxxx.
Equipment Trust Fund (ETF) A trust fund, made available through the State Council of Higher Education for Virginia. The funds are provided to purchase instructional or instructional related equipment for higher education agencies. Academic departments eligible to participate are determined by SCHEV. A list of the items to be purchased must be approved by SCHEV prior to making any commitment to purchase. Refer to the Equipment Trust Fund website.
Expenditure Code The six-digit account number assigned to identify types of expenditures, e.g., classified salaries, ADP equipment. Refer to Section 2015.
Expenditure Credit A reimbursement to a university account for an expenditure made during the current fiscal year, for which a prior expenditure document can be cited, and the original vendor returned the funds.
F & A See Facilities & Administrative Costs.
Facilities & Administrative Cost(s) Costs incurred in support of many activities that cannot be identified with a single project. Costs for maintenance and operation of buildings, use of equipment and administrative expenses are usually considered F & A costs.
FIN (Federal Identification Number) A unique number containing nine to twelve digits assigned to businesses.
Financial Accounting System Deposit Transmittal Form See Deposit Transmittal Form.
FICA-OASDI (Federal Insurance Contribution Act--Old Age Survivors Disability Insurance) The Federal tax also known as Social Security that provides retirement and disability income to eligible recipients.
Financial Procedures Manual The University manual designed to outline accounting and procurement procedures, describe control responsibilities, and provide guidance for completing financial transaction forms.
Fixed Assets Assets of a long-term nature intended to continue to be held or used, such as land, land improvements, buildings, machinery, and equipment. These assets must have a value of $2,000 or greater and a useful life of at least two (2) years to be recorded on the University's fixed asset accounting records. Some restrictions apply to items purchased with Grant or Equipment Trust funds. Refer to Section 6005.
GAAP (Generally Accepted Accounting Principles) Accounting rules and guidelines that are used on such a wide basis as to be uniformly accepted.
General Ledger Reflects balances in the Financial Information System by account assets, liabilities, and fund balances.
Grants and Contracts Funds Funding from governmental and non-governmental organizations that is received or made available for specific projects or programs, such as research or training. Organization Numbers 5xxxxx.
Internal Controls Management procedures designed to ensure efficiency and effectiveness in operations, to improve management decision making, to protect resources, to ensure maintenance and reporting of reliable information and execution of operations consistent with established management policy. Refer to Section 3005.
International Travel Authorization Form The form used to obtain approval for University supported international travel. Refer to Section 4215.
JMU Foundation A separately incorporated foundation affiliated with the University and organized to support the University through fund-raising activities.
Local/Agency Funds Funds the University holds in a fiduciary role for students, faculty, staff and organizations. Organization Numbers 8xxxxx.
Local Funds See Local/Agency Funds.
NCR (No Carbon Required) A type of multi-part paper which produces the necessary copies without the need for carbon paper.
Organizational Unit An Organizational unit is made up of resources defined by the institution's management structure and functional responsibilities. For instance, an academic department is an organizational unit of a college, and a college is an organizational unit within the division of Academic Affairs.
PAR (Personnel Action Request) Form The form used to initiate personnel actions.
Payroll Time Authorization Form The form used to submit hours worked by temporary/student employees.
PeopleSoft Finance The University's financial information system.
Petty Cash Change Fund A Petty Cash Change Fund is established with a specific amount of funds for making cash advances for authorized purposes.
Position Number The unique number assigned by Human Resources to each full-time Position. All temporary positions are assigned number 99000.
Procurement The act of acquiring goods, supplies, and services.
Purchase Requisition The form used to initiate purchases of items that require the participation of Procurement Services. Generally, this form is required for items that have a value of more than $4,999.99 or are specifically exempt from procurement via the Department Purchase Order. Refer to Section 7005.
Recapitulation A summary.
Receivable Any amount owed to the University. Refer to Section 4115, "Receivables", for additional definitions and information.
Reconciliation Identification and resolution of differences between separate sets of records. Refer to Section 3035.
Recovery A reimbursement to a University Departmental Organization for various expenditures (in full or partial) incurred during a fiscal year.
Revenue Code See Revenue Account Code.
Revenue Refund A return of revenue collected, to an individual or business. In specific cases a refund may be made to the University for distribution.
Revenue Account Code The six-digit code assigned to identify and summarize types of revenue. Refer to Section 2020.
Set-Off Debt Program The Commonwealth program whereby delinquent accounts receivable balances are collected by reducing the individual's State tax refund.
SCHEV State Council of Higher Education for Virginia.
Signature Authorization Form A form that lists approved signatures of individuals authorized to sign department purchase requests and financial transaction documents. Refer to Section 3020.
Sponsored Programs The program used to record expenditures for the direct costs of research grants and contracts and other programs sponsored by agencies external to the University that are fully funded by such external source.
Subsidiary (Ledger) Individual ledgers that reflect balances by account for budgets, revenues, expenditures and encumbrances (commitments).
TIAA-CREF (Teachers Insurance and Annuity Association-College Retirement Equities Fund) An annuity and retirement program for faculty and teaching and research administrators.
VRS (Virginia Retirement System) The State program designed to provide retirement and disability benefits to all full-time employees.
Work Order The form and/or electronic media used to initiate a variety of work actions by the University's Facilities Management Department.
1020 Forms Index General (1000)

.100 General

This section provides a listing of the forms used to support and/or document financial transactions. The table listing below includes the Name of the Form, Purpose, and Procedure Reference or instructions (section of Financial Procedures Manual where the form is referenced).

.200 Alphabetical List of Forms by Name                           * NEW or UPDATED FORM

FORM NAME 
SEND COMPLETED FORM TO:
PURPOSE PROCEDURES REFERENCE AND/OR INSTRUCTIONS
Accounting Voucher
Accts Payable, MSC 5712
Last Revision: 6/27/2012
To initiate a vendor payment when the vendor does not provide an invoice, such as honoraria, dues and subscriptions. Expenditures   (4205)
Action Request for Account
Financial Reporting, MSC 5715
Last Revision: 2/01/2010
Request to add, delete, or update an account. Instructions for completing form
* Action Request for Department ID 
Financial Reporting, MSC 5715
Last Revision: 2/20/2017
Request to add, delete, or update a department ID. Instructions for completing form
Action Request for Cap Proj/DeptID
Financial Reporting, MSC 5715
Last Revision: 7/08/2015
To request a new capital project and/or new department number associated with a capital project be set up in the Finance system or make change to existing ones. Instructions for completing form
ATV - Agency Transaction Voucher   (Internal Transfers)
Financial Reporting, MSC 5715
Last Revision: 10/26/2006
To document all financial transfers among University departments. Internal Transfers   (4230)
Capital Request for Budget Revision
Budget Management, MSC 6703
Last Revision: 12/19/2006
To establish and adjust expense budgets for capital projects in the financial accounting system. Budget and Budget Revisions   (3025)
Capital Request for Budget Revision (Allotment)
Budget Management, MSC 6703
Last Revision: 03/18/2004
To establish and adjust allotments for capital projects in the state's financial accounting system (Cardinal) and in JMU's financial accounting system. Budget and Budget Revisions  (3025)
* Cash or Payment Card Sign-Out Sheet/Inventory Log
Cash & Investments, MSC 5711
Last Revision: 03/09/2017
Used to log the cash and/or payment cards to IRB Approved Research participants. Expenditures   (4205.394)
Change Fund Request Form
University Business Office, MSC 3516
Last Revision: 12/15/2007
This should be completed to request a temporary change fund for an event. UBO website
* Chrome River Non-Employee Vendor Enrollment Form
Accounting Technology, MSC 5705
Last Revision: 6/8/2017
Used to enroll a student or outside party in the Chrome River system for expense report entry.

AP Chrome River website

Instructions - Non Employee Vendor Lookup

Classified and A/P Faculty Non-Exempt Employee Overtime Form
Payroll, MSC 5706
Last Revision: 1/2012
To be used by non-exempt employees to record overtime hours worked. Payroll  (5005)
JMU Policy 1303
Collection of Debts Owed by Employee to James Madison University
Payroll, MSC 5706
Last Revision: 9/2014
This form is used by the department to collect all debts owed to the university by it's employees via Payroll. JMU Policy 4502
Corporate Travel Card Application
Accts Payable, MSC 5712
To request a Corporate Travel Card Travel   (4215)
Delinquent Account Transfer
UBO, MSC 3516
Last Revision: 7/1/2007
Used by departments to transfer delinquent accounts (after 90 days) to the University Business Office. Instructions for completing form
* Declining Balance Card Exception Form
Cash & Investments, MSC 5711
Last Revision: 6/5/2017
To request an exception to purchase on a Declining Balance Card using the SPCC. Small Purchase Charge Card  (4220.630)
Declining Balance Card Log
Cash & Investments, MSC 5711
Last Revision: 10/30/2013
To record purchases with a Declining Balance Card. Small Purchase Charge Card (4220.630)
Departmental Off Campus Authorization Form
Accounts Payable, MSC 5712
Created: 10/31/2016
The university requires prior approval for all planned retreats held at off campus location Travel   (4215.311)
Departmental Purchase Order (DPO)
Procurement, MSC 5720
Last Revision: 2/23/2016
To procure goods and services that qualify for eVA exclusion. THIS FORM SHOULD ONLY BE USED FOR THIS PURPOSE Procurement   (7005)
Deposit Ticket (Provided by University Business Office)
Copy to Financial Reporting, MSC 5715
To record deposits made directly to the University Bank or to the University Bank via the Credit Union. Deposits   (4105)
* Deposit Transmittal Form for Cash
Financial Reporting, MSC 5715
Effective 4/6/2017
To document revenue deposit information for input to the Financial Information System FOR CASH ONLY. Deposits   (4105.410)
* Deposit Transmittal Form for Checks
Financial Reporting, MSC 5715
Effective 4/6/2017
To document revenue deposit information for input to the Financial Information System FOR CHECKS ONLY. Deposits   (4105.410)
* Deposit Transmittal Form for Electronic Payments
Financial Reporting, MSC 5715
Effective 4/6/2017
To document revenue deposit information for input to the Financial Information System FOR ELECTRONIC PAYMENTS ONLY. Deposits   (4105.410)
Direct Deposit Authorization
Payroll, MSC 5706
Last Revision: 09/2014
Required to document the automatic deposit of an employee's net pay to a designated bank account. Payroll   (5005.950)
Duke Card Log
Department Keeps
Last Revision: 8/20/2014
Used to record monthly Duke Card transactions.
Sample
Travel- Catering & Dining Services
(4215.353)
eMarket Request Form 
University Business Office, MSC 3516
Last Revision: 5/05/2015
To request an event be placed on the eMarket Payment site. eMarket Payment Site
Employee Agreement for Small Purchase Charge Card
Cash & Investment, MSC 5711
Last Revision: 11/12/2015
To record the receipt of a Bank of America Visa Purchasing Card. Small Purchase Charge Card   (4220)
Employee Moving and Relocation Expense Summary
Payroll, MSC 5706
Last Revision: 8/2016
To request reimbursement of moving and relocation expenses. Moving and Relocation   (5010)
Employee Moving and Relocation Agreement
Payroll, MSC 5706
Last Revision: 10/2012
To request reimbursement of moving and relocation expenses. Moving and Relocation  (5010)
Employee's Withholding Allowance Certificate (W-4)
Payroll, MSC 5706
Publish Date: 01/2013
To enable Payroll Services to withhold the correct amount of Federal Income Tax from employee's pay. Payroll   (5005)
Employer Provided Automobile Use Log Form
Payroll, MSC 5706
Last Revision: 1/2012
To record mileage of an employer provided automobile. Payroll website
Equipment Inventory Change Request
Fixed Assets & Surplus Property, MSC 5704
Last Revision: 8/4/2015
To transfer or dispose of equipment listed in the Sunflower System Fixed Assets   (6005)
Equipment Loan Agreement
-  Community
-  Employee
-  Student
Lending Department 
Created - 05/27/2015

To document equipment and/or material lending by JMU Departments to students, employees, & community members for mission-related purposes such as education and research support.

Receivables   (4115.230)

Instructions - Community
  -  Community Sample Form
Instructions - Employee
  -  Employee Sample Form
Instructions - Student
  -  Student Sample Form
* ETF Requisition
Fixed Assets & Surplus Property, MSC 5704
Last Revision: 2/17/2017
Used to purchase equipment with Equipment Trust Fund money for Dell bulk orders ONLY. ETF Website
* Food and Beverage Certification Form
Accts Payable, MSC 5712
Last Revision: 9/21/2017

Employees must complete this form when food and/or beverage is determined appropriate and is provided related to an official university business function.

Expenditures  (4205.314)
Foreign National Employee Information Questionnaire
Payroll, MSC 5706
Last Revision: 11/1999
Questionnaire used by all foreign national employees (i.e. non-residents) to determine tax liability and ensure NRA tax form compliance. Payroll  (5005)
International Travel Authorization Form
Accts Payable, MSC 5712
Last Revision: 8/16/2016
This is required for all travelers for any international planned overnight official business travel expected to exceed $500.00. Travel   (4215.910)
IS Access Request
Paperless - submit online!
IS Request Form (online request) - To request access to the Financial Information System (PeopleSoft) Instructions
James Madison University State Vehicle Request  -  Request is entered into AIM by someone in your department that has access to the system.
This request is required for university employees to request state vehicles for official business travel. Travel   (4215)
JMU Amazon Mechanical Turk Advance Funding Request
Cash & Investments, MSC 5711
Created 8/5/2015
For Faculty/staff electing to use Amazon's Mechanical Turk (M-Turk) for use in purchasing prepaid HITS . Expenditures   (4205)
* JMU International Cash Pay Out Agreement
Employee
Student
Cash & Investments, MSC 5711
Last Revision: 09/21/2017

Agreements to be completed by employee or student when International Cash Pay Out is being requested.

Travel   (4215.550)

* JMU International Cash Pay Out Request Form
Cash & Investments, MSC 5711
Last Revision: 09/21/2017

To request International Cash Currency or Mobile Payment Pay Out.

Travel   (4215.550)
* JMU Invoice
Copy to UBO, MSC 3516
Last Revision: 10/02/2017
To bill customers for goods and services

Receivables  (4115)

Instructions

JMU Restricted Funds Equipment Title Transfer
Fixed Assets & Surplus Property, MSC 5704
Copy - Grant Acctg, MSC 5713

Last Revision: 2/26/2004
To request a transfer of equipment for Restricted Funds(Grants). Fixed Assets   (6005)
Leased/Rented Equipment Installation Form
Plant Fund Acctg, MSC 5704
copy to Procurement, MSC 5720
copy to Accts Payable, MSC 5712
Last Revision: 9/1/2006
To document receipt and acceptance of leased/rented equipment. Leases   (6010)
Local Funds Transfer Request Form
Accounts Payable, MSC5712
Last Revision: 4/30/2015
Substitution of a JMU Accounting Voucher for local funds. Local/Agency Funds
Instructions - Form Preparation
Meal Voucher Log
Department Keeps
Last Revision: 8/11/2016
Used to record the purchases of meal tickets.
Sample
Travel - Catering and Dining Services
(4215.353)
Monthly Reconciliation of JMU FIS Transactions Cover Sheet
Department Keeps
Last Revision: 10/18/2010
Used as certification of the monthly reconciliation Instructions for completing form
* Participant Worksheet
Cash & Investments, MSC 5711
Last Revision: 04/27/2017
Used to record payments for incentives, non-monetary recognition, JMU student prizes, and faculty members in residence in certain situations. Expenditures   (4205.390)
* Prepaid Payment Card Order Form
Cash & Investments, MSC 5711
Last Revision: 04/14/2017
To order JMU Prepaid Payment Cards through Cash & Investments. Expenditures   (4205.390)
Property Loss Notice
Resource Planning, MSC 5726
Last Revision: 04/2003
To report any loss or damage to University property (buildings and contents). Insurance   (3040)
Purchase Requisition (Forms are available through the Procurement Services Office)
Procurement, MSC 5720
To request Procurement Services to purchase Dell bulk orders ONLY. Procurement  (7005)
Receiving Report Form
Accts Payable, MSC 5712
Last Revision: 3/14/2003
To record the receivable of equipment or supplies. Expenditures   (4205)
Request for Authorization - Collection of Funds
Cash & Investments, MSC 5711
Last Revision: 4/4/2013
To request authorization to collect funds. Deposits   (4105)
Request for Budget Revision
Budget Office, MSC 5726
Last Revision: 8/2012
To request and record revisions to Departmental Budgets. Budget and Budget Revisions   (3025)
* Request for JMU's W-9 Form
Accounting Technology, MSC 5705
Last Revision: 09/22/2017
To be used by departments needing JMU's W-9 before receiving funds from vendor. N/A
* Restaurant Exception Form
Cash & Investments, MSC 5711
Last Revision: 6/5/2017
To request a restaurant exception for charges on a Small Purchase Charge Card. Small Purchase Charge Card   (4220)
Revenue Refund Voucher
UBO, MSC 3516
Last Revision: 8/2000
To refund State monies after the original revenue has been deposited to the State Treasurer Revenue Refunds   (4225)
* Signature Authority Form
Finance, MSC 5719
Last Revision: 7/5/2017
To document approval signatures for financial and payroll transactions Signature Authorization   (3020)
Small Purchase Charge Card Application
Cash & Investments, MSC 5711
To request a Small Purchase Charge Card Small Purchase Charge Card   (4220.900)
Small Purchase Charge Card Record/ATV Form
Financial Reporting, MSC 5715
Last Revision: 6/1/2015
Used for making adjustments of charges to your Small Purchase Charge Card Small Purchase Charge Card   (4220.940)
Small Purchase Charge Card Record
Cash & Investment, MSC 5711
Last Revision: 3/07/2007
To record descriptive information for each purchase made with the Small Purchase Charge Card. Small Purchase Charge Card   (4220.920)
Small Purchase Charge Card Record - FM
Cash & Investments, MSC 5711
Last Revision: 10/30/2013
To record descriptive information for each purchase made with a Facilities Management Small Purchase Charge Card. Small Purchase Charge Card   (4220.920)
Small Purchase Charge Card Statement Cover Sheet for Payment
email copy to spcc@jmu.edu
Last Revision: 3/07/2007
This form is required for items purchased with the Small Purchase Credit Card. Small Purchase Charge Card   (4220.930)
SPCC Information Form (system security)
Accounting Technology, MSC 5705
Last Revision: 7/17/2012
The form to provide the Small Purchase Charge Card information needed in the Finance system for the reconciliation of the card. Instructions for completing form
Sample of a properly prepared SPCC form.
State Funds Transfer Request Form
Accounts Payable, MSC 5712
Last Revision: 4/30/2015
Substitution of a JMU Accounting Voucher for state funds. Local/Agency Funds
Instruction - Form Preparation

* Student and Wage Employee Timesheet
(Calendar Year 2017)
Payroll, MSC 5706
Last Revision: 12/2016

To be used by student and wage employees to record hours worked.

Payroll   (5005)

PowerPoint Instructions

Overtime Calculation Instructions for Hourly Employees

* Travel Charge Card Request for ATM/Cash Exception Form 
Accts Payable, MSC 5712
Last Revision: 06/13/2017
To request an annual exception allowing a cardholder to access cash using their travel card to cover expenses when the card isn't accepted. Travel (4215.510)
Travel Reimbursement Voucher with continuation form
Accts Payable, MSC 5712
Last Revision: 8/24/2016
For itemizing travel expenses for reimbursement. Travel   (4215.940)
VA-4 Virginia Employee's Withholding Certificate
Payroll, MSC 5706
Publish Date: 8/2011
To enable Payroll Services to withhold the correct amount of Virginia Income Tax from employee's pay. Payroll   (5005)
W-4 Federal Wage Withholding Certificate
Payroll, MSC 5706
Publish Date: 2014 year
To enable Payroll Services to withhold the correct amount of Federal Income Tax from employee's pay. Payroll   (5005)
W-7 Application for IRS Individual Taxpayer Identification Number
Payroll, MSC 5706
September 2016
To apply for an IRS individual taxpayer identification number (ITIN). Instructions
W-8BEN
Accounts Payable, MSC 5712
Last Revision: 2/2014
Foreign vendors use this form if they are claiming treaty benefits or to claim that they are exempt from backup withholding.  Instructions ( www.irs.gov/formw8ben)
W-8BEN-E
Accounts Payable, MSC 5712
Last Revision: 2/2014
Foreign entities use this form. Instructions ( www.irs.gov/formw8bene)
W-8 Substitute Form
Payroll, MSC 5706
Foreign individuals use this form to verify they are a non-resident person.  Use this form in lieu of a W-9 form for a foreign individual to which you are making a payment, if they are beneficial owner of the income. Expenditures   (4205)
W-9 Request for Taxpayer ID Number(s) and Certification (Commonwealth Form - With Instructions)
MSC 5705
Last Revision: 7/2014
To be used by vendors that perform a service for the university.

Page 2 (definitions)

JMU Instructions for W-9 Form

W-9 Request for Taxpayer ID Numbers(s) and Certification
(Commonwealth Form Only - No Instructions)

Memo to VENDORS completing the Commonwealth's W9

Warehouse Requisition Form (Forms are available through the Warehousing and Store Offices, 181 Patterson Street)
Warehouse, MSC 7007
To request items from Warehousing and Stores Warehouse   (1025)
* JMU Prepaid Payment Card Funding Request
-  Employee
-  Sponsored Program
-  Student
University Business Office,
MSC 3516

Revision Date: 09/21/2017
The traveler must complete this form to request JMU Prepaid Payment Card funding for University Supported Travel.

Travel   (4215)

Yearly Spending Analysis Form
KEEP WITH YOUR RECORDS
Revision Date: 8/02/2016
DOA requirement - yearly spending analysis by month for each Small Purchase Charge Card. Small Purchase Charge Card (4220.100)
1025 Warehouse General (1000)

.100 General

This section provides a description of the services available to the campus from the James Madison University Warehouse Complex. Services include receipt, storage and distribution of stock inventory and the receipt of vendor shipments.

.200 Stock Inventory

The Warehouse stocks large quantities of high usage items. Certain of these items are available for use by the general campus and other items are for use by Facilities Management only. A list of stock items is available from the Warehousing and Stores Office upon request. Departments may requisition items by completing the Central Warehouse Requisition form.

.300 Receipt and Delivery of Vendor Shipments

.310 Receipt of Vendor Shipments

The Warehouse receives certain items delivered to the University, primarily those items delivered by trailer truck for departments that do not have appropriate receiving facilities. The Warehouse does not receive items purchased as "furnish and install".

.320 Delivery of Vendor Shipments

The Warehouse will contact the requesting department upon receipt of vendor shipments. Departments may request delivery of the item(s) by sending a work order to the Facilities Management Work Control Center. Facilities Management will deliver the items to the department.

.400 Form Preparation and Submission

Departments may obtain Warehouse Requisition forms by contacting the Warehousing and Stores office. Complete the form and forward the complete NCR set to the Warehouse. A copy of the form, including cost of the items, will be returned to the Department when the order is completed. Questions concerning completion of the form may be directed to the Warehouse.

2005 Program Structure Classification and Coding Structure (2000)

.100 General

The program component is a statewide activity classification used for allocation of resources (the appropriation process) and expenditure (cost) information. The program component applies to expenditures only and relates exclusively to Expenditures, Expenditure Credits and Recoveries. Program code 998 is assigned as an identifier of all capital outlay projects for recording purposes.

.200 Program and Subprogram Structure

The program structure is divided into three levels, Program, Subprogram, and Element. The Department of Planning and Budget under the authority of the General Assembly controls the Program Structure.

.210 Education Function

This function includes all programs and activities provided to assist individuals in developing knowledge, skills, and cultural awareness.

.211 Higher Education - Educational and General

Educational and General includes all Programs and activities to coordinate and provide instruction, research, and public service through a system of higher education institutions.

101 Higher Education Instruction

Includes all activities that are a part of the University's instructional program.

101-10 - General Academic Instruction

Includes all Instructional activities that may be applied as credit toward a postsecondary degree or certificate in an academic program or field of study. The intent of activities is to provide course and educational experiences for degree-oriented students but may also serve unclassified students.

101-30 - Vocational Education

Instructional activities intended for credit toward an approved associate degree or certificate or diploma below the associate degree level.

101-40 - Community Education

Includes all non-degree credit instruction to provide skills and education to acquire licensure, certification or to provide recreational or vocational education to the college community.


102 Higher Education Research

Internally supported research that is separately budgeted, institutes or research centers.

102-20 - Individual or Project Research

Includes all individual research and/or research projects that are separately budgeted within the University. The activities are normally managed within the academic departments, with stated goal or purpose, and are created for a specified period.



103 Higher Education Public Services

Activities that provide non-instructional service beneficial to individuals and groups external to the institution. The activities generally include seminars and projects for the public.

103-10 - Community Services

Community service activities provide the public access to the non-instructional resources and unique capabilities that exist within the institution. The primary intent is to provide services that are beneficial to groups and individuals outside the University such as entertainment and recreational offerings.

103-30 - Public Broadcasting Services

Public Broadcasting activities are intended to provide services to general population.



104 Higher Education Academic Support Program

Activities that primarily provide support services to the institution's primary programs of instruction, research, and public service.

104-10 - Libraries

Library activities directly support collecting, cataloging, storing, and distributing published materials primarily in support of the University's academic programs.

104-20 - Museums and Galleries

These activities are related to collection, preservation, and exhibition of historical materials, art objects, scientific displays, etc., in support of an institution's academic programs.

104-30 - Audio/Visual Services

Audio/Visual activities provide audio/visual services to support instruction, research, and public service.

104-40 - Computing Support

Computing support activities provide academic computer services to support instruction, research, and public service.

104-60 - Academic Administration, Personnel Development, and Course and Curriculum Development

The activities in this sub-program provide administrative support, management direction, and curriculum development to instruction, research, and public service and provide opportunities for faculty to increase their personal and professional development or to be evaluated or regarded for their professional performance.

The primary purpose of this program is to provide support to students that contributes to their emotional and physical well being, their intellectual, cultural and social development outside the context of the formal instruction program students.

105-10 - Student Service Administration

These activities provide central administrative services to all student service programs.

105-20 - Social and Cultural Development

The activities in Social and Cultural Development provide placement, career guidance, and counseling services for students.

105-30 - Counseling and Career Guidance

These activities provide placement, career guidance, and counseling services.

105-40 - Student Admission and Records

These activities include recruitment of new student, admission and administration of student records.

105-50 - Financial Aid Administration

Administrative activities to provide financial aid services and assistance to students.

The primary purpose of Institutional Support is to provide operational support for the day-to-day functioning of the higher education institution (excluding physical plant operations).

106-10 - Executive Management

Executive level management activities concerned with the overall management and long-range planning for the entire University.

106-20 - Fiscal Operations

These activities provide fiscal control, manage investments, and administer similar functions related to the fiscal operation of the institution.

106-30 - General Administrative Services

Central administrative operations and services such as data processing and personnel administration.

106-40 - Logistical Services

Logistical service activities support the campus-wide operation of the University. Included are procurement and distribution services such as purchasing and duplicating, transportation and communication systems, and security.

106-50 - Public Relations and Development

Those activities established to maintain relations with the local community, alumni, and the public and to provide for fundraising and institutional development.

This program includes operations to provide services and maintenance related to the campus grounds and facilities.

107-10 - Administration and Supervision

Includes all central administrative activities that provide supervision for the University's physical plant operations.

107-20 - Custodial Services

Custodial services provide housekeeping support to campus buildings.

107-30 - Building Repairs and Maintenance, Care and Maintenance of Grounds, and Utility Lines Maintenance and Repairs

These activities provide services to repair and maintain buildings, grounds, and utility lines.

107-40 - Utilities

Services to provide heat, light, power, water, sewer, and gas.

107-50 - Property and General Liability Insurance

Includes property and general liability insurance coverage on University facilities.

107-60 - Property Rentals

Activities related to obtaining rental property for the University.

107-70 - Operation of Power Plant

Includes all activities related to power plant operations.

107-80 - Debt Service - Educational and General Plant

Includes all Debt service for Educational and General facilities.

.212 Higher Education - Student Financial Assistance

The Student Financial Assistance Program includes Scholarships and Fellowships awarded to students enrolled at the University.

108 Student Financial Assistance

This activity provides financial assistance to higher education students.

108-10 - Scholarships

Scholarships awarded to undergraduate students.

108-20 - Fellowships

Fellowships awarded to graduate students.

.213 Higher Education - Financial Assistance

The Financial Assistance Program includes financial assistance in the form of grants and contracts.

110 Financial Assistance for Educational and General Services

Services to provide resources for educational and general through supplementing other activities within the University.

110-01 - Eminent Scholars

This activity provides for salary supplements for eminent scholars through matching endowment income.

110-04 - Sponsored Programs

Includes all activities that provide resources for educational and general services funded by external sources.

110-08 - Funds for Excellence

Funding provided more than quantitative guidelines to support activities which are demonstrably excellent, have the potential to become so in the immediate future, or offer a unique or outstanding service to the Commonwealth.

.220 Enterprise Function

This function involves activities to operate a commodity sales or production undertaking or provide services for charge.

.221 Higher Education Auxiliary Enterprises

Includes all activities that provide essentially self-supporting goods or services to students, faculty, and staff.

809-10 - Food Services

These activities provide self-supporting food service related operations such as cafeterias, restaurants, snack shops, vending machines, and catering services.

809-20 - Bookstores and Other Stores

Self-supporting bookstores and other store operations such as clothing stores, convenience stores, and any other stores or shops providing primarily non-food items.

809-30 - Residential Services

This activity provides self-supporting housing operations including dormitories, apartments, houses, fraternity and sorority houses, faculty and staff housing, and hotel operations.

809-40 - Parking and Transportation Systems

Includes all activities to provide self-supporting parking operations, parking lots (both on campus and satellite lots), parking decks, transportation systems, and motor pool operations.

809-50 - Telecommunications Systems and Services

Communication systems and services include self-supporting satellite systems, other electronic communications systems, telephone services, and operation of communication systems.

809-60 - Student Health Services

Includes all activities to provide self-supporting health services for students, faculty, or staff and their dependents through an infirmary, clinic, or testing operation.

809-70 - Student Unions and Recreational Facilities

Includes efforts to provide self-supporting student union or community center operations.

809-80 - Recreational and Intramural Programs

Include all activities that provide self-supporting recreational and intramural programs.

809-90 - Other Enterprise Functions

Other self-supporting auxiliary enterprise operations, which do not meet the definition of an independent operation and which, are not included in the above categories.

809-95 - Intercollegiate Athletics

Includes all self-supporting intercollegiate athletic events or programs.

.230 Capital Outlay

.231 Capital Outlay Projects

Although the program component is independent of the project component, the program code 998 is assigned as an identifier of all capital outlay projects which are a unique type of expenditure.


998 Capital Outlay

This program is used to record revenue and expenditures, by project number, for all capital outlay projects.

2010 Department Numbers Classification and Coding Structure (2000)

.100 General

A department number is a unique number, consisting of six digits, which identifies a specific department or activity of the University. It is used to facilitate the accumulation of accounting information relative to each department or activity. The applicable department number should be included on all financial documents that require entry into the University Financial Information System. The Department Numbers are categorized as follows:

1XXXXX Educational and General
2XXXXX Student Financial Assistance/Other
3XXXXX Auxiliary Enterprises
4XXXXX Restricted
5XXXXX Financial Assistance for Educational and General Services (Grants and Contracts)
7XXXXX Capital Projects
8XXXXX Agency/Local Funds
9XXXXX Clearing

.200 Listing of Numbers

Detailed listings of department numbers and descriptions are included with this section. Listings are provided in numerical sequence by Department Number and in alphabetical sequence by Department Name.  Departments are authorized to use ONLY those Department numbers for which signature authority is on file in the Office of Finance. Refer to Section 3020 of this manual for information regarding signature authority. Questions or requests concerning department numbers should be directed to Financial Reporting.

2015 Expenditure Codes and Definitions Classification and Coding Structure (2000)

.100 General

The Expenditure Structure is a mechanism for classifying in a systematic manner different types of expenditures and for collecting expenditure information. The University uses this information for accounting control, financial management, and budgeting purposes.

.200 Codes and Definitions

Following is a listing of the authorized expenditure codes groups.

Click here to see and/or print a listing of all codes and their definitions
110000 - PERSONAL SERVICES
 

111000 - Employee Benefits
112000 - Salaries
113000 - Special Payments
114000 - Wages
115000 - Disability Benefits
116000 - Termination Personal Service Costs
117000 - WTA - Workforce Transition Act Termination Personal Service Costs
119000 - Recoveries

120000 - CONTRACTUAL SERVICES
 

121000 - Communication Services
122000 - Employee Development Services
123000 - Health Services
124000 - Management and Information Services
125000 - Repair and Maintenance Services
126000 - Support Services
127000 - Technical Services
128000 - Transportation Services
129000 - Recoveries and Late Payment Penalties for Contractual Services

130000 - SUPPLIES AND MATERIALS
 

131000 - Administrative Supplies
132000 - Energy Supplies
133000 - Manufacturing and Merchandising Supplies
134000 - Medical and Laboratory Supplies
135000 - Repair and Maintenance Supplies
136000 - Residential Supplies
137000 - Specific Use Supplies
139000 - Recoveries and Late Payment Penalties for Supplies and Materials

140000 - TRANSFER PAYMENTS
 

141000 - Awards, Contributions, and Claims
142000 - Educational and Training Assistance
148000 - Indirect Cost Recoveries
149000 - Recoveries for Transfer Payments

150000 - CONTINUOUS CHARGES
 

151000 - Insurance-Fixed Assets
152000 - Capital Lease Payments
153000 - Operating Lease Payments
154000 - Service Charges
155000 - Insurance-Operations
156000 - Installment Purchases
159000 - Recoveries and Late Payment Penalties for Continuous Charges

210000 - PROPERTY AND IMPROVEMENTS
 

211000 - Acquisition of Property and Improvements
212000 - Natural Resources
213000 - Site Development
219000 - Recoveries and Late Payment Penalties for Property and Improvements

220000 - EQUIPMENT
 

221000 - Computer Equipment
222000 - Educational and Cultural Equipment
223000 - Electronic and Photographic Equipment
224000 - Medical and Laboratory Equipment
225000 - Motorized Equipment
226000 - Office Equipment
227000 - Specific Use Equipment
228000 - Stationary Equipment
229000 - Recoveries and Late Payment Penalties for Equipment

230000 - PLANT AND IMPROVEMENTS
 

231000 - Acquisition of Plant and Improvements
232000 - Construction of Plant and Improvements
239000 - Recoveries and Late Payment Penalties of Plant and Improvements

310000 - OBLIGATIONS
 

311000 - Bonds
312000 - Loans - Agency
313000 - Loans-State
319000 - Recoveries

330000 - Continuing Education
2020 Revenue Account Codes Classification and Coding Structure (2000)

.100 General

The revenue account code is designed to classify different categories of revenue in a systematic manner for recording and reporting purposes.

.200 Revenue Code Structure

Revenue codes are assigned to a specific fund or funds (E & G, Auxiliary enterprises, Local/Agency and Grants and Contracts). Some revenue codes apply to more than one fund, such as cash short and cash over. Educational and general revenues are not designated for specific departments and therefore are recorded in a central account instead of in individual departmental accounts.

.300 Subsidiary Ledger Revenue Account Codes and Titles

The following links provide a detailed listing of Subsidiary Ledger Revenue Account Codes. Only those codes included in the Financial Information System are authorized for use in submitting revenue transactions for deposit. All inquiries concerning Revenue Account Codes should be directed to Financial Reporting.

Revenue Codes - Alphabetical Listing

Revenue Codes - Numerical Listing

3005 Internal Controls Financial Management and Control (3000)

.100 General

Internal controls are management procedures designed to ensure efficiency and effectiveness in operations, to improve management decision making, to protect resources, to ensure maintenance and reporting of reliable information and execution of operations consistent with established management policy. Internal controls, therefore, are an integral part of the mechanisms used by management to regulate and guide operations.

Internal controls are distinguished as accounting and administrative controls. Accounting controls are necessary to ensure that activities associated with authorizing, processing, recording, and reporting financial transactions are properly controlled and that the information resulting from these activities is reliable and useful. Administrative controls are necessary to ensure that all resources, including personnel, are properly obtained, maintained, and used; that decisions regarding the expenditure of funds are made based on reliable information; and that budgets are properly developed and monitored to ensure consistency between planned and actual expenditures.

Internal controls do not constitute or require separate systems within the University. They are and should be an integral part of each system James Madison University uses to operate its programs and functions.

.200 Policy

It is the established policy of James Madison University to require the maintenance of adequate internal controls. University Policy No. 1108, "Internal Controls", outlines the University's Internal Control Program.

.300 Control Responsibilities

.310 Assistant Vice President for Finance

  1. Recommends internal control policy.
  2. Develops and publishes procedures.
  3. Issues the statement concerning internal control that accompany the University's financial statements.
  4. Assists departments and activities in designing procedures that will provide adequate internal controls.
  5. Conducts an annual review of internal controls at the department level. Refers potential risk areas to the Director of Audit and Management Services.

.320 Director of Audit and Management Review

  1. Assists departments and activities in designing procedures that will provide adequate internal controls.
  2. Reviews the system of internal controls about audits performed and recommends improvements.
  3. Includes potential risk areas referred by the Assistant Vice President for Finance in the annual risk assessment process used to develop the annual audit plan, as appropriate.

.330 Department Heads

  1. Exercises primary responsibility for maintaining adequate internal controls.
  2. Cooperates with the Office of Finance to conduct the annual internal control reviews.
  3. Complies with internal and external audit recommendations related to their area. Enlists the assistance of the Assistant Vice President of Finance and/or Director of Audit and Management Services when developing new or modified systems.

.400 Procedures

.410 Office of Finance

  1. Sends Internal Control Questionnaires to selected department heads as necessary.
  2. Reviews the responses to the questionnaires in order to determine areas of weakness and, if applicable, communicates these findings to the applicable department head and the director of audit and management services.
  3. Advises department heads on how to incorporate internal controls into new and revised systems.
  4. Ensures that all financial systems have been reviewed by external auditors, internal auditors or by management at least every four- (4) years.
  5. Includes a general statement regarding internal controls with the University's Annual Financial Report.

.420 Department Heads

  1. Completes the Internal Control Questionnaires expeditiously and returns them to the Office of Finance.

.430 Audit and Management Services

  1. Performs a periodic comprehensive internal audit to review departmental internal controls and the effective and efficient use of available resources. (Departments referred by the Office of Finance will be included in the annual audit plan at the discretion of the Board of Visitor's Audit Committee. Comments relating to internal control weaknesses in these areas will be included in Audit and Management Services reports).
  2. Reviews quarterly the Internal Audit Reports, the External Auditors' Management comments, and the Progress Reports to resolve deficiencies noted by each. (This review is performed by the Director of Audit and Management Services with the Audit Committee of the Board of Visitors).
  3. Advises department heads on how to incorporate internal controls into new and revised systems.
3010 Cash Shortages and Fraudulent Transactions Financial Management and Control (3000)

.100 General

This section iterates the requirements of James Madison University for reporting suspected cash shortage, and fraudulent transactions. Also refer to James Madison University, Policy Number 1603, "Reporting of Fraudulent Transactions."

.200 Procedure

.210 Suspected Cash Shortages

In the event that a cash shortage is suspected, area management is to notify the Assistant Vice President for Finance immediately. The Assistant Vice President for Finance may authorize a specific dollar amount as non-reportable when associated with daily checkout procedures. Cash shortages, which are within that restriction, need not be reported. The Assistant Vice President for Finance will notify the Director of Audit and Management Services of significant or unusual cash shortages.

.220 Suspected Fraudulent Transactions

Senior Vice Presidents, Assistant/Associate Vice Presidents, Directors, Deans, or Department heads are to notify the Director of Audit and Management Services immediately of suspected fraudulent transactions.

.300 Definitions

Suspected Cash Shortage: Any instance when a person cannot prove the total amount of cash, for which that person is responsible. Cash includes currency, coin, checks, signed credit card slips, and other negotiable instruments.
Immediately: Upon discovery.
Fraudulent Transaction: The intentional deception perpetrated by an individual or individuals, which could result in a tangible or intangible benefit to themselves and/or could cause detriment to others, the University, or the Commonwealth. Fraud includes a false representation of a matter of fact (whether by words or by conduct, by false or misleading statements, or by concealment of that which should have been disclosed) that deceives and is intended to deceive.
3015 Records Retention and Disposition Financial Management and Control (3000)

.100 General

James Madison University requires departments to follow specific guidelines for retaining and disposing of records and files. Departments should refer to University Policy No. 1109, Records Management, before disposing of University Records. The University Records Manager is responsible for managing the Records Management Program.

.200 Financial Records

Financial records are those records that are needed to document and verify financial authorizations, obligations, and transactions. After a specified period of time and audit by the Auditor of Public Accounts such records can normally be disposed of without risk, provided that the necessary retention and disposition schedules have been approved.

Anyone in a University office who wishes to destroy financial records should begin by reviewing the retention and disposition schedule for fiscal records to determine if the state has established a period of retention for the type of record that is being considered for destruction. A detailed schedule (General Schedule 102) for Fiscal Records is provided by the Commonwealth of Virginia, Library of Virginia on their website at http://www.lva.virginia.gov/agencies/records/sched_state/GS-102.pdf.

Departments may contact the Finance Office if they have questions or need clarification regarding requirements for maintaining and disposing of financial documents and files.

3020 Signature Authorization Financial Management and Control (3000)

.100 General

Signature Authorization is required to document approved signatures of individuals authorized to sign financial transaction documents for all active DeptIDs. This includes, but is not limited to: PAR forms, Human Resources transaction documents for personnel, purchase documents, vendor invoices, travel reimbursements, other payment documents, Agency Transaction Vouchers (ATV), and Student and Wage Employee Time Sheets.

The Office of Finance will forward Signature Authorization listings to all departments and offices at the beginning of first semester. Upon receipt of the listings, departments should review and make any necessary changes to the listings and return the approved listings to the Finance Office, MSC 5719. Departments should use the Signature Authorization Form to make any corrections to signature authority during the year.

.200 Control Responsibilities

.210 Finance Office

  1. Maintain a current electronic list of approved signatures.
  2. Provide campus departments with change forms on the web for updating Signature Authority.
  3. Request campus-wide update to all listings as deemed necessary.
  4. Provide access to the electronic file of approved signatures to departments that need signatory information.

.220 Department

  1. Maintain a copy of each completed Signature Authorization form and each corrected listing.
  2. Submit corrected Signature Authorization listings to the Finance Office annually for signatory changes during the year and as requested by the Finance Office.

.300 Form Preparation and Submission

.310 Signature Authorization Forms

.311 Required

This form is required to document approved signers for financial transaction documents for all active DeptIDs. This includes but is not limited to: PAR forms, Human Resources transaction documents for personnel, purchase documents, vendor invoices, travel reimbursements, other payment documents, Agency Transaction Vouchers (ATV), and Student and Wage Employee Time Sheets.

.312 Where to Obtain Blank Forms

Blank forms are available ONLINE.

.313 Number of Copies/Where to Send Completed Forms

Complete one form and forward to the Office of Finance, MSC 5719,
Fax # 568-3346

.314 Form Preparation Instructions

Following are detailed instructions for the preparation of the Signature Authorization Form.

  Name of the Division Select one.
  Division Head Select one.
  Name of the College or the AVP Area Enter the name of your college or AVP area (example - College of Arts & Letters, Business Services, etc.). If the DeptID is assigned directly to the Division, you will not need to complete this section.
  Name of the Dean or AVP Enter the name of your Dean or AVP. If the DeptID is assigned directly to the Division, you will not need to complete this section.
  Name of the Department Enter the name of your department. If the DeptID is assigned directly to either the Division or the Dean/AVP, you will not need to complete this section.
  Name of the Director or Department Head Enter the name of your Director or Department Head. If the DeptID is assigned directly to either the Division or the Dean/AVP, you will not need to complete this section.
  Fiscal Contact Name Enter the name of the Fiscal Contact for this DeptID. The person designated as Fiscal Contact would answer general questions regarding the DeptID.
  Fiscal Contact Phone Enter the Fiscal Contact's phone number.
  Fiscal Contact MSC Enter the Fiscal Contact's mail stop code (MSC).
  DeptID Enter the six-digit DeptID for which signature authorities are being changed.
  P.I. of DeptID (Grants Only) For grants only, enter the name of the P.I. (principal investigator) for this DeptID.
  DeptID Name Enter the official name of the DeptID for which signature authorities are being changed.
Travel Approver Enter the name of the Travel Approver for this DeptID.  The person designated as Travel Approver will be part of the approval workflow in ChromeRiver when a travel or individual reimbursement is allocated to the Department.
  Action To add a new authorized signer, choose "Add Signer." To change a current authorized signer, choose "Change Signer." To delete an authorized signer, choose "Delete Signer."
  Names of Authorized Signers Type the name(s) of employee(s) you are adding, changing or deleting as authorized to sign financial transaction documents for this DeptID.
  PeopleSoft Employee ID Number Enter each authorized signer's PeopleSoft ID number. This is the number found on the employee's payroll advice and JAC card.
  DeptID Enter the six-digit DeptID – same as entered in top portion of form.
  Authorization Areas - (Time Sheets, Expenditures, PAR/Personnel, Budget) When adding or changing authorization areas for a signer, be sure to indicate ALL areas of authorization that will apply for that signer. When making a change to a current signer, the new line of information will supersede all previously submitted information for that signer. When deleting a signer, choose " Delete Signer " and all authorizations will be deleted.
For Time Sheets – choose either " Entry and Approval " or " Entry Only. " If no signature authority for time sheets is being given, choose "No Authority."
For Expenditures, PAR/Personnel, and Budget – Insert an "X" in each category for which the signer will be authorized to sign.
  Approving Authority Name Type name of Approving Authority.
  Title Enter the title of the Approving Authority.
  Effective Date Enter the date changes are to go into effect.

 

Mail completed form to the Finance Office, MSC 5719 or Fax # 568–3346

3025 Budget and Budget Revisions Financial Management and Control (3000)

.100 General

This subsection provides an overview of the internal budget process of the university. The Office of Budget Management is responsible for producing an annual operating budget which matches an organizational unit's needs with available resources. These needs are usually defined by the university's master plan and/or by state mandated program objectives.

.200 Definitions

This subsection provides definitions of terms used in the budget, budget revision process.

Administrative Unit A group of Organizations which function as an administrative unit. (For Example, Facilities Management, Finance, Office of Budget Management, Dining Services, College of Arts and Letters).
Control Account The expenditure levels within each Organization used by the Financial Information System to verify the availability of funding before transactions are processed into the system.
Detail Account Budgets assigned by the Organization to specific accounts such as student wages, office supplies, equipment leases, ADP equipment, etc. These specific accounts were previously called Expenditure Object Codes.
Division Head Currently Senior Vice Presidents and the Director of Intercollegiate Athletics.
Organization Signature Authority
Organization Signature Authority The individual on record with the Office of Accounting Services as having signature authority for the organization number indicated on the form.


.300 Operating Budget Process

There are four phases of the internal budget cycle which must be coordinated with the state's biennium budget cycle. Any participants' degree of involvement will vary through the phases as major policies are established and staff and implementation requirements shift.

.310 Central Planning

The central planning phase involves the Office of Budget Management and the Office of the Senior Vice President for Administration and Finance. During this phase, which typically occurs November through March, the Office of Budget Management follows legislative actions which may cause changes to the university's appropriations. The budget staff interprets these legislative actions and determines internal resource requirements. At the same time the staff is reviewing other programmatic resource requirements such as utility and insurance increases which may or may not be funded by legislative action. The budget staff keeps the Senior Vice President for Administration and Finance and the Assistant Vice President for the Office of Budget Management apprised of internal funding requirements compared to legislated funding. The objectives of this phase are as follows:

  • Establish base budgets for each organizational unit.
  • Identify and allocate resources to reflect the impact on organizational budgets of legislated mandates, legislated funding and any internal funding requirements such as central issues.
  • Issue guidelines and detailed forms to individual organizational units for budget preparation.

.320 Organizational Unit Preparation

This phase of the operating budget involves the Office of Budget Management and all appropriate offices in each organizational unit. During this phase of the operating budget process, which usually occurs November through January, the individual organizational units prepare budget requests. The objectives of this phase are as follows:

  • Provide organizational units the opportunity to review base budgets and any centrally funded issues, which have been indicated by the Office of Budget Management, for accuracy.
  • Provide organizational units the opportunity to address the need for additional resources required to achieve objectives of the university if such resources are available.
  • Provide organizational units the opportunity to reallocate the limited available resources in order to achieve objectives.

.330 Central Review

This phase of the operating budget process involves the university's Division Heads, President, Board of Visitors, and the Office of Budget Management. During this phase of the process, which usually occurs January through March, the requests of the individual organizational units are reviewed. Reviews are conducted by appropriate Senior Vice Presidents who make recommendations to the President. Budget meetings may be held with individual units, especially those Auxiliary Enterprise units which are responsible for generating revenue. Also, during this phase, tuition and fee recommendations are made to the Board of Visitors for their approval. The objectives of this phase are as follows:

  • Provide Division Heads the opportunity to review allocations or reallocations of resources within their divisions to meet requirements related to divisional objectives.
  • Provide Division Heads the opportunity to make divisional recommendations to the President relative to resource allocations.
  • Provide Division Heads the opportunity to review tuition, fee, and other revenue implications of resource allocations especially for Auxiliary Enterprise units.
  • Provide the President the opportunity to review Division Heads recommendations for resource allocations.
  • Provide the Board of Visitors the opportunity to review tuition and fee implications of the recommended resource allocations.

.340 Execution and Evaluation

This phase of the budget process involves the Office of Budget Management, the Controller's Office and all appropriate organizational units. At the beginning of this phase, which occurs during July, an official budget for the new fiscal year is distributed to organizational units. During the rest of the fiscal year, expenditures are made against this budget. Revisions to the budget are made as plans change during the year. The objectives of this phase are as follows:

  • Provide organizational units with a beginning budget to expend against during the fiscal year.
  • Provide the total university operating budget to the Controller's Office for inclusion in the University's Financial Accounting System for financial control, analysis, and reporting.
  • Provide organizational units with the opportunity to reflect changes in their financial plans through budget revisions.

.400 Budget Controls

The JMU Office of Budget Management is responsible for producing an annual operating budget which matches an organizational unit's needs with available resources.   These needs are usually defined by the University's master plan and/or by state mandated program objectives.   After a lengthy review process which includes all division heads, the President, Board of Visitors, and the Office of Budget Management, the budget is adopted.  The office of Budget Management enters and uploads into PeopleSoft the original budgets for each organization of both a detail and sum account level.  This information is also provided to all departments on the Monthly Budget/Expenditure reports.  For a transaction to be processed in PeopleSoft, the transaction must pass an organization control check.  In the Organization Control Check, PeopleSoft verifies for an available row for each organization at the levels:

Account Code Description Detail Account Range
PS Personal Services 110000 to 118900
NPS Non-Personal Services 120000 to 510000
PSREC Personal Services Recoveries 119000 to 119990
NPSREC Non-personal Services Recoveries XX9000 to XX99990
ALLREV All Revenue 010000 to 099999


If there is no row available or no funding available at the NPS control level within an organization, PeopleSoft will not process transactions for that organization until a budget revision transaction has been entered into the system.  The account detail information is only used by PeopleSoft to create the monthly Budget/Expenditure Report.  The budget revision form allows the user to request budget changes at both the detail account and the control account levels.

.500 Revisions to Operating Budgets

This subsection describes the use and preparation of the Request for Budget Revision form. The budget revision form allows the user to request budget changes at both the detail account and the control account levels.

.510 Control Responsibilities

Listed below are the control responsibilities of the organization and the Budget Office.

.511 Organization

  1. Maintains departmental records to substantiate the entries made on the Request for Budget Revision form.
  2. Prepares the Request for Budget Revision forms in accordance with the instructions printed in this procedure and on the form.
  3. Forwards Request for Budget Revision forms to the appropriate department to secure signatures for all parties affected by the transaction.
  4. Verifies that transactions are correctly entered on FIS Budget Summary Transaction report in accordance with internal control requirements.

.512 Office of Budget Management

  1. Reviews Request for Budget Revision forms for accuracy and completeness.
  2. Restricts movement of funds from one fund group to another. Fund groups included are Educational and General; Student Financial Assistance; Financial Assistance for Educational and General Services (Grants); Auxiliary Enterprises; and Local/Agency Funds.
  3. Restricts movement of personal services funding to non-personal services expenditure areas.
  4. Personal services funding is typically not available for use in non-personal expenditure areas.
  5. Equipment funding in E&G instructional accounts is typically not available for use in other expenditure areas.
  6. Confirms funding availability and verifies signatures.
  7. Determines whether the transaction is permanent or temporary in nature.
  8. Authorizes the request.
  9. Processes request into the Financial Information System.
  10. Maintains original copies of processed Request for Budget Revision forms for reference, audit and internal control purposes.
  11. Maintains supply of blank forms.
  12. Maintains form on Office of Budget Management Web Site.
  13. Responds to organization inquiries.
  14. Prepares monthly reconciliations.

.600 Form Preparation and Submission

This section provides detailed instructions for obtaining, completing, and routing the Request for Budget Revision forms.

.610 Request for Budget Revision

.611 Required

The Request for Budget Revision form is required to record all revisions to the original budget.

.612 Where to Obtain Blank Forms

Electronic forms are available online on the Budget Management website.

.613 Number of Copies

Complete one copy for the Office of Budget Management and retain a copy of the completed form for departmental file.

.614 Where to Send Completed Forms

Upon obtaining all the appropriate signatures, the completed forms should be forwarded to the Office of Budget Management for processing.

.615 Processing Procedures

The Office of Budget Management approves the request upon compliance with this procedure.

.616 Forms Preparation Instructions

Following are detailed instructions for the preparation of the Request for Budget Revision form. Use the continuation sheet for revisions which require more than four lines of increase/decrease information.

  Page: Enter the page number on each form, 1 of 1, 1 of 2, 2 of 2, etc.
  Department: Enter the name of the Department issuing the request.
  Prepared by: Signature of individual preparing the form.
  Extension: Enter the telephone number of the person preparing the form.
  Date Prepared: Enter the department's preparation date.
  Description/Justification of requested action: Enter a clear, concise description of the action requested.
  Request for Changes to Detail Account Balances:
  Organization Unit: Enter the department's organization number.
  Account: Enter the account number.
  Amount: Enter the transaction amount for the account number shown.
  Request for Changes to Control Account Budgets:
  PS: Enter the personal services amount for the account number shown.
  NPS: Enter the non-personal services amount for the account number shown.
  PSREC: Enter the personal service recovery amount for the account number shown.
  NPSREC: Enter the non-personal service recovery amount for the account number shown.
  All Revenue: Enter the revenue amount for the account number shown.
  Sum Control Account Changes for Each Org Unit Shown on this Request: Enter transaction totals for amounts shown for each organization.
  APPROVALS:
  Level One Approval
- Signature and Date:
Signature(s) of the individual(s) on record with the Office of Finance as having signature authority for the organization number(s) shown in number 7. Include the date of the signature.
  Level Two Approval
- Signature and Date:
Signature(s) of the individuals(s) responsible for the fiscal activities of a group of organizations which function as an administrative unit. For example, Facilities Management, Finance, Dining Services, College of Business. Include the date of the signature.
  Level Three Approval
- Signature and Date:
Signature(s) of the Division Head(s) responsible for the fiscal activities of the administrative units reporting to them. See definition of Division Head in subsection .200 Definitions.
  REQUIRED APPROVALS:
  Level One: Required for all revisions.
  Level Two: Required when requests cross organization numbers within the same administrative unit.
  Level Three: Required for transfers between administrative units within the same division, transfers with other divisions, or requests for new funding. In all cases the unit head giving up money should approve the form.
3030 Reports Financial Management and Control (3000)

.100 General

The Office of Finance is responsible for maintaining the University's Financial Information System (PeopleSoft Finance) and for disseminating appropriate information to the Campus community. Financial Reports can be run from the Finance System at any time for those that have access to the system. 

Responsible departmental personnel may request security access to the system and their department number(s) by completing the online "IS Access Request” form.  Upon receipt of a completed "IS Access Request", IT Training will contact the person requesting access to schedule the required training prior to gaining access to the system.

Should you have questions concerning completion of the form or obtaining access to the system, contact Finance System Security @sherm2bm@jmu.edu or x87078.

The following subsections provide detailed descriptions of the information included on the Summary Financial Report (nVision Report) and the Monthly Detail Report.

.200 Report Descriptions

.210 Summary Financial Report

This report provides monthly and year to date revenue and expenditure transactions for each organization by account code. It also provides both original and revised budget by account code and calculates budget balance before and after encumbrances.
Sub-totals are provided for:

  • Personal Service Expenses and Personal Service Recoveries
  • Non–Personal Service Expenses and Non–Personal Service Recoveries
Totals are provided for:
  • Revenues
  • Personal Services
  • Non–Personal Services
  • Total Expense and Recoveries combined for the organization

THE "HEADER" SECTION:

 

THE BODY OF THE REPORT:

 
  • Account: Revenue, Expenditure Account code and or Recovery. Expenditure Account Code definitions are available in Section 2015 and Revenue Account Code definitions are available in Section 2020 of these procedures.
  • Description: The description of the revenue and/or expenditure account code.
  • Original Budget: The beginning budget for the current fiscal year.
  • Revised Budget: The beginning budget adjusted by budget revisions approved and processed through the date of the report.
  • Revenue/Expenditure, Current Month: Current month's revenues, if applicable, and expenses recorded as of the report date.
  • Revenue/Expenditure, YTD: Revenue, if applicable, and expenditures recorded through the current month, for the fiscal year.

.220 Monthly Detail Report

The monthly detail report lists all budget, revenue, and expenditure transactions recorded in the Finance System for the reporting month. Transactions are listed individually by Revenue and Expenditure account code and include a brief description of the code. Totals are provided for each Account Code and for All Revenue Codes, Personal Service Expenses, and Non-Personal Service Expenses. A grand total is provided for All Expense Codes and a net total (difference between revenues and expenditures) for the Department. The total for each account code is automatically transferred to the Summary Financial Report.

THE "HEADER" SECTION:

 
  • Report Title: James Madison University, Monthly Detail Report.
  • Time Period of the Report: For the Period Ending, Month, Day, Year.
  • For Department: The Department Number and Name.
  • Manager Name: The title of the person responsible for the Department number listed on the report.
  • Report ID: JGL0001
  • Page. Number of pages in this report.
  • Run Date: The date the report was run.
  • Run Time: Time the report was run.

THE BODY OF THE REPORT:

 
  • Date: The date transactions were posted to the FIS.
  • GL Jrnl ID: General Ledger Journal Identification number of the transaction listed.
  • SRC: Source of the transaction, either Procurement (PO), General Accounting (GA), or Accounts Payable (AP).
  • Sub ID: A second Identification number, the Voucher No. for vendor payments or PO No. for purchase orders.
  • Description: A brief description of the transaction and/or the name of the payee, vendor or deposit certificate number.
  • Budget Amts: Amounts of original and budget revision transactions.
  • Actual Amts: Actual amounts of individual transactions posted.

.230 Monthly Exception Report 

This cross period posting report provides a summary of transactions that are processed in a given month but posted to the ledger in a previous month.

THE "HEADER" SECTION:

 
  • Report Name:  JGL0009
  • Report Date: The date the report was run.
  • Manager Name: The title of the person responsible for the Department number listed on the report.
  • Report Title: James Madison University, Cross Period Posting Report.
  • Time Period of the Report: For the Period Ending, Month, Day, Year.
  • For Org: The Department Number and Name.
  • Page No. Number of pages in this report.
  • Run Time: Time the report was run.

THE BODY OF THE REPORT:

 
  • Journal Date: The date transactions were processed.
  • Posted Date: The date transactions were posted to the FIS.
  • GL Jrnl ID: General Ledger Journal Identification number of the transaction listed.
  • SRC: Source of the transaction, either Procurement (PO), General Accounting (GA), or Accounts Payable (AP).
  • Sub ID: A second Identification number, the Voucher No. for vendor payments or PO No. for purchase orders.
  • Description: A brief description of the transaction and/or the name of the payee or vendor.
  • Actual Amts: Actual amounts of individual transactions posted.

.240 General Ledger Activity Report

The monthly report lists all accounts posted to the department/organization in the Finance System for the reporting month. Transactions are listed individually by Revenue, Expenditure, Liability and Cash account code. Total Activity, Ending Balance, and Expended Balance are provided for each account code.

THE "HEADER" SECTION:

 
  • Report ID:  GLS7002
  • Bus. Unit: JMDSN - James Madison University
  • Ledger: ACTUALS - Actuals Ledger
  • For Fiscal Year: The fiscal year of this report.
  • Period: Month to Month period of this report.
  • Dept: The Department/Organization Number is listed here.
  • Currency Code: This will always be USD (US Dollars).
  • Report Title: PeopleSoft GL - General Ledger Activity.
  • Page No. Number of pages in this report.
  • Run Date: Date the report was run.
  • Run Time: Time the report was run.

THE BODY OF THE REPORT:

 
  • Curr: Currency Code, which will always be USD for US Dollar.
  • Journal Date: The date transactions were posted to the FIS.
  • Journal ID: The journal number or PO number for that transaction.
  • Seq Line: Sequence line number for that posting.
  • Dept: Department number of the transaction.
  • Account: The account the transactions were posted to the FIS.
  • Program:  The program code associated with department.
  • Debit: The amount charged to the account for that transaction.
  • Credit: The amount credited to the account for that transaction.
  • Balance: The net balance of the account for the month.
3035 Reconciliation Guidelines Financial Management and Control (3000)

.100 Control Responsibilities

The Office of Finance is responsible for analyzing and monitoring University and individual account activity, advising administrative officials if problems or potential problems exist, recommending guidelines for completing reconciliation, and providing assistance to University departments as requested.

The Department Head or Approving Authority (the person responsible for the operating budget) is responsible for maintaining accurate records, and controlling the financial activity of their departmental organization(s).

.200 Importance and Documentation

Reconciliation of monthly reports is essential to assure the accuracy of transactions posted to the Financial Information System. It allows departments to monitor the budget and guard against under and over expending. The reconciliation process involves comparing departmental transaction records to the items posted on the FIS Monthly Detail Report and Summary Financial reports. Each department head or their designee is responsible for ensuring that documentary evidence, subject to audit, is maintained, that their budget and expenditure reports have been reconciled on a timely basis (no less than monthly) and that reconciling items have been promptly resolved. The nature and extent of this documentary evidence is contingent upon the size and scope of the department's operations and should be determined by the Department Head.

.300 Departmental Responsibilities

  • Maintain copies of FIS Transaction Detail reports and Budget and Expenditure summary reports obtained from the Finance System.
  • Maintain copies of commitments and expenditures.
    • Documentation for Central Charges such as Telecom, Postal Services, Facilities Management, and copiers, is not required.
  • Monitor departmental financial activity and ensure the reconciliation of departmental records to monthly FIS reports.
  • Resolve differences between departmental records and reports promptly.
  • Maintain documentation of monthly reconciliation for the current fiscal year and the three previous fiscal years.
  • Ensures appropriate security controls are in place related to customer(s) personal information.
    • No customer personal information is stored on JMU server or workstation hard drives, or in hardcopy form in departmental files. Such sensitive data includes social security numbers, payment card account numbers, etc.
    • All copies of customer checks show blacked out account numbers and are marked "VOID" and/or "COPY".

.400 Reconciling FIS Reports

.410 Reconciling the FIS Summary Financial Report

Individual amounts shown on the monthly detail report, are summarized and shown in total by expenditure account code on the Summary Financial report. These amounts are automatically summarized and forwarded to the current month column on the Summary Financial Report. Year to date expenditures, Budget Balance, Encumbrances and percent of budget available for expenditure is also shown on this report.

A review of this report is recommended to determine that the financial data is reasonable and that adequate funds remain in the budget to cover commitments and future expenses.

.420 Reconciling the FIS Monthly Detail Report

The following steps are suggested for reconciling monthly reports with departmental records for expenditures.

Using the monthly detail report, review Personal Services expenditures to determine that charges are appropriate. To facilitate this process, detailed information can be obtained from the HR System Personal Expenditures Report or through HR queries requested from the Payroll Services Department. To obtain access to the Personal Expenditures Report please contact the HRMS Data Manager. For expenditures Other than Personal Services begin with Contractual Services (120000 series) account codes and review each amount listed in the current month column, to determine if charges are correct.

Differences between the posted amounts and departmental documentation shall be reconciled by contacting the appropriate department.

  • Submit an online request regarding discrepancies
  • Contact Accounts Payable, x86265 for copies of vouchers
  • Contact Financial Reporting, x83656 for copies of ATVs

  The person completing the reconciliation should initial and date the monthly detail report and the Department Head or Designee should sign and date the report confirming the reconciliation has been properly completed. The JMU Monthly Reconciliation of JMU FIS Transactions Cover Sheet may also be used as certification of the monthly reconciliation.
3040 Insurance Financial Management and Control (3000)

.100 General

This procedure highlights the key provisions of the university's insurance coverage and provides information for reporting losses. The Commonwealth of Virginia provides several Risk Management Plans and individual insurance policies for insurance coverage. The university also obtains individual insurance policies for specific types of coverage.

The Division of Risk Management, the adjustment company or the insurance provider determines coverage for property loss or damage and for liability claims. Applicable coverage is determined after reviewing and evaluating pertinent information concerning the damage, loss or liability claim.  University employees, who become aware of a potential insurance claim, should not make any statements, such as, "the university or the state will cover this" when discussing insurance coverage.

.200 Responsibilities

.210 Office of Risk Management

  1. Administers the risk management programs of the university to include procurement of insurance and the handling of claims, (except state-owned vehicles and workers compensation) associated with the university's insurance coverage.
  2. Responds to questions concerning coverage, requests for "Certificate of Insurance," claims, losses, damages or filing of claims (except state owned vehicles and workers' compensation).

.220 Office of Facilities Management

  1. Provides accident report forms for reporting accidents with state-owned vehicles.
  2. Receives completed accident report forms and forwards to the Insurance carrier for processing.

.230 Office of Human Resources

  1. Administers the workers' compensation program.
  2. Submits workers' compensation accident reports to the Division of Risk Management to determine if they are compensative.
  3. Acts as liaison for James Madison University employees regarding workers' compensation claim questions and issues regarding service providers.
  4. Verifies lost time wage information and reimbursement checks received from the Division of Risk Management before releasing them to the Office of Payroll Accounting.

.240 Office of Public Safety

Safety Engineer

  1. Maintains files of "First Report of Injury" forms forwarded by Human Resources.
  2. Reviews incidents, classifies related reports either as "reportable" or "recordable."
  3. Conducts follow-up investigations and inspections when and where necessary.
  4. Provides analysis, makes recommendations, issues pertinent directives. Consults Human Resources, Risk Management and/or the Department of Labor and Industry when appropriate.
  5. Compiles related annual and semi-annual reports.

Police

  1. Investigates vehicular accidents involving state-owned vehicles within their jurisdiction.
  2. Completes FR-300P accident report form and submits it to the Department of Motor Vehicles.
  3. Completes SP209 accident report form and submits it to the Virginia State Police.
  4. Maintains related files on station.

.250 University Employees

  1. Contact the Safety Engineer to review any perceived risks and to report immediately any loss or occurrence that could require insurance coverage.
  2. Contact Facilities Management Operations to report accidents with state-owned vehicles. Completes the Accident Report Form and returns it to Facilities Management Operations within five days of the accident.
  3. Contact Human Resources regarding Workers' Compensation claims.

.300 Insurance Coverage

.310 Automobile Insurance

.311 State-Owned Vehicles

COVERAGE

The Automobile Plan covers liability claims against the university and the driver and medical payments. This Plan also provides coverage, with a deductible, for comprehensive and collision damage on state owned vehicles. The Automobile Plan insurance covers the vehicle. It does not cover occupants personal possessions. Workers' Compensation insurance covers work related injury to state employees.

LOSS REPORTING

Claim reporting procedures "IF YOU HAVE AN ACCIDENT" should be in a packet in the glove compartment of each State vehicle. If a packet is not in the vehicle, please request one from the James Madison University Facilities Management, Motor Pool Office, or download the forms directly from the Office of Risk Management Website:

http://www.jmu.edu/riskmgmt/autoinspkts.shtml

Certificate of Coverage information and form is found at:

http://www.jmu.edu/riskmgmt/riskmgmt/certvoc.shtml

Employees must report all accidents that occur off campus and involves university vehicles immediately to the State Police. If the accident occurs on a state university or college campus in Virginia, report the accident to the Office of Public Safety or Police Department for the campus where it occurs. The vehicle operator must also contact James Madison University Facilities Management, Motor Pool Office, within five days. The vehicle operator should not admit fault or liability when discussing the incident.

.312 Personal Vehicles Used for University Business Purposes

COVERAGE

When an employee of the university is driving his or her personal vehicle on university business, The Automobile Plan applies only after the employee's personal insurance limit of liability is reached. The Automobile Plan does not apply toward comprehensive, collision damage, or medical coverage.

LOSS REPORTING

Employees should contact the Office of Risk Management, if a claim occurs and they believe they may exceed their own insurance liability limits.

.313 Rental Cars Used for University Business Purposes

COVERAGE

Coverage applies only in the United States, its territories or possessions, Puerto Rico or Canada.

The State's automobile insurance is applicable only toward the liability portion when employees of the university use rental vehicles for university business. The coverage applies only after exhausting the rental agency's liability coverage. While the employee is on university business, the Automobile Plan is responsible for all costs of collision and/or comprehensive damage. The Automobile Plan coverage does not apply to personal possessions.

Employees using rental vehicles should not buy additional insurance offered by the car rental agency when traveling on university business. The cost of additional insurance is not reimbursable.

LOSS REPORTING

The State Division of Risk Management has issued accident instruction packets for university travelers. The packet provides the number of an insurance agency to call if there is physical damage to a rental vehicle, as well as forms needed to file an accident claim. Extra packets are available upon request at the Office of Risk Management, or by downloading the forms directly from their website:

http://www.jmu.edu/riskmgmt/guideproploss.shtml

For additional information, please refer to Section 4215, subsection .300, "Travel Regulations".

.320 General Liability

COVERAGE

The Risk Management Plan provides coverage to employees for errors or omissions of any nature while acting in the authorized governmental capacity in the course and scope of employment or authorization. Coverage is subject to the terms of The Risk Management Plan. The Division of Risk Management decides specific coverage issues. The State Attorney General's Office provides legal defense.

This coverage has no deductible. As of July 1, 1990, the upper limit for employees is $2,000,000 and has a $100,000 limit, by law, for the university.

LOSS REPORTING

Contact the Office of Risk Management to report the incident. Employees should not admit fault or liability when discussing the incident.

.330 Property Insurance

COVERAGE

The Property Insurance Plan provides coverage for the buildings of the university and all contents belonging to the university and the Commonwealth. More specifically, The Property Insurance Plan insures items such as furniture, computers, software, accounts receivable records, property on exhibit, musical instruments, and leased equipment. The coverage insures against such perils as theft, vandalism, fire, wind, earthquakes, floods, etc. The Property Insurance Plan does not cover personal articles belonging to employees or students.

Each property loss claim is subject to a $10,000 deductible. If a claim is projected to be $0.00 - $9,999, there would be no reimbursement for the loss or damage. In such cases, no claim should be submitted.

The university must follow procurement guidelines for replacement or repair of lost or stolen items.

The university will obtain coverage for articles exhibited on the campus. Departments that sponsor exhibits may request insurance coverage by contacting the Office of Risk Management before making any commitments concerning the exhibit. The department must provide the following information for this insurance coverage:

 
  • Description and value of articles for exhibit;
  • Location and inclusive dates of the exhibit;
  • Name, address, telephone and fax numbers of owner and agent, if any; and
  • Dates and method of shipment if the university is to provide coverage for articles in transit.

Departments that need to ship items or have loan items shipped, and are contractually obligated, may obtain insurance coverage by contacting the Office of Risk Management, prior to shipment. The department must provide the destination and bill of lading number for overseas shipments.

LOSS REPORTING

Report all losses immediately to the university Office of Public Safety.

Report any loss or damage to university property, (buildings and contents) from theft, vandalism, fire, wind, electrical, water, etc. to the Office of Risk Management. Prompt reporting and documentation will allow faster reimbursement from the State Division of Risk Management. Late reporting or delays in repair or documentation can delay or forfeit reimbursement.

Insurance coverage is for the replacement cost of a like item. Departments may upgrade the item of equipment, but any amount over the replacement cost must be at departmental expense. For example, a department replaces a stolen Model 386 computer that has a replacement cost of $2,500 with a Model 486 at a cost of $3,500. The $3,500 cost of the Model 486 is a charge to the departmental budget. The check for insurance coverage on the stolen equipment, $1,500 ($2,500 less $1,000 deductible) is a credit, leaving a net charge of $2,000 ($1,000 cost to upgrade and $1,000 insurance deductible) to the department.

Departments may start repairs to damaged property immediately. When an item is not repairable, the department must obtain a statement from a technician (such as a computer repair technician from the Office of P. C. Repairs for computers) stating that the item is not repairable. The department must retain damaged items that are not repairable, until they receive notification from the Division of Risk Management releasing the items.

Refer to subsection .500 "Procedures for Reporting Losses and Filing Reimbursement Claims," for additional information.

.340 Other Insurance

The university and the State also provide other insurance coverage. This subsection provides a brief overview of some of the coverage.

.341 Workers' Compensation

The Workers' Compensation Plan provides coverage for employees injured during working hours. The State insurance coverage for workers' compensation fully conforms to statutory requirements. Employees may obtain information and specific coverage by calling the Office of Human Resources.

.342 Boiler and Machinery

The State procured policy provides specialized insurance coverage for some failures of heating, ventilation and air conditioning equipment. Departments should address questions regarding loss reporting or coverage of boiler or machinery to the Office of Risk Management.

.343 Money and Securities

The Property Plan covers the university for losses of money, securities, or checks by the actual destruction, disappearance, or wrongful abstraction. It does not cover employee dishonesty or accounting errors. The Plan includes a deductible of $10,000. Employees should address all questions concerning money and securities coverage, losses or filing of claims to the Office of Risk Management.

.344 Medical Malpractice

The Medical Malpractice Plan provides coverage to the university and to employees in the medical or medical related professions. Employees should address all questions concerning medical malpractice, coverage, losses or filing of claims to the Office of Risk Management.

.400 Coverage for Students

.410 Individual Students

For insurance purposes, the university may consider registered and enrolled university students, required by the curriculum to participate in supervised and graded practicum or periods of service outside the school, as agents of the Commonwealth. This insurance coverage applies to students participating in state, local government, federal or private agencies, organizations or entities. The coverage is under the Automobile, General Liability and Medical Malpractice Plans. Address all questions concerning coverage for students, as agents of the Commonwealth, to the Office of Risk Management.

.420 Student Groups

The Commonwealth of Virginia Risk Management Plans or university procured insurance does not provide specific coverage for organized student groups. These groups should address any questions concerning coverage to the Office of Risk Management.

.500 Processing Procedures for Property Losses and Filing Reimbursement Claims

.510 Department

  • Reports loss or damage immediately to the Office of Public Safety.
  • Reports loss or damage, within forty-eight (48) hours of discovery, to the Office of Risk Management.
  • Completes two copies of the "Property Loss Notice," maintains one copy for departmental files and forwards the original copy, within forty-eight hours of discovery, to the Office of Risk Management. Documents the urgency for making repairs or replacing the equipment on the form.
  • Retains damaged property in a secure location to protect it from further damage. Provides access to the damaged property for insurance inspection purposes.
  • Maintains all information that documents the loss. Examples of information that could be useful are:
     
    • Copies of original purchase documents and vendor invoices (if available).
    • Sunflower number assigned to damaged or lost equipment.
    • Inventory (list) of items destroyed, damaged or lost.
    • Copy of police report for stolen items.
    • Names and telephone numbers of individuals familiar with the damage or loss.
    • Itemized invoice or report of repair costs. Repairs completed by university employees should include an itemized description of labor used, the nature of the work provided, hours, base labor rate and justification for any overtime. For damage caused by lightning, provide verification of such, from the repair service.
    • If items are replaced, provide verification from repair service that the items cannot be repaired or estimates showing that repair costs exceed replacement costs.
    • If exact item is not available, provide verification of unavailability from the vendor and that the replacement is comparable.
  • Prepares appropriate documents (Purchase Requisition, DPO, Work Order, etc.) for replacement or repair of the property. Charges equipment repairs or replacement to the departmental organization and has the signatory authority for the organization approve the transaction document.
  • Upon receipt of the replaced item (new or repaired) forwards all available information, to include items one through six listed above, to the Office of Risk Management.

.520 Office of Risk Management

  • Reports losses estimated to exceed $10,000, immediately by telephone to the Department of the Treasury, Division of Risk Management.
  • Upon receipt of information documenting the loss, forward this information and a copy of the completed Property Loss Notice to the Department of the Treasury, Division of Risk Management.
  • Provides Division of Risk Management with correct contact information and mailing address for disbursement of funds (insurance payment) by check.
  • Maintains copies of Property Loss Notice and supporting loss documentation in the Office of Risk Management insurance files.

.600 Form Preparation and Submission

.610 Property Loss Notice

.611 Required:

The university requires this form to report any loss or damage to university property (buildings and contents) from theft, vandalism, fire, wind, electrical, water, and certain other causes.

.612 Where to Obtain Blank Forms

A blank electronic copy of this form is available @ http://www.jmu.edu/riskmgmt/guideproploss.shtml.

.613 Number of Copies

Complete two copies.

.614 Where to Send Completed Copies

Send one completed copy to the Office of Risk Management. Retain one completed copy.

.615 Form Preparation Instructions

Following are detailed instructions for the preparation of the Property Loss Notice. When entering information to the form, the tab key should be used, not the enter key, to keep the format of the form correct.

  Agency Name: Enter James Madison University.
  Date Reported: Enter the reporting date of the loss or damage.
  Time Reported: Enter the reporting time of the loss or damage.
  Agency Code: Enter JMU's agency code - 216.
  Date of Loss: Enter the date the loss or damage occurred. If you do not know the actual date, enter the best estimate.
  Time of Loss: Enter the time the loss or damage occurred. If you do not know the actual time, enter the best estimate.
  Kind of Loss Enter the kind of loss, theft, vandalism, etc.
  Location: Enter the location, where the loss or damage occurred.
  Estimate of Loss: Enter the estimated dollar value of the loss or damage.
  Description of Loss or Damage Enter a description of the loss or damage.
  Contact Information Enter the name, title, address, telephone number and fax number of the contact person.
  Reported by: Enter the name, address, telephone number and fax number of the person reporting the incident.
  Comments: Enter any additional information concerning the incident.


.700 Summary - Insurance Coverage and Reporting Instructions

The following summary provides a brief description of coverage and reporting instructions. Please use this information as a "quick reference" only.

INSURANCE COVERAGE AND REPORTING INSTRUCTIONS

CATEGORY BRIEF DESCRIPTION COVERAGE REPORTING INSTRUCTIONS
Automobile State Owned Vehicles Liability claims against University and Driver. Medical Payments, Comprehensive and collision damage.

Deductible applies.
Off Campus: Report Immediately to the State Police.

On Campus: Report to the Office of Public Safety on the campus where the accident occurs.

Contact Facilities Management Motor Pool within 5 days
Automobile Personal Vehicle

Used for JMU Business
The Automobile Plan covers liability after reaching the limit of liability on the employee's insurance policy. No Comprehensive, Collision or Medical. Contact Office of Risk Management.
Automobile Rental Cars used for JMU business purposes The Automobile Plan covers liability only after exhausting the rental agency's liability. Covers collision and comprehensive Contact our Insurance Carrier as indicated in Accident Packet.

Contact Office of Risk Management.
General Liability Insures the University and its employees Damages resulting from claims against JMU, departments, Employees, etc. for errors or omissions of any nature while acting in official capacity Contact Office of Risk Management within 48 hours to report incident.
Property Insures all property belonging to the university, the Commonwealth or authorized exhibitors. Loss of or damage to university buildings and contents against theft, vandalism, fire, flood and other perils.

Does not cover personal items belonging to employees.
Theft or Losses: Contact Public Safety Immediately.

Theft, loss or damage to property: Contact the Office of Risk Management within 48 hours of discovery to report and to obtain "Property Loss Notice" form.
3045 Local/Agency Funds Financial Management and Control (3000)

.100 General

This section provides guidelines for Local/Agency Funds. James Madison University is the custodian or fiscal agent for Local/Agency Funds held for students, faculty, staff members and other activities. The University includes the front-end budgeted Student Government Association organizations in this Fund Group. Local/Agency Funds may include organizations designed to ease administrative handling of special transactions. Department numbers are also set up for conferences and events that benefit or promote the University while not qualifying as official University activities. As per the Department of Accounts, Chart of Accounts structure, Local/Agency Funds are outside of the Commonwealth policy for funds deposited in and expended from the State Treasury. Responsibility for the proper business reason for expenditures rests with the individual or activity for which JMU is acting as the Fiscal Agent.

The University assigns Financial Information System (FIS) Department Numbers in the 8xxxxx series of numbers to Local/Agency Funds. All department numbers are available online numerically and alphabetically.

.200 Control Responsibilities

This subsection outlines the control responsibilities of the departments/activities involved in processing transactions using Local/Agency Funds.

.210 Local/Agency Funds Department/Activity

  • Collects and deposits revenues according to University procedures.
  • Comply with Virginia Retail Sales and Use Tax Collection requirements once authorized by the Assistant Vice President for Finance to sell merchandise or rent university facilities.
    • Contact the Cash & Investments Office for specific procedures prior to initiating any sales/rentals.
  • All locations accepting payment cards must obtain written authorization from the Assistant Vice President for Finance prior to implementing a payment card option.
  • Upon approval of the Departmental Request to Process Payment Cards and after merchant numbers are received, any required processing equipment will be procured and programmed by University Business Office. (Equipment costs are charged to the department requesting authorization to process payment cards.)
  • Department Head (Merchant) must review, complete and return the JMU Merchant Agreement (annual process) to University Business Office.
  • Department requests training and access, from the University Business Office, for online transaction management sites.
  • Department contacts the University Business Office to schedule mandatory Payment Card Acceptance Training for all individuals designated to handle any area of payment card processing.
    • Department submits documentation for background checks on appropriate staff (including students)
  • All payment card deposits must be processed daily regardless of the amount.
  • Insures that an adequate cash balance is available in the account before processing expenditure transactions.
  • Complies with procurement procedures for the purchase of goods and services.
  • Complies with JMU Policy No. 4401 University Supported Travel. This policy applies to university-supported travel regardless of the source of funds. The Financial Procedures Manual, Section 4215, "Travel" provides detailed travel procedures.
  • Complies with JMU Policy No. 4101 Contractual Agreements-Student Clubs & Organizations (3/1/99).
  • Prepares appropriate documents for payments to vendors, students and employees. Forwards completed documents to the appropriate office for processing.
  • Prepares written monthly reconciliation of transaction amounts shown on University FIS monthly reports (including Ledger 5xxxxx payroll accounts) to the department or activity internal records. Contacts Cash & Investments Office to resolve discrepancies or submit an online request for transaction research assistance.
  • Maintains Signature Authorization forms to document current approved signatory authority. See Section 3020, Signature Authorization for additional information.
  • Complies with University policies and procedures for awarding scholarships to students. (See Subsection .500 of this section "Classification of Payments to Students.")
  • Complies with University policies and procedures for hiring employees and compensating for work performed. (See Subsection .500 of this section "Classification of Payments to Students," and Subsection .700 of this section "Processing Procedures - Employment and Payment for Work Performed.")
  • Prepares "Action Request for Department ID" form to setup a new FIS Department Number, change or close an existing Department. (This form is available online.)

.220 Accounts Payable

  • Reviews purchase documents for restricted items and purchases costing more than $5,000 for propriety (See Subsection .400 of this Section "Processing Procedures - Purchases and Payments,"). Approves and forwards complete documents to the Office of Procurement Services.
  • Reviews JMU Accounting Voucher or Local Funds Transfer Request Form (with accompanying backup documents) for proper signature and back up documentation and processes/routes documents.
  • Provides assistance to departments regarding proper expenditure of funds and form preparation.

.230 Accounting

Financial Reporting

  • Assigns payroll account numbers for Local/Agency Funds payroll expenditures and advises departments or activities of their payroll department number.
  • Processes "Action Request for Departments/Accounts," form.
  • Prepares and processes JMU Accounting Voucher to transfer funds from the department or activity to the appropriate payroll department/account.
  • Processes ATV's between Local/Agency Fund Departments/Activities. (NOTE: Each Department Number used must be in the 8xxxxx series.)

Cash & Investment 

  • Completes online transfer of funds per A/P approved form via online banking module to pay other JMU state funded departments for goods or services purchased.
  • Assists in resolving problems encountered in monthly reconciliation process.
  • Provides assistance to departments/activities regarding financial reports, University policies, procedures, etc.
  • Reconciles University's FIS records to the University's Commercial Bank and Investment Statements.

.240 University Business Office

  • Provides Payment Card Acceptance Training to university employees (including students).
  • Facilitates approved requests for payment card merchant numbers.
  • Assists in acquiring appropriate payment card processing equipment or implementing approved online payment sites.
  • Processes deposits and recoveries according to University deposit procedures.
  • Authorizes exception to daily depositing requirements, with approval from the Assistant Vice President for Finance.
  • Prepares UBO Check Request Form for scholarship payments.
  • Applies scholarships to student's records.

.250 Financial Aid and Scholarships

  • Processes memos requesting student scholarships.
  • Notifies University Business Office of scholarships awarded.
  • Cancels payment of scholarships that students refuse, or the University reduces or stops.

.260 Payroll Services

  • Processes contracts for hiring student employees.
  • Enters student employee data into the Payroll System
  • Administers proper taxing of scholarships awarded to non-resident aliens.

.270 Faculty Advisor for Student Activity

  • Directs and advises student officers concerning University policies and procedures published in this JMU Financial Procedures Manual and the JMU Manual of Policies and Procedures (Faculty Advisors should contact the Director of the University Center if they do not have access to these manuals.)
  • Approves the JMU Accounting Voucher/Invoice.
  • Authorizes scholarships to students in leadership positions.
  • Approves PAR forms for permanent and temporary employees.
  • Approves student and temporary employee Time Authorization forms to certify correctness of hours worked and availability of funds in the Department Number shown.

.280 Assistant Vice President for Finance

  • Authorizes departments to sell goods and services and to implement payment card acceptance.

.300 Processing Procedures - Revenues

The Commonwealth of Virginia requires the University to deposit revenues collected, daily. The Assistant Vice President for Finance may approve exceptions to this requirement if amounts collected daily are typically less than $200. Payment card deposits must be processed daily regardless of the amount. In those cases where exceptions are granted, the University must make deposits whenever accumulated receipts exceed $200, but NEVER less than weekly (unless an exception is given by the Assistant Vice President for Finance).  All checks collected are to be made payable to "JMU" or "James Madison University".  The Local/Agency Funds department/activity must keep all monies in the most secure location available, until deposited. When making deposits, the Local/Agency Funds Departments/Activities should secure all monies in a locked deposit bag. Departments/Activities should contact the University Cashier in the University Business Office to obtain a deposit bag.

Local/Agency Funds Departments/Activities may make deposits directly to the University Bank, if authorized by the Assistant Vice President for Finance, or the University Cashier. The Assistant Vice President for Finance must approve requests to make deposits directly to the University Bank.

.310 Revenues Deposited with the University Cashier

.311 Local/Agency Funds Department/Activity

  • Collects revenues.  All checks collected are to be made payable to "JMU" or "James Madison University".
  • Prepares Financial Information System Deposit Transmittal form.
  • Forwards completed form and monies by the most secure means possible to the University Cashier.
  • Reconciles monthly, revenue recorded on University FIS monthly reports to internal records.

.312 University Business Office

  • Receives deposit information from Departments/Activities, receipts deposit, and forwards a copy of the receipt to the originating department or organization.
  • Makes deposits to the University Bank.

.313 Financial Reporting

  • Receives deposit information from University Cashier and records in the FIS records.
  • Reviews FIS reports for accuracy.

.320 Revenues Deposited Directly With the University Bank

.321 Local/Agency Funds Department/Activity

  • Requests authority from the Assistant Vice President for Finance to deposit revenue collected directly to the University Bank.
  • Completes Deposit Ticket according to instructions provided in Section 4105, "Deposits" Subsection .420 "Deposit Ticket (University Bank Deposit Ticket)."
  • Deposits funds with the University Bank.
  • Completes Financial Information System Deposit Transmittal Form.
  • Forwards one copy of the Deposit Ticket (Verified by Bank) and a completed Financial Information System Deposit Transmittal Form to Financial Reporting.

.322 Financial Reporting

  • Receives deposit information from Local/Agency Funds Department/Activity and records in the FIS.
  • Reviews FIS reports for accuracy.

.330 Payment Card Acceptance Processing

  • Requests authority from the Assistant Vice President for Finance to accept payment cards.
  • All payment card refunds MUST be placed back on the same payment card as used in the original sale.  Only in cases that the original card has since closed, the department should contact the University Business Office at x87908 for further instruction in how to proceed with the refund process
  • Ensures appropriate security controls are in place related to payment card transactions:
     
    1. All individuals given access to payment card information have completed training.
    2. No customer payment card or personal information is stored on JMU servers, workstation hard drives, or in hard copy/paper form in departmental offices.
    3. All customer receipts show only truncated card numbers — the last four digits.
  • Receives payments from customers.
  • Prepares and retains documentation supporting receipts and deposits
  • Prepares a completed FIS Deposit Transmittal Form using Deposit Certificate numbers assigned to the department by the University Business Office. The payment card version of the Deposit Transmittal Form will be provided by the University Business Office. The original payment card version of the Deposit Transmittal Form is sent to the Financial Reporting Office at MSC 5715. The department must keep a copy for departmental files. Complete instructions for completing the Deposit Transmittal Form can be found in subsection .810.

.400 Processing Procedures - Purchases and Payments

.410 Purchases

All purchases, including those funded by Local/Agency Funds, must comply with Procurement requirements. The University outlines these requirements in Section 7005, "Procurement". Departments/Activities procuring goods, supplies and services with a value of $5,000 or less, charged to Local/Agency funds, must use the JMU Accounting Voucher. The use of the Departmental Purchase Order (DPO) referenced in Section 7005 "Procurement," Subsection .810 does apply to Local/Agency Funds department/activity.

.411 Purchases - Restricted Items

Departments/Activities must complete a James Madison University Purchase Requisition, regardless of the dollar value, to procure the following items:

  Unapproved printing;
Payments to students or state employees;
Alcoholic beverages;
Cellular phones;
Firearms and ammunition;
Furniture;
Lease purchases;
Narcotics and dangerous drugs;
Office equipment maintenance agreements;
Radioactive chemicals and materials;

All services provided by professionals, nonprofessional and consultants. These services require a signed contract before delivery of service.

.412 Purchases

Complete the "JMU Accounting Voucher," form (Refer to Section 4205, Subsection .610, "Expenditures, Accounting Voucher" for preparation instructions).

.413 Contract Purchases

Refer to Policy 4201 Procurement of Goods, Supplies & Services Contract (6/1/97) in the James Madison University Manual of Policies and Procedures.

.414 Travel/Travel Related Expenses

State Travel regulations require the use of the Travel Reimbursement Voucher to itemize travel expenses for all individuals traveling on official business of the University. Local/Agency Funds department/activity may obtain travel guidelines, in Section 4215, "Travel".

.415 Purchases from JMU Departments

Local/Agency Funds departments/activities may purchase services and items from various on-campus offices and departments. Follow the procedures listed below for purchases from the following areas:

Bookstore

The department/activity must give the cashier their Local/Agency Fund Department Number for charging purposes. The bookstore will accumulate charges and bill the department/activity using a JMU Accounting Voucher and deposit transmittal form.

Facilities Management

The department/activity must complete a Work Request (via the Facility Focus System). Facilities Management will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Postal Services

The department/activity may send mail, with the Ledger "8" Department number printed in the lower left-hand corner of the envelope or item being mailed. Postal Services will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Catering and Special Events

The department/activity may contact the Office of Catering and Special Events to request services. The faculty advisor for the activity must sign a contract form confirming that sufficient funds are available to pay for the goods and services. Catering and Special Events will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

P.C. Services

The department/activity may contact the Office of P.C. Services to request an Annual Service Agreement for equipment that is included in the JMU Fixed Asset System. P.C. Services will complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Media Production Center

The department/activity must complete a memo detailing the services requested and the Local/Agency Fund Organization Number to the Media Production Center. The Media Production Center will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Events and conferences

The department/activity may request use of vehicles and use of Wilson Hall Auditorium by contacting the Office of Events and Conferences. The Office of Events and Conferences will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Athletics

The department/activity may request services by contacting the Office of Intercollegiate Athletics. The Athletics Office will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Public Safety

The department/activity may request services by contacting the Public Safety office. The Public Safety Office will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

Publications

The department/activity may request services by completing the JMU Printing Request Worksheet available on the Office of Communications & Marketing web site. The Publications Office will accumulate charges and complete the necessary forms to charge the department/activity and receive revenue/expenditure recovery for services provided.

University Copy Centers

The department/activity may request services at the various JMU Copy Centers. The Copy Centers requires the department/activity to use their Duke Card for payment of charges.

.420 Payments

This section outlines the requirements for processing payments for goods, supplies and services provided by vendors.

.421 Local/Agency Funds Department/Activity

  • Verifies that an adequate cash balance is available in the department before processing expenditure transactions.
  • Completes an accounting voucher to initiate payment to vendors for prepayments and other payments upon receipt of an invoice.
  • Completes a receiving report upon receipt and acceptance of goods, supplies and services greater than $5000.
  • Forwards payment documents to the Office of Accounts Payable. (Payment documents could include invoices, payment receipts, or contracts.)
  • Prepares ATV's to transfer funds between 8xxxxx Activities. If each department/activity Department Number does not begin with an "8", refer to subsection .415, "Purchases from JMU Departments," for examples of how to initiate these payments.
  • Requests meal and travel reimbursements using the Travel Reimbursement Voucher. Travel guidelines, Meal and Lodging Rates and Personal Vehicle Mileage Rates are available in Section 4215, "M&IE Rate Table" and "Personal Vehicle Mileage Rates" respectively.
  • Uses the "information only" copy of charges from JMU Departments to verify amounts posted to FIS Records.
  • Resolves billing discrepancies with JMU Departments. (See Subsection .423 "JMU Departments Providing Services" for required methods to resolve discrepancies that results in a refund.)

.422 Accounts Payable

  • Reviews JMU Accounting Voucher/Invoice for propriety, approves and processes documents. Returns incomplete documents to the originator.

.423 JMU Departments Providing Services

  • Send each Local/Agency Funds department/activity a copy of their current month charges once a month. Stamps the copy "INFORMATION ONLY - DO NOT PAY."
  • All JMU Departments providing Local/Agency Fund departments/activities with goods and services will submit a Local Funds Transfer Request Form charging the organization number and account provided, along with a completed State Funds Transfer Request Form to be used to deposit the payment into the appropriate JMU department's budget.
  • Resolves billing discrepancies with Local/Agency Funds department/activity. Uses one of the following two methods to resolve discrepancies that result in a refund to the local department/activity:
     
    1. Issues a credit to the Local Agency Funds department/activity on the following month's billing
    2. When no charges occur during the next billing cycle, requests a refund check for the amount charged.(Complete accounting voucher for refund check and deposit transmittal form) Deposits the refund check to the appropriate Local Agency department/activity and Account Code.

.500 Classification of Payments to Students

Effective November 11, 1992 University Administrators approved the following position paper for classification of payments to students from University Local Funds (Ledger 8).

CLASSIFICATION OF PAYMENTS TO STUDENTS - FROM UNIVERSITY LOCAL FUNDS (LEDGER 8)

Payments to students from University maintained local funds are made in the following ways:

  Awards/Scholarships - for elected and appointed leadership positions, typically in the Front-End Budgeted (funds) Activities. Payment is not contingent upon performance or fulfillment of expected job duties. Award payments are made at the beginning of the semester in one lump sum. This practice is in consonance with the University's philosophy of encouraging participatory student leadership. Leadership awards of this nature are recognized by the University as scholarships and treated as financial aid. [Note: Payments for awards should be documented as "Leadership Scholarships" and coded as Account code 142500, Undergraduate Scholarships].
  Compensation - for work performed. In these cases, payment is contingent upon the recipient's performance of expected, assigned job duties. Accordingly, compensation payments are not made until fulfillment of the assigned job duties. Compensation is treated as payroll (i.e., wages, salaries) and the individuals are viewed as employees of the Activity, not officers or leaders of the Activities. Subsequently, the student employees must be selected through the appropriate University hiring procedures related to student employment, must complete appropriate tax and immigration documentation related to employment, and must follow appropriate state guidelines concerning documentation of hours worked.

.600 Processing Procedures - Scholarships and Payments

.610 Awarding Scholarships

The University may award scholarships to full-time Degree Seeking students elected and appointed to leadership positions in Student Activities. Scholarships awarded to students in leadership positions are in consonance with the university's philosophy of encouraging participatory student involvement.

.611 Student Activity

  • Prepares a memo to the Financial Aid and Scholarships Office for each "Leadership Scholarship" to include:
  • The recipient's full name and Social Security Number.
  • Amount of Award for the Academic Year.
  • DeptID Number to charge.
  • Account Code - 142500.
  • The signature of Faculty Advisor, authorizing the scholarship.
  • Forwards/delivers the memo to Financial Aid and Scholarships Office by July 1, for Fall Semester and by October 15 for Spring Semester.
  • Immediately advises the Financial Aid and Scholarships Office by memo if a student refuses the scholarship or the donor reduces or stops funding for the scholarship.

.612 Financial Aid and Scholarships

Processes a scholarship memo to notify University Business Office of scholarships awarded.

.620 Payments

The University makes scholarship payments at the beginning of the semester in a lump sum. Payment is not contingent upon performance or fulfillment of expected job duties.

.621 University Business Office

  • Prepares UBO Check Request form for scholarships awarded and forwards to the office of Accounts Payable.
  • Applies scholarships awarded to each student's Accounts Receivable record.

.622 Accounts Payable

Receives UBO Check Request form, approves and processes.

.700 Processing Procedures - Employment and Payment for Work Performed

.710 Employment

All Activities must follow university employment requirements when employing students, temporary employees and current University employees.

.711 Student Employees

Contact the Human Resources and Student Employment Office to obtain procedures for hiring student employees and to get a copy of the University Student Employment Handbook. The University will make semi-monthly payment for hours worked through the University Payroll System. Payroll Procedures are available in this Manual, Section 5005,"Payroll".

.712 Temporary Employees

Requests to hire temporary employees must be processed through the Office of Human Resources and Student Employment. Contact this office to obtain procedures. The Local/Agency Funds department/activity may not hire full-time degree seeking students as temporary employees.

.713 Current University Employees

Requests to hire current University employees must be processed through the Office of Human Resources. Departments should contact this office to obtain procedures.

.720 Payment for Work Performed

Payment to individuals as compensation for work performed is contingent upon the recipient's performance of expected, assigned job duties. Accordingly, the Office of Payroll Services does not make these payments until assigned job duties have been satisfactorily completed. Individuals performing specific job duties for a department/activity are considered an employee of the department/activity.

.721 Department/Activity

  • Requests payroll department number from Financial Reporting.
  • Includes the payroll department number on all Local/Agency Funds payroll documents.
  • Follow payroll procedures documented in Section 5005, "Payroll." of this Manual.
  • Verifies that an adequate cash balance is available in the department/activity Department Number before processing payroll transactions.

.722 Financial Reporting

  • Assigns FIS Department Number 9xxxxx for processing Local/Agency Funds payroll payments.
  • Informs department/activity of assigned Department ID Number.
  • Prepares DTF Forms for bank transfer charging the 8xxxxx activity and depository to the 9xxxxx Department ID.

.800 Forms Preparation and Submission

.810 FIS Deposit Transmittal Form

.811 Required

The University requires this form to transmit deposit information and payment card refund information for input to the Financial Information System.

.812 Where to Obtain Blank Forms

Blank Deposit Transmittal Form for CASH
Blank Deposit Transmittal Form for CHECKS
Blank Deposit Transmittal Form for ELECTRONIC PAYMENTS

The blank Payment Card version of the Deposit Transmittal Form is only available from the University Business Office and is not available online.

.813 Number of Copies

The original Deposit Transmittal Form is sent to the Financial Reporting Office at MSC 5715. The department must keep a copy for departmental files.

.814 FIS Deposit Transmittal Form Preparation for Cash and Check Deposits

Note: * DTF revised June 2012 to show error messages when Bank Code, Bank Acct and/or DEPTID not completely entered or coordinated as required. Be sure to look for error messages when completing form.

Following are detailed instructions for the preparation of the Financial Information System Deposit Transmittal Form. Enter information in the following categories only; leave all other areas blank.

  DC # : (For direct bank deposits only.) Enter the deposit number from the University bank deposit ticket. Attach the University bank deposit slip to the back of the form. (Please see Section 4105, Subsection .425 for preparation instructions for bank deposit tickets.)
  Prepared By: Name of the person completing the form, initial beside typed name.
  Dep. Date: Enter the date the deposit is made.
  Date: Enter the date the form is prepared.
  Phone/E-Mail: Phone number and/or e-mail address of the preparer.
  * Bank Code: Enter WELLS for JMU local deposits.
  MSC: Enter the MSC of the preparer.
  * Bank Acct: Enter WDEP, WPAY, WSRT, WPRK, WFNL, WINT, WDLN, WSCN, WADV, or WFRS for JMU local deposits. Ensure you are using the account as specified by the University Business Office.
  Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Line Count: This field will automatically populate.
  Explanation: Indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.
  Cash or Checks: Use the DTF for the tender type you are depositing. 
Do not combine cash and checks on the same deposit.
  * Dept. ID#: The Local/Agency Funds six(6) digit Activity or Department number. Refer to the "Department Organization Numbers - Numerical Listing" for a list of codes and definitions.

Account #: Enter the six(6) digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.

  Account # Enter the six (6) digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions for a list of codes and definitions.
  Description of Deposit: Indicate the origin and/or nature of the deposit.
  Amount: Summarize the receipts by deptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately.
  D/C: Enter a "C" if the deposit is a credit to Dept. ID # ; enter a "D" if the deposit is a Debit to the Dept. ID.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.


.815 FIS Deposit Transmittal Form Preparation for Payment Card Deposits

Following are detailed instructions for the preparation of the Financial Information System Deposit Transmittal Form for payment cards. Enter information in the following categories only; leave all other areas blank.

  DC # Enter the Deposit Certificate number on the Deposit Transmittal Form using a sequence of numbers provided by the University Business Office. The department should maintain an Excel spreadsheet of these numbers to keep track of the DC # used, deposit date, amount, and card type deposit. The department must only use the numbers within their sequence and restart the sequence each July 1. If a department runs out of numbers within their designated sequence within the Fiscal Year, contact the University Business Office for another set of numbers—do not go past your designated numbers!
  Prepared By: Name of the person completing the form, initial beside typed name.
  Dep. Date: Enter the date the deposit is made.
  Date: Enter the date the form is prepared.
  Phone/E-Mail: Phone number and/or e-mail address of the preparer.
  Bank Code: Enter WELLS for JMU local deposits.
  MSC: Enter the MSC of the preparer.
  Bank Acct.: Enter WDEP or ECPM for JMU local deposits.Amount:Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.Line Count:This field will automatically populate.
  Amount: Enter and verify the total amount of the deposit; if completed electronically this total is automatically calculated.
  Line Count: This field will automatically populate.
  Explanation indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.
  Payment Cards: Only option available.
  Discover/MasterCard/Visa: Select if the deposit is for Discover/MasterCard/Visa transactions. The deposit will arrive from FNBO (First National Bank of Omaha).
  American Express: Select if the deposit is for American Express. The deposit will arrive from American Express.
  Dept. ID #: The Local/Agency Funds six-digit Activity or Department number. Refer to the "Department Organization Numbers - Numerical Listing" for a list of codes and definitions.
  Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.
  Description of Deposit: Indicate the origin and/or nature of the deposit.
  Amount: Summarize the receipts by DeptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately. Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.
  D/C: Enter a "C" if the deposit is a credit to Dept. ID # ; enter a "D" if the deposit is a Debit to the DeptID.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.


Notes for payment card processing:

Payment card terminal sales are normally batched once a day at the end of the day for every payment card machine within an authorized location. If more than one batch is settled in one day or there is more than one machine, all batches must be added together and combined in one transmittal form for each card type.

All refunds must be made by payment card only — no refund checks. If the deposit you are making has refunds included in the total, list the sales on the deposit transmittal as a "C" credit and the refunds as a "D" debit to get a "net" total.

.820 Accounting Voucher

See Section 4205, subsection .610    Expenditures, "Accounting Voucher"

.900 Deposit Reconciliation

.910 Required

A written reconciliation is required comparing revenue deposited to University monthly FIS reports.

  NOTE:     Payment card chargebacks (when the bank retrieves funds from the university's local bank account due to a customer disputed payment card charge) must be reimbursed by the department immediately regardless of resolution issues. The University Business Office will prepare a deposit transmittal form to record the debit transaction to the local bank account. An accounting voucher will be prepared charging the department that the chargeback belongs to and forwarded to the department for coding completion and authorizing signature. The department must then forward these forms to Accounts Payable at MSC 5712 for payment processing.
4105 Deposits Cash Management (4000)

.100 General

James Madison University is required to deposit receipts daily. Exceptions to this requirement may be authorized if amounts collected daily are typically less than $200. In those cases where exceptions are granted, deposits must be made whenever accumulated receipts exceed $200, but never less frequently than weekly. Payment card deposits must be processed daily regardless of the amount. Deposit corrections requested by the Department of Accounts must be prepared and submitted to Financial Reporting at the time of the request.  JMU requires that all payments to the University be made in U. S. Dollars.  University employees are not authorized to make exceptions to this requirement.  This section outlines the responsibilities and procedures necessary to comply with that requirement. Procedures apply to those departments authorized by the Assistant Vice President for Finance to sell goods and services. Effective January 1st, 2012, third-party checks will not be accepted by University departments for deposit [as payments for goods or services or reimbursement.]  Any request for exception must be submitted to the University Business Office.

Procedures for depositing funds to Local/Agency Fund accounts are included in Section 3045, "Local/Agency Funds".

.200 Control Responsibilities

.210 Departments

  • Submit and receive approval from Assistant Vice President for Finance of, completed Business Activity Synopsis and Cost Benefit Analysis [CBA], per JMU Policy #4501 prior to commencing any sales of goods/services or collections. (Optional templates for both are available in the FPM forms index).
  • Comply with this procedure when authorized by the Assistant Vice President for Finance to sell goods and services. Failure to do may result in any/all funds being deposited in to the University’s General Expense fund or being returned to the payee(s) as determined by Senior Management.
  • Abide by JMU Foundation Policy G-102, including but not limited to the requirement that all literature be submitted to the JMU Foundation for review prior to announcing an event or it will be impossible for the JMU Foundation to accept related funds. See more information at: http://www.jmu.edu/foundation/special_events.shtml. Consult JMU Policy 5101 Private Fundraising and coordinate all Fundraising with Development prior to initiating any activities. Remember all donations must be made payable to the JMU Foundation and are not to be deposited to University accounts.
  • Comply with Virginia Retail Sales and Use Tax Collection requirements once authorized by the Assistant Vice President for Finance to sell merchandise or rent university facilities.
    • Contact the Cash & Investments Office for specific procedures prior to initiating any sales/rentals.
  • Departments not engaged in the sale of goods or services, yet still regularly collecting funds for any reason, are required to complete and submit the JMU Request for Authorization – Collection of Funds form to Cash & Investments prior to collecting funds. The department must receive and maintain on file, within the department, the written authorization to proceed with payment handling, when received, as a result of submission of this form and must handle all funds in accordance with this section of the JMU FPM section 4105 - Deposits.
    • If requesting a new Department ID to which these funds will be deposited, submit both forms at the same time.
  • Basic Controls for the Receipt of Funds

    • All new payment collection locations and/or changes in the goods and/or services offered for sale at existing locations must be approved by the Assistant Vice President for Finance.
    • All locations accepting payment cards must obtain written authorization from the Assistant Vice President for Finance prior to conducting business and will process these transactions in accordance with Financial Procedures Manual section 4125.
    • Post a notice at all payment collection points stating "A $50 fee will be assessed for any check returned by the bank."  In the case of a payment activity marketed primarily online, the website for the activity is to include the text above.
    • Assess a $50 fee if a check is returned by the bank and deposit the $50 fee once collected, to 100000 - 010570.
    • All checks are to be payable to "JMU" or James Madison University".
      1. All checks are to be US Dollar denominated.
      2. Exceptions must be approved in advance by AVP for Finance, Associate Controller for Accounting Operations & Disbursements or Manager, Cash & Investments and may result in netting of fees to remitter or receiving department. Exceptions will be rare.
      3. Foreign checks can be returned years in the future and are done so at the current exchange rate.  Departments assume the risk for any returned foreign checks, which may be substantial depending on amount and rate fluctuation.  These will be charged back to the department as they occur.
    • Do not accept third-party checks as payments.  These will not be accepted as deposit to University DeptIds [exceptions should be requested via the University Business Office by contacting Kathy Starick at staricks@jmu.edu or 8.3719.]
    • To order a restrictive bank endorsement stamps for all checks received for deposit by your department, contact the Cash Accounting Manager in the University Business Office.
    • Counterfeit detection/handling:
      1. Use of counterfeit detection pens on all bills $20 and up at time of receipt is recommended.
      2. If any bills received are indicated positively as suspect:
        • Do not return to passer
        • If safely possible, delay passer & contact JMU Public Safety
        • Issue numbered receipt to passer – if bill is deemed legal, they will be given credit at that time
        • Note date, time and your initials in white border of currency
        • Limit handling & place bill in envelope
        • Notify Cash & Investments or UBO
        • Complete Secret Service Counterfeit Note Report located at: http://www.secretservice.gov/forms/ssf1604.pdf.
        • Surrender currency to properly identified JMU Public Safety Officer or follow the instructions of the JMU Public Safety Office regarding the handling of the currency.
    • Ensure responsibility for payments received from time of receipt to time of deposit is clearly defined and documented within each authorized payment collection location.
    • Only the minimum number of employees should handle payments from receipt to deposit.
    • Ensure proper separation of duties exists.
    • Payment handling, record keeping, and reconciliations should be assigned to different people.
    • If the size of the department makes proper separation of duties impossible, a second person must verify reconciliations of funds received and accounts maintained.
    • Restrictively endorse checks immediately upon receipt with university approved stamp. (All copies of checks stored show blacked out account numbers and are marked "VOID" and/or "COPY".)
    • Issue a receipt for every cash transaction with either a university-approved, pre-numbered receipt or a cash register-generated receipt.
    • Do not mail currency or coin to the bank or to the university cashier (through U. S. Mail or campus mail).  If bags are needed for deposits, contact the University Business Office.
    • Do not make disbursements from undeposited receipts. Keep undeposited receipts intact.
    • Ensure the safeguarding of funds. Storage guidelines for funds received are as follows:
      1. Access to undeposited items should be restricted to the minimum number of persons.
      2. Deposit university funds only into appropriate university accounts, not into accounts such as: personal bank accounts or petty cash accounts.
      3. Keep university funds and personal funds separate.
      4. Deliver deposits directly to the university cashier (or bank if authorized). Intermediate stops, overnight layovers, and taking deposits home for next morning deposit are not allowed. Ensure employees are escorted when making large deposits ($1,000 cash or more).
      5. Contact UBO Cashier for assistance making change - do not remove funds from campus.
    • All receipts must be deposited on the day received or no later than the next business day and any exceptions must be authorized, in writing, by the Assistant Vice President for Finance. These exceptions may be authorized if collected amounts daily are less than $200 and still require deposits to be made whenever accumulated receipts exceed $200, but never less frequently than weekly. All payment card deposits must be processed daily regardless of the amount.
    • Document the entire departmental procedure for handling funds received for clarity and training purposes
      Note: all payment handling operations are subject to review and/or audit by Finance staff as well as the university's internal and external auditors. The University Business Office surveys university departments regularly to identify all payment collection points. If the controls are inadequate for the volume of funds handled, corrective action is required & monitored.  

      Amount Stored Preferred Acceptable Unacceptable
      Less than $100 Locked desk or locked file cabinet Locked box inside locked room Not secured
      $100 to $200 Night depository or safe Locked desk or locked file cabinet Locked box or not secured
      More than $200 Night depository or safe Night depository or safe Locked desk, locked file cabinet,locked box or not secured

    • Prepare and distribute the FIS Deposit Transmittal form and, if depositing directly to the University bank, a bank Deposit Ticket in accordance with subsection .400 of this section.
    • Request advance approval for an exception to the daily deposit requirement from the Assistant Vice President for Finance when appropriate.
    • Prepare monthly written reconciliation of revenue amounts shown on University monthly FIS reports to departmental records.

.220 University Business Office

  • Provide departments with forms and instructions for the daily deposit of receipts.
  • Assist departments in resolving problems encountered in monthly reconciliation process.
  • Prepare a documented daily reconciliation of revenue amounts shown on University monthly FIS reports to revenue transaction documents.
  • Perform periodic analysis of all revenue line items to determine reasonableness to prior year data.

.225 Cash and Investments Office

  • Review Business Activity Synopsis and Cost Benefit Analysis submissions.

.230 Assistant Vice President for Finance

  • Authorize appropriate Business Activities Synopses.
  • Authorize departments to sell goods and services in accordance with Commonwealth regulations.
  • Approve exceptions to daily requirements as appropriate.

.300 Processing Procedures

.310 Departments

  • Requests authorization from the Assistant Vice President for Finance to sell goods and services prior to any sales activity taking place. Specify additional request to accept payment cards if applicable and refer to section 4125 for payment card processing procedures.
  • Ensures appropriate security controls are in place related to customer(s) personal information.
    • No customer personal information is stored on JMU server, workstation hard drives, or hardcopy form in departmental files. Such sensitive data includes social security numbers, payment card account numbers, etc.
    • All copies of customer checks show blacked out account numbers and are marked "VOID" and/or "COPY".
  • Receives and secures monies from customers.
  • Prepares and retains documentation supporting receipts and deposits.
  • Prepares the Financial Information System (FIS) Deposit Transmittal Form in accordance with the instructions in subsection .410 of this section.
  • Deposits receipts daily, using the appropriate deposit transmittal form, with the University Cashier.
  • When authorized by the Assistant Vice President for Finance to deposit to the University bank:
    • Prepares FIS Deposit Transmittal Form and University bank Deposit Ticket in accordance with subsection .400 of this section.
    • Distributes the appropriate FIS Deposit Transmittal Form and University bank Deposit Ticket (if appropriate) in accordance with subsection .400 of this section.

.400 Forms Preparation and Submission

.410 Financial Information System Deposit Transmittal Form

.411 Required:

This form is required to transmit deposit information and expenditure credit items to Treasurer of Virginia and for input to the Financial Information System.

.412 Where to Obtain Blank Form:

    Blank Deposit Transmittal Form for CASH

    Blank Deposit Transmittal Form for CHECKS

    Blank Deposit Transmittal Form for Electronic Payments

The blank Payment Card version of the Deposit Transmittal Form is only available from the University Business Office and is not available online.

.413 Number of Copies:

Original and one copy to be receipted and kept for department records when depositing with the University Cashier. An original form and one copy for department records when depositing directly to the University bank.

.414 Where to Send Completed Form:

When depositing with the University Cashier, the original and one copy of the form should be hand carried with the money to the Cashier's Office, University Business Office. Each person/department submitting deposits to the cashier must obtain a receipt for the deposited amount at the time of the deposit. If the deposit contains no cash and if the cashier is not available, the deposit may be left and a receipt will be mailed to the department.

When depositing directly to the University bank, the form must be delivered to Financial Reporting on the deposit day.

Deposit Transmittal forms prepared for corrections must be delivered to Financial Reporting at the time the correction is requested.

.415 FIS Deposit Transmittal Form Preparation for Cash and Check Deposits.

Note: * DTF revised June 2012 to show error messages when Bank Code, Bank Acct and/or DEPTID not completely entered or coordinated as required. Be sure to look for error messages when completing form.

Following are instructions for preparation of the FIS Deposit Transmittal Form. Enter information in the following categories ONLY.

  DC # : (For direct bank deposits only, enter the deposit number of the University bank Deposit Ticket, recording this deposit (see subsection .425, "Form Preparation Instructions") below.  For deposits made directly to the University Cashier, leave blank.
  Prepared By: Name of the person completing the form, initial beside typed name.
  Dep. Date: Enter the date the deposit is made.
  Date: Enter the date the form is prepared.
  Phone/E-Mail: Phone number and/or e-mail address of the preparer.
  *Bank Code: Enter TV for Treasurer of Virginia deposits. (Consult Financial Procedures Manual Section 3045.300 Local/Agency Funds for deposits to DeptIDs 8xxxxx).
  MSC: Enter the MSC of the preparer.
  *Bank Acct.: Enter CH02 for Treasurer of Virginia cash/check deposits.
  Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Line Count: This field will automatically populated.
  Explanation: Indicate any additional facts related to the origin and/or the nature of the deposit.
  Cash or Checks: Use the DTF for the tender type you are depositing. 
DO NOT COMBINE CASH AND CHECKS ON THE SAME DEPOSIT.
  *Dept. ID #: Enter the six-digit department identification number. Refer to Section 2010, "Department Numbers" Numerical Listing for a list of codes and definitions.
  Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.  When using a recovery code and receiving reimbursement from the JMU Foundation the funds are to be sent directly from the JMU Foundation to the Financial Reporting Office to confirm the appropriate account code before depositing with the University Cashier.
  Description of Deposit: Indicate the origin and/or nature of the deposit.
  Amount: Summarize the receipts by DeptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately.  Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.
  D/C: Enter a "C" if the deposit is a credit to DeptID; enter a "D" if the deposit is a Debit to the DeptID.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Exp Credit Voucher: Enter the Voucher Number of the original expenditure every time a deposit is made using an expenditure account code.


.416 FIS Deposit Transmittal Form Preparation for Payment Card Deposits

Following are detailed instructions for the preparation of the Financial Information System Deposit Transmittal Form for payment cards. Enter information in the following categories only; leave all other areas blank.

  DC # : Enter the Deposit Certificate number on the Deposit Transmittal Form using a sequence of numbers provided by the University Business Office. The department should maintain an Excel spreadsheet of these numbers to keep track of the DC # used, deposit date, amount, and card type deposit. The department must only use the numbers within their sequence and restart the sequence each July 1. If a department runs out of numbers within their designated sequence within the Fiscal Year, contact the University Business Office for another set of numbers—do not go past your designated numbers!
  Prepared By: Name of the person completing the form, initial beside typed name.
  Dep. Date: Enter the date the deposit is made.
  Date: Enter the date the form is prepared.
  Phone/E-Mail: Phone number and/or e-mail address of the preparer.
  Bank Code: Enter TV for Treasure of Virginia deposits. (Consult Financial Procedures Manual Section 3045.300 Local/Agency Funds for deposits to DeptIDs 8xxxxx).
  MSC: Enter the MSC of the preparer.
  Bank Acct.: Enter CH03 for Treasurer of Virginia payment card deposits. All payment card deposits, and ONLY payment card deposits, are CH03.
  Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Line Count: This field will automatically populate.
  Explanation Indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.
  Payment Cards: Only option available.
  Discover/MasterCard/Visa: Select if the deposit is for Discover/MasterCard/Visa transactions. The deposit will arrive from FNBO (First National Bank of Omaha).
  American Express: Select if the deposit is for American Express. The deposit will arrive from American Express.
  Dept. ID #: Enter the six-digit department identification number. Refer to Section 2010, "Department Number" Numerical Listing for a list of codes and definitions.
  Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.
  Description of Deposit Indicate the origin and/or nature of the deposit.
  Amount: Summarize the receipts by DeptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately. Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.
  D/C: Enter a "C" if the deposit is a credit to DeptID ; enter a "D" if the deposit is a Debit to the DeptID.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.


.420 Deposit Ticket (University bank Deposit Ticket)

.421 Required:

This form is required when deposits are made directly to the University bank.

.422 Where to Obtain Blank Form:

Blank deposit ticket book to the University bank are available from the University Business Office.

.423 Number of Copies:

Original and one copy to be receipted and returned to department.

.424 Where to Send Completed Form:

If deposit is made directly to the University bank, present all copies to the bank teller for validation. The pink (3rd.) copy may be retained for department records. The first two copies must be delivered to Financial Reporting (attached to the back of the Deposit Transmittal form) on the day of the deposit.

.425 Form Preparation Instructions:

Following are instructions for the preparation of the Deposit Ticket (University bank Deposit Ticket). Enter information in the following categories ONLY.

  Date: Enter the date the deposit is taken to the University bank.
  Currency/Coin: Enter the amount of currency and coin if depositing directly to the University bank.
  List each Check: Record the amount of each check presented for deposit. Add the currency/coin amount if appropriate. A calculator tape listing each check is necessary when each check is not listed on the Deposit Ticket.
  Total Deposit: Enter the total of all currency, coin, and checks presented for deposit.
  Location: Enter the department or location receipting the deposit.
  Deposit Identification: Record the digits on the FIS Deposit Transmittal Form. (see subsection .415 "Deposit #")


.500 Deposit Reconciliation

.510 Required:

A written reconciliation is required comparing revenue deposited to University monthly FIS reports. Auxiliary Enterprises accounts (Nos. 3xxxxx) are reconciled by comparing the department's internal records to University monthly FIS reports. Educational and General Accounts (Nos. 1xxxxx) are reconciled by comparing revenue transaction documents to University monthly FIS reports.

.520 Who Should Perform the Reconciliation:

Auxiliary Enterprise Departments receiving revenue should reconcile their individual accounts. The University Business Office should reconcile or confirm reconciliation of Educational and General Accounts. The individual responsible for preparing the deposit should NOT be assigned this responsibility..530 Reconciliation Differences:If differences other than timing differences are encountered, the department is responsible for documenting and resolving the situation in a timely manner. The department may contact the Cash & Investments Office for further assistance as necessary.

4110 Permanent Change Funds Cash Management (4000)

.100 General

Departments involved in some type of cashiering activity most commonly use Permanent Cash Change Funds. Change Funds are established by means of a cash advance from the University Business Office. The advance represents a loan to the department for the purpose of making change. The amount of a Change Fund remains constant and does not require periodic reimbursement. Change funds may not to be used to make petty cash disbursements, purchases or other cash advances.

The funds are issued to the Department in the name of a custodian for the fund. The University Business Office must be notified whenever a change of custodian occurs.

.200 Control Responsibilities

.220 Department

  • Departments must establish appropriate controls over Permanent Change Funds to assure:
    • Funds are used for authorized purposes.
    • Controls are in effect to restrict access to and ensure proper accountability of the change fund. All of the following should be considered:
      • Lockable container for safeguarding funds.
      • Lockable container that is difficult to move.
      • Periodically changing the combination or keys to lockable container especially following employee turnover.
      • Re-depositing funds with the University Business Office when all or part of the change fund is not required for a short time.
      • Keep permanent change funds and personal funds separate.

.300 Processing Procedure

.310 Department

  • Permanent change funds must not be taken off campus when making change to replenish funds.
  • When making change to replenish the change fund, intermediate stops, overnight layovers, and taking funds home are not permitted.
  • The department should contact the University Business Office for assistance in making change for the replenishment of a permanent change fund.
  • Prepares and submits a request for a Permanent Change Fund to the University Business Office. The request should include:
    • Purpose of the fund.
    • Amount of request.
    • Date Permanent Cash Change Fund is needed. (Allows University Business Office 5 business days from the date request is received for processing.)
    • Name of the Department.
    • Name and phone number of the custodian.
    • Length of time the fund will be required.
  • Maintain adequate control and security for the fund. (The department or custodian may be responsible for replenishing any loss or theft of the fund).
  • Advises the University Business Office whenever a change of custodian occurs.
  • The custodian or department head reports any losses of funds to the Office of Audit and Management Review and the Assistant Vice President for Finance. Also, notifies the Office of Public Safety in the case of theft or suspected theft.
4115 Receivables Cash Management (4000)

.100 General

This section provides guidelines to assist departments in developing procedures to properly manage receivables.

.200 Responsibilities

.210 University Business Office

  • Prescribe accounts receivable policy and procedure guidelines.
  • Provide information and technical assistance to departments regarding receivables.
  • Assist departments in establishing meaningful receivable allowance accounts and in determining past-due accounts to be written off.
  • Submit lists of delinquent accounts to the State Department of Taxation to insure University participation in the state Debt Set-Off program.
  • Coordinate collection activity of outside collection agents.

.220 Financial Reporting

  • Prepare a quarterly report of the University's receivables for submission to the state comptroller.

.230 Department

  • Provide services or makes assessments and prepares billing forms to be sent to the debtor and University cashier, using the standard JMU Invoice. Exceptions must be approved by the Assistant Vice President for Finance for use of alternate billing forms. The standard JMU Invoice is located on the UBO website.
  • Post a notice at all payment collection points stating "A $50 fee will be assessed for any check returned by the bank."  In the case of a payment activity marketed primarily online, the website for the activity is to include the text above.
  • Assess a $50 fee if a check is returned by the bank and deposit the $50 fee once collected, to 100000 - 010570.
  • Monitor individual receivables of the departments and provide written confirmation of monthly Accounts Receivable reconciliation to University Business Office.
  • Use the appropriate Equipment Loan Agreement template(s) when loaning university materials and/or equipment to community members, employees or students.  If loaned items are not returned as agreed, use the standard JMU Invoice to bill the named borrower for the replacement costs per the completed Equipment Loan Agreement.  Use only the standard equipment loan agreement template located in the JMU FPM Forms Index unless written authorization is received from the Assistant Vice President for Finance and kept on file.
  • Maintain adequate collection procedures for department receivables.
  • Provide accountability and aging of accounts receivable to aid in preparation of annual financial report.
  • Determine if outstanding receivables are collectible, to assist in meaningful reduction of past-due receivables.
  • Refer accounts 90 days past due to external collection agents, or to University Business Office for inclusion in the state Debt Set-Off program, as appropriate.

.300 Definitions

Receivable Any amount owed to the University. Receivables include loans and notes receivable, as well as amounts due for services and goods provided, for tuition and fees, and other obligations, from students, from employees, from other agencies, and institutions, and from the federal government for grants and contracts.
Accounts Receivable Amounts owed to the University or department of the University by individuals or organizations (other than state agencies and institutions) for goods and services rendered, tuition and other fees, and other obligations.
Interagency Receivables Amounts owed to the University by another agency or institution of the Commonwealth of Virginia for goods and services provided or any other type of transaction.
Loans/Notes Receivable Amounts loaned to individuals or organizations other than state agencies and institutions.
Grant and Contract Receivables Expenditures/expenses that have been incurred under a grant or contract but have not been reimbursed. Grant and contract receivables reimbursed through another state agency or institution should be reported as interagency receivables.
Other Receivables Receivables due from employees, such as travel and salary advances, and any other amounts owed to the University for which a category has not been provided on the receivables summary report.
Past-Due Receivables Receivables for which payment has not been received by the due date.
Delinquent Account Receivables for which payment has not been received within 90 days after the due date.
Void The invalidation or nullification of a cash receipt or rebate document before the document has been recorded.
Allowance for Doubtful Accounts A contra-asset account that is credited with an estimated amount of un-collectible receivables. This account is offset against gross receivables so that net receivables reported by the agency are not overstated.
Write-off A transaction to remove from the University's financial accounting records an account that management has determined to be un-collectible. This does not discharge the validity of the receivable, by compromising or settling the debt owed, in any manner.
Recoveries on Accounts Written Off Amounts collected on accounts that have previously been written off.


.400 Operating Procedures

.410 Department

  • Provides goods or services or assesses fines or penalties at approved rates.
  • Prepares, within 5 working days of providing the goods or services, a pre-numbered invoice addressed to the customer. See subsection .810 for form preparation instructions.
  • Transmits the original invoice to the payee, one copy to the Cashier's Office, and retains the departmental copy.
  • Transmits completed corresponding Deposit Transmittal Form(s) with a copy of the Invoice(s) to the Cashier's Office.

.420 University Business Office

  • Records the receivable by posting the invoice to the department's account in the Financial Information System (FIS).

.430 Financial Reporting

  • Compile accounts receivable information, prepares a quarterly report of the University’ receivables, and submits it to the state comptroller. (see section .700)

.440 Departments

  • Maintain accurate records of unpaid invoices for continued accurate, timely billing on a monthly basis.

.450 Cashier

  • Deposit remittance for departments, posts the payment to the department's account, and transmits a copy of the receipted deposit transmittal to the department.

.460 Departments

  • Reconciles monthly accounts receivable printout received from the Cashier's Office to the department’ receivable records.
  • Provides written confirmation of reconciliation and reports rebates and adjustments other than timing differences to the Cashier's Office within 10 days of printout receipt.

.500 Control of Receivables

Although the Assistant Vice President for Finance has ultimate responsibility for University receivables, applicable departments are responsible for maintaining a system to adequately manage their receivables.

The departments receivable system should:

  • Bill accounts on a timely basis, whether the receivables are due from private entities, the federal government, or state agencies and institutions. Accounts should be billed no later than five (5) working days after the date goods are provided or services rendered, unless contractual requirements specify other billing terms or billing terms are in accordance with industry standards. Payment terms should be 30 days after billing unless contractual requirements specify otherwise or payment terms are in accordance with industry standards. Provisions should be made for billing uncollected items on a monthly basis.
  • Maintain an accurate record of transactions affecting each account receivable with a control account summarizing each type of receivable.
  • Provide an aged trial balance of receivables including realistic estimates of doubtful accounts; information relative to the collection of past-due accounts; and properly accounting for receivables written off. This information should be available to management upon request.
  • Maintain a record of year-end receivable balances, presenting receivable information comparable with prior year's reports.
  • Recognize and report receivables in accordance with generally accepted accounting principles by establishing adequate internal controls to maintain the integrity of the accounts receivable system.

.600 Collection of Past Due Receivables

Collection procedures, as outlined in the billing instructions in subsection .500, should be followed during the first 60 days after payment due date or until previous payment arrangements have been dishonored. Where the department has other procedures to secure payment (such as refusal to allow course registration, refusal to issue diplomas or refusal to issue licenses), it may elect to retain the account pending the results of such procedures. After this period collection procedures should continue as follows:

.610 Refer Accounts to Private Collection Agency

After 60 days past the payment due date, if satisfactory payment arrangements have not been made with the debtor, an account less than $3,000 should be referred to a private collection agency under contract with the University. The debtor must be notified in writing that the account will be referred for outside collection.

The collection costs charged by the collection agency should be added to the balance submitted to the agency. The University Business Office can supply the name and address of each collection agency.

.620 Refer Accounts to the Office of the Attorney General (OAG)

After 60 days past the payment due date, if satisfactory payment arrangements have not been made with the debtor, an account greater than $3,000 should be referred to the Claims Section of the OAG. Copies of all information available on the account should be included. The collection costs charged by the OAG should be added to the balance submitted. The University Business Office can supply the address and referral information for the OAG.

.630 State Debt Set-Off Program

The Commonwealth has instituted a program under which amounts owed by delinquent debtors to state agencies may be claimed through the debtor's state tax refund. Departments should submit a list, to the University Business Office, of accounts receivables, which are 60 days past due and do not have satisfactory payment arrangements. The list should provide the debtor's name, social security number, and amount due. Accounts referred to collection agencies should be included unless regular payments are being made on the account. University Business Office will report amounts collected under this program to the department after notification has been received from the Department of Taxation. The department should forward documentation of amounts collected under this program to any outside collection agent that is also handling the debt.

.640 Vendor Debt Set-Off Program

This program allows state agencies to claim vendor payments of one state agency to satisfy debt owed by the vendor to another agency. Debts may be sent to the Department of Accounts at any time during the year in which they become delinquent. Debtor information should include; debtor name, social security number or vendor ID, and amount owed. Documentation of amounts collected through this program should be forwarded to any outside collection agent that is also handling the debt.

.700 Reporting of Receivables

Departments shall prepare a summary report of receivables as of June 30. University Business Office will send the Financial Reporting office reports listing the department's receivables as they appear on the University subsidiary ledger to the department by July 15 of each year. The department is responsible for verifying the accuracy of these receivables by comparing the accounting reports to departmental records. The department should then prepare and submit a summary report, which agrees to the adjusted total arrived at above, to University Business Office by August 1. This summary report should include an aging schedule which presents "receivables not past due" and "past due receivables". Receivables not past due are those receivables that are not presently due for collection or are currently due but have not passed the payment due date. Past-due receivables are those receivables that have not been paid by the due date. For reporting purposes these should be broken down as "1-30 days", "31-60 days", "91-120 days", "121-180" days, "181 days-1 year" and "over 1 year" past due.

.800 Forms Preparation and Submission

.810 JMU Invoice

.811 Required:

This form is used by departments to bill customers for goods provided/services rendered. Requests to use alternative invoice forms must be approved by the Assistant Vice President for Finance prior to use.

.812 Where to Obtain Blank Forms:

Form is available ONLINE.

.813 Where to Send Completed Forms: Distribute the invoice as follows:

Original - Person/agency billed

Copy - University cashier

Copy - Departmental use

.814 Forms Preparation Instructions:

Following are detailed instructions for the preparation of the JMU Invoice. Enter only the following information listed below.

  Invoice Number: Consecutive numbering code agreed to by the University Cashier and department
  Invoice To: Enter the name and address of person/agency billed.
  Student/Corporate ID: Enter the name of the person or agency that received the goods or services if different than name entered in "Invoice To". When invoicing a student, enter the student's ID number.
  Date: Enter the date the invoice is completed.
  Description of Charges: Enter a description of services or goods provided.
  FIS Code: Enter the Department ID number (See Section 2010, "Department Numbers") and Account number (See Section 2020, "Revenue Account Codes and Definitions") that should receive the payment.)
  Amount: Enter the amount to be paid for each item listed.
  Total Due: Enter the total amount due from payee.
  JMU Department: Enter the department name.
  Person: Name of the person responsible for the department's transactions.
  Phone Number: Enter the department's telephone number.
  Fax Number: Enter the department's fax number.
  MSC: Enter the department's mail stop code.

DO NOT alter information in the "Remit Payment to" section.

4120 Financial Aid Accounting Cash Management (4000)

.100 General

James Madison University administers a wide variety of student financial aid programs and funds. State and/or federal laws and requirements govern most of these programs. This section outlines the responsibilities and procedures necessary to allow the University to comply with those requirements. Information in this section applies to all departments involved in the administration of financial aid funds.

.110 Need-Based Financial Aid Programs

Many of the aid programs administered by the University are "need-based". This means that the Office of Financial Aid and Scholarships makes an analysis of the student's available resources and income. The portion available for educational purposes is compared to the anticipated educational expenses. The difference is considered unmet need. The student's financial aid award is then determined based upon this unmet need. Any awards, scholarships, or college work-study employment received after the calculation of this need may affect the amount of award that a student is entitled to receive from need-based financial aid programs. Since the University is ultimately responsible for any amounts improperly awarded in need-based programs, it is extremely important that departments comply with the following procedures.

.120 Direct Application of Aid

Many of the University's financial aid programs have a large number of award recipients. To facilitate the processing of these programs, the University has developed an automated process called "direct application of financial aid".

The Financial Aid and Scholarships Office initiates this process by entering approved financial aid awards for individual students into the Student Information System. Various departments use these entered awards in calculating the amounts personally due from each student. Then, at a designated time, coordinated between the Office of Financial Aid and Scholarships and the University Business Office, direct application of specific aid program(s) are processed.

This process disburses the financial aid and creates an account entry for posting to the student's financial account. Once these entries are reconciled to disbursement data and funds available, the entries are actually posted to the student's account. The University Business Office then processes credit balances created from overpayment of institutional charges (tuition and fees, room and board). These refund entries are posted to the University's refund vendor by an electronic download process.

Finally, the University Business Office completes the paperwork to formally request the processing of the download and to generate a single transfer to the Treasurer of Virginia to cover charges paid by the aid application. The student then receives notices of their rights to cancel the aid award (loans only) and is notified that either 1) a direct deposit to their bank account has been made, 2) a check has been processed and will be mailed to their home address, or 3) the funds have been deposited into the account the student setup with the vendor.

.200 Control Responsibilities

.210 Department

  • Contacts the Office of Financial Aid and Scholarships to explain the awards contemplated in order to determine the impact, if any, of the proposed award on the student's need-based financial aid and outline the provisions for distributing the money to the student.
  • Processes and returns all documentation required by the Office of Financial Aid and Scholarships and the University Business Office for aid disbursement.
  • Contacts the University Business Office immediately to establish an exact date for the award, if necessary.

.220 Office of Financial Aid and Scholarships

  • Administers all financial aid programs in accordance with Federal, State and University regulations.
  • Assists students and departments by explaining procedures and providing necessary forms.
  • Determines the impact of proposed awards on the student's need-based financial aid package.
  • Determines the eligibility of the student to receive financial aid funds.
  • Conducts exit interviews with Direct Loan fund recipients.
  • Notifies the University Business Office of the eligibility of students for an aid program so that awards are credited to the student's account and individual student refunds generated at the appropriate time.

.230 University Business Office

  • Administers all financial aid programs in accordance with Federal, State and University regulations.
  • Provides University departments and other state agencies with forms and instructions for the aid disbursement procedure.  
  • Administers required billing and collection procedures in accordance with Federal, State, and University policies.  
  • Approves exceptions to the daily procedures, as appropriate. 
  • Conducts exit interviews with Perkins loan fund recipients.
  • Ensures that financial aid funds are on hand prior to posting awards.
  • Issues refund checks to students or lending institutions, as appropriate.

.300 Processing Procedures

.310 Department

  • Provides information regarding the amount, type of aid to be awarded, and proposed recipients to the University Business Office and the Office of Financial Aid and Scholarships.
  • Approves and returns required forms, with proper authorizations, to the University Business Office and the Office of Financial Aid and Scholarships for processing.

.320 Office of Financial Aid and Scholarships

  • Determines eligibility of students for awards.
  • Determines the amount of award to which each student is entitled.
  • Enters proposed and approved award amounts in the Student Information System.
  • Notifies the University Business Office when awards can be applied and refunds issued.

.330 University Business Office

  • Verifies Aid Disbursement-Preview received from Office of Financial Aid.
  • Verifies availability of funding for proposed student aid awards.
  • Provides department/agency with the appropriate forms and instructions required for aid disbursement.
  • Verifies department/agency authorizations on prepared forms (Agency Transaction Vouchers, and Invoices).
  • Enter appropriate information into Student Financial Information System to apply aid to students' accounts.
  • Deposits the University portion of applied aid in the appropriate bank account and distribute revenue to the proper department and revenue source codes.
  • Requests and verifies refunds for students through the University's refund vendor using the refund preference selected by the student.
4125 Payment Cards Cash Management (4000)

.100 General

Prior to implementation and use, initial payment card activity at James Madison University must be approved by the Assistant Vice President for Finance.

Once authorized to sell merchandise or rent university facilities by the Assistant Vice President for Finance, departments are required to comply with Virginia Retail Sales and Use Tax Collection requirements.

  • Contact the Cash & Investments Office for specific procedures prior to initiating any sales/rentals.

Additional procedures for payment card activity for Local/Agency Fund accounts are included in Section 3045, "Local/Agency Funds".


.200 Control Responsibilities

  • All James Madison University departments, affiliates, and vendors must maintain compliance with the current version of the Purchase Card Industry – Data Security Standards (PCI-DSS).
  • Departments will request PCI-DSS Security Awareness Training through the University Business Office for all new employees (including students) who have been designated to handle any aspect of payment card processing.
    • Background checks must be completed for all employees who process payment cards, have payment card system logins, or in any way interact with cardholder data.
  • Only a minimum number of employees whose job responsibilities requires access to cardholder data should have such access.
  • Departments shall complete the appropriate Self-Assessment Questionnaire in coordination with the University Business Office on an annual basis.
  • Departments shall ensure appropriate security controls are in place related to payment card transactions:
    • All payment card refunds are required to be placed back on the same payment card as used in the original sale.  In cases where the original card has since closed, the department is required to contact the University Business Office at 8.4674 for further instruction in how to proceed with the refund process.
    • All employees given access to payment card information shall have completed PSI DSS Security Awareness training within the past twelve months.
    • Supervisors shall request background checks for student employees through Student Work Experience Center (SWEC).  For all Faculty and Staff, the background check is done automatically through Human Resources during the OnBoard process.
    • Once PCI-DSS Security Awareness Training has been completed, submit the staff terms of agreement for the trainee to the University Business Office. 
    • Departments are not permitted to store cardholder data.
      • All post-authorization payment card information is required to be destroyed in a PCI-compliant manner, such as cross-cut shredder or outsourced service.
      • All customer and merchant receipts shall only show truncated card numbers - the first six and last four digits are allowed.
  • Departments currently accepting payment cards are required to maintain the following documentation.
    • Departmental Procedures- written documentation of department specific payment card policies.
    • PCI-DSS Security Awareness Roster- a list of all individuals within the department who can interact with cardholder data.
    • Quality Control Check List- used to document the inspection of payment card terminals.

Notes:

  • All payment handling operations are subject to review and/or audit by the University Business Office as well as the university's internal and external auditors. The University Business Office surveys university departments regularly to identify all payment collection points. If the controls are inadequate, corrective action will be taken.
  • When a department wants to expand upon current services offered by a vendor, the department must contact the University Business Office for a PCI Review in order to determine how the system changes will impact James Madison University’s PCI Scope.
  • James Madison University has committed to reducing our PCI Scope; as such any new or existing vendor’s application that would increase the university’s PCI scope is prohibited.

.210 University Business Office

  • The University Business Office shall provide PCI-DSS Security Awareness Training to all university employees who interact with cardholder data upon hire, reoccurring annually thereafter.
  • The University Business will coordinate with JMU IT to provide and maintain a secure cardholder data environment that complies with the current PCI-DSS.
  • The University Business Office works with JMU’s Security Advisor to assign departmental Self-Assessment Questionnaires.
  • The University Business Office initiates annual completion of Self-Assessment Questionnaire.

.300 Processing Procedures

.310 Assistant Vice President for Finance

  • Authorize departments to sell goods and services in accordance with Commonwealth regulations.
  • Approve exceptions to daily requirements as appropriate.

.320 University Business Office

  • Provide departments who currently accept payment cards the appropriate deposit transmittal forms and instructions.
  • Monitor and audit departmental payment card processing.
  • Update departmental staff on PCI-DSS compliance changes.
  • Provide departments with a sequence of numbers to be used for Deposit Certificate numbers.
  • Coordinate with Wells Fargo to establish merchant identification numbers for departments who have been authorized to accept payment cards.
  • Assist departments in acquiring appropriate payment card processing equipment or implementing approved online payment sites.
  • Assist in resolving problems encountered in monthly reconciliation process of payment card transactions.
  • Perform scheduled and unscheduled audits.
  • Payment card chargebacks (when the bank retrieves funds from the university's local bank account due to a customer disputed payment card charge)- the University Business Office will complete all paperwork associated with the chargeback and coordinate with the department and the customer in order to reimburse the chargeback.

.330 Departments

  • Once a department has been approved to process payment cards, the University Business Office will obtain merchant numbers for Visa, MasterCard, Discover, and American Express (if applicable).
  • All payment card equipment and terminals will be obtained by the University Business Office for the department. Equipment costs will be billed to the department the following month.
  • Departments are responsible for contacting the University Business Office in regards to any terminal issues or error messages that may appear on the terminal.  Departments are not permitted to order new equipment or replace existing payment card terminals. If the payment card processor recommends a replacement terminal, the department shall contact the University Business Office for guidance.
  • When applicable to job responsibilities, departments will request access to online transaction management sites through the University Business Office.
  • Departments shall ensure proper separation of duties exists, payment handling, record keeping, and reconciliations should be assigned to different staff members.  If the size of the department makes proper separation of duties impossible, a second person must verify reconciliations of funds received and accounts maintained.
  • Departments will prepare Deposit Transmittal Forms daily based on deposits of funds received the previous business day.
    • The department will obtain the payment card version for the Deposit Transmittal Form from the University Business Office. This payment card version is not available online.
    • The department will obtain a unique Deposit Certificate (DC) number from the department’s log for each payment card Deposit Transmittal Form.
    • This form must be delivered to Financial Reporting at MSC 5715 within three business days for keying into the university finance system. See section .400 for correct preparation instructions.
  • Processing payment card information received in an email is strictly prohibited. Respond to all emails which include payment card information by deleting the payment card information and including instructions for re-submission through an approved method.
  • Retain all necessary documentation- merchant copy receipts, batch reports, copy of deposit transmittal forms, monthly reconciliations.
  • The department must reconcile their departmental budget monthly comparing the university finance system reports to departmental records.

.400 Forms Preparation and Submission

  • Deposit Transmittal Form (DTF):  This form is required to transmit deposit information and expenditure credit items for Treasurer of Virginia revenue items for input to the Financial Information System.
    • The payment card version of the Deposit Transmittal Form is only available from the University Business Office and is not available online.
    • The original payment card version of the Deposit Transmittal Form is sent to the Financial Reporting Office at MSC 5715. The department must keep a copy for departmental files.
    • When depositing payment card transactions, the Deposit Transmittal Form must be delivered to Financial Reporting within three business days, after the deposit date.
  • Following are instructions for preparation of the FIS Deposit Transmittal Form. Enter information in the following categories ONLY.
  DC #: Enter the Deposit Certificate number on the Deposit Transmittal Form using a sequence of numbers provided by the University Business Office.
  Prepared By: Name of the person completing the form, initial beside typed name.
  Dep. Date: Enter the date the deposit is being made.
  Date: Enter the date the form is prepared.
  Phone/E-Mail: Phone number and/or e-mail address of the preparer.
  Bank Code: Enter TV for Treasurer of Virginia deposits. (Consult Financial Procedures Manual section 3045.300, "Local/Agency Funds" for deposits to Dept ID#s starting with an 8.)
  MSC: Enter the MSC of the preparer.
  Bank Acct.: Enter CH03 for Treasurer of Virginia payment card deposits. All payment card deposits, and ONLY payment card deposits, are CH03.
  Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Line Count: This field will automatically populate.
  Explanation: Indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.
  Payment Cards: Only option available on the payment card version of the Deposit Transmittal Form.
  Discover/MasterCard/Visa: Select if the deposit is for Discover/MasterCard/Visa transactions. The deposit will arrive from FNBO (First National Bank of Omaha).
  American Express: Select if the deposit is for American Express. The deposit will arrive from American Express.
  Dept. ID #: Enter the six-digit department identification number. Refer to Section 2010, "Department Numbers" Numerical Listing.
  Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions".
  Description of Deposit: Indicate the origin and/or nature of the deposit.
  Amount: Summarize the receipts by revenue account codes and Dept. ID#s and enter the amount for each code. For unidentified items, list each amount collected separately. Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.
  D/C: Enter a "C" if the deposit is a credit to Dept. ID # - enter a "D" if the deposit is a Debit to the Dept. ID.
  Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.
  Notes for payment card deposit preparation:
  1. Payment card terminal sales are batched once, daily for every payment card machine in the department.
  2. If the deposit you are making has refunds included in the total, list the sales on the deposit transmittal as a "C" credit and the refunds as a "D" debit to get a "net" total.
  3. The department is required to utilize clientline.net for all Visa, MasterCard, and Discover transactions and americanexpress.com for American Express transactions (if applicable) on a daily basis to retrieve actual deposit dates and deposit totals. All departments have been given access to these sites for their respective merchant numbers. Step by step procedures or access to these sites can be obtained by contacting the Compliance Specialist in the University Business Office at 8-4674. By using these sites correctly, James Madison University ensures it is in compliance with the Commonwealth of Virginia’s CAPPS manual which states:

    • "There MUST BE A ONE-TO-ONE MATCH between the deposit entry that posts to the Treasurer's bank account and the deposit total reported in Cardinal. The AMOUNTS MUST BE THE SAME regardless of the method of input to Cardinal. DEPOSITS MUST BE SEGREGATED BY TYPE so that different types of deposit activity are not commingled on a deposit form (i.e., cash deposits should be separated from credit card receipts). Each type of deposit activity noted below must be reported on a separate deposit form, using a separate DC number."

.410 Deposit Certificate Sequencing

Treasurer of Virginia Deposit Certificate numbers are obtained through the University Business Office. The department should maintain an Excel spreadsheet of these numbers to keep track of the DC numbers used, deposit date, amount, and card type deposit. The department must only use the numbers within their sequence and restart the sequence each July 1. If a department runs out of numbers within their designated sequence within the fiscal year, contact the University Business Office for another set of numbers—do not go past your designated numbers or reuse DC numbers.


.500 Deposit Reconciliation

A monthly written reconciliation comparing revenue deposited- to university FIS reports is required. Auxiliary Enterprises accounts (Nos. 3xxxxx) are reconciled by comparing the department's internal records to university monthly FIS reports. Educational and General Accounts (Nos. 1xxxxx) are reconciled by comparing revenue transaction documents to University monthly FIS reports.


.520 Who Should Perform the Reconciliation:

Departments accepting payment cards are responsible for reconciling their FIS Monthly detail reports as described in Financial Procedures Manual Section 3035. The individual responsible for preparing the deposit should not be assigned this responsibility.

.530 Reconciliation Differences:

If differences other than timing differences are encountered, contact the University Business Office to determine the proper adjustment. For transaction research assistance, contact e–commerce@jmu.edu.

4205 Expenditures Cash Management (4000)

.100 General

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 are subject 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.

.200 Control Responsibilities

.210 Finance Office

  • 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.

.220 Departments/Offices

  • 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.

.300 Different Types of Expenditures

.310 Expenditures

Expenditures are for purchases that occur on a regular basis and support the operations of the University. Payments are initiated upon receipt of a vendor invoice and proper supporting documentation. Allowable 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.

.311 Sponsorships

The guiding statement is that the purchases must be considered essential to the operation of the university and in support of the university’s mission to justify the use of state funds. Sponsorships are usually payments that include the sponsor’s name being mentioned as a sponsor or perhaps with other tangibles such as admission to an event. Allowable advertising by departments is limited to employment needs. Because of the close resemblance of sponsorships to donations and charitable contributions and the fact that they are not considered essential to the operation of a university department, or the university, they are not considered a defendable state purchase.

Some examples of University-sponsored event expenses which do not clearly support the University mission are:

 
  1. Retirement parties or employee going away parties
  2. Entertainment expenses
  3. Holiday decorations
  4. Alcoholic beverages (and related expenses)
  5. Charitable contributions
  6. Gifts and flowers
  7. Civic activities/events

Requests for exceptions, with supporting justification, may be submitted to the Assistant Vice President for Finance. Justification for each request must include the cost of the sponsorship, an explanation as to why the sponsorship is essential to the operation of the university as well as how said sponsorship directly supports the university’s mission. Requests must be submitted and approved before initiating a sponsorship transaction.

.312 Memberships

As a general rule, memberships to retail stores/warehouse clubs are not necessary or acceptable uses of state funds. James Madison University is mandated to use or has executed agreements in place for such purchases as office supplies, furniture, copiers, catering/dining, and beverage/vending. Due to these mandates and agreements, benefits realized from these types of memberships do not justify their costs. Examples of such memberships include: Sam’s Club, Costco, Barnes & Noble, and Amazon Prime.

.313 Advertising/Marketing/Promotional

Advertising by departments for promotional purposes across all mediums, including print, social media (including Snapchat Geofilters) and digital media, as well as the purchase of external web domains (i.e.: using GoDaddy.com) is coordinated through JMU’s Office of Communications and Marketing, following university policy 1502: University Communications and Marketing. Purchases made are subject to audit for written authorization, prior to purchase, from University Communications and Marketing.

Some examples of expenses which would generally be considered UNALLOWABLE are:

  • Generic advertisements in seasonal or annual high school team programs and/or yearbooks
  • After-prom activities or sponsorships
  • Sponsorships being promoted as advertising or media expenses
  • Advertisements not targeted specifically towards current and prospective students or patrons of currently approved business activities (University Policy 4501)

The majority of promotional items purchased by university departments should be targeted towards prospective students. All other forms of advertising/marketing expenditures, including promotional items could be considered gifts. (Review the JMU Financial Procedures Manual [FPM] subsection 4205:390-397 regarding Miscellaneous Payments to Individuals/Participant Payments for additional information on incentives.) Promotional items making use of JMU marks such as trademarks, logos and insignias requires use of licensed vendors. Contact the JMU Foundation or reference the JMU Foundation webpage, no exceptions are made to this requirement.

Promotional merchandise with more than a de Minimis value and average cost to the University of no more than $10 or more/item, excluding setup charges and shipping costs may be purchased. All items included in the order must be items that would normally be purchased and used in promotional activities of the department/center/division and should not include lower cost items added to reduce the average per item cost of the order to meet this average cost criteria. Justified exceptions may be approved and requests should be submitted to the Associate Controller for Accounting Operations and Disbursements, Mark Angel prior to initiating a purchase.

.314 Food and Beverage Procedures

  Purpose

The procedures provided herein apply to all James Madison University departments, faculty, staff, students and all organizations and individuals that intend to provide food and/or beverages and any related services to JMU personnel (faculty and staff), students, or their guests at university expense.

There are limited circumstances in which it is considered appropriate to provide food and beverages to personnel who are not in travel status.

These procedures were created to provide guidance when using state funds to purchase food and beverages for official university business.  Purchases from any university account (including E & G, Auxiliary, Local, and Grant funds) are subject to these guidelines. Purchases for food and beverages include, but are not limited to, business meals, catered events, meal tickets, finger foods, party platters, and refreshment breaks.


  Appropriate Food and Beverages Functions

The functions or events at which it is considered appropriate for food and beverages to be served to University personnel are limited to the following:

  › Official Business Function: Food and beverages may be provided at business meetings that involve substantive and bona fide business discussions with an outside party or parties in attendance.  The primary beneficiaries of such functions are the non-JMU employees.  Meals at which interview candidates are hosted are included in this category.  Additionally, there are campus-wide and/or departmental activities where it may be appropriate for food and beverages to be provided, such as annual school start-up planning meetings and mission-related program review and focus group sessions.
  › Internal Training Function: Food and beverages may be provided to participants of a formal training session when business is conducted through the time of the meal and the training session lasts for a minimum of two hours.  The determination of whether a departmental function or event is an appropriate internal training function at which food and beverages may be provided will require consideration of the factors surrounding the event.  Departmental functions or events must be conducted primarily as training functions, are at least two hours in length, and do not occur more frequently than once per semester.  The type of training provided will depend on the particular department involved.  In order to limit expenditures for rental facilities, functions or events should be held at properties owned or leased by JMU.  Functions or events held at off campus locations require advance written approval - Departmental Off Campus Authorization Form.  University employees are the primary beneficiaries at such events.
  › Student Academic Function: Food and beverages may be provided at student functions that contribute to the academic mission of the University. Current and prospective students are the primary beneficiaries at such events. Food and beverages provided at commencement or annual award ceremonies are examples of this category.  Mission-related program review and focus group sessions are also examples of functions within this category.
  › Student Programming/Club Function: Food and beverages may be provided at student programming/club functions that contribute to student engagement and support the mission of the University. Current students are the primary beneficiaries of such events. Food and beverages provided at residence hall programs or club programming events sponsored by student activities fees are examples of this category.  Mission-related program review and focus group sessions are examples.


  Requirements and Limitations

This procedure established the following requirements and limitations regarding appropriate expenditures for food and beverages for reimbursing an individual:

  1. Food and beverages may be provided only at functions or events that meet the criteria listed in the above section of this procedure.
  2. For official business functions, the purpose/business reason must be included on the Expense Report to verify the JMU employee is acting as an official representative of the university and would be exempt from tax reportable income for the cost of the meal. A listing of the names and organizational affiliations of each person in attendance at events at which food and beverages are provided must also be listed on the Expense Report to support payment. If a listing is impractical to provide, a written explanation to that effect must be submitted with the Expense Report.
  3. Food and beverages may be provided at official business meetings held during normal work hours of 8:00 a.m. to 5:00 p.m. Breakfast and dinner meals are generally not considered to be part of an employee's normal workday.  A detailed justification is required for meals outside of normal business hours.
  4. Refreshments may be provided at official business functions.  Food and beverages should not be provided at regularly scheduled or routine meetings (examples include: staff, division, or department meetings).
  5. The actual cost per person for food and beverages, including any related service fees or gratuities, may not exceed the per diem amount allowed for business meals.  With sufficient justification an Approving Authority may authorize meal expenditures up to 50% over of the applicable per diem meal rate.
  6. Internal training retreats where food and beverages are served should include a description of the type of training provided as documentation to support the expenditures.
  7. Reimbursement requests if an employee pays for official business meals must be submitted on an Expense Report along with the original itemized receipt.
  8. Alcoholic beverages (and related expenses) may not be provided at University expense.
  9. Any additional fees incurred on the catering contract must be included when calculating to ensure you remain within the per diem rate. Such fees include, but are not limited to: china fees, table linen fees, non-alcoholic drinks, transportation fees, and late fees.
  10. All catering contracts are subject to audit by the Finance Office. Any pertinent documentation should be readily available upon request and any per diem overages found should be addressed as soon as possible using an external funding source.


  Catering and Dining Services

JMU has a contract with Aramark to provide all catering and dining services for on campus official business events. Departments must utilize JMU’s Catering and Dining Services unless permission to use an outside vendor is obtained in advance of the event from Aramark.  If Aramark exercises its right of refusal to provide food/beverage and grants written approval for the department to use an outside vendor, the department must maintain this approval for future audit.

When using JMU’s Catering and Dining Services, the Food and Beverage Certification Form must be filled out with a listing of the names and organizational affiliations of each person in attendance and the purpose/business reason must be included for each event and maintained along with the contract in the department’s office for future audits.  

Business events that would not require Catering and Dining Services to be used are:

  • Any "pizza" delivery from outside vendors
  • Non-catered events such as department purchases for grocery items
  • Potluck events
  • Events not meeting the Catering department's minimum order of $50 per delivery
    Duke Card Log Sample of a properly prepared log
    Meal Voucher Log
Sample of a properly prepared log
Food and Beverage Certification Form


  Local Vendors

For payment processing to the vendor when purchasing food and/or beverages, a Food and Beverage Certification Form must be filled out.  A listing of the names and organizational affiliations of each person in attendance and the purpose/business reason must be stated on the form and submitted with an Accounting Voucher, along with the original itemized invoice/receipt to the office of Accounts Payable for payment processing.

The Small Purchase Charge Card (SPCC) may only be used to purchase pizza from a local vendor. The Food and Beverage Certification Form must be filled out along with the original itemized receipt and a listing of the names and organizational affiliations of each person in attendance and the purpose/business reason for each event is to be maintained in the departments' office for future audits or inquiries from the Cash and Investments office. In order to purchase from a pizza vendor the restaurant exception form must be approved and on file in the Cash and Investments Office.

NOTE:  Departments must utilize JMU's Catering and Dining Services unless permission to use an outside vendor is obtained in advance of the event from Catering and Dining Services.


.320 Expenditures that are Improper Charges to Public Funds

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.

.321 Examples of Improper Public Funds Expenditures

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:

 
  1. Books for classes (unless they remain property of the University)
  2. Snacks or refreshments
  3. Baby sitting
  4. Non-business related newspapers or magazine subscriptions
  5. Personal articles that are lost or stolen
  6. Tuxedos or other formal wear
  7. Clothing (non-uniform or repairs to clothing damaged in the work place)
  8. Refrigerators, coffee makers, and other appliances for employee use

.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 180 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 VISA 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 or employment advertisements authorized by Human Resources only without prior written exception.

.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. Equipment Rentals: Limited to payments for the use of the equipment.
  9. Real Property: Limited to payments for the use of buildings and land (Requires proof of approval from the Real Property and Space Management Office).
  10. 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 Payroll Services for their approval for payment as an “Independent Contractor”. Once approved Payroll Services 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 Payroll Services 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 the Human Resources website 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/humanresources/cell-phone-stepend.shtml

  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 re-certification 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 re-certify 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 using a Small Purchase Charge Card once the cardholder has had the Declining Balance Card Exception form approved by the SPCC Program Administrator. The Declining Balance Card Exception form can be found on the Forms Index Section 1020 of this procedures manual.

 
  • 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 international wire payments by completing the Accounting Voucher as described in subsection 610 and forwarding the completed voucher with all appropriate supporting documentation to the Cash & Investments Office, MSC 5711. Cash and Investments staff will determine the most appropriate system for facilitating the wire and will finalize the cost of the wire to the department accordingly, with the goal of maintaining the integrity of the payment to the beneficiary as well as cost efficiency. Considerations must be given to policies and regulations governing remission of funds to specific countries. 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 Cash and Investments 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.

When making payments to non-resident aliens (NRA’s) for services, honorariums and/or associated travel expenses, you must determine whether it is legal to pay them, is the payment subject to tax, and what policies and procedures must be followed.  Reference FPM subsection 4205.398 for additional information prior to initiating any compensation.

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.  Storing prepaid cards with total value of more than $200 requires the same control and safe storage required for cash.

University employees are not authorized to purchase payment cards directly from providers. All requests for payment cards are submitted to Cash and Investments using the Prepaid Payment Card Order FormPayment Cards are considered monetary recognition. Auditable logs of all requested cards must be maintained and each time the entire group of requested cards is distributed and signed for, the inventory log must be provided to Cash & Investments at MSC 5711.

The preferred method of distributing payment cards to participants is hand them their card and have them sign the Participant Worksheet or Payment Card Sign-Out Sheet at that time. However, if extenuating circumstances exist such that the payment must be mailed to a participant, the department may do so if they have on file express written permission from the recipient consenting to the mailing of the payment card to the address provided in the written permission document. The written authorization must contain a statement that responsibility for mailed cards passes from JMU to the recipient with this written permission; that JMU is not able to replace lost cards; and that the recipient acknowledges and accepts these terms and conditions. If cards are mailed, the department would note on the Participant Worksheet or Payment Card Sign-Out Sheet that the card was mailed, enter the date mailed, and attach the written permission document(s). Note: virtual cards may be an alternative to mailing physical cards, please contact Cash & Investments to discuss this option prior to deciding to mail cards.

Incentives, prizes, and recognition awards, as well as research subject payments of all types are to 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.  (Applicable to all recipient groups: students, employees, volunteers).  Inventory logs are required for audit purposes and should indicate the date awards are received/distributed, individual doing so and total inventory remaining on hand.

.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/or that the incentive may be paid by gift card allows the department to do so.  The Sponsored Program Accounting Office will be required to approve Prepaid Payment Card Order Forms prior to the order form being sent to Cash & Investments.

 

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. (Applicable to all recipient groups:  students, employees, volunteers, etc.)  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 purposes. The prizes may be non-monetary or monetary. Monetary prizes may be distributed via the options specified in the chart below. All options valued at $100 or more are tax reportable and require W9’s. Monetary prizes randomly awarded must first be approved by the JMU Financial Aid Office.

Please reference subsection .390 above for information related to payment cards.

  These prizes should be coded to 141300.

.394 IRB Approved Research Subjects

This category of individuals works with investigators in IRB approved research projects outside of the procedures for payroll and contractual arrangements and may be provided a monetary (cash or university provided payment card) payment for their participation. These individuals 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 in the chart below and W9’s are required for payments greater than $100*.  The Internal Revenue Service (IRS) considers all payments made to individuals to be taxable; gift/payment cards are viewed as cash equivalents. If the participant is a U.S. resident, and payments are $600 or greater in any one calendar year, the university is required to file a 1099 form with the IRS. For amounts less than $600, the individual is responsible for reporting the additional income. *Although W9’s are not required for payments $100 or less, when payments are issued as a check, the recipient’s TIN or PeopleSoft Vendor # is required on the Accounting Voucher regardless of the check amount and the Accounting Voucher is to include the IRB approval number.

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 to JMU students must first be approved by the JMU Financial Aid Office.  The Cash or Payment Card Sign-Out Sheet/Inventory Log must be provided to Cash and Investments Office at MSC 5711 within 5 days of cash being disbursed.

In cases involving confidentiality of participants, the department must provide an internal control plan to account for and audit disbursement records. This alternative plan must be approved by the Manager of Cash and Investments prior  to being used. An approved copy should be kept on file in the department and submitted with the payment request.

Payment Card Order Forms requesting bulk prepaid payment cards for research projects are limited to a maximum of one month's worth of research subject payments, unless a written exception is requested and granted. If the research is part of a Sponsored Program, then the Sponsored Programs Accounting Office will be required to approve Prepaid Payment Card Order Forms prior to the order form being sent to Cash & Investments.    

Auditable logs of all requested cards must be maintained and within five days of the time the individual supply of cards or cash is distributed and signed for, the Cash or Payment Card Sign-Out Sheet/Inventory Log must be provided to the Cash and Investments Office at MSC 5711.  The preferred method of distributing payment cards to participants is hand them their card and have them sign the Participant Worksheet or Payment Card Sign-Out Sheet at that time. However, if extenuating circumstances exist such that the payment card must be mailed to a participant, the department may do so if they have on file express written permission from the recipient consenting to the mailing of the payment card to the address provided in the written permission document. The written authorization must contain a statement that responsibility for mailed cards passes from JMU to the recipient with this written permission; that JMU is not able to replace lost cards; and that the recipient acknowledges and accepts these terms and conditions. If cards are mailed, the department would note on the Participant Worksheet or Payment Card Sign-Out Sheet that the card was mailed, enter the date mailed, and attach the written permission document(s).  Note: virtual cards may be an alternative to mailing physical cards.  Please contact Cash & Investments to discuss this option prior to deciding to mail cards.

Faculty/staff electing to use Amazon's Mechanical Turk (M-Turk) for use in purchasing prepaid HITS may do so on a reimbursement basis or by requesting funds to place on the M-Turk Payment Account.  Advance funding is requested using a single accounting voucher payable to the faculty/staff member, attached to the JMU Amazon Mechanical Turk Advance Funding Request.  Due to the requirement of the Amazon Mechanical Turk process for accounts to be established and maintained by individuals, advances are made to individual JMU employees conducting research and are the sole responsibility of the employee.  The advance amount is limited to the value sufficient to fund one survey at a time or a maximum of $1,000, whichever is less.  This funding limit is to include all Amazon M-Turk fees to be assessed on the accepted HITS.  Once the survey has closed or the funds have been exhausted, the faculty/staff member is required to submit the Daily Requestor Activity Report(s), showing the Payments Summary for the funds advanced, to the Cash and Investments Office at MSC 5711 or iis.finance@jmu.edu.  (An example of the Daily Requestor Activity Report is shown below.)  If the total advanced is less than the actual total cost of the survey, the employee may submit a reimbursement request for the difference.  If the total advanced is more than the actual total cost of the survey, the difference is due and payable from the employee receiving the advance.  The reimbursement is due within 30 days of the survey closing date, via check payable to James Madison University.  The reimbursement is to be deposited with the University Business Office Cashier along with a properly completed Deposit Transmittal Form (DTF) for Checks and using the original funding department budget code and account code 149900.  A copy of the DTF must also be remitted to the Cash and Investments Office at MSC 5711 or iis.finance @jmu.edu within 3 business days of receipting the deposit with the University Business Office.

Example of M-Turk Daily Requester Activity Report:
M-Turk Daily Request Activity Report

Please note: These Daily Requestor Activity Reports are required for reimbursement. Be sure to setup the M-Turk address so your email does not categorize this report as spam or you may jeopardize/delay your reimbursement.

Monetary incentives independently funded by JMU students, with approval of the IRB, are not subject to University Procurement or Financial Restrictions; however these student funded incentives are not eligible for reimbursement from University or Sponsored Programs funds.  Incentives funded by students will not be processed/facilitated within the University FIS.

Please reference subsection .390 above for information related to payment cards.

  Research Subject payments must be coded to 141320.  
Note:  Research subject payments or incentives will not be approved or processed unless IRB approval has been granted.  

.395 Non - IRB Approved Research Subjects

This category of individuals works with investigators in non-IRB approved research projects outside of the procedures for payroll and contractual arrangements and may be provided a monetary (cash or university provided payment card) payment for their participation. These individuals participate in research projects that do not meet the criteria for compliance under the conditions set forth by the procedures governed by the University’s Institutional Review Board (IRB).

Faculty/staff electing to use Amazon's Mechanical Turk (M-Turk) for use in purchasing prepaid HITS may do so on a reimbursement basis or by requesting funds to place on the M-Turk Payment Account. Advance funding is requested using a single accounting voucher payable to the faculty/staff member, attached to the JMU Amazon Mechanical Turk Advance Funding Request. Due to the requirement of the Amazon Mechanical Turk process for accounts to be established and maintained by individuals, advances are made to individual JMU employees conducting research and are the sole responsibility of the employee. The advance amount is limited to the value sufficient to fund one survey at a time or a maximum of $1,000, whichever is less. This funding limit is to include all Amazon M-Turk fees to be assessed on the accepted HITS. Once the survey has closed or the funds have been exhausted, the faculty/staff member is required to submit the Daily Requestor Activity Report(s), showing the Payments Summary for the funds advanced, to the Cash and Investments Office at MSC 5711 or iis.finance@jmu.edu. (An example of the Daily Requestor Activity Report is shown below.) If the total advanced is less than the actual total cost of the survey, the employee may submit a reimbursement request for the difference. If the total advanced is more than the actual total cost of the survey, the difference is due and payable from the employee receiving the advance. The reimbursement is due within 30 days of the survey closing date, via check payable to James Madison University. The reimbursement is to be deposited with the University Business Office Cashier along with a properly completed Deposit Transmittal Form (DTF) for Checks and using the original funding department budget code and account code 149900. A copy of the DTF must also be remitted to the Cash and Investments Office at MSC 5711 or iis.finance @jmu.edu within 3 business days of receipting the deposit with the University Business Office.

Example of M-Turk Daily Requester Activity Report:
M-Turk Daily Request Activity Report

Please note: These Daily Requestor Activity Reports are required for reimbursement. Be sure to setup the M-Turk address so your email does not categorize this report as spam or you may jeopardize/delay your reimbursement.

Please reference subsection .390 above for information related to payment cards.

  Non IRB- Approved Research Subject payments must be coded to 141300. Note: Research subject payments or incentives will not be approved or processed unless proof of review by the Office of Research Integrity for compliance has been demonstrated (attach email from Office of Research Integrity showing IRB approval is NOT required to Accounting Voucher).

.396 Cooperating Professionals

Individuals who provide a service based on the agreement with 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.

.397 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 Prepaid Payment 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 on the Forms Index , Section 1020 of this manual (“Payment Card Order Form”).


  JMU MISCELLANEOUS PAYMENTS TO INDIVIDUALS/PARTICIPATING PAYMENTS W9 Required [4] Participant Worksheet Required Report to Payroll Services [1] Non-Monetary Only Monetary Option Individual JMU Accounting Voucher Payment Method Option Prepaid Payment Card Cash/FLEX Payment Option - less than $25, bulk request one JMU Accounting Voucher [5] Payment via Amazon's Mechanical Turk Web Service [6]
  Incentives [391]
  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 [392]
  JMU Student       X          
  JMU Employee [non -student]       X          
  External Vendors       X          
  JMU Student Prizes [393]
  JMU Student X X     X X X    
  IRB Approved Research Subjects [394]
  JMU Student X[3]       X X X X  
  JMU Employee [non -student]         X X X X  
  External Vendors X[3]       X X X X X[6]
  Non-IRB Approved Research Subjects [395]
  External Vendors                 X[6]
  Cooperating Professionals [396]
  External Vendors X       X X      
  Faculty Members in Residence [397]
  External Vendors X X              
 

[SP] = SPONSORED PROGRAMS


[1] Email Payroll Services: Employee Recipient(s) name, employee id#, value amount when more than $100, brief description. Inform employee value will be added to taxable earnings.


[2] University prepaid payment card is the only allowable/acceptable gift card option. Must complete university Prepaid Payment Card Order Form and allow one week for processing. If the Payment Card order is for a sponsored program, the order form must be approved by Sponsored Programs Accounting before submission to Cash & Investments.  Department contact responsible for internal monthly card inventory/reconciliation. Returning sign out sheet to Cash & Investments.

[3] W9 required for all monetary/non-monetary payments valued at $100 or more. TIN or PeopleSoft Vendor # required on all Accounting Voucher options regardless of payment amount.

[4] W8 required for payments to non-US tax residents as indicated in subsection .398 below this chart. Consult with JMU Payroll services PRIOR to initiating any payment.


[5] FLEX must be used for non-payroll related, monetary prizes and payments of less than $25 for all JAC cardholders. W9's and Participant Worksheets may still be required depending on the payment classification.


[6] No W9's required for payment via Amazon's Mechanical Turk Web Service. Daily Requestor Activity Reports must be remitted to Cash & Investment by faculty/staff member upon closing of survey or exhaustion of funds, whichever occurs first.

.398 Payments to Short-Term Foreign National Visitors/NRA's

When making payments to non-resident aliens (NRA’s) for services, honorariums and/or associated travel expenses, you must determine whether it is legal to pay them, is the payment subject to tax, and what policies and procedures must be followed.

It is the sponsoring department’s responsibility to ensure that their foreign national visitor has been pre-approved for payment by Payroll Services prior to making formal arrangements for any kind of payment. All non-travel related payments must be processed via Payroll and our goal is to have the payment available for the incoming visitor while they are on campus. Please allow a minimum of 30 days for the pre-approval and check generating process. It is also the foreign national visitor’s responsibility to ensure that they obtain the proper visa prior to their U.S. arrival, so JMU may legally pay them.

  Service/Honorarium Payments

The most common types that allow for compensation are B-1 (business visitor), B-2 (tourist visitor), WB (business visitor), WT (tourist visitor), and occasionally J-1 visa holders**.

  The B-1, B-2, WB, and WT visa holder can be paid for services/honoraria only if they are providing “usual academic activity” at the University no longer than 9 days and have not accepted payment or expenses from more than 5 institutions in the previous 6 month period (9-5-6 rule).

“Usual academic activity” includes such things as lecturing, teaching, consulting, or otherwise sharing knowledge, experience, or skills in master classes, and performances that are open to the general public, free of charge. Additionally, they must sign a Substitute W-8 form certifying that they meet the “honoraria eligibility” criteria. Visitors that are to receive honoraria that exceed the 9-5-6 rule will need to get a J-1 visa via the Office of International Student and Faculty Programs.

Canadians admitted without an I-94 card are considered to be visitors for pleasure (B-2 tourist visa holders).

  **J-1 visa holders may receive payments for occasional lectures and/or consultations. However, before we can compensate a J-1 Exchange Visitor sponsored by another University, we are required to have prior written authorization from that University's "responsible officer" such as their International Advisor; permission letters from academic departments are not acceptable for this purpose.

  All other visa types must be authorized by the Office of International Student and Faculty Programs and Payroll Services prior to offering compensation for services, honorariums and/or travel expenses, as there are visa types that JMU cannot legally pay.

Payments to NRA's are subject to federal income tax withholding at 30% unless specifically exempted by an income tax treaty. There are tax treaties with over 45 countries. Each treaty is unique. To claim a tax treaty exemption, the IRS requires the NRA to have either a U.S. Social Security Number (SSN) or U.S. Individual Taxpayer Identification Number (ITIN) and submit a completed Form 8233 prior to payment. If not exempted by a tax treaty, taxes must be withheld.

  Travel Arrangements/Reimbursements

Prior authorization is required before any direct billing arrangements are made and/or any pre-payments for expenses using a department’s small purchase card*. Reference Policy 4215 Travel for new Travel Authorization rules regarding foreign national/non-resident visitors.

B-1/WB visa holders (business visitors) may be reimbursed for reasonable travel and incidental expenses incurred in connection with a usual academic activity/service, regardless of the duration of the activity and regardless of whether the individual has previously received payment from other institutions.

B-2/WT visa holders (tourist visitors) may be reimbursed for reasonable travel and incidental expenses incurred in connection with a usual academic activity/service not exceeding 9 days in duration, provided that the individual has not received travel and incidental expenses from more than 5 institutions in the previous 6 months (9-5-6 rule).

  *NOTE: In order for a travel expense reimbursement to be exempt from tax, a business purpose is required. Therefore, the primary purpose of the U.S. visit is very important. If the primary purpose of the U.S. visit is business, and you acquire itemized travel related receipts, then JMU can reimburse the expenses under the Accountable Plan tax free. Eligible expenses may include airfare, hotel and other travel related expenses. If the primary purpose of the U.S. visit is NOT business, then JMU can only reimburse those costs that relate to the business purpose (i.e. meals and lodging at JMU, travel within the U.S. to get to JMU, etc..), but not airfare from the visitor’s foreign address to the U.S. (that would be considered tourist/personal).

  Tax Analysis

Sherry Willis in Payroll Services will perform a tax analysis and assist in the completion of the Form 8233 (if applicable). She will also authorize all non-resident travel reimbursements and/or honorarium payments to foreign national visitors. In order to perform a tax analysis and approve payment(s), the following information is needed:

 
  • A completed Foreign National Information Questionnaire
  • A legible copy of their passport page, visa page and U.S. entry stamp
  • For J-1 visa holders, a copy of their DS-2019 stamped J-1 (and authorization letter)
  • A copy of their SSN/ITIN card (preferred)

If an individual does not have a SSN and is not eligible to receive a SSN, then the individual must have or apply for a W-7 Individual Taxpayer Identification Number (ITIN) .

Additionally, if the University agrees to pay an honorarium and/or associated travel expenses for services, the IRS requires that the NRA complete a W-8 form (a Substitute W-8 Form will be used by JMU) and file a US tax return using the 1042S form that will be sent by the University at year-end.

.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. Receiving report alternatives: In lieu of a separate receiving report document for purchases of $5,000.00, or greater, a bill of lading or packing slip may be used, provided that all of the required information essential to a receiving report are listed.

.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.

.511 Check Request

The University currently processes checks at least twice 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 in 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:  All student refunds & reimbursements will be processed by JMU's vendor - Higher One.

.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 Cardinal 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 (Cardinal) system at the Department of Accounts in Richmond. Verifies accuracy of reports in Cardinal.
  • Receives a manual copy of the Budget Exception Report, resolves exceptions not resolved by Accounts Payable.
  • On a monthly basis reconciles Cardinal 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. Sensitive 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

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).  Include Invoice # from Accounting Voucher in description area of DTF.  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)


.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.


.630 Food and Beverage Certification Form

.631 Required

This form is required when using state funds to purchase food and beverages for official university business.

.632 Where to Obtain Forms

An electronic form is available ONLINE.

.633 Number of Copies

Complete one original and one copy to retain in the departmental file.

.634 Where to Send Completed Forms

Submit the Original form with supporting documentation to the Office of Accounts Payable when appropriate, or scan/attach as supporting documentation to Chrome River Expense Report or SPCC Reconciliation documentation. Retain one copy for departmental files.

.635 Form Preparation Instructions

Instructions for Food and Beverage Certification Form (FBCF):

  Contact Person: Enter name of individual completing form.
  Contact E-mail: Enter contact person's JMU email address.
  Contact Phone Number: Enter contact person’s JMU phone number.
  Date Prepared: Enter date the Food and Beverage Certification Form is prepared.
  Cardholder Printed Name: Enter name of cardholder if applicable expense was charged to JMU SPCC.
  Cardholder E-Mail: Enter cardholder’s email address if applicable expense was charged to JMU SPCC.
  Meal/Food & Beverage Reimbursement Amount: Enter amount of food & beverage expense.
  Date of Meal and/or Food & Beverage Expense: Enter date of expense.
  Name & Address of Dining Facility: Enter complete name and address of facility used for food & beverage expense.
  Business Reason: Select applicable Business Reason and if other is selected, explain the nature of the business benefit for the expense.
  Over meal per diem?: Choose Yes or No from the drop down to indicate whether or not the expense is over the allowable meal per diem. If Yes, must provide additional justification and obtain the appropriate approving authority’s signature. If No, additional justification and approving authority signature is not required.
Additional participant list or agenda attached? Select Yes or No from the drop down box and if yes is selected be sure to provide the attachment.
Names of the Meal Participants

Provide the Participant Names and Affiliations.

4210 Vendor Edit Table Cash Management (4000)

.100 Purpose of the Vendor Edit Table

The Vendor Edit Table is an integral part of the University's Financial Information System. The table includes the vendor's name, address, Federal Tax ID Number (FIN) or Social Security Number (SSN) and information for reporting purposes. The Table also includes Employee and Student Employee names.

Use of the table ensures consistent and correct address information for vendor payments and for payments to employees and students. It reduces data input effort required for vendor payments, and provides a consistent means of accumulating vendor payment information.

.200 Responsibilities

.210 System Support

Accurately maintains the Vendor Edit Table.

.220 Departments

.221 Procurement

 
  • Obtain FIN or SSN when making procurement arrangements.
  • Enter FIN or SSN on all completed procurement documents.

.222 Satellite Receiving Areas

Highlight the Vendors FIN or SSN and submit completed payment packages to the Accounts Payable Office.

.223 Other Campus Departments

 
  • Obtain FIN or SSN while making procurement arrangements with vendors not previously used by the University.
  • Include the FIN or SSN and mailing address on procurement documents.

.230 Employees

.231 Permanent and Temporary Employees

Contact the Office of Human Resources to update or correct personal information.

.300 Processing Procedures

.310 System Support

Enter appropriate information into the Vendor database on a timely basis to accurately maintain the Vendor Edit Table.

.311 Accounts Payable

 
  • Enter the vendor's identification number, official name, and payment address when processing payments to vendors, not previously used by JMU.
  • Enter the vendor's identification number with each payment transaction processed.

.312 Procurement

 
  • Obtain Vendor's FIN or SSN when making procurement arrangements. 
  • Include the Vendor's FIN, SSN and mailing address on all Purchase documents.

.313 Satellite Receiving Areas

Highlights in yellow the vendor's FIN or SSN on the vendor invoice and submits completed payment packages to the Accounts Payable Office.

  NOTE: The University has established "satellite" receiving areas for vendor invoices. These are areas, other than the University's Accounts Payable Office, authorized to receive vendor invoices. Currently, the Office of Finance has approved the following satellite areas: Library, WMRA, Facilities Management, Facilities Planning and Construction.

.314 Other Campus Departments

 
  • Obtain the FIN or SSN while making procurement arrangements with vendors not previously used by the University.
  • When practical, includes the FIN, SSN and mailing address on purchase documents.

.320 Employees

.321 Permanent and Temporary Employees

Contacts the Office of Human Resources to update or correct their personal information, to include name, home address, and social security number.

4215 Travel Cash Management (4000)

.100 General

This section documents travel requirements and regulations for individuals traveling on official business of the University. The University expects individuals to exercise prudent judgment when arranging travel and making travel payments. Travel expense accounts are open to the public and must sustain the test of public review.

James Madison University will reimburse individuals traveling on Official University business for reasonable and necessary expenses incurred. To request reimbursement, individuals must complete and submit travel documents as described by this procedure.

The University relies on the honesty and integrity of those traveling to prevent excessive travel payments. Any falsification of payments is fraud and the University must treat it as such.

JMU uses an electronic travel management solution, Chrome River, for entering and approving travel and individual expense reimbursements. Travelers are responsible for the legality, legibility and completeness of their Expense Reports entered in Chrome River. Neglecting to examine and enter necessary information according to this procedure may be cause for the return of the Expense Report to the traveler.

Department Heads should be sure that all travelers from their areas receive adequate training on travel policies and procedures. The Office of Accounts Payable is available to assist departments with this training. The University Travel Policy, "JMU Supported Travel," Policy No. 4401 of the JMU Policies and Procedures Manual is available for reference.

Allowable miscellaneous advance payments are subject to a maximum prepayment period of 180 days. Refer to the FPM, section 4205 Expenditures, .330 and .331 for complete details on Advance Payments.   Advance payments pertaining to travel are limited as follows:

 
  1. Convention and Educational Services - refer to subsection .313
  2. Travel Public Carriers - refer to subsection .335
  3. Hotel/Motel Deposits - refer to subsection .340

Procedures for travel associated with moving and relocation are in Section 5010, "Moving and Relocation" of this Manual.

Following is a list of travel related forms referenced in this procedure. This list includes both the long and short name of the form.

 
  • Pre-Approval Report for International Travel - Pre-Approval Report.
  • Food & Beverage Certification Form.
  • James Madison University State Vehicle Request Form - Vehicle Request Form.
  • Non-Employee Vendor Enrollment Form in Chrome River.

 
Personal Vehicle Mileage Rates (4215pvmr.shtml)

M&IE per Diems and Lodging

The Commonwealth uses the U.S. General Services Administration (GSA) rates for Lodging and M&IE Expenses, and these rates are automatically loaded into Chrome River.  The correct locations must be entered on the Expense Report (see Lodging and M&IE sections for further information).  The approver of the Expense Report is responsible for ensuring the correct locations and actual travel dates are entered on the Expense Report. (Please note the GSA rates are automatically updated in Chrome River when the government publishes the rate for the fiscal year, which runs from October 1 - September 30 annually.)

Travelers should address questions concerning Travel regulations and procedures to the Office of Accounts Payable.

.200 Definitions

Approving Authority President, Vice President, Assistant Vice President, Dean, Asst/Assoc Dean, Director, or Department Head who is the Approving Authority for the DeptID.
Base Point Place, office or building where the traveler performs the duties assigned by James Madison University on a routine basis. Multiple base points are not allowed.
Commuting Distance Round-trip distance traveled routinely by the employee between his residence and his base point.
Commuting Mileage Round-trip mileage traveled routinely by the employee between his residence and base point.  Mileage and other commuting cost incurred during commuting status are considered a personal expense and are not reimbursable.
Commuting Status Period of time in which an employee is routinely traveling between his residence and his base point.  Mileage and other commuting costs incurred during commuting status are considered a personal expense and are not reimbursable.
International Travel International travel consists of all travel to areas outside the United States.  Alaska and Hawaii are part of the United States.
Non-University Employee Any person not primarily employed by the University, but who is conducting University business, including board or commission members.
Official Station The area within a 25-mile radius of an employee's designated base point.
One-day Travel When a traveler leaves the base point and returns on the same day.
President (Agency Head) The officially designated individual who directs the daily operations of any agency, or another person appropriately designated within the agency to authorize travel.  The agency must maintain such written designation on file within the agency.
Sponsored Programs Programs funded by revenue derived from grants and contracts.
State Employee Any elected or appointed, permanent or temporary employee of the Commonwealth.
Expense Report The electronic report entered in Chrome River.
Travel Status Travel outside of an employee's official station.
Trip Any period of continuous travel between when the traveler leaves his residence or base point and returns to his residence or base point.
University/Agency The University or Agency is James Madison University (JMU).
University Employee A permanent or temporary employee of James Madison University.


.300 Travel Planning and Regulations

.310 Travel Status

.311 Approvals

International Travel/Incoming Foreign National Visitors

The University requires travelers to prepare an estimate of the total cost for any planned international official business travel and all incoming foreign national visitors. International travel and all incoming foreign national visitors require prior approval by an Approving Authority, the appropriate Senior Vice President, as well as the Senior Vice President of Administration and Finance. This prior approval is electronically entered in Chrome River and called a Pre-Approval Report.

Total cost on the Pre-Approval Report includes lodging, transportation, meals, conference registration, and any other travel costs or course fees. Costs of the trip that may be direct billed, such as lodging or conference registration, must also be included in the Pre-Approval Report. The Pre-Approval Report must be printed and accompany any applicable direct-billed Vendor Payment vouchers.

To ensure all travel meets the test of necessity, travel involving more than three employees from a single agency to a single international travel destination must be approved in advance on the Pre-Approval Report by the Senior Vice President of Administration and Finance. This includes travel of presenters as well as attendees.

  Note: Pre-Approval Reports are required for all incoming foreign national visitors (i.e. guest speakers, etc...) and must be approved by Payroll Services before travel arrangements can be made.

Domestic Travel

The university does not require a Pre-Approval Report for planned domestic travel but expect prudent judgement and reasonableness when incurring travel costs. Travelers must make a reasonable effort to secure the most cost beneficial means of travel for the Commonwealth. Before arranging travel, the traveler must have some form of approval from an Approving Authority.

If JMU has any agreements with individuals under contract to conduct business with the Commonwealth, these expenses should be paid with an Accounting Voucher.  When entering into such contracts, JMU must adhere to the dollar limitations outlined in this section or clearly document the business case for any deviations.  If there is no contractual agreement specific to travel and travel expenses (hotel, air fare, meals, mileage, etc.) and such expenses are incurred, the dollar limitations and documentation requirements outlined in this section are applicable.

Departmental Off Campus Functions

The university requires prior approval for all planned meetings, retreats, team-building sessions, training sessions, and all other gatherings, where only JMU employees are in attendance, which are held at off campus locations.

These activities require prior approval by an Approving Authority for the department being charged, the appropriate Senior Vice President, as well as the Assistant Vice President for Finance. This prior approval is obtained on the Departmental Off Campus Authorization Form.

It is recognized student employees provide great contributions to many departments across campus, but including them in your off campus activities does not necessarily exempt the department from completing this authorization form.

Activities involving student academic functions and student programming/club functions are not required to complete this form. Even though these student activities don’t require the completion of this form, these activities must comply with all applicable policies and procedures outlined in this manual.

.312 Internet Usages

In addition to all other policies set forth in this travel policy, the following policies must be adhered to when using the Internet to purchase travel services.

Usage of the Internet to procure travel services is allowed. (Also see subsection .314.) Use prudent judgment when choosing an Internet travel service site. The traveler must comply with procurement guidelines.


Suggested sites include:
 
  • Priceline.com
  • Expedia.com
  • Orbitz.com
  • Travelocity.com

When paying for services via the Internet, the following methods may be used:

 
  1. Travel Charge Card - may be used for all types of purchases (i.e. hotel, transportation tickets). The traveler will be reimbursed after the trip is completed by submitting an Expense Report.
  2. Small Purchase Credit Card - may only be used for transportation tickets (i.e. rail, air, bus) and conference registration fees.
  3. Personal Credit Card - may be used for all types of purchases (i.e. hotel, transportation tickets). The traveler will be reimbursed after the trip is completed by submitting an Expense Report.

In addition to other documents required by policy, the following supplementary documents must be submitted with the Expense Report when procuring services via the Internet.

  ♦  The final page from the Internet site showing a breakdown charge of each day, total cost and confirmed service.

  ♦  Airline confirmation (ticket stub) of the type of ticket purchased. (e.g. coach, business)**


** Flight insurance charges are not reimbursable.

.313 Conferences, Conventions, Seminars, and Training Workshops

Where it is determined that a seminar, workshop or training program is essential to staff development for five or more employees, the department shall investigate the option of bringing the trainer on site instead of authorizing employees to travel to an off-site location. The department shall document the comparative cost of an on-site session and retain such documentation on file with the department travel records. The department must also explore the practicality of fulfilling the desired staff development goals through use of studio and video teleconferencing where these options may be more cost-effective.

In selecting locations for meetings, departments shall give first preference to State-owned facilities. For meetings of policy, advisory, or supervisory boards, the selection of a meeting site should reflect the policy that a public body conducting public business shall take care that public funds are expended prudently.

In selecting sites for conferences and other meetings that are to be held at places other than state facilities, after complying with procurement statutes and regulations, observe the following guidelines.  For meetings attended by fewer than 50 people you shall strive to use "Virginia Green" certified facilities.  For meetings attended by 50 or more people, only "Virginia Green" certified facilities shall be used unless permission to select a different site has been granted by the Chief of Staff.  In conducting meetings, the use of paper shall be minimized. When meals are served, disposable materials should be avoided to the greatest extent possible.  Disposable materials that are used should be biodegradable or recyclable.

Allowable miscellaneous advance payments are subject to a maximum prepayment period of 180 days.  Convention and Educational Services are limited to advance registration fees for conventions, conferences, seminars, and employee workshops unless previously approved by the Assistant Vice President for Finance or his designee.  Departments must be reasonably sure that travel will occur as planned.  Excludes other travel expenditures except for public carriers.  Refer to the FPM, section 4205 Expenditures, .330 and .331 for complete details on Advance Payments.

.314 Travel Packages

The travel industry has begun to offer economical travel packages that may combine airline travel with hotel stays, car rentals, and in some cases even meals. These packages usually offer only a consolidated invoice that does not provide a breakdown of the various travel services included.

In order to purchase a travel package, the traveler must seek full reimbursement after the trip – no pre–payment or SPCC or direct payment is allowed.  PRIOR to making the purchase, the traveler must also ensure that the package is the most economical option for the trip and provide additional documentation confirming the savings, as described below:

 
  • Documentation must be provided comparing the cost of the travel package to the combined cost of the very same travel services if purchased separately and within allowable travel limits.  The package must be the less expensive of the two alternatives.
  • Documentation of each alternative must be either a printed quotation or a website screen print from the vendor showing the cost and the travel services included.
  • These comparison documents must be attached to the Expense Report.
  • In addition, all other travel rules, regulations, limitations and documentation requirements are still in effect.

.315 Sponsored Program Funds

All travel reimbursements, which will be reimbursed solely from sponsored program funds, are governed by the terms and conditions of the individual grant or contract.

.320 Travel Management Agencies

.321 General

The Virginia Public Procurement Act requires state agencies to contract with private travel agencies for the procurement of travel services.

.322 Contracts

If a JMU employee or department desires to have a third party travel management provider plan, coordinate, and/or book reservations for a trip then JMU travel management contracts are available.

James Madison University currently has travel services contracts with the following travel agencies: 

 
  • Academic Programs International (API)
  • American Institute for Foreign Study (AIFS)
  • C&H Travel Associate, Inc. (dba Travel Leaders, Inc)
  • Lakeland Tours, LLC (dba World Strides)
  • Lincoln Travel, Inc.
  • Travel Counsellors, Inc.

JMU Travel Management Agency contractor contact information can be found on the JMU Contract Gateway by searching for travel management services.

Instructions on how to use JMU's Contact Gateway.

  Note: JMU departments may also utilize Delta for university business travel using this link (eID and password required) to receive discounted rates.

 

.323 Travel Management Services

Following is a list of travel services available from the travel management agencies.

  • Provide domestic and international airline and railway tickets at the most favorable rate available.
  • Provide tickets that meet the arrival/departure times and locations requested by the traveler.
  • Arrange hotel accommodations when requested. Take advantage of state government or corporate discounts whichever is greater. When the traveler does not specify a hotel, selects a hotel located close to the place of business.  The Small Purchase Charge Card may not be used for lodging.  The Travel Card or personal funds may be used to pay for this service.  Itemized receipts are required for lodging.
  • Arrange vehicle rentals when requested, using any existing mandatory state contract. Get the most favorable rate for the car size or location required by the traveler when the vehicle rental firms do not have vehicles available.  The Small Purchase Charge Card may not be used for vehicle rentals.  The Travel Card or personal funds may be used to pay for this service.  Itemized receipts are required for vehicle rentals.
  • Process visas as required for international travel.
  • Arrange group conference accommodations when requested, taking advantage of available discounts.  The Small Purchase Charge Card may not be used for lodging.
  • Provide two (2) copies of trip itineraries to the traveler.
  • Provide Default Indemnity Insurance against airline defaults.
  • Provides free $250,000 automatic common carrier and flight insurance for all air and rail travelers.
  • Provides free $500 luggage damage loss insurance.

.330 Transportation

.331 Travel Routing

Travel routing, whether by public transportation, privately-owned vehicle, State-owned vehicle or for-hire conveyance, shall be the most direct practicable route. 

Persons traveling to the same event with identical travel plans must make an effort to carpool.  Also, the use of video conferencing and conference calls, in lieu of in-person meetings, should be considered when at all feasible.

.332 Parking & Toll Expenses

Parking and Toll expenses are reimbursable when paid for by the traveler in the course of conducting official University business.  An original receipt is required for reimbursement claims where each individual claim is greater than $75 per instance.  When no receipt is required, the traveler must list the name of the toll facility or where it was paid on the Expense Report.

.333 State–Owned Transportation

.333.1 State-Owned Vehicles

Facilities Management Operations will reserve state vehicles for individuals traveling on official state business. Travelers may request a state vehicle by contacting Transportation Services when making travel plans. If a state vehicle is available, the requester must complete a State Vehicle Request Form.

Refer to subsection .900/920 for more information related to the State Vehicle Request Form.

Travelers should get all fuel and maintenance of state vehicles at state facilities within Virginia, whenever possible. When out of state use commercial stations. Unleaded regular fuel must always be used. Self-service must be utilized if available, if not available, please note this on the fuel ticket.

.333.2 Permanent Use of State-Owned Vehicles

The University assigns state-owned vehicles permanently to persons traveling on official University business as decided by the University President. Commuting authorization, reimbursement, and tax withholding requirements are the same for permanently assigned passenger vehicles as they are for trip pool vehicles.

.333.3 State Owned Aircraft Travel

State-owned aircraft are available on a priority basis and can be scheduled through the Department of Aviation (DOAV).  Refer to the Aircraft Use Policy and Guidelines that can be found on DOAV's website at www.doav.virginia.gov/.  Costs should be compared with commercial rates to determine the best air carrier travel for State travel.

.334 Personal Automobiles

University employees may use personal automobiles when traveling on Official University business. The University usually considers a personal automobile cost beneficial for occasional travel planned for distances up to an average of 280 miles per day.

Campus visitors, such as consultants and speakers, University Board of Visitors members and certain prospective employees may be reimbursed for all personal vehicle mileage at the maximum mileage reimbursement rate.  Refer to Subsection .380

.334.1 Current Mileage Rates

Current Mileage Rates including the IRS rate are built into Chrome River.

To receive the higher mileage reimbursement rate for personal vehicle mileage exceeding an average of 280 miles per day per trip, the employee must request the University Transportation Manager to certify that one of the following apply:

 
  • A State-owned vehicle/OFMS rental is not available or accessible.
  • It is in the interest of the University to use a personal vehicle.
  • The use of a personal vehicle is cost beneficial to the State.

The employee must submit a cost/benefit analysis and a completed Personal Vehicle Use Form (PVUF) to the Transportation Manager.  In preparing the cost/benefit analysis, the employee should consider all cost associated with getting, parking, operating and returning a State-owned vehicle, to the cost of operating a personal automobile.  Refer to Facilities Management Website ( http://facmgt.jmu.edu/web ) for instructions and forms on obtaining necessary certification.  A Personal Vehicle Use Form, approved by the Transportation Manager, must be attached to the Expense Report in order to receive the higher mileage rate.

Employees electing to use their personal vehicle as a matter of convenience for trips exceeding an average of 280 miles per day will be reimbursed for mileage at the reduced rate of $.246 per mile.

.334.2 Mileage versus Air Costs

When travel is by personally-owned automobile, the total of the expenses reimbursed, including meals and lodging, should not exceed the total cost of the trip using the most economical public air transportation available, also including meals and lodging.  The Assistant Vice President of Finance may grant exceptions to this policy when justified. A written explanation justifying the exception as well as comparative statements must be attached to the Expense Report.

.334.3 Commuting Mileage

Round-trip mileage traveled routinely and directly by the employee between his residence and base point incurred on a scheduled workday is considered commuting mileage.  An employee can have only one assigned base point. Commuting mileage and other commuting costs incurred on normal workdays are considered a personal expense and are not reimbursable.

The University may reimburse mileage incurred when the employee's supervisor requires that the employee work on a Saturday, Sunday, or holiday that is not a scheduled workday. Reimbursement is subject to approval of the Approving Authority.

.334.4 Base Point

An employee can only have one base point, even if the employee has multiple work locations. JMU will assign the base point to be used for reimbursement purposes.

The employee's residence can be assigned by the agency as base point where it is considered cost beneficial to the State.  In this case, the mileage driven from the employee's residence to one or more temporary work locations, including the employee's central office, is official State business mileage and is fully reimbursable.

.335 Public Transportation

Travelers may arrange public transportation after they have received departmental approval. International travelers may arrange public transportation after they have received the approved Pre-Approval Report.

Public transportation travel includes:

  ♦  Rental Car
♦  Plane
♦  Train
♦  Bus
♦  Taxi or Shuttle and other "for hire transportation"

Allowable miscellaneous advance payments are subject to a maximum prepayment period of 180 days.  Advance payment for travel by public carrier is limited to prepayments for individual travel by aircraft (if other than JMU travel contracts), train and bus.  Excludes rental vehicle expenditures.   Refer to the FPM, Section 4205, .330 and .331 for complete details on Advance Payments.

Public transportation rates must not exceed those for tourist or coach class accommodations.  Recently, airlines have created a higher level of coach class service that charges a premium for certain desired seats.  Such upgrades in the coach seating area are enhancements to the coach fare and are not reimbursable.  Receipts for such expenses must be retained for submission with the Expense Report. Because of the liquidity of air and rail tickets, any unused portions must be returned to the department for credit.

Charges for changes to tickets/reservations to accommodate personal comfort, convenience and taste are not reimbursable.

For taxis, shuttle vans and other forms of on demand or reserved "for hire" transportation, receipts are required only if the reimbursement claim exceeds $75 per instance.  Reimbursement for limousine or other forms of luxury transportation services are not allowed.  A maximum tip of 20% of the taxi cab or shuttle service fare is reimbursable as a transportation cost separate from Meals and Incidental Expenses.  For reimbursement, the Expense Report must separate the amount for the tip from the amount of the fare.

Bus travel permitted in lieu of automobile, airline, or train travel when cost beneficial.

Public transportation from place of lodging to restaurants is allowed only for official business needs.

.335.1 Air & Rail Tickets

Reimbursement for first class air or rail travel is prohibited.

  Note: Documents that validate the mode and class of travel are required for all air and rail reimbursements made directly to the traveler.

Generally, airline and rail travel cannot exceed the rates charged for tourist or coach fare. When warranted, the approving authority may grant permission for business class travel (air or rail) under the following circumstances:

  Air
 
  • When it does not cost more than the lowest available tourist/coach fare (comparison must be attached to Expense Report), or
  • For travel to Western Europe, if the business meeting is conducted within three hours of landing, or
  • For transoceanic, intercontinental trips of more than eight hours, or
  • If the traveler pays the difference
  Rail
 
  • When it does not cost more than the lowest available tourist/coach fare (comparison must be attached to Expense Report), or
  • When reserved coach seats are not offered on the route, or
  • If the traveler pays the difference.

Travelers have four options available to purchase air and rail tickets:

 

1.  Travelers may use the contracted travel agencies for all travel arrangements.  For a list of travel agencies that have contracts with JMU, see subsection .322.  The University requires the traveler to give the travel agency a Credit Card Number to secure air and rail tickets.

2.  Travel Card - Travelers may purchase air and rail tickets using the Travel card through the Internet, if the Vendor has a secure web site. The Web Site is secure if the address window starts with https://.  The Traveler is responsible for payment of the Travel Card charges and will receive reimbursement upon submission of an approved Expense Report, after completion of the travel.

3. The Small Purchase Charge Card  - Travelers may purchase air and rail tickets using the SPCC through the Internet if the Vendor has a secure web site. The Web Site is secure if the address window starts with https://. The maximum amount of the charge to the SPCC cannot exceed $4,999. Charges for air and rail tickets purchased with the SPCC are charged directly to the designated Departmental Budget. The traveler does not need to process a payment document for these expenses.

4. Personal Credit Card – The traveler will be reimbursed after the trip is completed by submitting an Expense Report.


Certain airlines now charge additional fees (baggage) for services formerly included in the airfare cost.  When procuring airfare for business travel, travelers should consider total costs in selecting the most appropriate carrier.  Airlines publish limits for baggage and the fees associated with those limits.  Travelers are expected to be aware of these limits.  In the event these limits must be exceeded for legitimate business purposes, the cost is reimbursable.  A receipt and appropriate explanation must be included with the Expense Report.

Additional fees such as seat selection fees or seat assignment fees are not reimburseable.

  Cancellations

Cancelled tickets (full fare and non-refundable) usually hold some residual value depending upon specific airline policies and restrictions.  All unused portions and credits must be returned to the department.  These will be subject to future audits.

.335.2 Chartered Aircraft Travel

Chartered aircraft will only be used when State-owned aircraft are not available or will not meet customer needs.  The Department of Aviation (DOAV) shall contract for all chartered aircraft on behalf of state agencies. Reference the Aircraft Use Policy and Guidelines on the DOAV's website at www.doav.virginia.gov.  Chartering an aircraft is permitted when authorized in advance by the requesting agency's Cabinet Secretary or designee, and justified by a written cost/benefit analysis.  Submit request and a written cost/benefit analysis, as an email attachment, to the Manager of Accounts Payable.  The cost/benefit analysis must include a comparison of the total costs of the trip by alternative means of travel, including all associated costs, and may consider such benefits as reduced overnight travel costs and employee time out of the office, security, etc. A copy of this analysis and the written approval from the Cabinet Secretary or designee must be attached to the traveling agency's voucher.

.335.3 Vehicle Rental

Reimbursement of car rental expenses is limited to official business use only. For travel initiated from the traveler's base point, the traveler must submit a request to the Transportation Manager for a rental vehicle.  See Transportation website (http://facmgt.jmu.edu/web) for procedures and forms.  If a rental car is approved, only Transportation Services will be allowed to make the arrangements utilizing the Commonwealth of Virginia's State Contractor, Enterprise Leasing.  Enterprise Leasing will invoice Transportation Services, who will then ATV the charges to the department.  When rental vehicles are arranged by Transportation Services they will be picked up at; and returned to Transportation Services.  Travelers must ensure that the rental vehicle is refueled before returning the vehicle to Transportation Services.

When rental vehicles are necessary after reaching the destination of travel, rentals may be made through commercial rental agencies.   The traveler must select the most economical contractor and type of vehicle available, and acquire any commercial rate or government discount available.  When possible, rentals should be arranged through a travel agency that has contracted with the Commonwealth to perform such services or utilize the Commonwealth of Virginia's State Contractor, Enterprise Leasing.  Travelers must ensure that the rental vehicle is refueled before returning the vehicle to the rental contractor unless an exception is noted. Travelers may not prepay fuel charges to the rental contractor.  Reimbursement will be based on the fuel used and receipts provided.  Travelers will not be reimbursed for navigational equipment costs.

In no instance should the traveler enter into a "Fuel Agreement" or pay for fuel at the time of rental or before vehicle is used.

  Vehicle Rental Insurance

The option to purchase insurance offered by rental car contractors depends upon the following:

IF the traveler is a...

then... Notes
State Employee Decline Rental insurance will not be reimbursed. The Department of Treasury, Division of Risk Management, provides a Statewide Self-Insured Automobile plan for State employees.
Non–State Employee Accept Only when the agency considers automobile rental reimbursable. Rental car insurance for these individuals may also be treated as a reimbursable expense.

Insurance reimbursement should only include Liability Damage Waiver (LDW) and Collision Damage Waiver (CDW).
State Employee or Non–State Employee Outside the United States Accept Individuals traveling outside of the territorial United States (including Alaska, Hawaii, Canada, Puerto Rico) are required to purchase and will be reimbursed for LDW and CDW insurance. Other types of insurance offered such as trip cancellation, personal, health or life insurance are not reimbursable.


.336 Personal Use of Aircraft Travel

The use of personal aircraft is permitted for official state travel with the prior approval of the President.  Personal aircraft usage by the President requires the prior approval of the appropriate cabinet secretary.

Documentation of comparable costs for other travel means must be included in the voucher package.  The reimbursement shall be limited to the most economical means of travel available at that time.  For example, if it were less costly to travel by commercial carrier, the reimbursement shall be limited to the lowest cost commercial carrier ticket available.  The traveler must include a signed statement with the travel reimbursement request certifying that the amount requested represents the most economical use of public funds.  As with all travel, it is the responsibility of the traveler and the agency fiscal office to ensure the most efficient use of taxpayer funds.

The reimbursement rate per mile shall be the amount listed by the federal government at the GSA website, http://www.gsa.gov/portal/category/100000 at the time of the travel.  A dated printout of this site indicating the appropriate mileage rate for the travel time period must be included with the travel reimbursement voucher package.

.340 Lodging

The University will reimburse travelers for lodging when traveling on official business outside the official station and utilizing non-luxury accommodations.  Lodging expenses vary with the area traveled but all payments must be necessary and reasonable.  Travelers may use the services of a JMU contracted travel agency to ensure that they obtain the most economical lodging accommodations.  The Travel Card or personal credit card may be used to purchase lodging through the Internet, if the vendor has a secure Web Site.  The Web Site is secure if the address window starts with https://.

Allowable miscellaneous advance payments are subject to a maximum prepayment period of 180 days.  Hotel/Motel deposits are limited to one night of lodging, if required, for direct bill payments on hotel/motel rooms for employees who travel on behalf of the University.  Use of the travel card is encouraged to secure room confirmations.  Actual advance payments using travel charge card will not be reimbursed before the trip.  Refer to the FPM, Section 4205 Expenditures, .330 and .331 for complete details on Advance Payments.

All lodging rates are governed by the GSA rates and are built into Chrome River.  The traveler must enter in Chrome River the travel destination in order to obtain the correct per diem rate.  The traveler may want to search the per diem criteria outside of Chrome River by going to the website:  http://www.gsa.gov/portal/content/104877.

NOTE:  The travel destination or lodging destination is the city or county in which the hotel is physically located.  The hotel's mailing address should not be used for verification of city/county.  If the hotel is not within the city limits, the county in which it is located should be used.  The city or county is then entered in Chrome River.

Lodging guideline amounts exclude local taxes and surcharges. Lodging taxes, fees and surcharges are reimbursable and should be included with the lodging amounts on the Expense Report.  The amount of tax included should be on the amount allowed for reimbursement, not the total paid if it is more than the guideline amount.

Approving Authorities have the authority to approve reimbursement for lodging up to 50% over the guidelines for both in-State and out-of-state travel when circumstances warrant.  The Assistant Vice President for Finance or designee is authorized to approve reimbursements for lodging up to 100% over the guidelines when circumstances warrant.  The authority to approve above the guidelines does not grant authority to utilize luxury accommodations.  The expectation is that non-luxury accommodations will be used.

An explanation of circumstances justifying the lodging exception must be included on the Expense Report.  "Conference Hotel" is considered an acceptable justification explanation.

Examples of luxury hotels include but are not limited to: Ritz-Carlton, Paramount, Park Hyatt, Four Seasons Washington. Final determination as to what is considered luxury vs. non-luxury rests with the Assistant Vice President for Finance or designee. Use of luxury accommodations will be reimbursed at the per diem rate.

Travelers who exceed allowable limits without proper approval will be personally liable for the additional expense incurred.  In such cases, taxes and surcharges will be prorated and reimbursed only for the appropriate rate.

The traveler must submit original, itemized hotel bills obtained at the time of checkout and other supporting receipts for lodging expense with the Expense Report. Explain fully any unusual charges.

Since hotels charge for non-cancelled reservations, the traveler should advise the hotel of any travel plan changes when possible.  The University may not reimburse these charges if the traveler is negligent in canceling reservations.

  Number of Persons in a Hotel Room

When two or more people travel on official State business and stay in the same non-luxury hotel room, the cost of the room cannot exceed the amount each individual could be reimbursed at the per diem guideline had they stayed in separate rooms.

Examples of luxury hotels include but are not limited to:  Ritz-Carlton, Paramount, Park Hyatt, Four Seasons Washington.  Final determination as to what is considered luxury vs. non-luxury rests with the Assistant Vice President for Finance or designee.

.350 Meals/Food and Beverage

James Madison University will reimburse meal expenses based on a fixed allowance.  State Travel Regulations refer to the fixed allowance as the Meals and Incidental Expense (M&IE) Per Diem. The following subsections provide requirements for meal expense reimbursements.

Travelers must request meal reimbursements on an Expense Report, not an Accounting Voucher.

.351 Meals and Incidental Travel Expenses

Generally, meals and certain incidental travel expenses are reimbursable for overnight official business travel outside the traveler's official station. (See exceptions for Official Business Meals and Overtime Meals later in this section). Incidental expenses include bellhop tips, personal telephone calls, laundry and travel between lodging and places where meals are taken.

The M&IE Rates are governed by the GSA rates and are built into Chrome River.  These rates should be used to determine the maximum meal reimbursement amounts for official business meals and/or the M&IE reduction.  The M&IE per diem used shall correspond to the location of the related overnight lodging. The applicable M&IE per Diem, or fraction of it, is payable to the traveler without itemization of expense or receipts.

The traveler may want to search the per diem criteria outside of Chrome River by going to the website:  http://www.gsa.gov/portal/content/101518. The M&IE Rates must be reduced for the applicable meal when meals are provided at no cost during an overnight travel period.  

State Travel Regulations do not permit direct agency billing of meal expenses incurred during overnight travel, to include charging meals to direct-billed hotel rooms.

  Prorations and Reductions

On a travel departure or return day, 75% of the M&IE rate is reimbursed.  The calculation for this reduction is in Chrome River. For trips involving multiple travel destinations, base the reduction rate in effect for where the night was spent as follows:

Departure Day - Where you spend the night.

Return Day - Where you spent the night before returning to home base.

When meals are provided at no cost in conjunction with the travel events, the applicable M&IE rate shall be reduced in Chrome River by the selection of the applicable meal.  For example, if lunch was provided at no cost, a deduction for lunch should be selected in Chrome River.

However, when meals are provided at no cost in conjunction with travel events on a travel departure or return day, the full M&IE rate is reduced by the full amount of the appropriate meal/meals.  For example, if lunch was provided at no cost on a travel departure or return day, the deduction of Travel Day as well as lunch should be selected in Chrome River.

When meals are included with registration or lodging expense as part of a package, the number and type of meals (breakfast, lunch, dinner) must be recorded on the Expense Report.

If a continental breakfast or reception is offered as part of the travel event and the food/timing is sufficient to serve as a meal, the traveler must reduce the per diem by the appropriate allowance amount.  If a breakfast is offered at no charge by the hotel and the traveler does not partake in the breakfast due to any reasonable circumstances (e.g. early work hours do not allow for participation in the provided breakfast, the food provided was not adequate, the traveler's dietary needs were not met, etc.), then the traveler must note this on the Expense Report.  If a meal is offered as part of a conference and the traveler has medical restrictions, the traveler should make every effort to have the conference facilitate his/her needs by the deadline specified by the conference. If the conference does not honor the request, the traveler is not required to deduct the applicable meal allowance from the per diem. However, the traveler must include a note or other documentation with the Expense Report documenting this information.

.352 Meal Reimbursements for Overtime and Official Business Meals

Generally, meal expenses that do not involve an overnight stay are not reimbursable.  The University may allow reimbursement if documentation supporting the reimbursement clearly establishes that the individual takes the meal during overtime work periods or for official business reasons.  To be eligible for reimbursement, the University must consider such meals essential to its mission, and a business necessity.

  Overtime Meals

An overtime meal allowance is a fixed dollar amount allowed while working or traveling in an overtime status.  Overtime status is when work or travel time occurs beyond an employee's normal, scheduled work hours, but not overnight.  Therefore, overtime meal allowance does not apply during overnight travel status. In the case of overnight travel, per diem rates apply.

An overtime meal allowance is allowed when overtime worked is essential to the agency's mission and is in excess of the employee's normal, scheduled work hours.

Documentation supporting the reimbursement of an overtime meal must clearly establish adherence to the above requirements by providing sufficient reason for the overtime.

NOTE: Scheduled work hours and overtime hours worked for overtime meals must be included on the Expense Report.

Overtime Meal Rates  -  Overtime Meal Allowance policy described in the following table is built in Chrome River.  This table is for reference only.

  IF...

Are worked or traveled AND the overtime occurs... THEN an overtime meal allowance is... Documentation Required - Hours must be noted on reimbursement voucher
  2 or more overtime hours During Normal workday $5.00 ($7.50 if outside the official station) Normal Workday hours and Overtime Start/End Times
  5 or more overtime hours On a Saturday, Sunday, holiday or an alternate work schedule day off* $5.00 ($7.50 if outside the official station) Overtime Start and End Time
  10 or more overtime hours On a Saturday, Sunday, holiday or an alternate work schedule day off* $10.00 ($15.00 if outside the official station) Overtime Start and End Time

*Note: Or if comparable overtime is necessitated by shift schedule or beyond a routine, scheduled 40-hour work period.

  Note: Agencies are required to comply with IRS regulations regarding reportable meals. An overtime meal allowance based on the number of hours worked IS considered taxable wages and must be coded to expenditure account 128700.

  Official Business Meals

Meals while on official business must involve a substantive and bona fide business discussion with a non-University employee.   Identification and affiliation with JMU of all persons involved must be included on the Expense Report. The University will reimburse official business meals based on actual costs incurred up to the amount of the allowed per diem. An original, itemized receipt is required for reimbursement of all business meals. Tips for official business meals is limited to 15% of the food/drink before taxes. The M&IE rate used will correspond to the location in which the individual purchases the official business meal. An Approving Authority may with sufficient justification, and the original itemized receipt, authorize a meal reimbursement up to 50% over the applicable per diem guideline.

.360 Meals and Incidental Expense

.361 IRS Reporting Requirements

Business meal reimbursements which are not related to overnight travel and are made under an accountability plan are not generally considered by the IRS to be reportable income.  Employees are responsible for reviewing and conforming to current IRS regulations.  Overtime meals are not considered Business Meals.  See the Overtime Meals section for further information.  The disbursing agency must determine IRS income reporting requirements for meals reimbursed under the sponsored program exception based on the circumstances of each case.

.362 M&IE Rate Table/Lodging/Meals and Incidental Expense (M&IE)

The GSA in Chrome River or by the web page (www.gsa.gov/portal/content/104877) provides the individual meal guideline amount for each respective daily amount. According to Subsection .350, "Meals" these individual meal amounts are pertinent for the determination of maximum meal reimbursement amounts. They include overtime and official business meals and/or the M&IE reduction, which must occur where the organization sponsoring an event provides meals at no cost during an overnight travel period.

The GSA in Chrome River or by the web page provides the maximum allowable amount for lodging reimbursement and M&IE Per Diems to help travelers and agencies in making travel reimbursement decisions.  James Madison University will reimburse travelers for actual lodging costs incurred up to the applicable maximum guideline.  The University will pay the M&IE per diem according to Subsection .350, "Meals."  Although the individual may use more expensive lodging and restaurant establishments, reimbursements are limited to the guideline amounts.

The Commonwealth does not intend these guidelines to supersede lower guidelines established by James Madison University based upon University policies, budgetary constraints, or travel circumstances.  The University must apply maximum allowable meal and lodging reimbursement guidelines consistently within the University to all travelers, including board or commission members.  Departments may give travelers the guidelines before travel.

.370 Miscellaneous Expenses

.371 Allowed Miscellaneous Expenses

  • Business Telephone Calls, Telegrams, Internet Access, Hotel Business Center Charges and Facsimile for official business purposes and paid for by the traveler, may be claimed on the Expense Report.  A full explanation must be stated on the Expense Report accompanied by supporting documentation.  Justification must be of a necessity of conducting business that cannot wait until return to the campus to complete. Do not use “Must check email”.  Individuals using personally owned cellular telephones may be reimbursed for business calls when shown to be cost beneficial or necessary.  In this case, an itemized cell phone statement must be included and attached to the Expense Report. In the event that free minutes are used for business calls, reimbursement is not permitted.
  • Toll Phone Charges (As distinguished from local call charged against the hotel bill).  When requesting reimbursement for toll charges, the traveler must state the points and parties between which the calls were made, or the wires sent on the Expense Report with an explanation of why they were made.
  • Tolls and Parking Fees are reimbursable when paid for by the traveler in the course of conducting official University business.  An original receipt is required for reimbursement claims where each individual claim is greater than $75.  When no receipt is required, the traveler must list the name of the toll/parking facility or where it was paid on the Expense Report.
  • Funeral Attendance Expenses for travel outside of the official station are reimbursable for one employee selected by the President or designee to represent the University.
  Travelers must fully explain miscellaneous expenses. The University may reimburse expenses not specifically addressed in this procedure depending on their reasonableness.


.372 Disallowed Miscellaneous Expenses

The following miscellaneous expenses are not reimbursable:

  →  Lost or stolen articles
→  Alcoholic beverages
→  Damage to personal vehicles, clothing, or other items
→  Services to gain entry to a locked vehicle
→  Movies charged to hotel bills
→  All expenses related to the personal negligence of the traveler, such as fines
→  Entertainment expenses
→  Towing charges
→  Expenses for children, spouses, and companions while on travel status
→  Flight Insurance

The above list is not all-inclusive. Travelers should use prudent judgment and remember that all travel expense accounts are open to the public and must be able to sustain the test of public review.

Travel credits, reduced rates, or free services received from public facilities (that is, airlines, car rental agencies, hotels, etc.) by persons for whatever reason accrue to the University.  Travelers should report any such credit, reduced rate, or free service to the department head, and use for future official business travel.

.380 Prospective Employees, Employee Recruitment and Campus Visitors

The University may reimburse the travel expenses of certain prospective employees, their spouses and dependent children. University employees, who incur expenses, as part of employee recruitment, may request reimbursement of these expenses.  As a University standard, James Madison University limits these expenses to meals for three (3) university employees, per candidate and campus visitor meal.  However, if the department has sufficient funds for more than that number of JMU employees, they are allowed to do so. The University may allow reimbursement of travel expenses for campus visitors, such as consultants or speakers.  Provisions of James Madison University, Policy No. 4401, "University Supported Travel," and these procedures apply.  Individuals making requests must get approval of the appropriate Approving Authority before making any commitment.  The traveler may use a JMU contracted travel agency for making travel arrangements.  An Approving Authority must approve the voucher and submit the Expense Report within 5 working days of receipt from the non-State employee.

.381 Prospective Employees

Reimbursement of travel expenses for prospective employees is allowable. The department is responsible for providing the prospective employee with travel policy guidelines prior to travel.  The University may reimburse travel expenses for spouses and dependent children for department heads, directors, deans, assistant vice presidents, senior vice presidents and positions above that level.  Travel may not exceed three (3) days.

.382 Employee Recruitment

Reimbursement of expenses incurred by University employees during pre-employment recruitment efforts is allowable.  The Expense Report must show the names of the employees involved.  Meals for spouses of University employees are not reimbursable.

Costs of home entertainment, as part of employee recruitment, are allowable for prospective employees, their spouses and dependent children.  The University limits reimbursement to costs at a moderately priced restaurant.  Costs of alcoholic beverages are not reimbursable.

.383 Campus Visitors

Travel expenses of consultants, speakers and other campus visitors are allowable. When paying honorariums or fees, a prior agreement or contract must accompany the accounting voucher.

The Office of Finance prefers to pay one all-inclusive amount which would cover the travel expenses and the honorarium or fee.  Complete an Accounting Voucher for payments (agreements) that are all-inclusive and do not reflect travel expenses separately. No itemized receipts are necessary for all-inclusive payments.  

When paying travel expenses separately from the honorarium or fee, complete an Expense Report to reimburse the individual's travel expenses and an Accounting Voucher to reimburse the honorarium or fee.  In this situation, normal travel expense guidelines apply.  The individual or company that provides the service may submit an invoice to JMU for payment.

  NOTE:   It is the sponsoring department’s responsibility to ensure that foreign national visitors have been pre-approved by Payroll Services prior to making arrangements of any kind for expense/payment.  If your visitor is an incoming foreign national visitor, you must contact Payroll Services for approval BEFORE acquiring additional departmental signatures.  Reference subsection .910.


.400 International Travel Special Requirements

.410 Foreign Destination

Prior to making international travel arrangements, a Pre-Approval Report in Chrome River must be submitted to the appropriate Approving Authority, the appropriate Senior Vice President, as well as the Senior Vice President of Finance and Administration for their approval.  

This approval is required, whatever the source of funds used to pay travel expenses.

With careful consideration of the reasonableness limitations specified in the General section of these regulations, the Assistant Vice President of Finance may grant permission for business class travel under the following circumstances:

 
  • When it does not cost more than the lowest available tourist/coach fare, or
  • For travel to western Europe if the business meeting is conducted within three hours of landing, or
  • For transoceanic, intercontinental trips of more than eight hours, or
  • If the traveler pays the difference.

Reimbursement for first class travel is prohibited.

  Per Diem Rates

The Commonwealth of Virginia uses the lodging and M&IE per diem rates for foreign travel as defined by the U.S. General Services Administration (GSA) which is built in Chrome River.  

The traveler may want to search the per diem rates outside of Chrome River by going to the GSA web page (www.gsa.gov/portal/category/21287)

Currency conversions are calculated in Chrome River when entering an Expense Report.

.500 University Provided Funds for Travel

The University provides funds for travel expenses by issuing charge cards. Travelers may also request prepayment of certain expenses by an Accounting Voucher.  In extenuating circumstances, the University will provide a WellsOne VISA Commercial Credit Card, which will be used as a declining balance card, to travelers to facilitate travel related expenses.  This subsection includes a detailed explanation of each method and restrictions that apply.

.510 Travel Charge Cards

The Bank of America's VISA Travel Card Program provides faculty and staff members with the opportunity to travel on University business without using personal dollars.  The University provides funds for travel expenses by offering employees a Bank of America VISA Travel Card.  

The University issues travel charge cards to any faculty or staff member who travels on behalf of the University.  Charge cards have no annual fee, and the University incurs no financial liability through use of the cards.  Cardholders may request an annual exception allowing them to take advantage of a feature to access cash using their travel card to cover expenses when the card is not accepted.  The available cash on the travel card is limited to 20% of the cardholder’s limit.  The intention is for the ATM feature to be accessed only for those expenses for which cards are not accepted.  Travelers must use Bank of America ATM's to avoid transaction fees.  Any fees incurred for use of non-BOA ATM's will not be reimbursable expenses.  Travel charge card vendors send all bills to the individual cardholder.  The cardholder is responsible for the travel charge card charges.  The traveler must process an Expense Report within sixty (60) days after completion of the trip.  Timely processing allows for receipt of reimbursements in time to pay travel charge card bills within the period prescribed by the charge card vendor. 

The Bank of America VISA Travel Card Program is operated through the procedures provided by the State Department of Accounts. 

Employees who decline the use of a travel charge card may not receive an alternate payment card to cover travel expenses, and the University Business Office does not grant travel advances.

  Travel Charge Card Request for ATM/Cash Exception

.520 Payment by Accounting Voucher

When necessary, the University makes payment by an Accounting Voucher for travel expenses charged directly to JMU rather than paid by the traveler.  These payments may include lodging accommodations, non-overnight travel meals, auto rentals, or other transportation costs.  The University strongly discourages billing of overnight lodging.  The Department must complete and submit an approved Accounting Voucher, payable to the vendor, to the Office of Accounts Payable. The voucher must include the applicable information listed below.

 
  • The traveler's name.
  • A concise statement giving the reason for travel.
  • The dates when the travel occurred.
  • The number of days spent in lodging accommodations (show if lodging accommodations served as a conference site).
  • The number of meals and whether the meal is breakfast, lunch or dinner.
  • A copy of the Pre-Approval Report, if applicable.

The University will make a prepayment for one (1) day of lodging if required.  Departments must prepare an Accounting Voucher for the prepayment.  Submit the approved Voucher to the Office of Accounts Payable.

  NOTE:  It is the sponsoring department’s responsibility to ensure that foreign national visitors have been pre-approved by Payroll Services prior to making arrangements for any kind of expense/payment.


.530 Payment by WellsOne VISA Commercial Credit Card

Effective September 1, 2014, the WellsOne Commercial Card is an option reserved only for the following programs: International Studies Programs and the Marching Royal Dukes.  International Accounting administers all cards for the International Studies Programs.  The University Business Office and the Cash & Investments Office jointly administer cards for the Marching Royal Dukes.  Forms specific to these programs are not available online.

.540 Payment by Prepaid Payment Card

Effective March 13, 2017, the University offers a prepaid debit MasterCard product to replace the Wells Fargo Prepaid Payment Solutions Card, which will be available for the following scenarios (after all other funding options have been exhausted and documented): per diem only domestic travel for students representing the University, travel for students and/or faculty related to externally funded Sponsored Programs and/or employees leading groups/teams of students not eligible for individual per diem cards.  The traveler must submit a completed JMU Prepaid Payment Card Request for Funding, signed by the Approving Authority*.  Separate requests for funding forms exist for students, employees and sponsored program travelers.  The Request for Funding must include the following:

 
  • The traveler's name.
  • Employee or student ID#.
  • Amount requested to be funded on the Wells Fargo Prepaid Card Solutions Card.
  • The travel dates.
  • The Pre-Approval Report # for international travel.
  • The destination.
  • A concise statement giving the reason for travel.

*Approving Authority:  President, Vice President, Assistant Vice President, Dean, Asst/Assoc Dean, Director, or Department head who is the Approving Authority for the DeptID.

If the funding is related to a Sponsored Program, the Request for Funding will require additional approval from the Sponsored Programs Accounting Office.  All Requests for Funding require a copy of a printed GSA Per Diem Calculation form to be attached. International Travel requires a completed and approved Pre-Approval Report in addition to a copy of a printed GSA Per Diem Calculation form.  No incomplete Requests for Funding will be processed.

ALL EMPLOYEE AND SPONSORED PROGRAM FUNDING REQUESTS REQUIRE the traveler to file an Expense Report upon completion of each travel event.

Once the completed Funding Request and accompanying documents are obtained, the traveler presents the request to the University Business Office for funding (and to receive a Prepaid Payment Card).  Each individual must sign a JMU Prepaid Payment Card Cardholder Agreement prior to being issued a Prepaid Payment Card.  Traveler must present proper identification (driver's license, JAC card, or passport) in order to receive a Prepaid Payment Card.  No one may pick up the card on behalf of the traveler.  (No exceptions will be made to this requirement.)  The traveler will be given a copy of the Cardholder Agreement to keep and will be responsible for abiding by the terms of the Cardholder Agreement. 

Prepaid Payment Cards will be issued within five (5) days of the trip departure date BUT NO LATER THAN ONE BUSINESS DAY PRIOR TO TRAVEL DEPARTURE DATE to allow sufficient time for card funding.  Cards will not be funded or released less than one day prior to travel date, travelers who fail to pick up reserved cards may submit requests for travel reimbursement.  Funds will be loaded on cards one business day prior to the departure day and cannot be removed.  The cards are the cardholder's permanent responsibility and belong to the cardholder, as do any funds remaining on the cards.  Departments will be expected to plan in advance and submit properly completed documentation no less than three (3) days prior to the trip departure date to allow Finance staff time to process the Card Agreement and related Funding Request.

Finance cannot provide departments with monthly Transaction Detail Reports.  This card product supports a card relationship between the cardholder and the bank.  The University Finance staff will serve only in the capacity of ordering, distributing and funding cards as appropriate.  Departments should remind travelers to retain and submit receipts upon completion of travel in compliance with the JMU Financial Procedures Manual Travel section 4215 requirements as well as any applicable departmental policies. 

Cardholders will have the option to register their cards online for balance monitoring, as well as additional card and transaction options based on cardholder choices.

If the total legitimate expenses submitted on the required Expense Report  exceeds the card transaction total, the traveler may be reimbursed for the difference, however, if the legitimate expenses are less than the card total funded, the traveler must reimburse the department within 30 days of the trip return date as noted on the Funding Request.  Reimbursement is made by presenting a completed Check Deposit Transmittal (DTF) form and check payable to James Madison University to the University Business Office along with a copy of the original Funding Request.  The responsibility for reimbursements due remain with the cardholder and the requesting department.  The requesting department is responsible for following up with the cardholder if excess funds were loaded on the card or the cardholder did not travel as expected.  The requesting department is required to send a copy of the receipted DTF to Cash & Investments within the 30 days of the trip return date via campus mail to MSC 5711 or via email to iis.finance@jmu.edu.  The DTF should reference the cardholder's name, date and amount for which the card was originally funded.  Should a department neglect to follow up on excess cardholder funding, future prepaid funding requests may not be authorized.

The forms related to the Prepaid Payment Card are available in the JMU Financial Procedures Manual Forms Index and instructions for completion are available below in section .950 and .960 Forms Preparation Instructions.

.550 International Retail Payments

Effective April 10, 2017, the University offers a Retail payment product hosted by Western Union Business Services, which will be available for the following scenarios (after all other funding options have been exhausted and documented): international travel related to externally funded Sponsored Programs or other university funded, international travel not affiliated with a JMU Center for Global Engagement Educational Program.  The traveler must submit a completed JMU International Cash Payout Request Form signed by the Approving Authority*.  Separate requests for funding forms exist for student and employee travelers.  The Pay Out Request must include the following:

 
  • Department Name
  • Date
  • Name of Traveler
  • DeptID #
  • Pre-Approval Report #
  • Traveler's Phone Number
  • MSC
  • Travel Begin and End Dates
  • Email
  • Date funds are required
  • SPA Approved?
  • Cash payout essential to travel event?
  • Brief Description:  A concise statement giving the reason why the cash payout is essential to this trip
  • Currency to be picked up or mobile payments option - choose one
  • Destination Country
  • Payment Date(s) / Payment Amount(s) / Currency Type

*Approving Authority:  President, Vice President, Assistant Vice President, Dean, Asst/Assoc Dean, Director, or Department head who is the Approving Authority for the DeptID.

If the funding is related to a Sponsored Program, the Request for Funding will require additional approval from the Sponsored Programs Accounting (SPA) Office.  International Travel requires a completed and approved Pre-Approval Report to be attached.  No incomplete Requests for Funding will be processed.

ALL EMPLOYEE AND SPONSORED PROGRAM FUNDING REQUESTS REQUIRE the traveler to file an Expense Report upon completion of each travel event.

Once the completed Funding Request and accompanying documents are obtained, the traveler presents the request to the Cash and Investments for review and consideration (allow two weeks for review and processing).  Each individual must sign a JMU International Cash Pay Out Agreement prior to being issued an International Cash Pay Out by the university.  Traveler must present proper identification (driver's license or passport) in order to receive the funds wired abroad to the Western Union Retail Merchant on their behalf. Depending on the regulations of the designated country, an additional requirement for a test question may also be required.  No one may pick up the cash on behalf of the traveler.  (No exceptions will be made to this requirement.)  The traveler will be given MTCN# to use along with their ID and will be responsible for ensuring their name as provided on the Cash Payout Request Form matches exactly to the government issued picture ID they will use to retrieve the cash. The merchant will not release the cash if these procedures are not followed. Travelers failing to adhere to these procedures will be held responsible for any loss of funds wired on their behalf by the university.

Funds will be released based on the schedule provided on the Cash Pay Out Request Form and cannot be recalled.  The funds are the traveler's permanent responsibility.  Departments will be expected to plan and submit properly completed documentation no less than two (2) weeks prior to the trip departure date to allow Finance staff time to process the Cash Pay Out Agreement and related Pay Out Request Form.

Finance cannot provide departments with detail transaction reports.  This product supports a payout relationship between the traveler and the merchant.  The University Finance staff will serve only in the capacity of funding payouts as appropriate.  Departments should remind travelers to retain and submit receipts upon completion of travel in compliance with the JMU Financial Procedures Manual Expenditures and Travel section 4205 and 4215 requirements as well as any applicable departmental policies.

If the total legitimate expenses submitted on the required Expense Report exceeds the cash pay out transaction total, the traveler may be reimbursed for the difference, however, if the legitimate expenses are less than the cash payout total funded, the traveler must reimburse the department within 30 days of the trip return date as noted on the Pay Out Request Form.  Reimbursement is made by presenting a completed Check Deposit Transmittal (DTF) form and check payable to James Madison University to the University Business Office along with a copy of the original Funding Request.  The responsibility for reimbursements due remain with the traveler and the requesting department.  The requesting department is responsible for following up with the cardholder if excess funds were disbursed or if the traveler did not travel as expected.  The requesting department is required to send a copy of the receipted DTF to Cash & Investments within the 30 days of the trip return date via campus mail to MSC 5711 or via email to iis.finance@jmu.edu.  The DTF should reference the traveler's name, date and amount for which the Cash Pay Out was originally funded.  Should a department neglect to follow up on excess Cash Pay Out funding, future funding requests may not be authorized.

The forms related to the International Cash Pay Out process are available in the JMU Financial Procedures Manual Forms Index and instructions for completion are available below in section .980 and .990 Forms Preparation Instructions.

.600 Travel Reimbursements

.610 Expense Reports

JMU Travel Regulations require the entry of an Expense Report in Chrome River to itemize travel expenses for reimbursement.  All travel expenses, including small amounts, such as tolls and parking when using a state vehicle, must be submitted on an Expense Report.  Attach copies of all appropriate receipts and supporting documentation to the Expense Report. 

The department must print a copy of the Expense Report, attach the original receipts and supporting documentation and keep the hard copies for one year.

Travelers requesting reimbursement for other than their own lodging expenses must include the name and identification of each additional person with a justification for payment.  Each traveler must submit an Expense Report request for his or her own meal expenses in the amount of the appropriate per diem. Travel expenses for individuals (spouses, friends, etc.) or employees not on official business for the Commonwealth are inappropriate State expenditures.

Document any request for exceptions beyond the requirements of this procedure.  Attach the documentation to the Expense Report and identify the requested exception on the Expense Report, referencing the attached documentation.

By submitting the Expense Report, the traveler is certifying the accuracy of all information and the legitimacy of the travel.  Approval in Chrome River of the traveler’s supervisor certifies that the supervisor agrees that the travel was necessary and the requested reimbursements are proper.  Approval of the appropriate Approving Authority certifies that the reimbursement being requested is authorized. Travelers are responsible for the legitimacy and presentation of supporting documentation included with the Expense Report.  

Travelers must submit a completed Expense Report for approval within sixty (60) days after completion of the trip.  In the case of continuous travel, the traveler must submit the Expense Report within 60 days of the last day of travel for which reimbursement is requested.  The traveler's supervisor must approve and submit the Expense Report within five (5) working days of receipt.  The Approving Authority must approve and submit the Expense Report within five (5) working days of receipt.

An Approving Authority must approve and submit an Expense Report for non-state employees within five (5) working days of receipt.

.620 Required Travel Documentation Checklist

Travelers must provide the information and applicable supporting documentation listed below.  The traveler must submit the original copy of receipts and forms with the Expense Report.  Items listed include a reference to the corresponding subsection of this procedure.

 
  • Original approved Pre-Approval Report for international travel (.311).
  • Copy of approved, James Madison University State Vehicle Request Form authorizing the use of a personal vehicle if trip is and over 280 miles average per day (.334.1).
  • Receipt for rental vehicle payments (.335.3).
  • Receipts for transportation payments (.335).
  • Copy of approval to use charter (.335.2) or personal aircraft (.336).
  • Copy of approval to use State-owned aircraft (.333.3).
  • Receipts for lodging payments (.340).
  • Receipts for registration fee payments (.311).
  • Reason for phone toll calls, telegrams, facsimiles or internet access charges (.371).
  • Receipt for parking or toll expenses that exceed $75 (.371).
  • Receipt for taxi fare that exceeds $75 (.371).
  • Itemized receipts for official business meals (.352).

The above list is not all-inclusive. Travelers must keep all receipts and maintain accurate records of all expenses to assure correct reporting and submission of travel expense reimbursement documents.  

.700 Responsibilities

.710 Department/Traveler

  • Prepares a Pre-Approval Report for all international official business and for all incoming foreign national visitors.
  • Complete Off Campus Retreat Authorization Form for off campus retreat requests.
  • Upon receipt of the approved Pre-Approval Report, arranges travel according to requirements of this procedure.
  • Maintains required supporting documentation for travel or travel related expenses for reimbursement or payment by the University.
  • Submit legal, legible and complete Expense Report within sixty (60) days after completion of the trip.

.720 Traveler's Supervisor

  • Provides faculty and staff, involved in official University travel, access to University policies and procedures, ensuring travelers understand their responsibility for making a good faith effort to secure lodging within the guidelines before requesting exceptions.
  • Approves and forwards completed Pre-Approval Reports and associated forms as directed by this procedure.
  • Approves and forwards Expense Reports within five (5) working days of receipt from the traveler.

.725 Approving Authority

  • Approves all overnight travel, both domestic and international.
  • Approves retreats held at off campus locations.
  • Approves all travel involving incoming foreign national visitors.
  • Authorizes lodging exceptions for accommodations other than hotel/motel.
  • Approves reimbursement requests for lodging and business meals up to 150% of guidelines for both in-state and out-of-state travel when circumstances warrant.

.730 Senior Vice Presidents

  • Approves all international travel.
  • Approves retreats held at off campus locations.
  • Approves all travel involving incoming foreign national visitors.

.740 Finance Division

  • Maintains travel policies and procedures.
  • Reviews and processes travel expense reimbursement and payment documents.
  • Records travel payments in the Financial Information System, Cardinal and maintains documents and supporting documentation.
  • Monitors personal vehicle mileage.

.750 Facilities Management Operations

Transportation Manager

  • Approves travelers' requests to use personal, rental and state vehicles.
  • Approves State Vehicle Request Forms, assigns state vehicles, arranges rental vehicles when travel is initiated from the traveler's base point, completes billing information and distributes copies to departments.

.800 Processing Procedures

.810 Department/Office/Traveler

  • Prepares a Pre-Approval Report for all international official business and for all incoming foreign national visitors.  
  • Prepares Off Campus Retreat Authorization Form for requests to hold retreats at off campus locations.
  • Upon receipt of the approved Pre-Approval Report, makes travel arrangements.
  • Contacts a JMU contracted travel agency to make air reservations and purchase tickets.  Gives the travel agency their name and Credit Card name and number.  Requests the travel agency to book airline flights with the best fares and excursion rates available.  NOTE: Special rates may be available as early as 180 days before departure.  Also may ask the travel agency to obtain the most economical lodging accommodations available.
  • Uses the Travel Charge Card to purchase lodging, air and rail tickets through the Internet if the vendor has a secure Web site.  Uses the SPCC or personal credit card to purchase air and rail tickets through the Internet if the vendor has a secure Web site.  Contacts Facilities Management Transportation Manager to request the use of a state vehicle, if applicable, for trips over an average of 280 miles per day.  Completes the James Madison University State Vehicle Request Form, if a state vehicle is available.
  • Requests approval to use a personal vehicle (when a state vehicle is available) for trips over an average of 280 miles per day.  Submits a cost/benefit analysis for using a personal vehicle to the Transportation Manager.
  • Completes an Expense Report and attaches supporting documentation. Submits the Expense Report within sixty (60) days after completion of the trip.  For overnight or continuous travel, submits the Expense Report within sixty (60) days of the last day of travel, for the requested reimbursement.

.815 Approving Authority

  • Reviews Pre-Approval Report and attachments for travel by employees directly under their purview, reviews for correctness, approves.
  • Reviews and approves Expense Reports within five (5) days of receipt.

.820 Senior Vice Presidents

  • Reviews and approves Pre-Approval Reports.
  • Receives completed Off Campus Retreat Authorization Form.  Reviews and approves form and forwards to Assistant Vice President for Finance.

.830 Office of Assistant Vice President for Finance

  • Approves Off Campus Retreat Authorization Forms.
  • When circumstances warrant, approves lodging up to 100% over applicable guidelines.

.840 Office of Accounts Payable

  • Audits Expense Reports for correctness and compliance with University and state requirements.
  • Enters reimbursement data into the Financial Information System.
  • Maintains a report of personal vehicle mileage reimbursements made to travelers.
  • Maintains copies of University Travel Management Contracts.

.850 Traveler's Supervisor

  • Approves Expense Reports within five (5) working days.

.860 Facilities Management Operations

Transportation Manager

  • Approves requests to use a personal vehicle, when a state vehicle is available, for a trip over an average of 280 miles per day.
  • Approves requests to use state vehicles and assigns a vehicle to the traveler.
  • Makes arrangements for rental vehicles when applicable.
  • Completes the Billing Information section of the Request for State Vehicle form and forwards a copy to the Department of the traveler.

.900 Forms Preparation and Submission

.910 Pre-Approval Report for International Travel

.911 Required

The traveler must complete a Pre-Approval Report for approval of all University supported international destination travel.  The Pre-Approval Report is also required to obtain approval for foreign national visitors. 


.920 James Madison University State Vehicle Request Form

.921 Required

This request is required for university employees to reserve state vehicles for official business travel.

.922 Where to Obtain Blank Forms

A request must be entered into the AIM system by someone in the department that has access to that system.

.923 Number of Copies

Complete one copy.

.924 Where to Send Completed Forms

The request is submitted online.  Print the signature page and have it signed by the Approver. This sheet can then be emailed or faxed to Transportation.


.950 Prepaid Payment Card Funding Request

.951 Required

The traveler must complete this form to request Prepaid Payment Card Funding for University Supported Travel only after exhausting all other payment options.

.952 Where to Obtain Blank Forms

A blank form is available online in the FPM Forms Index.

  Employee Sponsored Programs Student


.953 Number of Copies

Complete the Original and make one copy of the form.  The copy is kept by the traveler/department.

.954 Where to Send Completed Forms

Submit the Original to the University Business Office with a copy of the Pre-Approval Report only if international travel and GSA Per Diem Calculation attached for processing of the request.  International Travel requires attached documentation as indicated in section 4215.410 in place of the GSA Per Diem Calculation form.  Incomplete requests will not be processed.

.955 Required Supporting Documents

Attach a completed copy of the Pre-Approval Report (only if international travel) and the completed GSA Per Diem Calculation [located at: http://www.gsa.gov/portal/category/26429 ].

.956 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Wells Fargo Prepaid Card Solutions Card for Funding forms.  Note: Separate Request for Funding forms exist for students, employees and sponsored program travelers.  These instructions are applicable to all three forms.

  Name of Traveler: Enter the name of the person traveling.
  Employee PeopleSoft HR ID # or PeopleSoft SA Student ID#: Enter the PeopleSoft HR or SA ID# for the traveler.
  PA#: Enter Pre-Approval Report # from the completed, attached PA (International only).
  Date of Birth: Enter Traveler's DOB: DD/MM/YYYY
  Amount Requested $: Enter the total amount being requested. (Total should agree to per diem calculation sheet attached unless very unusual circumstance and permission for exception will need to be granted.)
  Travel Dates: The departure date and return date for the trip.
  Travel Address: Enter the traveler's physical address.
  Destination: Enter final destination for the trip.
  Purpose of Travel: Give a brief description of the purpose of the travel.
  Date: Date Approving Authority signs the form.
  Signature of Approving Authority: The Approving Authority must sign on this line.
  Title: Enter the title of the Approving Authority on this line.
  Date: Date traveler signs the form.
  Signature of Traveler: The traveler must sign on this line.
  Department/DeptID#: Enter the name of the department and the Department ID number for the Department.
  *For all SPA funded requests, all travelers, regardless of student or employee status, must specifically use the Request for Funding – Sponsored Programs form.  This form includes the requirement for SPA Approval.  There are NO Exceptions to this requirement.
  Date: Date SPA Representative signs the form.
  Signature of SPA Representative: SPA approver signs on this line.
  Printed Name of SPA Approver: Enter the name of the SPA approver on this line.


.960 JMU Prepaid Payment Card Cardholder Agreement

.961 Required

The traveler must complete this form to request use of a Prepaid Payment Card for University Supported Travel if no other payment options are available to the traveler.

.962 Where to Obtain Blank Forms

  Employee Sample Form Student Sample Form

The online sample form is provided for informational purposes ONLY.  Do not complete the agreement in advance.  The cardholder will be given the original blank form at the University Business Office to complete and will be provided with a completed copy to retain for their records.  DO NOT COMPLETE IN ADVANCE.

Bring proper photo identification to the University Business Office (current university issued JAC card or driver's license). The individual requesting the card must sign out the card in person. No one else may pick the card up on the traveler's behalf.  NO EXCEPTIONS

.963 Required Supporting Documents

Current photo identification: university issued JAC card or driver’s license.

.964 Form Preparation Instructions

This subsection provides detailed instructions for the information that will be required for completion of the Wells Fargo Prepaid Card Solutions Card Cardholder Agreement when visiting the University Business Office.  There is an employee agreement and a student agreement.  Graduate students are still considered students and must complete the student cardholder agreement.

  Name of Employee/Student: Enter the name of the person requesting card. (Front of agreement)
  Employee or Student Name: Enter the printed name of the individual requesting the card.
  Team/Department: Enter the name of the department sponsoring the person requesting the card.
  Street Address: Enter the street address.
  City, State and Zip: Enter the City, State, Zip.
  Date of Birth: DD/MM/YYYY.
  Email: Enter the JMU email.
  Employee/Student ID#: Enter the PeopleSoft HR/SA #.
  Phone: Enter the phone# for the person requesting the card on this line.
  Employee or Student Signature & Date: The employee or student signs their name and enters date signed on this line.


.970 GSA Per Diem Calculator

.971 Required

The traveler must complete and print this form to demonstrate appropriate per diems are calculated for related travel.

.972 Where to Obtain Blank Forms

A blank form is available online at:  http://www.gsa.gov/portal/category/26429 .

.973 Number of Copies

Complete the Original and keep one copy for the cardholder’s records. 

.974 Where to Send Completed Forms

Attach the Original to the JMU Prepaid Payment Card Request for Funding. 

.975 Required Supporting Documents

Completed and approved Pre-Approval Report must also be attached to the Request for Funding.

.976 Form Preparation Instructions

Follow the online instructions provided on the user site.


.980 JMU International Cash Pay Out Request Form

.981 Required

The traveler must complete this form to request an International Cash Pay Out for University Supported International Travel only after exhausting all other payment options.

.982 Where to Obtain Blank Forms

A blank form is available online in the FPM Forms Index.

International Cash Pay Out Request Form

.983 Number of Copies

Complete the Original and make one copy of the form.  The copy is kept by the traveler/department.

.984 Where to Send Completed Forms

Submit the Original to the Cash and Investments Office with a copy of the PA for processing of the request.  International Travel requires attached documentation as indicated in section 4215.410 in place of the GSA Per Diem Calculation form.  Incomplete requests will not be processed.

.985 Required Supporting Documents

Attach a completed copy of the Pre-Approval Report.

.986 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the International Cash Pay Out Request Form.

  Name of Traveler: Enter the name of the person traveling.
 

Employee PeopleSoft HR ID # or PeopleSoft SA Student ID#:

Enter the PeopleSoft HR or SA ID# for the traveler.
  PA #: Enter Pre-Approval Report # from the completed, attached PA (International only).
  Date of Birth: Enter Traveler's DOB: DD/MM/YYYY
  Amount Requested $: Enter the total amount being requested. (Total should agree to per diem calculation sheet attached unless very unusual circumstance and permission for exception will need to be granted.)
  Department Name: Enter name of traveler’s department
  Date: Enter date of request
  Name of Traveler: Enter Name of Traveler as shown on Government Document to be used to pick up funds
  Deptid: Enter budget # of funding department
  Traveler’s Phone Number: Enter phone number for traveler

MSC:

Enter Mail Stop Code for Traveler
Travel Begin and End Dates: Enter departure and return dates for trip
Email: Enter traveler’s email address
Date funds are required: Enter initial date cash pay out is required at international destination
SPA Approved: Enter Yes or No from drop down as to whether or not this is a Sponsored Program?
Cash payout essential to travel event or Mobile Payments? Enter Yes or No from drop down to each.
Brief description: Enter concise statement as to why this cash payout is ESSENTIAL to this trip.
Currency denomination: Specify in what currency the funds are being requested.
Payment Date(s)/Payment Amount(s)/Estimated Rate: Enter the exact date(s)/amount(s)/rate the cash payout(s) are being requested.
Pre-Approval Report # for International Travel: Attach a copy of the completed & approved PA.
  *For all SPA funded requests, this form includes the requirement for SPA Approval.  There are NO Exceptions to this requirement.
  Signature of SPA Representative: SPA approver signs on this line.
  Signature of Approving Authority: Approving Authority signs in this box.



.990 JMU International Cash Pay Out Agreement

.991 Required

The traveler must complete this form to request use of an International Cash Pay Out Request for University Supported Travel if no other payment options are available to the traveler.

.992 Where to Obtain Blank Forms

  Employee Form Student Form

Bring or scan the completed Employee or Student Agreement along with the supporting government issued photo identification to the Cash and Investments Office (current passport or driver's license). If scanning, please email to iis.finance@jmu.edu. The individual requesting the Cash Pay Out will need to retrieve the cash in person.  No one else may pick up the Cash Pay Out on the traveler's behalf. NO EXCEPTIONS.

.993 Required Supporting Documents

Current government issued photo identification: current passport or driver’s license with picture only.

.994 Form Preparation Instructions

This subsection provides detailed instructions for the information that will be required for completion of the JMU International Cash Pay Out Agreement for submission to the Cash and Investments Office.  There is an employee agreement and a student agreement.  Graduate students are still considered students and must complete the student cardholder agreement.

  Employee or Student Name: Enter the printed name of the individual requesting the card.
Team/Department: Enter the name of the department sponsoring the person requesting the card.
  Street Address: Enter the street address.
  City, State and Zip: Enter the City, State, Zip.
  Date of Birth: DD/MM/YYYY.
  JMU Email: Enter the JMU email.
  Employee/Student ID#: Enter the PeopleSoft HR/SA # from JAC Card.
  Phone: Enter the phone# for the person requesting the card.
  Employee or Student Signature & Date: The employee or student signs their name and enters date signed on this line.
4220 Small Purchase Charge Card Cash Management (4000)

.100 General

Small Purchase Charge Card (SPCC) offers departments an alternate payment method when making small purchases. This method gives departments the opportunity to purchase goods and services, costing $4,999 or less. Bank of America is the charge card vendor for the Commonwealth of Virginia.

The charge card eliminates vendor invoices and consolidates multiple vendor payments into one monthly payment to Bank of America. Bank of America makes payments directly to the vendors. Information reports are available to help cardholders and departments maintain control over purchases and payments. Departments shall maintain a record of their purchases so spending limits can be monitored and purchasing activity can be reconciled to the monthly card statements. Each month the cardholder is required to email the coversheet and purchasing log to spcc@jmu.edu by the 10th of the following month. Departments must retain all SPCC records for three (3) years plus the current fiscal year for auditing by the Cash & Investments Office.

Currently, use of the SPCC is limited to amounts up to $4,999 per purchase transaction without prior approval by Cash & Investments and Procurement. Departments are liable for authorized charges made using the SPCC, cardholders are obligated to use the SPCC for allowable purchases only. The University does not permit use of the card for personal items; cash advances, and travel expenses (with the exception of mass transit and conference registration fees). To maximize the reduction in administrative costs, cardholders should make purchases from vendors who accept the card.

Cardholders may contact the Small Purchase Charge Card (SPCC) Program Administrator, x87396 or x86888 if they have questions concerning appropriate use of the card

.200 Request, Change or Cancel a Card

Department Heads may request cards for employees who have authority to purchase items for the department. To request cards, the Department shall complete the Small Purchase Charge Card Delegation Agreement form and forward it to the SPCC Program Administrator, MSC 5711 for processing. The SPCC Program Administrator will notify the department when they receive the card. Employees shall come to the Cash & Investments Office to pick up the card and to sign the Delegation Agreement acknowledging that they have received the card.

Cardholders needing changes to the data associated with their card we have in the Finance System (PeopleSoft) must complete a SPCC Information Form to provide the information needed to update the card.

Cardholders shall return cards to the Cash & Investments Office immediately upon request of their Department Head or the Cash & Investments Office. The cardholder shall also return the card when terminating employment or transferring from one University Department to another.

.300 Small Purchase Charge Card Security

Authorized use of the card is limited to the person whose name appears on the face of the card. Individual cardholders shall not lend the card to another person. The cardholder may request a card for another department employee, with procurement authority, when the cardholder will be absent from work for an extended period.  Cardholders are required to notify the Program Administrators in writing at appa@jmu.edu when they will be out on extended leave to any reason.  Their card will be temporarily suspended as a security measure.

Cards should be kept in an accessible but secure location. The cardholder should not post the card account number or leave the card in a conspicuous place.

If the card is lost or stolen, the cardholder shall immediately notify the SPCC Program Administrators, x87396 or x86888 or appa@jmu.edu .

James Madison University is liable for purchases, made by authorized users, with the SPCC, if the purchase is within the single per transaction dollar limit and does not exceed $4,999. James Madison University does not accept liability for the following:

 
  1. Unauthorized use of cards.
  2. Account numbers that are fraudulently used.
  3. Purchases, made with stolen or lost cards, which exceed the maximum limit ($50) and the maximum length of liability (24 hours after discovery and reporting of card loss or theft).

.400 Returns, Credits, and Disputed Items

Usually, the cardholder and the vendor that provided the goods and services can resolve disputes. The cardholder shall use the following guidelines when returning an item:

 
  • Always contact the vendor, whatever the reason for the return, to determine the correct procedure for returns.
  • Request the vendor to issue a credit receipt for items returned. The credit should appear on a subsequent charge card statement. Credit balances noted on monthly SPCC statements are posted on the Departmental Monthly Detail Report. If you have any questions please contact the SPCC Program Administrators at x87396 or x86888.
  • Enter descriptive information and the credit amount of the return on the Department Purchasing Record.
  • Keep all documentation, that support returns, on file for reconciling the charge card statement.
  • If the cardholder and the vendor cannot resolve an issue, the cardholder should contact the program administrator at appa@jmu.edu. The program administrator will investigate the dispute for the cardholder, assist in the resolution, and will request the bank issue a temporary credit, pending final resolution.

.500 Reconciliation of the Small Charge Card Statement

The cardholder and the University are responsible for retaining documentation of purchases and returns. Departments shall reconcile transactions in the PeopleSoft Finance System, using documentation and information on the Department Purchasing Record, to the monthly VISA Charge Card Statement.

Listed below are required procedures for reconciliation:

  1. Around the 16th of each month the Charge Card Staff in Cash & Investments will receive the monthly file from Bank of America. This file will be loaded into the PeopleSoft Finance System. Once the file is loaded into PeopleSoft each card is required to be reconciled online. During the reconciliation process you will match up receipts to each charge, assign the correct expenditure code for each transaction and indicate the eVA exclusion or PCO/DO number. If sales tax has been charged for a purchase it is the responsibility of the cardholder to have that tax amount credited back to the card. In order to reconcile in PeopleSoft, the reconciler must take the Charge Card Reconciliation class offered by IT Training (IT611) and complete IS Access Request online.
  2. Once the charge card has been reconciled in PeopleSoft, a report will be generated and printed off. This is the Monthly Small Purchase Charge Card Coversheet and Purchase Log.  The cardholder and supervisor and/or signature authority (cannot be the cardholder, and must be someone at an administrative level higher than the cardholder) will sign each coversheet.  A copy of the signed coversheet, purchase log and any items listed at http://www.jmu.edu/financeoffice/spcc/spcc_recon_needed.pdf are then to be scanned and sent to Cash & Investments at spcc@jmu.edu by the 10th of each month following the statement date.  Example: if the statement date is January 15 then the paperwork is due to Cash & Investments on February 10th.
  3. Each cardholder is responsible to have all original receipts, original coversheet, original purchase log, original business meal certification for any food purchased, and a copy of the Travel Authorization for international travel.  Travel Documents (airline receipts, conference registration forms, approval for trip from supervisor) on file for 3 fiscal years plus current fiscal year for audit purposes. Failure to maintain proper records can lead to the suspension or revocation of the small purchase charge card.
  4. If for some reason a charge is left in the conveniences account codes (120900, 130900, 140900, 150900, 220900) after the open reconciliation period, an ATV MUST be completed to move charges out of the convenience account code, currently the default convenience account code is 130900.  It is required that all convenience account codes be cleared out and have a zero balance.  Failure to move charges out of the convenience account codes will result in suspension or cancellation of your small purchase charge card.

.600 Purchases/Expenditures

.610 Restricted Purchases

Cardholders may not charge the following purchases to the SPCC:

 
  • Tuition reimbursement for courses taken at other educational institutions
  • (see: http://www.jmu.edu/JMUpolicy/1401.shtml)  
  • Purchases costing more than $4,999.(If you need to make a large purchase greater then this amount please contact either Jennifer Barb at 568-7396 or Amanda Sherman at 568-6888 so your transaction limit can be raised)
  • Splitting orders that would cost more than $4,999 to get them under the limit
  • If a cardholder uses the SPCC to make purchases that are personal, then this is considered fraud and will be reported. 
  • Narcotics or dangerous drugs
  • Alcoholic beverages
  • Fuel and Tuition Reimbursement
  • Firearms and ammunition
  • Yearly maintenance agreements that are paid monthly
  • Furniture other than purchases form VCE (Contact someone in the Procurement Dept)
  • Purchases from state employees
  • Cellular Phones and Two-Way Radios
  • Equipment Trust Fund Purchases
  • Professional Services
  • Retail Memberships (example:  Costco, Amazon Prime, Barnes and Noble)
  • Break room supplies, Kleenex, Coffee Makers/Coffee, Disinfectants/Hand Sanitizers
  • Mini blinds, Curtains, Shelving, Signs, Heaters, A/C Units, Air Purifiers, Fans, Paint, Keys, Flooring (carpet, tile) (Contact someone in Facilities Management), Light bulbs, Housekeeping Supplies
  • Payment of past due invoices 

Industry Restrictions:
The following types of business are restricted on your small purchase charge card. If you try to make a purchase on one of these vendors, the charge will be rejected by VISA.

 
  • Gas/Oil
  • Car Rental
  • Restaurant/Food (can be lifted by filling out restaurant exception form for PIZZA Purchases only)
  • Accommodations
    • Fraud: Each card also has “Fraud Tables” on each card which will not be removed. These fraud tables include categories such as pawn shops, beauty salons, bars and financial institutions. Listed following are the Merchant Category Codes (MCC) that are on JMU’s Fraud Table as well as the Car Rental, Gas/Oil, Restaurant/Food and Accommodation tables.

  COVC001 (E)
Car Rental Table
Description
  3350–3499
7512
Car Rental Agencies
Automobile Rental Agency
  COVG001 (E)
Gas/Oil Table
Description
  5541
5542
9752
Service Stations (with or without Ancillary Services)
Fuel Dispensers, Automated
U.K. Petrol Stations
  COVR001 (E)
Restaurant Table
Description
  5522
5441
5451
5462
5499
5811
5812
5814
5921
5993
9751
Freezer and Locker Meat Provisioners
Candy, Confectionery, and Nut Store
Dairy Products Stores
Bakeries
Misc. Food Stores, Convenience Stores, Markets, Specialty Stores & Vending Machines
Caterers
Eating Places – Restaurants
Quick Payment Services – Fast Food Restaurants
Package Store, Beer, Wine and Liquor
Cigar Stores and Stands
U.K. Supermarkets, Electronic Hot File
  COVR002 (E)
Modified Restaurant Table
Description
  5422
5441
5451
5462
5499
5812
5814
5921
5993
9751
Freezer and Locker Meat Provisioners
Candy, Confectionery, and Nut Store
Dairy Products Stores
Bakeries
Misc. Food Stores, Convenience Stores, Markets, Specialty Stores & Vending Machines
Eating Places – Restaurants
Quick Payment Services – Fast Food Restaurants
Package Store, Beer, Wine and Liquor
Cigar Stores and Stands
U.K. Supermarkets, Electronic Hot File
  COVA001 (E)
Accommodation Table
Description
  3500–3999
7011
7012
Hotels
Lodging – Hotels, Motels, Resorts
Time Shares
  COVF001 (E)
COV Fraud Table
Description
  4829
5813
5933
6010
6011
6050
6051
7273
7297
7995

9222
9223
9401
Money Transfer Merchants
Bars, Cocktail Lounges, Discotheques, Nightclubs & Taverns – Drinking Places (Alcoholic)
Pawn Ships
Financial Institutions (Manual Cash Disbursements)
Financial institutions (Automated Cash Disbursements)
Quasi Cash Member Financial Institution
Quasi Cash Merchant
Dating and Escort Services
Message Parlors
Betting (including Lottery Tickets, Chips at Gaming Casinos,
Off–Track Betting & Wagers at Race Tracks)
Fines
Bail and Bond Payments
Food Stamps

Besides the listed restricted items, cardholders should not charge purchases that are recurring in nature, such as, rentals and towing charges to the card.

.620 E-Commerce Purchases

Departments may purchase goods or services up to $4,999 using their SPCC through the Internet. Since the card number is transmitted when making purchases, users must be certain the vendor has a Secure Socket Layer (SSL) Version 2.0 or greater. To ensure the vendor has a SSL, the Address Window must start with https://. This may not occur until the payment information is requested. For information about the vendor’s security certification, check under "Help" on the browser tool bar. If you place an internet purchase, a confirming order must be submitted into eVA.

On-line auctions (example: e-bay) is allowed when all rules governing Procurement procedures and Accounts Payable payments are met. The SPCC Program Administrator/Compliance Auditor will audit each of these transactions for compliance.

The SPCC may be used to purchase airline and rail tickets over the Internet. The SPCC may be used as a "method of payment" for conference registrations. All compliance issues still apply as this registration is subject to a maximum prepayment period of 180 days.  As with all purchases, departmental funds must be available before making any expenditure commitments.

.630 Declining Balance Cards

Declining Balance Cards may only be obtained by using a Small Purchase Credit Card once the cardholder has had the Declining Balance Card Exception form approved by the SPCC Program Administrator.  The Declining Balance Card Exception form can be found on the Forms Index Section 1020 of this procedures manual.

 
  • 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.
  • A log must be kept for each declining balance card purchase - the log can be found on the Forms Index in Section 1020 of this procedures manual.

Declining balance cards are not to be purchased and used as incentives or non-monetary recognition awards. The only time an exception is usually granted is through externally funded sponsored-program research and then it is only granted when the funding agency specifically states that payment cards may not be used as the incentive. The state does not allow this type of expenditure and therefore the university must follow the same protocol; failure to do so can result in obligation to repay the university/state funds from non-state resources.    VISA DECLINING BALANCE CARDS (GIFT CARDS) ARE NOT ALLOWED TO BE PURCHASED.

.640 Infractions on the Small Purchase Charge Card

In the event a cardholder makes an inappropriate expenditure on the small purchase charge card the following penalties will be enforced.

  Misuse of Restaurant Block being lifted: Block placed permanently back on card
  All other infractions: 1st time:     email warning
2nd time:   15 day suspension
3rd time:    30 day suspension

Permanent revocation of cards is also a possibility, depending upon the severity of the infraction(s).


.700 Responsibilities

.710 Department Head/Approving Authority

  • Authorize issuance and use of cards for departmental employees by approving the Delegation Agreement.
  • Insure proper use of the card by reviewing charges made to the Department. Revokes a cardholder’s purchase authority, for improper use of the card.
  • Approve charge and credit transactions for the department. Ensure that all returns are credited back to the small purchase charge card. If a merchant refuses to credit the SPCC charge card and issues a "store credit", immediately advise the Program Administrator with the specifics.
  • Insure that the cardholder maintains records and completes reconciliation as required by this procedure.  Review and approve reconciliation or ensure individual delegated to perform these duties does so in a timely manner.
  • Ensures that all E-Commerce purchases are made through a SSL, Version 2.0 or greater, and that the address or location begins with https://.
  • International travel requires completion of estimate of total cost of planned travel and approval from the Senior VP for Administration and Finance in addition to appropriate department and division approval.
  • Ensure all rebates and/or coupons used in the course of procurement are used for business purposes only.
  • Completes annual online training.

.720 Cardholder

  • Maintain the card and the card account number in a secure location for the individual cardholder's use only.
  • Comply with this procedure when obtaining goods and services or returning items purchased with the card.
  • Inform the Vendor of the University’s TAX-EXEMPT status
  • Obtain documentation of all transactions to include a printed copy of E-Campus purchases and maintain records as outlined in this procedure.
  • Any internet purchases have been submitted as confirming orders in eVA.
  • Limit purchases to items that are not restricted purchases.
  • Return the card to the Cash & Investments Office when requested by the Department Head or the Cash & Investments Office. Also, return the card when terminating employment or transferring from one University department to another.
  • Cardholder is responsible for all charges to their card. Misuse of the card may lead to suspension or revoking of the card.
  • Completes annual online training.

.730 Finance Division

  • Maintain policies and procedures for issuance and use of the card for James Madison University.
  • Coordinate all card activity with University departments, the Division of Purchases and Supply, the Department of Accounts and VISA.
  • Administer the SPCC Program for the University by:
    1. Insuring proper use of state funds for purchases and vendor payments.
    2. Insuring compliance with state regulations and procedures.
    3. Rescinding of cards used in the wrong manner. The card can be suspended or permanently revoked for continued misuse.
    4. Providing training for employees.
    5. Maintaining files, issuing cards, and confirming the list of current cardholders with departments.
    6. Reviewing purchase documents, forms and reports, processing and recording payments, reconciling transactions, and collecting payments for inappropriate expenditures and delinquent charges from the cardholder.

.800 Procedures

.810 Department/Department Head/Approving Authority

  • Provides the cardholder access to University Policies and Procedures.
  • Completes a Delegation Agreement for each employee authorized to obtain goods and services using the card. Maintains current copies of all approved Delegation Agreement forms in departmental files.
  • Provides an original copy of the authorized Delegation Agreement to the Cash & Investments Office to request issuance of cards.
  • Prepares the Department Purchasing Record according to instructions provided in this procedure and by the Cash & Investments Office.
  • Retain documentation of purchases to include a printed copy of E-Commerce purchases and returns, and uses information from the Department Purchasing Record to reconcile transactions to the monthly Small Purchase Charge Card Statement.
  • Approves charges to DeptIDs, the Budget Department Number(s) assigned to the charge card.
  • Revokes cardholders purchase authority for misuse of the card, obtains and returns cards to the Cash & Investments Office.
  • Responds to vendor disputes.

.820 Cardholder

  • Receives the card issued in their name by signing the approved Delegation Agreement at the Cash & Investments Office.
  • Maintains the card and the card account number in a secure location. Never gives the card account number to another person or posts it in a conspicuous place.
      To use the card, the cardholder:
    1. Identifies vendors that accept the card and can provide the goods and services needed.
    2. Calls or goes to the vendor's place of business, accesses the vendor’s Web site, and places the order. Gives specific departmental points of sale reference information to the vendor.
    3. Gives the vendor the account number and expiration date on the card.
    4. For E-Commerce purchases, enters the Charge Card Number as required by Vendors that have a SSL.
    5. Informs the Vendor of the University’s TAX-EXEMPT status.
    6. Retains all documentation concerning the purchase. (All vendors shall provide documentation of the purchase, such as a sales receipt or packing slip, with delivery of the items purchased.)
    7. Requests a receipt when picking up a purchase and retains a printed copy of items purchased through E-Commerse procurements.
    8. Reconciles the documentation to the Small Purchase Charge Card Statement.
  • Follows guidelines in subsection .400 for returns, credits and disputed items.
  • Contacts the Cash & Investments Office for necessary changes to existing cards.
  • Immediately notifies the Program Administrator, x87396 or x86888, if the card is lost or stolen.  Calls Bank Of America (888-449-2273) if occurs during non-business hours as well as notifying the JMU Program Administrator by phone or at appa@jmu.edu
  • Returns the card to the Cash & Investments Office immediately upon request of the Department Head or the Cash & Investments Office. Also, returns the card before terminating employment or transferring from one University department to another.  Remits completed logs and receipts to supervisor or Cash & Investments upon request or before terminating or transferring.
  • Promptly reimburses James Madison University for inappropriate expenditures charged to the card.
  SPECIAL NOTE: CARDHOLDERS SHOULD NOT MAKE ANY PAYMENTS FROM PERSONAL FUNDS TO BANK OF AMERICA FOR PURCHASES MADE USING THE SPCC.

PAYMENT FOR PURCHASES THAT ARE NOT STATE ALLOWED OR A PURCHASE MADE IN ERROR MUST BE REIMBURSED TO JMU.  DEPARTMENTS SHOULD CONTACT THE CASH & INVESTMENTS OFFICE ON x87396 or x86888 SHOULD QUESTIONS ARISE CONCERNING CORRECTIONS TO THE SPCC ACCOUNT.

.830 Cash & Investments

  • Receives approved Delegation Agreement forms from departments, reviews the forms and forwards information to Bank Of America to issue cards.
  • Receives cards from the Bank of America and notifies cardholders that they may get their card at the Cash & Investments Office.
  • Maintains file copies of approved Delegation Agreement forms and a list of cardholders' names.
  • Confirms the names of authorized cardholders and the Delegation Agreement form information, with departments, annually.
  • Processes payment for the full amount of the charge card invoice, by the due date, to Bank of America.
  • Records payments in University and State ERP.
  • Reviews monthly charge card statements and monthly reports to ensure expenditures support appropriate state expenditures.
  • Notifies individual cardholders of inappropriate expenditures charged to the card and initiates reimbursement for the purchase and any delinquent charges from the individual.
  • Audit cardholders, randomly, during fiscal year.

.900 Forms Preparation and Submission

.910 Small Purchase Charge Card Delegation Agreement

.911 Required

Departments shall complete this form to request a card for a departmental employee.

.912 Where to Obtain Blank Forms

The Small Purchase Charge Card Application (Delegation Agreement) is available ONLINE.

.913 Number of Forms to Complete

Complete one form.

.914 Where to Send Completed Forms

Send the original copy to the SPCC Program Administrator at MSC 5711 and retain one copy in departmental files.

.915 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Delegation Agreement form.

  Employee Name: The full name of the employee.
  HR/Employee ID #: The employee’s HR/employee ID# (JAC Card#).
  Student Employee: Indicate Yes or No.
  Date of Birth: The employee's month, day & year of birth.
  Email Address: The employee's JMU email.
  Billing Address, City, State and Zip: The complete billing address.
  Home Telephone No.: The employee's home telephone number.
  JMU Telephone Number: The employee’s JMU telephone number.
  Department Name and MSC: The name of the Department and MSC to which the employee reports.
  Department ID #: The Department ID Number assigned to the Department.
  Supervisor's Name: The name of employee's supervisor.
  Supervisor's Email: The email address of employee's supervisor
  Transaction Limit: A $4,999 amount for an individual transaction for the employee.
  Monthly Limit: The maximum dollar amount of purchase transactions up to $25,000, per billing cycle, which the departmental Approving Authority authorizes for the employee.
  Rush Delivery: Enter "yes" or "no". There is an additional charge for this.
  THE FOLLOWING SHOULD BE COMPLETED AFTER THE FORM HAS BEEN PRINTED.
  Departmental Authorized Signature: The Signature of the Approving Authority for the Department Number shown on the form. This signature shall be the same as the Approving Authority shown on the Signature Form held by the Finance Office.
  Print Name: The typed or printed name of the individual who approved the form.
  Employee's Signature: The signature of the employee requesting the card.
  Date: The Date the employee signs the Delegation Agreement.
  Cardholder's Signature: The signature of the cardholder.
  Date: The date the cardholder picks up the card.

.920 Department Purchasing Record for Small Purchase Charge Card

.921 Required

Departments/Cardholders shall complete this form and retain it in departmental files. If multiple departments are to be charged for the purchases charged to the card, the SPCC ATV replaces this form. See Subsection .940

.922 Where to Obtain Blank Forms

The Department Purchasing Record form is available ONLINE.

.923 Number of Copies

Complete one form. Retain the completed form in the department's files.

.924 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Department Purchasing Record.

  Department Name: The name of the Department being charged for the purchase.
  Department ID No: The Department ID Number assigned to the department.
  Cardholder's Name: The name of the individual cardholder.
  Card Number: The last 4 digits on the card only.
  Date of Sale: The date the sale transaction is completed.
  Vendor's Name: The name of the vendor.
  Description: A brief description of the item purchased.
  Dept ID No.: The Department Number assigned to the department.
  Expenditure Acct. Code: The expenditure account code that best describes the item purchased.
  Dept. Ref Number 1: An optional field for use by the department.
  Dept. Ref Number 2: A second optional field for use by the department.
  Amount: The total amount of the purchase.
  Month: The month in which the transaction is completed.

.930 Statement Cover Sheet For Payment of monthly SPCC Transactions

.931 Required

The University requires each department that has purchased items with the SPCC to complete this form, and retain in departmental file. A copy should be emailed to Cash & Investments at spcc@jmu.edu by the 10th of each month.

.932 Where to Obtain Blank Forms

The Statement Cover Sheet form is available ONLINE.

.933 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Statement Cover Sheet for Payment to VISA.

  Department: The department name as shown on the Department Purchasing Record.
  Department ID #: The Department Number as shown on the Department Purchasing Record.
  Cardholder: The name of the individual cardholder.
  Card Number – last four digits: The last four digits of the individual’s card number.
  Statement Closing Date: The statement closing date as shown on the statement.
  Total Amount: The total amount of the expenditures shown on the monthly statement.
  Approving Signature: The signature of the approving authority for the department number. By signing, as approving signature, the person is stating they have reviewed the reconciled statement, purchase log and supporting documentation. They certify that all purchases are correct and valid state expenses.
  Cardholder's Signature: The signature of the cardholder. By signing, the cardholder is stating that this payment is for services, goods, materials, supplies and equipment purchased by use of an authorized commonwealth Visa Small Purchase Charge Card (SPCC) according to the Visa Small Purchase Charge Card Procedure; and that the services, goods, materials, supplies and equipment were received and in good condition; that the SPCC statement has been reconciled to the purchasing log & supporting documentation.
  Comments/Additional Clarifications: Use this section to document any information concerning this payment. Examples: Purchase is in dispute; paid sales tax in error, credit in the next billing cycle; charges shown on the Department Purchasing Record, were not in the current billing cycle.  You can give additional clarifications for any purchase that may be questioned by Cash & Investments.

.940 SPCC ATV

.941 Required

The SPCC ATV is required to record the SPCC transaction reclassification/transfers, within a department or between several departments. One copy of the form should be sent to Financial Reporting at MSC 5715 for review and processing, one copy to any other department impacted and one copy should be retained in departmental file.

.942 Where to Obtain Blank Forms

The SPCC ATV is available ONLINE.

.943 Form Preparation Instructions

Enter the required information as listed below and print the form. Send the completed form to Financial Reporting, MSC 5715.

  Department Name: Enter the department name.
  Cardholder Name: Enter the name on the Charge Card.
  Card Number: Enter the Charge Card number.
  Journal Description: Enter the month of the Visa statement.
  CORRECTION LINE
  Correction Dept ID: Enter the department that should be charged for the purchase.
  Debit Account: Enter the account code the purchase should be charged.
  Amount: Enter the amount of the purchase.
  Date of Sale: Enter the date of the purchase.
  Vendor's Name: Enter the vendor name.
  Description: Enter a short description of the purchase.
  Month: Enter the month in which the purchase was made.
  DEFAULT LINE
  Default Dept ID: Enter the department the purchase was originally charged.
  Amount: Enter the amount of the purchase.
  Credit Account: This data is automatically filled in.
  Date of Sale: Enter the date of the purchase.
  Vendor's Name: Enter the vendor name.
  Description: Enter a short description of the purchase.
  Month: Enter the month in which the purchase was made.
  Number of Lines: This will automatically calculate.
  Totals: This will automatically calculate.
  Prepared By: Name of person preparing the SPCC ATV.
  Date: Enter the date the SPCC ATV was prepared.
  Approved By: Signature of Approval Authority.
  Date: Enter the date the SPCC ATV was approved.

After completing the form and obtaining the proper approvals, please send the completed form to Financial Reporting, MSC 5715.

4225 Revenue Refunds Cash Management (4000)

.100 General

This section addresses the responsibilities and procedures for refunding state and local funds to individuals and businesses after the funds have been deposited and recorded in the University Financial Information System. Revenue refunds are usually necessary to correct overpayments or to return improper collections to the appropriate source.

.200 Control Responsibilities

.210 University Business Office

  • Authorizes departments to approve and process revenue refunds.
  • Provides departments with forms and instructions for processing revenue refunds.
  • Provides departments with specific instructions when large numbers of refunds are needed simultaneously.
  • Ensures the timely processing and recording of the transactions in the State and University Financial Information Systems.

.220 Department

  • Complies with this procedure when authorized by the University Business Office to initiate and process revenue refunds.
  • Maintains appropriate documentation to support receipt of revenue and justification for a refund of revenue.
  • Prepares appropriate forms and submits them to the University Business Office or to the Accounts Payable Office for processing (See subsection .414).
  • Contacts the University Business Office for procedures if necessary to process large numbers of refunds simultaneously.
  • Ensures that the individual that approves the refund does not have physical access to the checks when received by the department for distribution.
  • Establishes adequate procedures to ensure the propriety of all requested refunds.

.300 Processing Procedures

.310 Department

  • Requests authorization from the University Business Office to process revenue refunds.
  • Maintains documentation verifying receipt and deposit of revenue and justification for any refund.
  • Prepares and submits appropriate forms in accordance with instructions in subsection .400 of this section.
  • Maintains copies of submitted forms for departmental records.

.320 University Business Office

  • Authorizes departments to approve and prepare revenue refunds, when appropriate.
  • Provides authorized departments with appropriate forms and instructions.
  • Reviews submitted forms for completeness, accuracy, and propriety.
  • Processes transaction documents to generate a refund check.
  • Records transaction in the University Financial Information System.

.400 Form Preparation and Submission

This subsection outlines the form preparation and submission procedures for revenue refunds.

.410 Revenue Refund Voucher – use the Standard Accounting Voucher

.411 Required

The University requires this form to refund monies to individuals or businesses after the original revenue has been deposited and recorded in the University Financial Information Systems.

.412 Where to Obtain Blank Forms

Blank forms are available ONLINE.

.413 Number of Copies

2 copies are needed.

.414 Where to Send Completed Forms

Send the original form, with supporting documents to the University Business Office if an authorizing signature is needed or send to Accounts Payable if the department has signatory authority for the Department number entered on the form. Retain the second copy with the department's backup documentation.

.415 Form 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. 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 - JMU
Address - JMU EDI Vendor
PeopleSoft Vendor # - 2610
remaining fields left blank.

  #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.
  #8 Invoice Date: Enter the date of the vendor's 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 Foreign Currency - 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).
4230 Internal Transfers Cash Management (4000)

.100 General

This section describes the use and preparation of the Agency Transaction Voucher (ATV). The ATV is designed to record accounting transactions occurring among several JMU departments. Examples of these transactions include charges for goods and services provided by Card Center, Special Events and Catering, Facilities Management, etc.
NOTE: JMU Copy Centers require departments to use their Duke Card, instead of an ATV, for payment of charges.

.200 Control Responsibilities

.210 Department/Office Providing Goods or Services

  • Use the Electronic ATV
  • Maintain departmental records to substantiate the entries on the ATV.
  • Prepare ATV in accordance with instructions listed in subsection .314 of this section.
  • Prepare ATV in the same month that the transaction occurs.
  • Respond to inquiries from the department that received the goods or services.
  • Must obtain responsible managers approval.
  • Submit completed ATV with supporting documentation to the Office of Financial Reporting or indicate by check box that documentation is in departmental files.
  • Review Summary Financial Report (refer to Section 3030, .210) or Monthly Detail Report. (refer to section 3030, .220) to determine that the amounts credited are correct.

.220 Department/Office Receiving Goods or Services

  • Reviews Summary Financial Report or Monthly Detail Reports to determine the amounts posted are correct.
  • Contacts the Department/Office that provided the goods and services regarding charges in question.

.230 Office of Financial Reporting

  • Reviews ATV for accuracy and completeness for data entry.

.240 Office of Cash & Investments

  • Answer questions regarding form preparation and other inquiries pertaining to ATV's.

.250 Office of Accounts Payable

  • Answer questions regarding duplicate payments, keying errors and checks to be issued in lieu of credit invoices.

.300 Forms Preparation and Submission

.310 Agency Transaction Voucher

.311 Required

This form is required to record all transactions among JMU departments related to sales, services, recovery of costs, and transfers of expenditures and revenues among organizations within the same bank account.

.312 Where to Obtain Blank Forms

An electronic form is available ONLINE.

.313 Number of Copies

Complete one ATV form and retain one copy in departmental files.

.314 Forms Preparation Instructions

Following are detailed instructions for preparation of the Agency Transaction Voucher.

Enter the following information only, Financial Reporting will complete the other areas.

  Speed Type Department: Enter the Department ID being charged or credited. Use a separate line for each department number being debited, and a separate line for each department number being credited. A listing of Department ID Numbers is available in Section 2010, .200 (Numerical sequence Chart) of this manual.
  Debit Account: Enter the Expenditure or Revenue Account Number being charged. Use a separate line for each debit transaction. A listing of Expenditure and Revenue Account Codes is available in the Section 2015 - Expenditure Account Codes and Definitions and Section 2020 - Revenue Account Codes and Definitions (respectively) of this manual.
  Amount: Enter the amount of each transaction; use a separate line for each Debit amount and a separate line for each Credit amount. (Debits must equal Credits)
  Credit Account: Enter the Expenditure, Recovery or Revenue Account Number being credited. Use a separate line for each credit transaction. (See subsection .400 of this same section for recovery/expenditure credit definitions and examples)
  Description: Enter a brief one-line description that applies to all transactions listed. Include Voucher Numbers or Journal Numbers for Expenditure Credits.

Recovery Department: Enter the department ID number on each line that has a debit amount being recovered. (USE THIS COLUMN ONLY WITH RECOVERY ACCOUNT CODES 119XXX; 129XXX; 139XXX, etc.)

  Number of Lines: The number of lines completed will automatically be totaled. (DO NOT DELETE NUMBERS entered on this line since it will also delete the formula.)
  Totals: The total of transactions listed on the lines above are automatically totaled on this line (Do Not Delete Numbers entered on this line since it will also delete the formula).
  Prepared By and Date: Enter the name of the person that prepares the ATV and the preparation date.
  Approved By and Date: Use the additional approval lines when the Office of Financial Reporting requires more than one approval signature.
  Comments: Enter any explanatory comments concerning the transactions entered.
Use the check box if documentation is in departmental files rather than being attached.
  NOTE: Debits must equal credits

.315 Samples of Correctly Prepared Forms

    Correction of a keying error

  Allocate costs among departments

  Charge another department for a shared service

.400 Expenditure Credits and Recoveries

An expenditure credit is used to properly distribute expenses or make corrections.  This distribution or correction should generally be based on an expense previously recorded by voucher or ATV in the current fiscal year.

Examples of when an expenditure credit is used:

  • A vendor sends a check to Cash & Investments for a duplicate payment made on an invoice. Cash & Investments determines the expense account coding on the appropriate voucher and then prepares a deposit transmittal crediting the same expense account codes from the original voucher.  The voucher number will be noted on the form. A copy of the completed deposit transmittal form is sent to Accounts Payable who records this information on the associated vouchers in Peoplesoft. Accounts Payable makes a notation of this duplicate payment on the original vouchers which are filed in Accounts Payable.
  • A keying error made by Accounts Payable. Accounts Payable prepares an ATV to charge the expense to the proper department and/or account with the voucher number cited in the description.  The offset will be the expenditure credit to correct the error.  A notation is also recorded on the associated voucher which is filed in Accounts Payable.
  • A keying error made on an ATV.  If the department makes the error, they are responsible for submitting the correcting ATV.  If the keying error is made by Financial Reporting, they are responsible for submitting the correcting ATV. The department or Financial Reporting prepares an ATV to charge the expense to the proper department and/or account with the original ATV number cited in the description. The offset will be the expenditure credit to correct the error.
  • In lieu of the vendor issuing a credit invoice to the department the vendor sends a check to Cash & Investments. After determining the appropriate department and account to be credited, Cash & Investments prepares the deposit transmittal. A copy of this completed form is sent to Accounts Payable and is filed with the associated voucher in Accounts Payable.
  • A department supplies copy paper and the use of a copier for several departments. The department that purchased the paper and paid the lease on the copier would record the amounts on the ATV as an expenditure credit.
  • A department received a check from an employee for personal phone calls. A deposit transmittal form would be prepared and the monies would be recorded as an expenditure credit to the same expense account where the phone call was originally charged.

A recovery is used to record monies received or to record reimbursement from other departments for services rendered.

Examples of when a recovery is used:

  • Any department performs a service for another university department.  The department that performs the service would record the amount on the ATV as a recovery.
  • An E&G department performs a service for a non-university person/entity (Example: a department conducts a seminar during the summer for local middle school teachers. The participants pay a fee to cover the costs of the seminar).
  • Central service providers (Examples: Facilities Management on the E&G side, Telecommunications on the Auxiliary side) that provide university wide services.
  • The JMU Foundation reimburses university departments for specific costs incurred or provides support for university activities.

Recovery Codes that are most commonly used:

  • XX9900 - E&G recovering from E&G or Grant, Aux recovering from E&G, Aux or Grant
  • XX9600 - E&G recovering from Auxiliary only
  • XX9940 - Recovery from JMU Foundation only

When preparing an ATV with a recovery, the debit account and the recovery code must be from the same chart of accounts category.

Example:   If the debit account begins with 12XXXX then the recovery code must begin with 12XXXX. If the debit account begins with 13XXXX then the recovery code must begin with 13XXXX, etc.
5005 Payroll Payroll Services (5000)

.100 General

James Madison University's Payroll Services Office is committed to serving our customer, the JMU employee, by providing reliable, responsive and timely services in support of the University’s compensation, benefits, payroll tax related and reporting services. Payroll Services will administer the regulations of federal agencies such as the Internal Revenue Service, the Social Security Administration, the U.S. Department of Labor, and the Federal Office of Child Support Enforcement.

This section outlines the responsibilities, procedures and documentation required for paying full-time, part-time and student employees of the University in accordance with the Human Resource Management System (HRMS) requirements.

.200 Full-time Classified Staff and Faculty Employees

.210 Responsibilities

.211 Employee

  • Apply for employment, using Joblink, through the University's Human Resources Office.
  • Authorize the Public Safety Office to conduct a background check when requested by the employing department.
  • Complete all applicable personnel/payroll employment forms, including the Direct Deposit Authorization form, federal and state tax forms, and I-9 form verification.
  • Verify paycheck amounts using MyMadison

.212 Department

  • Initiate Human Resources' Onboard form and the Personnel Action Request (PAR) form, or appropriate employment forms, for the appointment of full-time classified staff and faculty employees.
  • Forward all documents expeditiously to the Human Resources Office.

.213 Human Resources

  • Complete the Onboard process, which includes I-9 completion, tax forms and direct deposit form completion for newly hired employees.
  • Receive and process PAR forms or appropriate employment forms for the appointment of full-time classified staff and faculty employees.
  • Enroll employees in elected benefit and voluntary payroll deduction programs.
  • Forward all processed PAR forms daily, or appropriate employment forms, tax forms, Direct Deposit Authorization forms, and other payroll deduction forms to Payroll Services.

.214 Payroll Services

  • Receive and process all approved PAR forms or appropriate employment forms, for the appointment of full-time classified staff and faculty employees.
  • Receive and process all tax forms, Direct Deposit Authorization forms, and deduction forms.
  • Record appropriate data in the HRMS database.
  • Process payroll and direct deposit bank interface.

.220 Processing Procedures

.221 Department

  • Complete Human Resources' Onboard form and process PAR forms, or appropriate employment forms, for the appointment of full-time classified and faculty employees.
  • Forward completed and signed forms, to the Office of Human Resources daily.

.222 Human Resources

  • Complete the Onboard process, which includes I-9 completion, tax forms, and direct deposit form completion for newly hired employees.
  • Receive and process approved PAR forms, or appropriate employment forms, for the appointment of full-time classified and faculty employees.
  • Forward PAR forms daily, or appropriate employment forms, with all supporting documentation to Payroll Services.
  NOTE: Payroll Services will include PAR forms or appropriate employment forms received after the HR calendar deadline on the next payday. For a complete schedule of all payroll deadlines, see the payroll calendar published on the Payroll Services webpage.

  • Forward daily, all employee federal and state tax withholding forms, elected benefit and voluntary deduction information, and Direct Deposit Authorization forms to Payroll Services.
  • Process necessary documents to enroll employees in elected Health Benefits Program, Virginia Retirement System, Virginia Sickness and Disability Program, Retirees Health Credit Program and any other voluntary payroll deduction programs.

.223 Payroll Services

  • Receive and process all approved PAR forms, or appropriate employment forms, employee federal and state tax withholding forms, elected benefit and voluntary deduction information, and Direct Deposit Authorization forms.
  • Record appropriate information in the HRMS database.
  • Calculate payroll and run the bank interface to authorize direct deposit information.
  • Forward payroll data to Accounts Payable to update the General Ledger.

.230 Payroll Deductions

Various deductions and benefits are offered to full-time classified staff and faculty personnel. This section defines the mandatory and optional deductions and the methods for initiating these deductions and benefits.

.231 Mandatory Deductions

Social Security (FICA-OASDI and Medicare) Withholding

All employees are subject to social security withholding. The federal government designates the percentage an employee will have deducted from their gross wages. The employer (JMU) automatically deducts the employee's social security amount from their gross wages, and contributes a like.  When an employee's gross earnings reach the FICA wage base ceiling for the calendar year, no further withholding will be made.

Federal and State Tax Withholding

Federal and state tax withholding forms shall be kept on file in Payroll Services. The forms are required to establish and change the employee's number of allowances, which determine the amount of federal and state income tax withheld from wages.

Blank forms are available from Payroll Services, Human Resources, and department offices.

The employee shall complete the form during HR's Onboard process in the Human Resources Office. Human Resources will forward the completed forms to Payroll Services for newly established employees. Employees should submit tax forms to change established allowances directly to Payroll Services or make their tax withholding changes on-line via MyMadison.

Refer to subsections .920 and .930, for federal and state tax withholding form preparation instructions.

.232 Paid Benefits

Retirement

All full-time classified employees are provided a membership in the Virginia Retirement System (VRS). Optional retirement plans are available to faculty members through various retirement providers. Full-time faculty employees have sixty (60) days from date of employment to elect an optional retirement plan. The University's retirement programs supplement federal social security benefits for disability or age retirement. The University pays for employer and a portion of the employee's contributions. Employees should contact the Human Resources Office for additional information.  The University pays a percentage toward retirement benefits based on rates set by the General Assembly and the Virginia Retirement System.  As an employee, you may be required to contribute a percentage as well.

Group Life Insurance

The University provides all full-time, classified employees with group life insurance. The principal amount of life insurance is double the annual salary rounded to the next largest thousand dollars. (i.e., a $20,000 annual salary provides a $40,000 policy). This benefit is cancelled upon termination from the University.

The premium for the face value of employer paid group life insurance that exceeds $50,000 is taxable income. Applicable FICA tax (based on age and the number of months paid at each rate) is deducted from an employee's pay and is referred to as "imputed life."

Virginia Sickness and Disability Program (VSDP)

All full-time classified employees hired after January 1, 1999 and are a member of the Virginia Retirement System are also a participant of the Virginia Disability and Sickness Program. This program provides for paid sick leave, paid family sick leave, short-term disability, and long term disability coverage. This program was opened to all full-time  classified employees, hired before January 1, 1999, who so designated their choice to participate in the VSDP program by March 31, 1999.

.233 Optional Deductions

Foundation and Duke Club Contributions

The forms for this deduction are available from the Foundation/Duke Club office. The employee authorizes a specific amount to be deducted from their pay for donation to the JMU Foundation/Duke Club.

Athletic Tickets

JMU Football and Basketball season tickets may be purchased by payroll deduction. Forms are available from the Intercollegiate Athletic, Budget/Tickets/Facilities Office. 

Virginia Credit Union

The forms for credit union deductions are available online at www.vacu.org. This form authorizes a semi-monthly deduction to be distributed to various accounts at the credit union, as specified by the employee, and will be included as part of the direct deposit process on behalf of the employee.

Tax-sheltered Annuities and Deferred Compensation Plans

Tax-sheltered annuities may be purchased from a variety of University approved insurance companies. Payroll deductions may not exceed the amount authorized by Federal Tax Regulations. A state sponsored deferred compensation plan is administered through the Commonwealth of Virginia. Forms are available from the Human Resources Office.

Disability Insurance

This deduction provides insurance designed to compensate an employee in case of a long-term disability. Application forms are available from the Human Resources Office and deductions are effective upon approval for coverage by a third party insurer.

Virginia State Employees Combined Charitable Campaign

The JMU Combined Charitable Campaign Coordinator sends the payroll deduction pledge cards to each full-time employee. This pledge card authorizes a deduction amount, specified by the employee, as a donation to qualified charitable health and human care organizations.

Health Insurance

The University provides all full-time classified employees with health insurance and major medical benefits. Family and/or dependent coverage is available at the employee's expense. The University provides payroll deduction for the cost of family or dependent coverage. Coverage begins on the first day of the first full month of employment, if the employee applies for coverage within 31 days of employment.  Enrollment, change, and the waiver forms should be completed in the Human Resources Office or through the E-Direct automated system administered by the State. Deductions are initiated the month coverage commences. When payments for coverage cannot be automatically deducted through payroll, payment shall be made by personal check and submitted to Payroll Services.

JMU Flex Account

Payroll deductions can be taken for depositing funds into an employee's JAC Card/Flex account. Deduction sign-up cards may be completed in Card Services.

Flexible Reimbursement Accounts

There are two type of reimbursement accounts, Medical and Dependent Care. A medical reimbursement account allows the employee to set aside pre-tax dollars to pay for medical, dental, vision-care or other eligible expenses that are not covered by their medical plan. A dependent care reimbursement account allows employees to set aside pre-tax dollars to pay for eligible dependent care expenses. Contact the Human Resources Office for additional information or to enroll.

Public Radio (WMRA-FM)

WMRA contribution forms are sent to each employee during the radio station contribution campaign. This authorizes a deduction amount, specified by the employee, as a donation to the WMRA Radio Station.

Vehicle Registration (Parking) Fees

A payroll deduction program is available to employees to pay parking fees to the University. The annual charge is divided by the number of pay periods in a year. This deduction can be taken on a pre-tax basis.

Other Miscellaneous Deductions

Numerous miscellaneous optional deductions are offered through payroll deductions including but not limited to:

◊  Computer Loans
◊  VEGA (Virginia Governmental Employee Association)
◊  VPEP (Virginia Prepaid Education Program)
◊  Roth IRA’s
◊  JMU Meal Plan

For more information regarding any benefit or deduction, contact the Human Resources Office.

.234 Establishing and Changing Deductions

All JMU employee deductions will remain in effect until cancelled, in writing to Payroll Services, by the employee or by the established deduction end date.

.240 Direct Deposit of Net Pay

All employees are required, as a condition of employment, to have their pay deposited directly to their bank account. Employees may enroll for direct deposit at anytime in Payroll Services. They should bring a voided check from the applicable bank account with them.

To change account numbers or financial institutions, the employee shall notify Payroll Services and initiate a new Direct Deposit Authorization form.  Direct deposit changes may also be made on-line via MyMadison.

An employee can distribute their pay in up to four (4) different bank accounts at financial institutions located anywhere in the United States. Direct Deposit Authorization forms are available from Payroll Services, the Payroll Services forms webpage, or from departments.

.250 Time Lost (Docking)

Classified employees earn sick and annual leave. When the amount of annual or total leave taken exceeds the total amount earned, an employee enters a "time lost" situation, and may have their pay docked. The Human Resources Office will notify the employee, the employee's supervisor, and Payroll Services when an employee enters a "time lost" situation. The amount of lost time is deducted from the employee's normal salary.

.300 Wage Employees

.310 Responsibilities

.311 Employee

  • Apply for employment, using Joblink, through the University's Human Resources Office.
  • Authorize the Public Safety Office to conduct a background check when requested by the employing department.
  • Complete all applicable personnel/payroll employment forms, including the Direct Deposit Authorization, federal and state tax forms, and I-9 verification.
  • Verify paycheck amounts using MyMadison.

.312 Department

  • Initiate Human Resources' Onboard form.
  • Complete PAR form, or appropriate employment forms, to initiate hiring of wage employees.
  • Maintain accurate records of hours worked by wage employees.
  • Complete and process the payroll-provided JMU Time Entry panel.
  • Direct international employees to the Office of International Programs for tax status and visa information. The International employee will then be directed to HR for completion of their I-9 or On-campus Employment Authorization form.
  • Direct international employees to make an appointment with Payroll Services to complete needed international tax forms, as special IRS taxation regulations apply.

.313 Human Resources Office

  • Complete the Onboard process, which includes I-9 completion, tax forms, and direct deposit form completion for newly hired employees.
  • Receive and process PAR forms, or appropriate employment forms, for employment of wage employees.
  • Forward all completed and approved PAR forms, or appropriate employment forms, tax forms, Direct Deposit Authorization form and deduction forms to Payroll Services.

.314 Payroll Services

  • Receive and process all PAR forms, or appropriate employment forms, for wage employees.
  • Record appropriate data in the HRMS database.
  • Process payroll and direct deposit bank interface.
  • Provide JMU Time Entry panels to departments for temporary wage employees that have a properly completed employment contract or PAR form.
  • Return all inaccurate and incomplete forms to the originating department for correction.

.320 Processing Procedures

.321 Department

  • Complete and process all PAR forms, or appropriate employment forms, for hiring wage employees.
  • Forward, expeditiously, all completed and approved PAR forms, or other employment forms, to the Human Resources Office.
  • Access JMU Time Entry panels from Payroll Services.
  NOTE: Contact Payroll Services if the JMU Time Entry panels are NOT available at least two (2) workdays before the deadline for submission to payroll. (A calendar of applicable payroll deadlines is on the Payroll Services webpage.

  A record of the number of hours worked per calendar day, per calendar week for each employee
  Verification by the employee that the hours recorded are accurate, this can be accomplished either by a full signature, not initials, on the hours worked document or by an electronic time clock system that the employee is required to clock in and out of using a unique password or ID badge each day they work  (Please note that when extenuating circumstances prevent departments from obtaining the employee's signature, the Department of Labor still requires the University to pay for any work performed.)
  Verification by the supervisor or someone in the department that has time sheet approval authority as designated by the University's signature authorization process.  This can be accomplished either by a full signature, not initials, on the hours worked document for each worker or by maintaining a copy of the department's JMU approved time entry panel from the HRMS system.
  Retain original signed and approved hours worked documents for each employee for auditing purposes.
  • Complete the JMU Time Entry panels in accordance with instructions in subsection .940.
  NOTE: Payroll Services will notify the department if an employee has been deleted from the exceptions panel, by mailing a "Re-submit Memo" to the department. The department should add the hours worked by those employees deleted, to the next pay period’s JMU Time Entry panels in accordance with instructions on the memo.

NOTE: The deadline for time submission is set by Payroll Services and is published on the Payroll Services webpage.

.322 Human Resources

  • Complete the Onboard process, which includes I-9 completion, tax forms, and direct deposit form completion for newly hired employees.
  • Receive and process all PAR forms or other employment forms for wage employees.
  • Process necessary documents for enrolling employees in voluntary deduction programs.
  • Forward daily, all PAR forms, or other employment documents, employee federal and state tax withholding forms, deduction forms, and Direct Deposit Authorization forms to Payroll Services.
  NOTE: Payroll Services will include PAR forms received after the deadline on the next payday. For a complete schedule of all payroll deadlines, see the payroll calendar published on the Payroll Services webpage.

  • Enter applicable position information into the HRMS database.

.323 Payroll Services

  • Receive and process all completed PAR forms or other appropriate employment forms, tax forms, and Direct Deposit Authorization forms from Human Resources.
  • Enter applicable employment information into the HRMS database.
  • Provide JMU Time Entry panels to departments as set forth in the payroll calendar, located on the Payroll Services webpage.
  • Upload and process all hours submitted via the JMU Time Entry System by departments.
  • Enter properly submitted and approved hours worked into the HRMS database.
  • Notify the department, by memo, if an employee added to the JMU Time Entry Exceptions panel cannot be paid. (The memo will indicate the reason for non-payment.)
  • Calculate the payroll and run an interface to the bank to authorize direct deposit of pay.

.330 Payroll Deductions

Social Security (FICA-OASDI and Medicare) Withholding

All wage employees are subject to social security withholding. The Federal Government designates the percentage an employee will have deducted from gross wages. The employer (JMU) automatically deducts the employee amount from gross wages, and contributes a like amount. When an employee's gross earnings reach the FICA wage base ceiling for the calendar year, no further deductions will be made.

Federal and State Tax Withholding

Federal and state tax withholding forms shall be on file in Payroll Services, before any payroll processing. Refer to subsections .920 and .930 for form preparation instructions. The forms are required to establish and change the employee's number of allowances. The number of allowances is used to compute the amount of federal and state income tax withheld from pay.

An employee, who fails to submit forms by the payroll-processing deadline, will be taxed at the highest allowable tax rate: single marital status with zero (0) exemptions.

Blank W-4 (federal) and VA-4 (state) forms are available from Payroll Services, from the Payroll Services forms webpage or from the employing department. Return completed forms directly to Payroll Services.

Optional General Deductions

There are several optional general deductions available to temporary wage employees. These include but are not limited to:

  • Foundation
  • Duke Club
  • JMU Combined Charitable Contribution
  • JMU Flex Account
  • Athletic Tickets
  • Tax Shelter Annuities
  • WMRA Public Radio
  • Vehicle Registration Fees
  • VEGA
  • Virginia Prepaid Education Program
  • Roth IRA’s

.400 Student Employees

James Madison University offers three (3) student employment programs. These programs allow students employment in a variety of campus activities and functions. They include:

  1. The Institutional Employment Program

This program is University funded. In order to qualify for employment under this program, eligible candidates shall be degree-seeking undergraduate or graduate students deemed to be making satisfactory academic progress as determined by the Office of Financial Aid and the Student Work Experience Center.

  1. The Federal Work Study Program (FWSP)

This program is need-based and federally funded. Eligible candidates shall be degree seeking undergraduate or graduate level students deemed to be making "satisfactory academic progress", and have a financial need as established through an analysis of the Free Application for Federal Student Aid (FAFSA).

  1. Graduate Assistantships

The Graduate School administers the graduate assistantship program. This program allows for a full-time graduate level student to work up to twenty (20) hours for a University department and receive a fixed stipend for wages and a scholarship towards tuition. Contact the Graduate School for eligibility requirements and more information.

.410 Responsibilities

.411 Student

  • Apply for Federal Work-Study (FWS) by completing the Free Application for Federal Aid form (FAFSA).
  • Apply for institutional employment on-line via JobLink.
  • Apply for graduate assistantships through departments offering the assistantship in coordination with the Graduate School.
  • Complete appropriate tax and I-9 forms at the employing department. Refer to subsections .920 and .930 for federal and state tax form preparation instructions.
  • International student employees shall see the Office of International Programs for tax status and visa information.  The Office of International Programs will complete their I-9, directing the completed form to the Student Workforce Experience Center.  International student employees shall setup an appointment with Payroll Services to complete needed international tax forms, as special IRS taxation regulations apply.
  • Sign the student time log weekly, to attest that they performed the work for the number of hours recorded and on the dates indicated.
  • Verify paycheck amounts using MyMadison.

.412 Student Work Experience Center/Graduate School

  • Assist departments in locating student employees for University employment.
  • (The Graduate School approves graduate assistantships based on availability and confirmation that the employee meets qualifications.)
  • Receives and files all I-9 forms for student employees. Updates I-9 data-base files and modifies Federal Work-Study (FWS) awards as necessary.

.413 Department

  • Advertise department employment opportunities, interview candidates, and process the PAR forms.
  • Forward approved employment documents to the Student Work Experience Center or the Graduate School for approval.
  • Maintain an adequate supply of applicable tax and direct deposit forms. Assist students in properly completing tax forms in accordance with subsections .920 and .930.
  • Review and forward completed tax and direct deposit forms to Payroll Services.
  • Assure the accurate preparation and timely submission of student payroll documents to Payroll Services.
  • Maintain accurate records of hours worked by student employees on internal time logs.
  • Record the number of hours worked by each student employee in the JMU Time Entry panel provided by Payroll Services.
  • Ensure that the JMU Time Entry panel is properly authorized. (The approval attests that each employee worked the number of hours indicated.)
  NOTE: Certain student employees, such as, resident advisors and graduate student assistants, are paid through the salary payroll rather than for actual hours worked.

  • Complete the appropriate I-9 form and forward to the Student Work Experience Center.
  NOTE: International employees shall report to the Office of International Programs for tax status and visa information, and for the completion of their I-9 form or the On-campus Employment Authorization form. These employees also need to meet with staff from Payroll Services to complete necessary tax forms, as special IRS taxation regulations apply.

.414 Payroll Services

  • Provide applicable tax and direct deposit forms to departments.
  • Process all employment documents received from the Student Work Experience Center.
  • Provide to departments, access to the JMU Time Entry panels listing all student employees for whom PAR forms have been received and processed by Payroll Services.
  • Notify the department, by a Student/Wage Resubmit Memo, if employees added to the JMU Time Entry Exceptions panels cannot be paid.
  • Calculate the payroll and run an interface to the bank to authorize direct deposit of pay.

.420 Processing Procedures

.421 Human Resources, Student Work Experience Ctr/Graduate School

  • Approve PAR forms received from departments.
  • Send approved graduate assistantship contracts to Payroll Services for processing.
  • Receive and file I-9 forms for all student employees. Establish student I-9 information in the I-9 database file.

.422 Department

  • Assist student employees with preparation of all appropriate tax and direct deposit forms in accordance with instructions in subsections .920 and .930.
  • Complete PAR forms and forward daily to the Student Work Experience Center.
  • Review completed tax and direct deposit forms before forwarding to Payroll Services to ensure correctness.
  • Maintain accurate records of hours worked by hourly employees on the Student and Wage Employee Time Sheet which includes:
  A record of the number of hours worked per calendar day, per calendar week for each employee
  Verification by the employee that the hours recorded are accurate, this can be accomplished either by a full signature, not initials, on the hours worked document or by an electronic time clock system that the employee is required to clock in and out of using a unique password or ID badge each day they work  (Please note that when extenuating circumstances prevent departments from obtaining the employee's signature, the Department of Labor still requires the University to pay for any work performed.)
  Verification by the supervisor or someone in the department that has time sheet approval authority as designated by the University's signature authorization process.  This can be accomplished either by a full signature, not initials, on the hours worked document for each worker or by maintaining a copy of the department's JMU approved time entry panel from the HRMS system.
  Retain original signed and approved hours worked documents for each employee for auditing purposes.

  • Access JMU Time Entry panels from Payroll Services.
  • Complete the time entry in accordance with instructions provided in subsection .940.
  • Approve the JMU Time Entry panels by the scheduled deadline as listed on the Payroll Services webpage.

.423 Payroll Services

  • Receive from the Student Work Experience Center or the Graduate School the PAR form or Assistantship Contract.
  • Review the employment documents and the tax forms for accuracy.
  • Enter applicable information from the completed documents into the HRMS database.
  • Provide JMU Time Entry panels to the departments.
  • Upload the approved time entry panels from the departments and review for accuracy and completeness.
  • Enter properly submitted time worked into the HRMS database. Notify the department by memo if an employee, added to the JMU Time Entry Exceptions panel, cannot be paid. The memo (referred to as a "Resubmit Memo") will state the reason for non-payment. Complete the pay generation process for student employees and run the interface to the bank to authorize direct deposit.

.430 Payroll Deductions

Social Security (FICA-OASDI and Medicare) Withholding

Student employees are exempt from social security withholding while attending JMU as a full-time student and working in a student position.

Federal and State Tax Withholding

Federal and state tax withholding forms shall be kept on file in Payroll Services. The forms are required to establish the employee's number of allowances used to compute the amount of federal and state tax withheld from pay.

Eligible international student employees may be exempt from federal and state taxes based on federal tax treaties with their country. International employees interested should contact Payroll Services or the Office of International Programs.

Blank tax forms are available from Payroll Services or from the employing department.

The employee should complete the federal and state forms at the employing department and returns the forms directly to Payroll Services. Refer to subsections .920 and .930 for form preparation instructions.

.500 Direct Deposit Advice

.510 General

All employees are required, as a condition of employment, to have their pay deposited directly to their bank account. Employees may enroll for direct deposit at anytime, in Payroll Services. They should bring a voided check from the applicable bank account with them.

To change account numbers or financial institutions, the employee shall notify Payroll Services by initiating a new Direct Deposit Authorization form. Direct deposit changes may also be made on-line via MyMadison.

An employee can distribute their pay in up to four (4) different bank accounts at financial institutions located anywhere in the United States. The Direct Deposit Authorization form is available from Payroll Services, on the Payroll Services forms webpage and the Forms Index of this manual.

.600 Terminations and Resignations

.610 General

See JMU Policy and Procedures Manual, Policy No. 1314, "Transfer or Separation from Employment" for more information.

.620 Processing Procedures

.621 Faculty/Staff

When a classified staff and/or classified or part-time faculty member ends employment with the University, the supervisor shall immediately complete a termination PAR form. The supervisor should forward the form to the Human Resource Office, immediately, in accordance with Policy No. 1314 mentioned above.

.622 Temporary

When a temporary wage employee ends employment with the University, the supervisor shall immediately complete a termination PAR form. Forward this form to Human Resources immediately.

.623 Student

Students who held an employment position funded by FWS and ends employment before the termination date listed on their award letter shall notify their hiring department through a resignation letter. The department then notifies the Student Work Experience Center by submitting a separation PAR form.

Students working in positions designated as "Institutional Employment" shall also complete a resignation letter and submit it to their employing department. The supervisor shall complete a termination PAR form and forward to the Student Work Experience Center. The Student Work Experience Center will forward the approved PAR form to Payroll Services.

.700 Child Support, Garnishment, Tax Levy and Tax Lien Deductions

.710 General

Payroll Services is responsible for complying with court ordered child support, garnishment, tax levy and tax lien demands to withhold money from an employee's pay as directed.

.720 Definitions

.721 Child Support

Child support is a notice from the Virginia Support Enforcement Division that the University is required (by Virginia code) to deduct a specified amount from an employee's pay. This amount will be deducted from the employee's "Disposable Earnings" and will precede all other liens and garnishments. "Disposable Earnings" is equal to the employee's earnings less deductions required by federal and state laws.

.722 Garnishment

A Garnishment is a court summons, which requires the University (garnishee) to withhold from the employee (defendant) a sum of money as specified on the garnishment summons.

.723 Tax Levy

A tax levy is an Internal Revenue Service demand placed on the University to withhold from the employee (taxpayer) a sum of money as specified on the Notice of Levy on wages, salary and other income.

.724 Tax Lien

A tax lien is a Virginia, state, city or county demand placed on the University to withhold from the employee sums of money as specified on the Notice of Tax Lien and Demand for Payment of State or City/County taxes under Section 58-1010 of the Code of Virginia.

.730 Procedure

Child support, garnishments, tax levies and tax liens will be deducted, following federal and state guidelines. Child support, garnishments and federal tax liens are deducted immediately from the employee's disposable earnings (gross less FICA, federal and state taxes). There is no limit to the deductible amount for a state tax lien.

.800 Salary Advance Loans

.810 General

Salary advance loans may be made to classified, temporary, and student employees when a JMU business situation warrants it. Salary advance loans are NOT made on a routine basis or for personal hardship reasons. The Payroll Services Office may approve a salary advance loan, up to the amount of the employee's net pay, when unusual events occur. Payroll Services may also approve a salary advance loan when an employee's net pay is significantly understated due to an error.

  NOTE: THE NON RECEIPT OF PAYROLL DOCUMENTS IN THE PAYROLL SERVICES OFFICE IS NOT A VALID REASON FOR A SALARY ADVANCE LOAN.

.820 Processing Procedures

.821 Employee

  • Contact their supervisor or department payroll designee as soon as possible when they need a salary advance.
  • Pick up the salary advance check from the University cashier on the designated day, as given by a Payroll Services staff member.

.822 Department

  • Determine the need or cause that justifiably warrants a salary advance.
  • Present in writing, a request to Payroll Services, with justification or cause.
  • Provide the employee's name, HRMS ID number, number of hours (if applicable) and rate of pay.
  • Advise the employee of the appropriate time to pick up the advance check.

.823 Payroll Services

  • Assure that appropriate supporting documentation has been received.
  • Determine the propriety of the request and verify that the requested amount does not exceed anticipated earnings on the next paycheck.
  • Approve/disapprove request. Payroll Services Director or designee shall also approve the salary advance loan.
  • Process a salary deduction, from the employee's next pay, to repay the advanced amount.

.824 UBO

  • Issue the advance to the employee.
  • Retain a copy of the Salary Advance Accounting Voucher, reflecting both the advance and its repayment for audit purposes.

.900 Forms Preparation and Submission

.910 General

Certain forms and procedures have been developed to facilitate the payroll process. These forms enable the University Payroll Services Office to obtain pertinent employee information and withholding changes.

.920 Employee Withholding Allowance Certificate (Federal W-4)

.921 Forms Preparation Instructions

Following are detailed instructions for the preparation of the employee's Withholding Allowance Certificate (Federal W-4).

PLEASE TYPE OR PRINT ALL INFORMATION ENTERED ON THE FORM.

The employee shall initial all changes, including strikeouts or "white-outs", they make on this form.

  Type or Print Full Name: Enter the employee's name EXACTLY as it appears on their Social Security Card.
  Social Security Number: Enter the employee's social security number, EXACTLY as it appears on their Social Security Card.
  Home Address: Enter the employee's permanent home address.
  Marital Status: Check the appropriate box.
  If Your Last Name Differs: Check this box if your name differs from the name on your Social Security Card.
  Line 5: If "0" is entered on line 5 and "Single" box is checked in # 3, the maximum amount of tax will be withheld. Leave this line blank if claiming "Exempt" in Line 7, below.
  Line 6: Use this line to have additional federal tax withheld than would be withheld by using the tax withholding tables. Contact Payroll Services for assistance
  Line 7: If an employee wishes to claim "Exempt," (i.e. no tax is to be withheld), they shall meet all conditions. If the employee meets all conditions, write "Exempt" in the blank space provided to the right of the small arrow.
  Signature: The employee's signature as it appears on their Social Security Card.
  Date: Enter the date signed.


.922 Making Changes to Exemptions

Follow these procedures to make changes to the Employee's Withholding allowance Certificate (Federal W-4).

  • Obtain a blank form from the department, Payroll Services or the Payroll Services forms webpage.  Changes can also be made on-line via MyMadison for all "non-exempt" tax withholding claims. 
  • Complete the form in accordance with the instructions outlined in subsection .920 above. This form may be changed as often as is necessary as desired by the employee.
  • Return the completed form directly to Payroll Services. Forms received (6) working days before payday will have changes implemented for that payday.

.930 Virginia Employee's Withholding Certificate (Form VA-4)

.931 Forms Preparation Instructions

Following are detailed instructions for the preparation of the Virginia Employee's Withholding Certificate (Form VA-4).

PLEASE TYPE OR PRINT ALL INFORMATION ENTERED ON THE FORM.

The employee shall initial all changes, including "strike outs" or "white-outs", they make on this form.

  Type or Print Full Name: Enter the employee's full name EXACTLY as it appears on the Social Security Card.
  Social Security Number: Enter the employee's social security number EXACTLY as it appears on the Social Security Card.
  Home Address: Enter the employee's permanent home address.
  Line 1: Enter the total number of exemptions claimed.
  Line 2: Use this line to have additional state tax withheld than would be withheld by using the tax withholding tables. Contact Payroll Services for assistance.
  Line 3: Mark this box if an employee can certify that they are not subject to Virginia withholding. If this box is marked, no amounts should be entered on Lines 1 or 2.
  Line 4: Mark this box if an employee can certify that they are not subject to Virginia withholding because they meet the conditions set forth under the Service-member Civil Relief Act. If this box is marked, a copy of the employee's spousal military identification card must be attached. Additionally, no amounts should be entered on Lines 1 or 2.
  Date: Enter date signed.
  Signature: The employee's signature as it appears on their Social Security Card.


.932 Changes to Exemptions

Follow these procedures to make changes to the Virginia Employee's Withholding Certificate (Form VA-4).

  • Obtain a blank form from the department, Payroll Services or the Payroll Services forms webpage.  Changes can also be made on-line via MyMadison for all "non-exempt" tax withholding claims.
  • Complete the form in accordance with the instructions outlined in subsection .930. This form can be changed as often as is necessary as desired by the employee.
  • Return the completed form directly to Payroll Services.  Forms received (6) working days before payday will have changes implemented for that payday.
  NOTE: On-line MyMadison changes should follow the deadlines outlined in the Direct Deposit and W-4/VA-4 Effective Table located on Payroll Services webpage under Calendar and Deadlines. Additionally, paper forms are not required, if changes to the employee's existing tax withholding status was completed using the on-line self-service feature of MyMadison.

.940 JMU Time Entry

.941 Required

This form is a computer produced panel required to report the total hours worked by each temporary wage and student employee each pay period.

.942 How to Access to JMU Time Entry Panels

After receipt of all employment documents, Payroll Services will provide the JMU Time Entry panels to departments for their employees. In order to be able to access these time entry panels, an individual must be authorized on the department’s signature authorization card, must submit an IIS Access Control form requesting HRMS access, and complete JMU Time Entry training.

.943 How to Submit Completed Panels

Completed and certified panels will automatically be uploaded by Payroll Services. Approved time entry panels are to be completed by the dates specified on their Payroll Calendar.

.944 Panel Preparation Instructions

The following are detailed instructions for preparing the JMU Time Entry panels.

  Dept./JMU Org. Number: Review this information for accuracy. The department name and organization number will be indicated on the panel. If incorrect, please notify Payroll Services immediately.
  Pay Period: This information is indicated on the panel.
  Reg. Hours/OT Hours: Enter the total regular hours worked and the total overtime hours worked for the pay period indicated above. The University's Overtime Policy is stated in Policy 1303 of the JMU Manual of Policies and Procedures. Regular hours and overtime hours shall be recorded with quarter-hours worked (i.e., .25, .50, or .75). If you are reporting hours for more than one pay period, be sure to check the multiple pay periods check-box, and indicate the number of pay periods the reported hours were worked.
  Name: Verify that the names of employees are correctly spelled. To add other employees, see "Time Entry Exceptions" panel.
  Employee Record Number/Employee ID (HRMS): Check this information for accuracy. Numbers will be printed for the employee with pre-printed names in Name listed above.
  Position #: This number will be provided for employees with pre-printed names in the Name line above.
  ADDITIONAL EMPLOYEES:
  Reg. Hours/OT Hours: Indicate regular and overtime hours worked by employees whose names are not pre-printed on the panel.
  Name: Enter the complete names of additional employees whose names are not on the panel. A memorandum will be sent to the department if these additional employees cannot be paid on the current payroll. In that case, the employees and the time worked for this pay period and the next shall be added to the next JMU Time Entry payroll information submitted by the department.
  Social Security Number: Enter the social security number for each additional employee added under the "Time Entry Exceptions" panel. This number should be exactly as it appears on the employee's Social Security Card.
  Reason: Indicate the reason for the exception. Also provide any other additional information that may be helpful or needed by Payroll Services.
  TOTALS and CERTIFICATION:
  Department Totals: The system will automatically calculate a grand total. Please verify for accuracy.
  Certified Correct: Approval of the department head or the employee designated on the Signature Authorization is required. This "signature" certifies the accuracy of the JMU Time Entry panel and authorizes payment for the number of hours indicated.


.950 Employee Direct Deposit Authorization

.951 Required

This form is required to document the automatic deposit of an employee's net pay to a designated bank account.

.952 Where to Obtain Blank Forms

Forms are available ONLINE or from Payroll Services.  Changes to existing Direct Deposit banking information can be made on-line via MyMadison.

.953 Where to Send Completed Forms

Forward completed forms to Payroll Services for verification and to enter into the HRMS database.  Forms are not required if changes to the employee's existing direct deposit were completed using the on-line self-service feature of MyMadison.

.954 Forms Preparation Instructions

The following are detailed instructions for the preparation of the Direct Deposit Authorization form.

  Name of Bank/Credit Union: Enter the name of the banking institution.
  Routing/Transit Number: Enter the Routing/Transit Number to direct your deposit.
  Account Number: Enter the Account Number of the bank/credit union account to indicate what account the amount is to be deposited to.
  Checking or Saving indicator: Select Checking or Savings in the corresponding box to indicate what type of account the net check is to be deposited to.
  On the Account No. 2, 3 and/or 4 lines provide the following if you wish to distribute any money to additional accounts:
  • Name of Bank/Credit Union
  • Routing/Transit Number
  • Account Number
  • Select Checking or Savings
  • The exact amount or a percentage of your net check
  Printed Name: Enter the employee's full name.
  Department: Enter your department number.
  Phone Number: Enter your telephone number.
  Employee's Full Signature: Employee's signature.
  Date: Enter the date the form is completed.
  SSN or Employee ID#: Enter your social security number or your Employee EmplId (not Student ID).
  Voided Check: Attach a voided check to the original form.
  Full Time Faculty and Staff Only - provide the following for non-payroll related reimbursements to an accounting other than your Payroll Net Account No.1:
  • Name of Bank/Credit Union
  • Routing/Transit Number
  • Account Number
  • Select Checking or Savings
5010 Moving and Relocation Payroll Services (5000)

.100 General

When the University chooses to pay moving and relocation expenses, it must do so within the limitations and restrictions provided in the State Moving and Relocation Policy. This section includes the rules, guidelines, specific limitations and restrictions when making third party payments and reimbursing employees for relocating their household to accommodate James Madison University. It provides information to help in moving and relocating employees and their families as quickly as possible at a fair and reasonable cost to the University.

State Moving and Relocation regulations do not require the University to pay moving and relocation expenses. The University may restrict the amount paid to a lesser sum than the maximum allowed by the regulations. Restrictions may be either in total or by individual category.

The amount allowed for moving and relocation expense is determined by the University based on funding available, not on the amounts listed in this procedure.

James Madison University follows Internal Revenue Service (IRS) regulations. Beginning January 1, 1994, the University included taxable moving and relocation reimbursements in the employee's gross income on their Federal W-2 form. The University deducts the appropriate payroll taxes before making payment and recording the excess reimbursement in accounting and payroll records.

James Madison University employees should always use discretion when incurring and reporting payment of public funds. Moving and relocation payments are open to the public and must sustain the test of public review. Realizing the need to control individual situations, the University will apply these procedures fairly and competitively. The University reviews thoroughly all reimbursement and payment requests before processing them for payment.

Payroll Services processes all moving and relocation reimbursement requests through a special payroll process. This office also approves payments to common carriers for moving and relocation transportation costs. The Office of Accounts Payable processes these documents for payment. The University will not approve payments for moving and relocation costs through other processes, such as petty cash.

The University does not issue advances (loans) to cover moving expenses before the move, but may issue an advance upon receipt and approval of forms and required documentation. The advance is to cover payments made by the employee while awaiting receipt of the reimbursement check.

Address questions concerning these procedures to Payroll Services, Telephone x88034.

.200 Definitions

Agency James Madison University (JMU).
Approving Authority President, Vice President, Assistant Vice President, Dean, Asst/Assoc Dean, Director, or Department Head who is the Approving Authority for the DeptID.
Carrier Transportation Services (such as: loading, hauling, crating, and unpacking) provided by a common carrier. The services may include incidental materials supplied to move the household goods and personal effects.
Common Carrier Any licensed commercial moving company.
Days All references to "days" refer to calendar days.
Family Includes any spouse or dependent that resides in the household and moves to the new location.
Moving Actions to change the place of a primary residence.
Moving Expenses Payments for transporting the employee, family, household goods, and personal effects from the former residence to the new work location.
Personal Residence House, condominium, townhouse, or rental property (for example, apartment, flat) where the employee maintains a permanent primary household.
Primary Household Household goods and personal effects maintained at the employee's main place of residence.
Relocation The process of establishing, and settling in a particular place for employment purposes.
Relocation Expenses Payments other than moving expenses incurred in relocating the employee and family.
State Employee Any elected, appointed, salaried, or classified employee of a State agency or institution.
State Funds Monies deposited with the State Treasurer, whether derived from appropriations or agency receipts.
Moving and Relocation Agreement An agreement to remain in the employment of the Commonwealth from the first day in the new position until twelve (12) months after. (The employee must sign this agreement before incurring any expenses.)

NOTE: This is not the JMU Employment Contract.  The Assistant Vice President for Finance, or Designee, must also sign this form.
Temporary Quarters Moving and relocation regulations define temporary quarters as lodging or housing in which the employee lives at a reasonable cost, until a permanent residence is secured, or up to a maximum of 90 days. Temporary quarters could consist of any type of lodging or housing, such as hotels/motels, apartments, or single-family dwellings.

.300 Eligibility

The eligibility of any employee for reimbursement of moving and relocation expenses is at the discretion of James Madison University. James Madison University has the authority to approve or disapprove payments for relocations. Approval or disapproval is subject to University, State and Federal regulations. The University will notify employees of any limitations of scope or University policy that may affect the eligibility for reimbursement.

.310 Employee

The employee must be a full-time salaried employee of James Madison University, as defined by the University.

.320 Relocation

To be eligible for reimbursement, the employee's relocation must meet all of the following conditions:

At Employer's Request

Relocation must be at the request of the employing agency (James Madison University) and for the good of the Commonwealth as determined by the department's approving authority.

The University will not reimburse expenses when the relocation is at the request of, or for the convenience of the employee.

Distance

Effective January 1, 1994, the distance between the employee's new work location and the former residence must be at least fifty (50) miles greater than the distance between the employee's old work location and the former residence. That is, the employee's commuting distance must have increased by at least fifty (50) miles one way. For example, if the original commuting distance from the former residence to the old work site was 10 miles, the new work site must be at least sixty (60) miles. That is, ten (10) miles, original commuting distance, plus the fifty (50) mile increase from the former residence.

Exceptions may be considered by the Assistant Vice President for Finance, or Designee, for relocations which require the employee to establish new residence in a specific geographical location when commuting distance is not increased by 50 miles. All exceptions granted for distances less than 50 miles will comply with IRS regulations and will be taxable to the employee.

Permanent

The employee must satisfactorily maintain employment on a full-time basis with James Madison University for at least one year. The year begins on the date that the employee starts work regularly at the new location. The Employee Moving and Relocation Agreement documents the terms and conditions according to subsection .470, "Employee Moving and Relocation Agreement" of this section.

.400 Reimbursement Limitations

.410 Expenses Incurred and Supported

All payments for reimbursement must be reasonable, necessary, and incurred after the employee executes an Employee Moving and Relocation Agreement. The employee must submit all reimbursement requests to Payroll Services within twelve (12) months of the beginning date of employment at the new location.

.411 House Hunting Expenses (Pre-move Travel) – TAXABLE

House hunting expenses include the following for employee and spouse while traveling:

  ◊  Cost of transportation (including automobile rental)

◊  Meals

◊  Lodging

Travel expenses for house hunting purposes are eligible for reimbursement.  Refer to Section 4215, "Travel," for additional information. Moving and relocation regulations limit reimbursement for house hunting to three (3) trips for the employee and three (3) trips for the spouse.  The University will reimburse a maximum of fifteen (15) nights of lodging. A night of combined lodging for both the employee and spouse counts as one night.

.412 Temporary Quarters – TAXABLE

The employee may claim reimbursement for reasonable lodging or rent expense. Regulations allow up to ninety (90) days, beginning thirty (30) days prior to the first day of employment. Reasonable residential parking fees will be reimbursed during the 90 days of temporary quarters. Cost for hookup of utilities at temporary quarters is not reimbursable. The employee may claim reimbursement for meal expenses for the first thirty (30) days of residence in temporary quarters. Such expenses must be reasonable, necessary, and according to State Travel regulations. Refer to Section 4215, "Travel," for additional information.

.413 Home Sale – TAXABLE

Actual expenses of real estate commissions on the sale of the former principal residence are reimbursable and the usual closing and legal costs incurred in the sale of that residence. Moving and relocation regulations limit reimbursement for home sale expenses to $11,000, as outlined in subsection .420 "Total Reimbursement". The employee must include a copy of the signed "Closing Statement," as supportive documentation when requesting reimbursement. The closing attorney, the realtor, or the seller may sign the "Closing Statement." Listed below are "reimbursable" and "non-reimbursable" expenses related to the sale of a principal residence.

REIMBURSABLE

The following expenses, related to the sale of the principal residence due to moving and relocation are reimbursable:

 
  • Actual expense of real estate commission
  • Attorney fees
  • Title fees
  • Escrow fees
  • State transfer taxes
  • Pest inspections

NON–REIMBURSABLE

The following expenses, related to the sale of the principal residence due to moving and relocation are not reimbursable:

 
  • Sales commissions and similar expenses if the employee acts as a selling agent (closing and legal costs are allowable)
  • Advertising and "fix–up" costs
  • Loss sustained on sale of residence
  • Real estate and capital gains taxes
  • Payment and repayment of interest
  • Points or loan payment charges that are negotiable
  • "Carrying" costs (maintenance fees, utilities, principal, etc.)
  • Mortgage penalties
  • The buyer's closing costs, including Virginia fees

.414 Cancellation of Lease – TAXABLE

The settlement of a lease on the former residence is reimbursable and must be due to moving and relocation. The employee must include a copy of the signed lease and the canceled check or receipt for the lease cancellation payment.

.415 Travel (Move to New Job Location and House Hunting) – TAXABLE AND NON–TAXABLE

Travel expenses related to moving and relocation are eligible for reimbursement according to State Travel regulations. Refer to Section 4215, "Travel," for additional information. Moving and relocation regulations limit reimbursement to expenses for:

The initial trip, after employment, to the new work location  (TAXABLE)
Trips for actual house hunting  (TAXABLE)
The trip to bring the family to the new residence (temporary or permanent)  (NON–TAXABLE)

  Note:  Mileage rate over 17 cents per mile is taxable.

Travel reimbursement does not include automobile rental, except house hunting purposes.

.416 Transportation of Household Goods and Personal Effects – NON–TAXABLE

The actual costs paid for common carrier transportation of the employee's household goods and personal effects are reimbursable.  Reimbursement covers transportation costs from the former principal residence to the residence at the new work location.  Moving and relocation regulations allow the actual costs, in addition to the $11,000 limitation, if the employee uses common carrier transportation.  Refer to subsection .420, "Total Reimbursement," for additional information.

Employees must get three (3) bids for common carrier transportation. The employee should use the lowest of the three (3) bids for moving personal effects from the former residence to the new residence. Before making a formal commitment to use the common carrier, the employee must provide copies of the three (3) bids to James Madison University. Send the copies to Payroll Services, MSC 5706.   Payroll Services will notify the employee of the common carrier chosen.

When at all possible, the employee should use a common carrier based in Virginia. When outside the Commonwealth of Virginia, employees should contact Virginia common carriers to ask if they can match the bid submitted by the out–of–state firms.

The University will issue a letter, if required by the common carrier, to confirm the amount approved for moving expenses.

The University will issue a check directly to the common carrier when the bill is received.  Please note that the University will not reimburse valuation charges above what is normally allowed in the contract (Bulk Rate coverage).  If the employee chooses additional valuation, they must pay that fee directly to the common carrier.

If employees choose to move themselves, the University will include the actual costs allowed in the $11,000 limitation. The following actual costs are reimbursable with appropriate supporting documentation:

Moving vehicle rental – moving van, truck, trailer, hand truck, or other appropriate moving equipment, vehicles, and supplies are reimbursable. Purchase of such a vehicle or equipment is not reimbursable. The purchase of moving supplies, such as packing paper, boxes or cartons, is reimbursable. The cost of such purchases must not exceed $500. Gas used by a rental truck during the move is reimbursable. The employee must get original receipts for all of the expenses listed. Refer to Section 4215, "Travel," for additional information and restrictions concerning the use of rental vehicles.

Labor used during the move – Moving and relocation regulations limit reimbursement to a reasonable hourly wage. The maximum total allowed is $250. Labor provided by the employee or immediate family member(s) is not reimbursable. The employee must get a receipt from the individual employed, showing the amount received and the signature of the recipient.

Mileage – Employees may request reimbursement for use of a personally owned or borrowed moving vehicle. Reimbursement for this expense is at the current personal vehicle mileage rate. This rate is available from the Office of Accounts Payable, Telephone x86265. Moving and relocation regulations will not cover reimbursement for the "rental value" of the personally owned vehicle. The expense of a car or truck with a trailer in tow is reimbursable at the current personal vehicle mileage rate. If the mileage rate exceeds the IRS allowance (currently 17 cents per mile) the difference is taxable.

Tolls – The amount paid for tolls during the move is reimbursable. Include the name of the facility (road, bridge or tunnel) on the reimbursement request.

.417 Storage of Household Goods and Personal Effects – NON–TAXABLE

Expenses for a maximum of thirty (30) days temporary (in transit) storage of household goods are reimbursable. Regulations allow reimbursement if the employee cannot move directly into the new residence. The $11,000 limitation does not include these expenses. Refer to .420, "Total Reimbursement" for additional information.

.418 Home Purchase (TAXABLE)

Certain expenses related to the purchase of a home, incurred by an employee relocating to a new work place, may be reimbursable. These expenses are subject to the $11,000 maximum limitations.  To qualify for reimbursement of these expenses, the relocated employee must have owned a primary residence at his prior location, which due to relocation resulted in disposal of the residence. The University will not reimburse the employee for these expenses to purchase a second residence, investment, business, or resort/vacation property at the new work site. The following expenses related to a home purchase may be reimbursable:

 
  • VA funding fee
  • Loan origination fee, or lease processing fee
  • Mortgage survey
  • Appraisal fee
  • Credit report
  • Title search
  • Title Insurance
  • Recording fee
  • Attorney fee
  • Home Inspection (Limited to one)
  • Notary fees

All of the preceding expenses must relate to the purchase of the primary residence. The employee must purchase (close) on the home within twelve (12) months after the official starting date of employment. Moving and relocation regulations require documentation clearly identifying these expenses.

The University may approve up to an additional twenty four (24) months for extenuating circumstances. The employee must document the extenuating circumstances for review and approval by the Assistant Vice President for Finance, or Designee.  Payroll Services may present extensions after this period to the State Controller, for review.  This review may result in an extension being granted if warranted.

Expenses related to the purchase and replacement of a primary residence, not specifically listed above, are not reimbursable. Examples of some expenses that are not reimbursable are:

 
  • Utility deposits and connection fees
  • Real estate taxes, prepaid or otherwise
  • Capital gains taxes
  • Mortgage loan differential
  • Realtor fees related to purchasing
  • Remodeling or decoration expenses
  • Points, discount fees, or loan payment charges
  • Repair and maintenance costs
  • Homeowner insurance
  • Homeowner warranty fees
  • Private mortgage insurance
  • Permit fees such as building, sewer and zoning
  • Deposit for rent

.419 Non-Reimbursable Expenses

The University approves only those expenses specifically allowed in State Moving and Relocation regulations for reimbursement. Regulations do not consider the following as moving and relocation expenses:

  • The cost of insurance for more than bulk rate coverage provided by the Common Carrier
  • The cost to transport recreation vehicles, such as yachts
  • Laundry or dry cleaning while in temporary quarters
  • The cost to move a pet

.420 Total Reimbursement

State Moving and Relocation regulations establishes the total dollar limit of $11,000 for all moving and relocation expenses other than common carrier transportation and 30 day storage of household goods. Regulations do not place a maximum limit on expense reimbursement or costs related to the use of a common carrier for transportation and 30 days storage.

.430 Employee's Spouse

If the employee's spouse is a State employee and otherwise eligible for moving and relocation expenses, the University will reimburse expenses to only one employee and only to move the primary household to the new location.

.440 Funding

The University determines the availability of funding for moving and relocation expenses and related taxes, if any. The signatory authority for the account charged must approve all moving and relocation payments.

.450 Prospective Employment

Pre-employment expenses for travel, testing, interviewing, and related activities, incurred by or for a prospective employee before employment, are travel expenses not moving and relocation expenses.

The University may reimburse travel expenses of prospective employees, incidental to an employment interview. Departments should request reimbursement of pre-employment expenses separate from moving and relocation expenses. These expenses are reimbursable under State Travel regulations, in effect at the time such expenses occur. Refer to Section 4215, "Travel" for complete information.

.460 Mileage - Travel

Reimbursement for mileage costs may not exceed the amount calculated using the state mileage rate in effect at the time of travel. The rate is available from the Office of Accounts Payable, Telephone x86265. All mileage reimbursements over the amount the IRS allows (currently 17 cents per mile) as a deduction are taxable.

.470 Employee Moving and Relocation Agreement

Any employee requesting reimbursement or payment for moving and relocation expenses must execute an Employee Moving and Relocation Agreement.  The employee must sign this agreement with James Madison University before incurring any moving and relocation expenses. The agreement stipulates:

  • The employee must remain employed on a full-time basis with James Madison University for at least one year, beginning on the date that the employee starts work at the new location.
  • If the employee ends employment with James Madison University before the obligated one year of service, the employee will repay the University the gross amount of moving and relocation payments. That is, actual reimbursements received by the employee and payments to third parties for the employee, and all taxes deducted that relate to those reimbursements.
  • Moving and relocation regulations do not require repayment if termination is at the election of the University due to unsatisfactory job performance, or because of a layoff.
  • The University may prorate or waive repayment if the employee terminates employment with the University for other reasons beyond the employee's control and acceptable to the University.
  • Exceptions involving the early cancellation of an existing Employee Moving and Relocation Agreement, upon executing a new Employee Moving and Relocation Agreement, will be at the option of the agency or agencies involved.

.480 Reimbursement Procedures

The University will not make reimbursements to employees for moving and relocation expenses on an Accounting Voucher, Travel Expense Reimbursement Voucher or Request for Petty Cash Check via Accounts Payable.  Moving and relocation regulations require the University to make reimbursements to the employee for moving and relocation expenses through the regular payroll process.

All reimbursements for lodging, meals, and mileage must be actual, reasonable and necessary. Payments must follow the guidelines of Section 4215, "Travel".  Regulations require the use of a Travel Expense Reimbursement Voucher to itemize expenses.  The University does not submit the voucher for payment via Accounts Payable, but submits it to Payroll Services as supporting documentation to process with the regular semi-monthly payroll.

The employee must complete an Employee Moving and Relocation Expense Summary. Attach the summary with required receipts and detailed supporting documentation to the Travel Expense Reimbursement Voucher.  Refer to Subsection .720, "Employee Moving and Relocation Expenditure Summary," for form preparation and submission instructions.

Moving and relocation regulations require the University to make third-party payments only to common carriers.  The University will pay the common carrier for transportation and temporary storage costs of the employee's household goods and personal effects.  James Madison University will make no other third-party payments for moving and relocation expenses.  The employee/department must complete an Employee Moving and Relocation Expense Summary and an Accounting Voucher.  Submit the summary and voucher, with original receipts and supporting documentation to Payroll Services.

.490 Approvals

Payroll Services reviews all moving and relocation payment requests before obtaining the approval signatures of the Assistant Vice President for Finance, or Designee.

.500 Reimbursement Responsibilities

.510 Employee

  • Obtains original receipts and other documents that are necessary to support all claims for reimbursement.
  • Itemizes and submits multiple claims for reimbursement, if applicable (Employees should submit claims to the department as they receive invoices for individual expenses, not after they receive all invoices).
  • Submits all claims for payment within thirty (30) days after moving into the new permanent residence, but never later than twelve (12) months after beginning employment at the new location.
  • Submits actual, reasonable, and necessary expenses within the guidelines of these procedures.
  • Files the required IRS forms with their tax return to receive a deduction for moving and relocation expenses, if applicable.
  • Reimburses the University for moving and relocation payments (including amounts paid to third-party vendors) and any taxes deducted, if the employee terminates employment with James Madison University before the obligated one year of service.  Under these circumstances the University will adjust the employee's gross income for tax purposes for the total amount returned to the University.

.520 Department

  • Maintains documentation that substantiates the reimbursement eligibility of a new employee as a condition of employment.
  • Assists the employee with moving and relocation form(s) preparation.
  • Approves moving and relocation payments and reimbursements charged to the department account.

.530 Payroll Services

  • Reviews, approves, and properly files all documents for reimbursement or payment of moving and relocation expenses. Processes all documents for payment according to these procedures, State Regulations and the Code of Virginia, Section 2.1-223.3 and 14.1-5.1.
  • Retains copies of the binding Employee Moving and Relocation Agreements and any other agreements for all eligible employees.
  • Collects the total gross amount of all moving and relocation payments if an employee does not satisfy the terms of the Employee Moving and Relocation Agreement. Prorates or waives repayment of reimbursements from the employee if properly approved. (The repayment amount includes all reimbursements paid to the employee and payments to third parties for the employee. The amount also includes all taxes deducted that relate to those reimbursements). Adjusts the employee's gross income to reflect the total amount received by the University.
  • Insures that moving and relocation expense reimbursements and payments meet both employer withholding and employee reporting of gross income and applicable payroll taxes as defined by the Internal Revenue Service. (Refer to Subsection .800 "IRS Reporting and Qualified Moving Expenses," for additional information).

.600 Processing Procedures

This subsection provides detailed procedures for processing reimbursements to employees and payments to third parties for moving and relocation expenses.

.610 Reimbursement to Employee

Moving and relocation regulations require employees to submit the Employee Moving and Relocation Expense Summary form and original receipts with each claim for reimbursement or request for payment. Employees submitting claims should be aware of the payment status of each claim submitted.

.611 Employee/Originator

  • Completes the Employee Moving and Relocation Expense Summary form, signs and attaches all original receipts.
  • Attaches a copy of the Employee Moving and Relocation Agreement to the initial summary.
  • Consecutively numbers each form, when submitting more than one Employee Moving and Relocation Expense Summary form. Carries forward cumulative totals to the next summary report, so the latest summary reflects the total reimbursement to date.
  • Completes a Travel Expense Reimbursement Voucher for each reimbursement request submitted. Obtains the signature of the department's approving authority for the department shown on the voucher (This signature certifies that the total amount on the voucher is within the amount authorized for moving and relocation expenses and that funding is available in the account shown.).
  • Forwards all forms and required attachments to Payroll Services.

.612 Department

  • Acquires and maintains a copy of the signed Employee Moving and Relocation Agreement and any other documentation related to payment or reimbursement of moving and relocation expenses.
  • Assists the employee with moving and relocation form(s) preparation.
  • Approves reimbursement forms or payments when charged to the department account.

.613 Payroll Services

  • Receives forms with required attachments from employee/department originator.
  • Reviews and audits submitted forms and attachments for accuracy, reasonableness, and completeness.
  • Submits payment requests that are in compliance and conformity with Commonwealth and University regulations and limitations.
  • Submits the Employee Moving and Relocation Agreement and the Employee Moving and Relocation Expense Summary forms to the Assistant Vice President for Finance, or Designee, for signature.
  • Determines the taxability of the approved reimbursement amount.
  • Makes necessary entries to the University Payroll System to effect payment to the employee.
  • Includes proper amounts on the employee's W-2 form and on the yearly report of moving and relocation reimbursements (IRS Form 4782).

.620 Payments to Third Parties

State Moving and Relocation regulations restrict third party payments to commercial moving companies. Regulations do not allow any other third-party payments.

.621 Employee/Originator

  • Requests Payroll Services to issue a letter (if moving company requires confirmation) authorizing the moving company to bill James Madison University for moving and relocation costs.
  • Prepares the Employee Moving and Relocation Expense Summary form.
  • Obtains the signature of the department's approving authority for the department shown on the payment voucher or reimbursement document.
  • Forwards all forms with original receipts and other supporting documentation to Payroll Services.

.622 Department

  • Maintains a copy of the signed Employee Moving and Relocation Agreement and any other documentation related to third party payments and reimbursements to employees for moving and relocation expenses.
  • Assists the employee with moving and relocation form(s) preparation.
  • Approves reimbursement or payment requests when charged to the department ID number.
    NOTE: The signature certifies that the total amount is within the amount authorized for moving and relocation and funding is available in the account shown.

.623 Payroll Services

  • If required by the common carrier, prepares a letter authorizing the moving company to bill James Madison University for transportation and associated costs.
  • Receives all forms, copies of correspondence and required attachments, related to moving and relocation reimbursement or payment requests.
  • Reviews and audits submitted forms and attachments for accuracy, reasonableness, and completeness of supporting documentation.
  • Determines that submitted expenses are in compliance and conformity with Commonwealth and University regulations and limitations.
  • Obtains appropriate signatures for the Employee Moving and Relocation Agreement and the Employee Moving and Relocation Expense Summary forms.
  • Forwards the audited payment package to the Office of Accounts Payable.
  • Maintains a copy of the common carrier payment package submitted to the Office of Accounts Payable.

.624 Accounts Payable

  • Receives audited payment-package from Payroll Services.
  • Compares the payment amount to the authorized amount, if applicable.
  • Processes payment package to effect payment and to record transactions in PeopleSoft Finance.

.700 Forms Preparation and Submission

.710 Employee Moving and Relocation Agreement

.711 Required

Any employee requesting reimbursement of moving and relocation expenses must execute this agreement before incurring any moving and relocation expenses.

.712 Where to Obtain Blank Forms

An electronic blank form is available ONLINE.

.713 Number of Copies

Complete one copy.

.714 Where to Send Completed Forms

Send original agreement to Payroll Services.

.715 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Employee Moving and Relocation Agreement. Enter the following information only, leave all other areas blank.

  Date: Date employee signs the Employee Moving and Relocation Agreement. This date must be prior to any expenses being incurred.
  Employee Name: The full name of the employee.
  Department: The name of the department.
  Date: Date employment begins.
  M&R Allowance Applicable: Specify the dollar limit allowed by the department (not to exceed the state's maximum of $11,000.
  Employee: The employee must sign in ink certifying to the terms of agreement.  Electronic signatures are not acceptable.
  Agency: The signature of the Assistant Vice President for Finance, or Designee. (Payroll Services will get this signature after they have reviewed documents for correctness.)
  Date: Date the Assistant Vice President for Finance, or Designee, signs the Employee Moving and Relocation Agreement.


.720 Employee Moving and Relocation Expense Summary

.721 Required

Moving and relocation regulations require this form to summarize employee moving and relocation expenses. The regulations also require a separate form for each reimbursement claim or payment to a third party.

.722 Where to Obtain Blank Forms

An electronic blank form is available available ONLINE.

.723 Number of Copies

Complete one copy.

.724 Where to Send Completed Forms

Send the original form to the department, who will forward the form to Payroll Services.

.725 Required Supporting Documents

Original receipts supporting the employee’s reimbursement request must accompany the Employee Moving and Relocation Expense Summary, along with a reimbursement/payment voucher.

.726 Form Preparation Instructions

This subsection provides detailed instructions for completing the Employee Moving and Relocation Expense Summary form. Enter the following information only; leave all other areas blank.

  FOR COMPLETION BY EMPLOYEE:
  Reimbursement Number: Enter the next consecutive number for this summary report. For each reimbursement, a summary report must be completed and numbered in consecutive order.
  Is this the final reimbursement? Yes/No (Check One): Check "yes" or "no" as appropriate, whether this is or is not the final summary report.
  Employee Name: Enter the employee's full name.
  SSN/HR EmplID: Enter the employee's individual social security number, or HR PeopleSoft EmplID (not STUDENT PeopleSoft EmplID).
  Address/City/State/Zip: If known when completing this summary report, enter the address (Street, City, State, and Zip Code) of the employee's new residence.
  Date Employed: Enter the effective date of the employee's assignment or transfer to the above agency at the new work location. Usually this is the first day of work at the new location.
  Date Employee Moving and Relocation Agreement Signed: Enter the date that the employee signs the Employee Moving and Relocation Agreement.
  TYPE OF MOVING EXPENSE: Enter information as described below.
  TOTAL THIS REPORT: Enter the gross expenses being reimbursed for, in the appropriate category box on this expense summary.
  TOTAL ALL PRIOR REIMBURSEMENTS: For each applicable category claimed on all prior summary submissions, enter the total gross amount claimed.
  CUMULATIVE TOTAL: Add, "Total All Prior Reimbursements" to "Total This Report" for each category and enter the cumulative total. Carry the cumulative totals forward to the next summary report submitted, using the Total All Prior Reimbursement column.
  TAXABLE EXPENSES:
  Pre-move travel and lodging payments excluding meals: Number of Trips/Number of Nights: Enter the number of house hunting trips and the associated number of overnight stays connected with this move. Enter expenses in the applicable columns.
  Temporary quarters travel and lodging payments: From/To: Enter the starting and ending dates of the temporary quarters period for reimbursement requested on this report. Enter expenses in the applicable columns.
  Total meal payments for pre-move house hunting and temporary quarters: Enter the meal expenses associated with travel from the old to the new home in the applicable columns.
  Total meal payments incurred during travel from the old to the new home: Enter the meal expenses associated with travel from the old to the new home in the applicable columns.
  Qualified expenses of buying a new home: Enter only those expenses listed as reimbursable in Subsection .418 "Home Purchase (TAXABLE)." Enter expenses in the applicable columns.
  Qualified expenses of selling an old home: Enter only those expenses listed as reimbursable in Subsection .413 "Home Sale (TAXABLE)." Enter expenses in the applicable columns.
  Other payments (Specify on an attached sheet): Enter any other payments that are subject to reimbursement per the guidelines set forth in this section, "Moving and Relocation." Specify these payments on a separate sheet and attach it to this form. Enter expenses in the applicable columns.
  SUBTOTAL TAXABLE EXPENSES: Enter the subtotal of taxable expenses in the applicable columns.
  NON–TAXABLE EXPENSES:
  Storage: Common Carrier, Dates: From/To: Enter the starting and ending dates of the common carrier storage services. Enter expenses in the applicable columns.
  Storage: Other than Common Carrier, Dates: From/To: Enter the starting and ending dates of the non-common carrier storage services. Enter expenses in the applicable columns. 
  Transportation: Common Carrier: Enter the expenses for common carrier transportation of the employee's household goods and personal effects from the former principal residence to the new work location. Enter expenses in the applicable columns.
  Transportation Other than Common Carrier: Enter the expenses of a moving vehicle rental for the employee's household goods and personal effects from the former principal residence to the new work location. Enter expenses in the applicable columns.
  Travel and lodging payments excluding meals for the move from the old to the new home: Enter the costs of travel and lodging payments, excluding meals, for the move from the old to the new home. Enter expenses in the applicable columns.
  FOR COMPLETION BY DEPARTMENT:
  SUBTOTAL NON–TAXABLE EXPENSES: Enter the subtotal of nontaxable expenses in the applicable columns.
  GRAND TOTAL: Enter the grand total of all taxable and nontaxable moving and relocation expenses in the applicable columns.


  CERTIFICATION STATEMENTS:
  SIGNATURE OF EMPLOYEE: The employee (listed in item 3) must sign in ink certifying that the information is correct and conforms to any James Madison University Moving and Relocation expense reimbursement agreement.
  DATE: Date the employee signs the form.
  SIGNATURE OF ASSISTANT VICE PRESIDENT AND FINANCE: Payroll Services will obtain the signature of the Assistant Vice President for Finance, or Designee, after reviewing all documents for correctness.
  DATE: Date the Assistant Vice President for Finance, or Designee, signs the form.


.800 IRS Reporting and Qualified Moving Expenses

.810 IRS Reporting

Applicable Federal and State Laws require the University to include certain reimbursements to relocated employees in the employee's gross income, and to exclude certain relocation expenses. Under Federal guidelines, expenses that constitute qualified moving expense reimbursements should not be considered as taxable income. Expenses not qualified are taxable and included on the employee's W-2 tax withholding statement. Each employee is ultimately responsible for proper reporting and tax treatment of any reimbursements to the IRS for each tax year.

.820 Qualified Moving Expenses

This subsection provides general information on the possible tax treatment of the reimbursements and payments received because of relocation. The employee should consult a tax advisor or devote personal time to the detailed review of tax regulations to determine the effects on personal income tax liability. Additionally, IRS Publication 521, "Moving Expenses," is available upon request from the IRS.

Passage of the 1993 Revenue Reconciliation Act modified the moving expense deduction for expenses incurred after December 31, 1993. The new tax law defines "Moving Expenses" as the reasonable costs of (1) moving  and storage of household goods and personal effects from the former residence to the new residence (this includes the common carrier), and (2) traveling (including lodging during travel) from the former residence to the new place of residence. Qualified moving expenses do not include any expenses for meals.

Under Federal guidelines, the following expenses are not qualified moving expenses:

  • The cost of pre–move house–hunting trips.
  • The cost of temporary living expenses in the general location of the new job.
  • The cost of selling or settling an un–expired lease on the former residence or the cost of buying a new residence.

Qualified moving expenses are excludable from gross income and wages for income and employment tax purposes when paid for by the Agency or Institution. Under the IRS guidelines, the University must add reimbursement of expenses that are not qualified moving expenses to the employee's income as taxable income. Appropriate Federal and State income taxes are withheld.

.900 Summary of Moving and Relocation Expense Reimbursement Limitations

Total Reimbursement – $11,000

Moving and relocation regulations limit maximum reimbursement to $11,000. This limit excludes the costs of common carrier transportation, and storage of household goods and personal effects.

House–hunting Expenses

House hunting expenses are subject to State Travel regulations limits (Refer to Section 4215, "Travel") for meals and lodging. The maximum reimbursement of $11,000 includes house–hunting expenses.

Temporary Quarters

Expenses for temporary quarters are subject to limits documented in State Travel regulations (Refer to Section 4215, "Travel") for meals and lodging. The maximum reimbursement of $11,000 includes temporary quarters expenses.

Home Sale

The maximum reimbursement of $11,000 includes qualified home sale expenses.

Transportation of Household Goods and Personal Effects

Moving and relocation regulations allow the actual cost of transporting household goods and personal effects if the new employee uses common carrier transportation. The regulations allow actual costs beyond the maximum reimbursement of $11,000.

Purchase of Moving Supplies – $500

Maximum reimbursement of $11,000 includes the cost of moving supplies.

Labor Used During Move – $250

Maximum reimbursement of $11,000 includes labor used during the move.

Storage of Household Goods and Personal Effects – Maximum of 30 days.

In–transit storage of household goods is reimbursable. Regulations allow the actual costs beyond the maximum reimbursement of $11,000.

Home Purchase

The maximum reimbursement of $11,000 includes qualified home purchase expenses.

6005 Fixed Assets Asset Control and Management (6000)

.100 General

Responsibilities and procedures described in this section apply to the acquisition, transfer, disposition, reporting, and physical inventory of university assets. JMU procedures are applied in conjunction with the CAPP Manual and ASTM International E53 standards on Property Management Systems. These procedures are necessary to effectively manage and control university assets and to comply with federal, state, and university guidelines and generally accepted accounting principles.

.200 Definitions

Asset: (1) Anything owned having monetary value; (2) tangible or intangible items owned by an entity that have probable economic benefits that can be obtained or controlled by the entity (ASTM E2135).
ASTM International: One of the largest standards development and delivery systems in the world; ASTM standards are voluntary consensus documents that guide in research, design, manufacturing, marketing and trade.
Cannibalization: removal of serviceable components from one item of equipment in  order to install them on another item of equipment.
CAPP Manual: Commonwealth Accounting Policies and Procedures, developed by the State Comptroller
DPO: Departmental Purchase Order; usage of DPO is limited to items that are considered eVA exclusions.
EICR: Equipment Inventory Change Request form.
ETF: Equipment Trust Fund; established to provide funding to update equipment needed for instruction and research; SCHEV, VCBA and the Department of Treasury share administrative responsibilities.
ESN: Equipment Service Number; blue decal assigned to computer equipment by PC Services
Equipment: Agency property of any kind, which meets the following criteria: Is complete in itself; does not lose its identity or becomes a component of the building where it resides; and, is of a durable nature with a useful life of two years or more.
eVA: electronic Virginia, the State's online procurement system, used by the university for purchases.
Financial Reporting: An organizational unit within the Finance Division which is responsible for accounting and financial reporting of fixed assets, including related debt and real estate and equipment operation leases.
Fixed Assets: When lower case (fixed assets), a general term which includes all types of fixed assets: land, buildings, improvements other than buildings, construction in progress, equipment, library/reference materials, artwork and historical collections, and certain internal-use software; when capitalized (Fixed Assets), the organizational unit within the Accounting and Reporting area of the Finance Division, which is responsible for the accounting and financial reporting of fixed assets, including tracking titles, deeds, and easements, as well as periodic inventories of fixed assets.
Fixed Assets Coordinator: The liaison between a university department and the Office of Fixed Assets and Surplus Property.  This person is designated by a Department Head and is responsible for maintaining equipment records, assisting with the annual physical inventory, scheduling appointments for decaling equipment, and communicating with Fixed Assets staff to ensure accurate equipment data through the use of the Equipment Inventory Change Request (EICR) form.  The Fixed Assets Coordinator is responsible for completing EICR forms for his/her department to send items to the Surplus Property Warehouse, transfer items to another department, and accept items transferred to his/her department from another.
PO: Purchase Order
SCHEV: State Council of Higher Education for Virginia
Sunflower System: the university's web-based asset management system, which supports all lifecycle asset management events from acquisition through disposal, including barcode scanning software for physical inventories.
Surplus property: When lower case (surplus property), equipment and supplies no longer needed by a department awaiting transfer or disposal; when capitalized (Surplus Property), the section of Fixed Assets responsible for managing surplus property.
VCBA: Virginia College Building Authority.


.300 Responsibilities

.310 Fixed Assets

  • To maintain the official fixed asset master file records for university assets.
  • To summarize financial activity for inclusion in the plant fund portion of the University’s financial statements.
  • To interpret and comply with university, federal, and state policies and procedures regarding fixed assets and surplus property.
  • To manage the surplus property operations.
  • To provide customer service for university departments.
  • To coordinate the physical inventory process for the university annually.

.320 Financial Reporting

  • To perform accounting and reporting for capital projects.
  • To perform accounting and reporting for debt (bonds used to fund capital projects, capital leases, and installment purchases).
  • To administer operating lease databases for real estate and equipment.
  • To summarize financial activity for inclusion in the plant fund portion of the university's financial statements.

.330 Department Heads

  • To ensure that equipment belonging to their department is adequately controlled and safeguarded.
  • To designate an individual as the departmental Fixed Assets Coordinator for maintaining equipment records, conducting an annual physical inventory, scheduling appointments for decaling equipment, and communicating with Fixed Assets to ensure accurate equipment data.
  • To approve EICR forms related to their department's inventory.

.340 Departments

  • To assist Fixed Assets staff in conducting an annual physical inventory and providing results for updating the official fixed asset records.
  • To report regularly to Fixed Assets (using the EICR form) equipment transfers from one department to another department, equipment relocation to a different building, or property disposals as a result of trade-in, cannibalization for parts, theft, or other insurable loss.

.400 Capitalization Policy

With the exception of donated assets, fixed assets are accounted for at the original acquisition cost, which includes the purchase price or constructed cost, plus any cost incurred to place an asset into service. Donated assets are recorded at fair market value at the date of donation. Asset acquisitions that have an original unit cost of $5,000.00 or greater and a minimum useful life of 2 years are capitalized for inclusion in the university’s financial statements and recorded in Sunflower Systems. Acquisitions of ETF assets costing between $500.00 and $4,999.00 are considered controllable and recorded in Sunflower Systems to provide accountability and to safeguard the asset until ownership passes to the University.  Additionally, assets on loan to the university and assets from a granting agency which require training, and cost between $2,000.00 and $4,999.00, are considered controllable and recorded in Sunflower Systems to provide accountability and to safeguard the assets.

.500 Equipment Trust Fund (ETF)

The Equipment Trust Fund Program administered by SCHEV provides an additional funding source that allows higher education institutions to purchase equipment for instructional use. Equipment purchased with Trust Fund monies is not owned by the University, but is tied to leasing agreements with the VCBA. Once a leasing agreement has been satisfied (for a particular allocation), ownership passes to the University. In addition to general rules applicable to all equipment, specific guidelines apply to the acquisition, maintenance, and disposal of ETF equipment. Failure to satisfy these requirements could jeopardize future allocations of ETF monies. Refer to specific ETF guidelines listed below:

ALL ETF EQUIPMENT:

  • Must be used in programs of instruction, research, and academic support throughout its useful life or until ownership passes to JMU.
  • Is eligible for surplus only after ownership passes to JMU.
  • Lost or stolen must be replaced with departmental funds.
  • Must be an individual item that costs at least $500 or must be a functional unit where the aggregate cost of individual components is $500 or greater. Components of a functional unit perform a specific task and must remain assembled as a unit.
  • Must be decaled within 45 days of receipt for identification and tracking purposes.
  • Must be maintained in good working condition by the department and must be physically located in accordance with Sunflower Systems records.

.600 Acquisitions

.610 Identifying Fixed Asset Items and Decaling

By analyzing daily the "Potential Fixed Assets" report generated from the university's financial information system, the Fixed Assets Assistant Manager identifies equipment purchases for decaling. The report provides a list of all accounts payable vouchers recorded in equipment accounts (2xxxxx) and select service and supply accounts (1xxxxx) regardless of cost. The Assistant Manager selects expenditure transactions that are $5,000.00 or greater, Equipment Trust Fund purchases (all regardless of cost), Local/Agency fund purchases ($5,000.00 or greater) or partial payments. Actual scanned vouchers are reviewed in detail online. Equipment purchases are written up on a Sunflower systems input document and assigned barcode decal numbers based on the following criteria:

BAR CODES

  FUNDING SOURCE ORG CODES DOLLAR CRITERIA DECAL NUMBER SERIES DECAL COLOR & DESCRIPTION
  Operating
(E&G, Aux)
1XXXXX or 3XXXXX $5,000 or Greater Decals Prefixed with "1" Black & White -
Property of JMU
  Capital Projects 7XXXXX $5,000 or Greater Decals Prefixed with "1" Black & White -
Property of JMU
  Local Funds 8XXXXX $5,000 or Greater Decals Prefixed with "1" Black & White -
Property of JMU
  Equipment
Trust Fund
100062 All Regardless Of Cost Decals Prefixed with "8" Red & White -
Property of JMU Equipment Trust
  Grants &Contracts 5XXXXX $5,000 or Greater Decals Prefixed with "9" Red & White -
Property of JMU Restricted

Decal numbers assigned to assets are recorded in an Access database to track issuance for tagging and return of the input document for entry in SunFlower Systems.

Acquisitions of land, buildings, and improvements other than buildings are identified through the capital project process. Financial Reporting personnel perform a year-end review of non-capital projects coordinated primarily through Facilities Management.

Fixed asset acquisitions are made subject to approved operating and capital project budgets in conjunction with Section 7005, Procurement.

.620 Decaling Equipment

Following assignment of decal numbers, the departmental Fixed Asset Coordinator is contacted to schedule an appointment for decaling equipment purchased by their department. Information identifying the equipment is provided when the appointment is set up. Decaling should be completed within 30-45 days following acquisition of the equipment. Decaled assets are listed on departmental inventory reports that are updated annually by Fixed Assets through the physical inventory process. Each department has an obligation to notify Fixed Assets if they have untagged equipment with a value of $5,000.00 or more.

During the decaling process, data such as serial number and location (building and room) is gathered to complete the fixed asset record and recorded on the Sunflower Systems input document. This information is not typically found on the supporting purchasing documentation.  ASTM Standard E 2631, Standard Practice for Physical Placement of an Entity-Controlled Supplemental Identification Label, is followed with the decaling process.

Following the decaling of equipment, transactions are entered into Sunflower Systems to record university fixed assets and related data. Edits are verified to ensure the accuracy and integrity of the data that was entered.

.630 New Asset Report

To ensure the new assets are recorded in the correct responsible department and with accurate descriptions and locations, a monthly asset report is sent to any department that has received new assets tagged within the prior month according to Fixed Assets' records.  This report is sent to the departmental Fixed Assets Coordinator, who is asked to review the report for any inaccuracies and respond as having received the report and reviewed it.  Any errors noted are corrected through miscellaneous change entries in Sunflower Systems.

.700 Equipment Transfers & Disposals

At some point, a department or office may no longer need a piece of equipment currently in their possession. If the equipment has a white decal with red lettering (numerical sequence beginning with "8" or "9") the department should contact Fixed Assets for transfer or disposal instructions. Equipment with a white decal and black lettering (numerical sequence beginning with "1"), as well as equipment without decals, may be transferred or disposed of as listed in the following two sub-sections.

.710 Transfers

  • To Another Building within the Same Department:
    For Decaled Equipment - Complete an Equipment Inventory Change Request (EICR) form and send to Fixed Assets.
  • To Another Department:
    For Decaled Equipment - Complete an Equipment Inventory Change Request (EICR) form, including receiving department section and send to Fixed Assets.
  • To Surplus Property:
    See Section .900

.720 Disposals

  • Trade-In - Departments may use like equipment as trade-ins. An EICR form must be completed for decaled equipment and forwarded to Fixed Assets. The PO or PCO supporting the purchase must be referenced on the EICR form.
  • Cannibalization for Parts-Equipment that is broken/non-functional and not cost beneficial to repair may be cannibalized for the purpose of repairing like assets.  An EICR form must be completed to report the cannibalization to Fixed Assets.
  • Loss or theft - All property lost or stolen must be reported immediately to the University Police. Also, the Office of Risk Management must be notified for insurance purposes (refer to Section 3040, subsection .500 of this manual). An EICR form must be completed for decaled property so that inventory records can be updated.
  • Casualty Loss - Property destroyed by fire or other catastrophic circumstances must be reported to Fixed Assets through submission of an EICR form. Contact the Office of Risk Management for insurance purposes.
  • Return to Vendor - Equipment returned to the vendor and either exchanged or refunded must be reported to Fixed Assets through submission of an EICR form.

PLEASE NOTE: The JMU Surplus Property Coordinator regulates any disposal of property (other than those listed previously) including transfers to state agencies or other institutions of higher education.

.800 Physical Inventory

.810 General

In order to comply with federal, state, and university and ASTM International guidelines for maintaining accurate fixed asset records, all university departments are required to conduct a physical inventory of equipment under their control on an annual basis. A physical inventory involves the verification of all equipment within a department by actual observation and count. Departments are encouraged to maintain up-to-date equipment records in order to assist in their annual physical inventory process.  To conduct annual physical inventory verifications for departments, a scanned verification is performed by Fixed Assets staff members using barcode readers to scan asset ID decals.  Fixed Assets Coordinators assist with the scanned verification.

The Sunflower Systems Inventory Report is used to help with the annual physical inventory. The Sunflower Systems Inventory Report is emailed to the department's Fixed Assets Coordinator with a memo which provides instructions on the inventory process.

.820 Detailed Description of Sunflower Systems Inventory Report

Tag Number: Property of JMU ID number (barcode decal) affixed to the equipment
Official Name: Type of asset (examples: desktop computer, pickup truck, equipment)
Manufacturer: Company that manufactures the asset
Model: Number or name assigned by the manufacturer to the equipment
Description: Additional descriptive information regarding the asset
Serial Number: Distinguishing number given to each model of equipment
ESN: PC Services assigned identifier for computer related assets
Total Cost: Original purchase price, including installation
Department Code: Identifier code assigned by Fixed Assets to each JMU Department
Condition:
  • Idle – Code signifies asset is in storage or is surplus and not in use.
  • Missing 1 – Code signifies first inventory cycle the department could not locate asset.
  • Missing 2 – Code signifies second inventory cycle the department could not locate an asset.
  • Found – Code signifies missing asset found during last inventory cycle.
  • Used – Code signifies asset purchased in used condition.
Acquisition Date: Date JMU received the asset and/or date asset is placed into service.
Site: Zone the building is assigned to by Facilities Management (same as for work requests in AiM)
Building: Official building number assigned by Space Management and the abbreviated building name.
Room: Room number most closely associated with the asset location on the JMU building floor plans.

.830 Scanned Method of Physical Inventory Verification using Sunflower Systems Inventory Report

General Instructions

  • A Fixed Assets Inventory Specialist contacts the Fixed Assets Coordinator to schedule an appointment for the verification.
  • ALL equipment must be available for scanning at the arranged date and time. The Fixed Assets Coordinator for the department is responsible for:
    • Announcing to the department’s faculty and staff the date/time that Fixed Assets staff will be in the department to conduct the physical verification of fixed assets.
    • Coordinating with faculty and staff prior to the appointment date/time for any laptops or equipment normally used away from the office to be available for scanning.
    • Coordinating with faculty and staff to have equipment normally stored in closets, drawers, boxes or locked cabinets accessible at the appointment date/time.
    • Contacting Fixed Assets prior to the appointment date/time of any issues or problems regarding non-availability of an asset for scanning.
    • Assisting the Fixed Assets staff during the appointment in locating assets on the department inventory.
  • A Scanned Equipment Certification form is completed by the Fixed Assets Inventory Specialist and the Fixed Assets Coordinator at the time of the inventory verification.

.840 Inventory Memos and Missing Assets

After uploading and completing a scanned inventory verification in Sunflower Systems, a memo is sent to the Department Head confirming the inventory results and noting any missing assets. A copy of the Scanned Equipment Certification is provided to the Department Head for his/her records. If a missing asset(s) is noted with the inventory verification, a spreadsheet inventory of the missing asset(s) is provided with the memo.

Assets noted as missing for the first time are given the condition, Missing 1, in Sunflower Systems and show as such in the spreadsheet. The Department Head is asked in the memo to send a follow-up memo addressing the attempts to locate the missing asset(s).

Assets noted as missing for the second inventory cycle in a row are given the condition, Missing 2, in Sunflower Systems and show as such in the spreadsheet. The Department Head is asked in the memo to send a follow-up memo addressing further attempts made to locate the missing asset(s) since the prior inventory verification. The Department Head may also request in the follow-up memo to have any assets with a condition of Missing 2 removed from his/her inventory.

If a missing asset was purchased with Equipment Trust Fund monies and ownership has not passed to the university, the department is required to replace the ETF assets listed on the spreadsheet using departmental funds (refer to Section .500). In the memo, the Department Head is made aware of this policy and is provided with the net value of the equipment in the spreadsheet. This net value is the minimum amount that must be spent on a comparable equipment replacement. The Department Head must state in his/her follow-up memo when the replacement will be purchased and provide a purchase order number to Fixed Assets, once the order is placed.

A due date of two weeks is given to the Department Head for follow-up memos to be submitted to the Manager of Fixed Assets and emailed memos are acceptable. Once a follow-up memo is received, the Department Head receives a response, including approval of a request to remove Missing 2 assets from the inventory. Copies of all memos and correspondence are filed in the current year departmental inventory files maintained by the Inventory Specialists.

.900 Surplus Property

All University property that is determined to be excess, unwanted, or can no longer be utilized by a department is eligible for direct transfer to other campus departments or must be transferred to Surplus Property. The Surplus Property Coordinator redistributes and disposes of surplus property in compliance with state policies and procedures.

.910 Transferring Items to Surplus Property

The following subsections provide procedures for transferring items to Surplus Property.

.911 Items Other than Computer Equipment and Vehicles

  • Notify the Surplus Property Coordinator at extension 86931 or via e-mail to provide information regarding the types of items and volume for transfer.
  • Complete an EICR form listing all items for transfer to Surplus Property.  All items to be surplused must be recorded on an EICR form, regardless if they have an ID decal or not.  The EICR form must be approved by the Department Head.  Please Note: Grant and Equipment Trust Fund (ETF) equipment require pre-approval from an Inventory Specialist before they are eligible surplus items.
  • Submit a work request to Facilities Management in AIM for items that are too heavy or cumbersome for one person to handle. The Surplus Property Coordinator will assist in making that determination. The Surplus Property Coordinator will pick up small items from your department within seven working days.
  • NOTE:  No personal vehicles should be used for delivering surplus items to the Surplus Property warehouse.  Only University vehicles should be used for deliveries to Surplus Property.

.912 Computer equipment to Computer Surplus (Includes CPU’s, laptops, tablets, servers, monitors, keyboards, printers, and scanners)

  • Group surplus computing equipment in a central location (if possible) for Computer Surplus staff to pick up.
  • Have the department's Fixed Assets Coordinator fill out an EICR form.  Note: Please record JMU decal numbers & ESN #’s on the form.  Check the box in Section III and record "Computer Surplus" as the Department Name.  The EICR form must be approved by the Department Head.
  • Email a scanned copy of the EICR form to fixedassets@jmu.edu or mail the original to Fixed Assets @ MSC 5704.  Keep a copy of the EICR form for departmental records.  An Inventory Specialist will approve the EICR form and forward it to Computer Surplus staff to schedule a pick-up of the surplus computer equipment.
  • Keep the EICR form with the equipment for pick up.
  • Computer Surplus staff will bring 3 copies of the approved EICR form when they pick up the surplus computer equipment and sign in Section III on the Received By line and record the date.  One copy of the EICR form is given to the department for their records.  The other two copies are taken by the Computer Surplus staff back to their office.
  • One copy of the approved EICR form with Computer Surplus's receiving signature is sent to Fixed Assets to ensure that JMU decal numbers are removed from your inventory.  The third copy is sent to PC Services to update Remedy.
  • Please Note: Grant/Equipment Trust Fund (ETF) computer equipment require pre-approval from Fixed Assets before they are eligible surplus items.

.913 University vehicles from the Facilities Management motor pool to Surplus Property

  • Transportation Manager of Facilities Management submits an EICR form to Surplus noting the vehicle's JMU decal number and description (make, model, FM vehicle number assigned, and VIN).  Attached to the EICR form is a JMU Vehicle Condition Report, completed for each vehicle being surplused. This report is completed by the Facilities Management Garage Supervisor and provides the details Surplus Property needs in order to sell the vehicle.
  • The Surplus Property Coordinator will inspect each surplused vehicle and complete section II of the EICR form, showing receipt.
  • The following should be completed by the Transportation staff prior to any vehicle’s transfer to Surplus Property:
  • Remove toolboxes, accessories, etc. to be retained
  • Remove "James Madison University" logos and vehicle numbers
  • Surplus vehicle keys should be kept at the USB Garage for availability when surplus vehicles are picked up for auction.

.920 Transfer and disposition of surplus property

Once items have been transferred to Surplus Property, they are processed in the following ways, in order of priority:

.921 Transfers to University departments at no cost

To better serve departmental needs, the Surplus Property Coordinator will maintain a "wish list" and notify requestors when eligible items are received and available for transfer. At times Surplus Property will initiate contact with certain departments that are more likely to need specific types of items.

Departments should follow the procedures listed below to obtain Surplus Property items:

  • Review the Current Inventory Listing of available items for transfer on the Surplus Property website or contact the Surplus Property Coordinator directly to inquire about availability of items.
  • Visit the Surplus Warehouse during Open Warehouse hours (Wednesday afternoons from 1:30 - 4:30 p.m.) or schedule an appointment to visit the warehouse at a more convenient time.
  • Select items suitable for your department. The Surplus Property Coordinator will assist with tagging selected items and completing a "no cost" Departmental Request Form for your department. Please note: Items with JMU decals will be added to your inventory.
  • Submit a work request to Facilities Management in AIM for items that are too heavy or cumbersome for one person to handle. The Surplus Property Coordinator will assist in making that determination. The Surplus Property Coordinator will deliver small items to your department within seven working days.
  • NOTE:  No personal vehicles should be used for picking up surplus items at the Surplus Property warehouse.  Only University vehicles should be used to pick up items from Surplus Property for delivery to campus departments.

.922 Transfers of Surplus Property to Other State Agencies

Transfers occur at the request of an agency, through Surplus Property contacting a network of agencies, or DGS State Surplus contacting JMU with an agency's need. Surplus Property, as the releasing party, completes a State Agency Transfer form for all decaled and un-decaled items transferred to another agency.

.923 Other Disposition Methods

  1. Offered to political subdivisions at fair market value
  2. Sold to the general public through public auction online (GovDeals.com)or a pre-price sale held at the Surplus Warehouse.
  3. Donated at a State Surplus-approved non-profit organization
  4. Scrapped or recycled

.1000 Form Preparation and Submission

.1010 Equipment Inventory Change Request(EICR)Form

.1011 Required

The University requires completion of this form when a department transfers equipment to another department, transfers equipment to Surplus Property, moves equipment to a different building, or disposes of property as referenced in .700 "Equipment Transfers & Disposals". The EICR form represents the main communication tool between departments and Fixed Assets regarding the transfer or disposal of property.

.1012 Where to Obtain A Blank Form

An electronic blank form is available online.

.1013 Number of Copies

Complete original form and make one copy.

.1014 Where to Send Completed Form

Send original completed form to the Office of Fixed Assets and Surplus Property, MSC 5704, and retain one copy for departmental files as the Releasing department.

.1015 Form Completion Instructions

  SECTION I:
  Department Name: The name of the department releasing the equipment for transfer, surplus, or disposal.
  Prepared By: The Fixed Assets Coordinator’s name.
  Date: The date the department completes the form.
  Email and Extension: The email and telephone number for the Fixed Assets Coordinator.
  Authorized By: The department head or approving authority’s signature.
  Name and Title: The department head's printed name and title.
  JMU Decal ID Number: Number from the barcode label affixed to the equipment that identifies asset as property of JMU. If no decal is found, please fill in as "none".
  Description: Include name of item, manufacturer, model number, serial number, and ESN (if computer equipment). Also, indicate if equipment is currently in working condition.
  SECTION II:
  To Surplus Property Warehouse: Releasing department checks the box, and the Surplus Property Coordinator completes the information upon receipt of surplus items.
  SECTION III:
  To Another JMU Department: Releasing department checks the box and fills in name of department receiving the equipment. Receiving department completes remaining information. Note:  Receiving department should be provided a copy of the EICR form before the original is sent to Fixed Assets.
  SECTION IV:
  To a Different Building (within same Dept.): Releasing/Owning department checks the box and indicates different building and room location of equipment.
  SECTION V:
  Disposal: Releasing department checks the appropriate boxes and follows procedures as written in section .720"
6010 Leases Asset Control and Management (6000)

.100 General

This section provides requirements, responsibilities and procedures to lease property for James Madison University. Property leases include leases of real property, such as buildings, office and classroom space, storage space, and land. Property leases also include equipment leases, rentals and installment purchases. Capital Project request guidelines incorporate capital leases for the acquisition of land and buildings into the Capital Process. University departments should request real property leases, rentals, and installment purchases, whatever the type of funding source, through Real Property/Space Management. Departments should request equipment leases, rentals and installment purchases, whatever the type of funding source, through the Office of Procurement Services.

.200 Definitions

Listed in this subsection are general definitions of key terms associated with leases.

Bargain Purchase Option A provision allowing the lessee, at his option, to purchase the leased property for a price that is sufficiently lower than the expected fair value of the property at the date the option becomes exercisable, that exercise of the option appears, at the inception of the lease, to be reasonably assured.
Buildings All real estate, excluding land, used for shelter, dwelling, and other similar agency purposes. The Statewide definition is any "roofed structure for permanent or temporary shelter of persons, animals, vegetation, or equipment."
Capital Lease The classification used for any lease that meets one or more of the following criteria:
  • The lease transfers ownership of the property to the lessee by the end of the lease term;
  • The lease contains a bargain purchase option;
  • The lease term is equal to 75 percent or more of the remaining estimated economic life of the leased property, unless the beginning of the lease term falls within the last 25 percent of the total economic life of the leased property, and/or;
  • The present value, at the beginning of the lease term, of the minimum lease payments (reduced for executory costs and profit thereon) equals or exceeds 90 percent of the fair value of the leased property to the lessor, at the inception of the lease, less any related investment tax credit retained by lessor and the lessor expects to realize. This criterion does not apply if the beginning of the lease term falls within the last 25 percent of the total economic life of the leased property.

From the lessor’s standpoint, a capital lease is also known as a Direct-Financing or Sales-Type lease.
Easement A right, afforded to an individual or business, to use another’s real property, such as a right of way.
Equipment Agency property of any kind that meets the following criteria:
  • It is complete in itself;
  • It does not lose its identity or become a component of the building where it resides;
  • It is of durable nature with an expected service life of more than one year.
Estimated Remaining Economic Life of Leased Property The estimated remaining period during which one or more users, with normal repairs and maintenance, expect that the property was economically usable. The lessee must use the property for the purpose intended at the inception of the lease, with limitation by the lease term.
Executory Costs Costs such as utilities, insurance, maintenance, and taxes included in the periodic payment, but not for the "leasing" or rental expense of the property. Such costs paid separately to the lessor or to another party, are not executory costs. These costs may increase, decrease or remain constant. The lessee may estimate these costs or obtain them from the lessor.
Expense Lease A lease where the agency is the lessee and pays rent to another party.
Full Service Lease A lease in which the landlord pays all operating and maintenance expenses usually including utilities, janitorial services, security and refuse removal (includes executory costs).
Initial Direct Costs Those costs incurred by the lessor that are directly associated with negotiating and consummating completed leasing transactions. Such costs include, but are not necessarily limited to commissions, legal fees, cost of credit investigations, and cost of preparing and processing documents for new leases acquired. In addition, initial direct costs will not include that portion of a sales person’s compensation, other than commissions, and the compensation of other activities described above for leases not consummated. Initial Direct Costs should not include any portion of supervisory and administrative expenses or other indirect expenses, such as rent and facilities costs.
Inception Date/Beginning Date The legal inception date is the date the lease agreement commitment begins. The legal inception date may distinguish this from the date that payment begins (beginning date), or the fiscal inception date.
Installment Purchase Any asset, purchased by an installment payment plan and title to the asset passes upon signature, is considered an installment purchase. (Installment purchases must have approval of the State Treasury Board. The Office of Fixed Asset Accounting will obtain the State Treasury Board’s approval.)
Land Non-expendable, real property whose title a state agency holds.
Lease An agreement between two parties expressing the right to use property, plant, or equipment for a stated period. The two parties are the "lessor" and the "lessee." A lessor is the party who has title to the "leased property" and is giving the right to use the property to another party. A lessee is the party using the property.
Lease Purchase A lease that contains a provision giving the lessee the right to purchase the asset during or at the end of the term of the lease. State Agencies generally cannot enter lease purchase agreements.
Lessee The party using the "leased" property.
Lessor The party giving the right to use the "leased" property to another party.
Minimum Lease Payments The lessee’s minimum lease payments are the payments the lessee is obligated to make or that the lessor can require, and the payment required by any bargain purchase option.

The lessor’s minimum lease payments include all payments from the lessee as above, and any guarantee of the residual value or rental payments beyond the lease term by a third party, unrelated either to the lessee or lessor. A bargain purchase option should only include the minimum rental payments and bargain purchase option dollar amounts. Otherwise, minimum lease payments include the following:

  • Minimum rental payments over the lease term.
  • Amount due for any guarantee of residual value by the lessee.
  • Any payment for failure to renew or extend the lease.
Minimum Rental Payments Those payments incurred that relate to the fixed obligation, in a leasing transaction, to make periodic rental payments. These payments do not include such items as contingent rentals, bargain purchase option amounts, and the like.
Operating Lease The classification of a lease that does not meet any of the four (4) criteria for a capital lease. Refer to the definition of a "Capital Lease" in this subsection.
Present Value The present value is the equivalent value now of a series of future payments discounted back to the present date at a specific rate of interest.
Rent/Rental To obtain occupancy or use of another’s property, on a fixed or temporary basis, in return for regular payments. Payment, usually of an amount fixed by contract, made by one person or agency at specified intervals in return for the right to occupy or use the property of another. A rental arrangement is usually for up to twelve (12) months. A period of more than twelve (12) months is usually a lease arrangement.
Sublease A lease of property granted by a lessee. To sublet or rent under a sublease agreement between a lessee and a third party, i.e., property owned by a lessor, who rents to a lessee, who subleases to a third party.
Temporary Lease A lease with a known and fixed term of six (6) months or less.
Transfer of Ownership When title (ownership) to the property passes from the lessor to the lessee.

.300 Economic Analysis

The University must determine if the terms of a lease or installment purchase are favorable to the Commonwealth. One method for making this determination is the preparation of an economic analysis. The Office of Financial Reporting prepares economic analyses for equipment leases and purchases, when deemed appropriate. Materiality of the potential acquisition and the cost benefit of preparing the analysis are factors in determining appropriateness. Real Property/Space Management prepares economic analyses for property eases.

When an economic analysis shows unfavorable lease terms (due to expected technological advances or when a vendor refuses to transfer title) the agency head or designee must approve acceptance of the lease.

Equipment financed by the Higher Education Equipment Trust Fund administered by the Virginia College Building Authority (VCBA) or the Treasury Board’s Financing Program does not require an economic analysis.

.400 State Requirements

.410 Real Property

Acquisition or lease of real property by any state agency is subject to requirement of the Code of Virginia. Section 2.1-504.2 of the Code states in part:

"Not withstanding any provision of law to the contrary no state department, agency or institution shall acquire real property by gift, lease, purchase or any other means whatsoever, without the approval of the Governor . . . The Department of General Services shall review every proposed acquisition of real property by gift, lease, purchase or any other means whatsoever by any department, agency or institution of this Commonwealth. Upon the completion of its review, the Department shall recommend either approval or disapproval of such transaction to the Governor. . ."

"James Madison University Delegated Authority Capital Projects and Lease Activities" (the "manual"), as structured upon Commonwealth of Virginia Division Real Estate Services Real Property Management Manual, provides the policies and procedures for acquiring real property by lease. Administration of the manual and review and recommendation for approval of leased property as set forth in the manual, is performed by the Real Property and Space Management office of James Madison University (JMU). All JMU departments, shall follow the procedures set forth in the manual for the acquisition of new space by lease or for renewal of existing leases. Internal auditors of state departments, agencies and institutions, where available, shall periodically review conformance with the manual. Compliance will also be monitored by the Commonwealth of Virginia Division of Real Estate Services (DRES), the State Internal Auditor and the Auditor of Public Accounts.

.420 Equipment - Installment Purchases, Leases and Rentals

The University must follow the Treasury Board Equipment Financing Program, administered by the State Department of Treasury, when considering an Installment or Lease purchase for $10,000 or greater and when it is from other than an established State contract.

Computer equipment leases must comply with all applicable guidelines issued by the Office of Information Technology.

.500 Responsibilities

.510 Real Property

.511 Department

  • Contacts the Real Property/Space Management to define space needs and request space.
  • Coordinates all activities to obtain and use either University or Non-University space with the Real Property/Space Management.
  • Completes forms and provides information as requested by the, Real Property Administrator, Space Management Coordinator.
  • Confirms that sufficient funds are available within the departmental budget to cover the cost of the lease.
  • Sends JMU Purchase Requisitions and attachments to the Office of Real Property/Space Management.
  • Provides information, as requested, for recording and reporting lease assets, to the Office of Financial Reporting.

.512 Real Property/Space Management

  • Determines availability of and assigns University space for the University.
  • Follows policies and procedures set forth in the " James Madison University Delegated Authority Capital Projects and Lease Activities" Manual to acquire new leases or renew existing leases.
  • Coordinates all activities for University departments to acquire real property leases with Request of Proposal offerers and landlords.
  • Determines availability of funds, not included in a current fiscal year departmental budget, to cover lease costs.
  • Ensures that all real property lease contracts meet the requirements of the Office of the Attorney General.
  • Advises the Office of Financial Reporting of plans to acquire capital leases. Provides documentation if requested.
  • Distributes copies of new leases in effect and pertinent information on leased properties to Financial Reporting, Budget, Facilities Management, Institutional Research and Public Safety. 

.513 Finance

  • Analyzes documentation and determines that a lease is an operating or a capital lease.
  • Ensures that the University records all property lease asset data in University and State Systems for reporting and insurance purposes.
  • Ensures that all lease data and activity is fully and properly disclosed in University’s financial statements according to "Generally Accepted Accounting Principles," (GAAP). Provides the same information to the State Comptroller to include in the Commonwealth of Virginia Financial Statements.

.520 Equipment - Installment Purchases, Leases and Rentals

.521 Department

  • Contacts the Office of Fixed Asset Accounting when planning to enter into an equipment installment purchase or lease.
  • Provides information and/or completes forms as requested by the Office of Procurement Services.
  • Provides copies of contracts/purchase orders and any other pertinent documentation to the Office of Fixed Asset Accounting to record and report installment purchases, leases and rental agreements.
  • Completes and returns lease confirmation requests distributed by the Office of Fixed Assets Accounting (generally once a year).

.522 Finance

  • Coordinates all activities with University Departments to acquire equipment leases, and installment purchases.
  • Determines the need for an economic analysis of potential leases and installment purchases and prepares the analysis if deemed appropriate.
  • Reviews lease documentation and determine that the lease is an operating or capital lease.
  • Administers the Treasury Board Equipment Financing Program for the University.
  • Ensures that lease contracts meet the requirements of the Office of the Attorney General.
  • Ensures that computer equipment leases comply with all applicable guidelines issued by the Department of Information Technology.
  • Ensures proper classification and recording of all equipment leases in the Financial Information System (FIS), Commonwealth Accounting and Reporting System (Cardinal), and the Fixed Asset Accounting and Control System (FAACS).
  • Ensures full and proper disclosure of all equipment lease activity in University Financial Statements according to "Generally Accepted Accounting Principles," (GAAP). Provides the same information to the State Comptroller to include in Commonwealth of Virginia Financial Statements.
  • Ensures that all lease agreements fully disclose: the fair market value of the leased asset at the inception of the lease; executory costs; residual value of the leased asset; amount of the lease payments; frequency of lease payments; the lease term; renewal terms, conditions, options, penalties, or bargains, and options (bargain purchases, etc.) which transfer the ownership of the asset to James Madison University during, or at the end of, the lease.

.600 Processing Procedures

.610 Real Property

.611 Department

  • Contacts Real Property/Space Management to define space needs and request the use of University or non-University space.
  • When University space is not available, completes a JMU Purchase Requisition, Space Questionnaire and Notice of Lease Intent form. (Real Property will send blank copies of the Questionnaire and Notice of Lease Intent forms to the department.)
  • Attaches completed Space Questionnaire and Notice of Lease Intent forms to the Purchase Requisition form. Sends the requisition and attachments to the Office of Financial Reporting.
  • Provides information for, or completes draft copies of the Lease Justification and Request for Proposal forms.
  • Compares encumbrance and payment transactions posted to the FIS departmental printouts to departmental records. Notifies the Office of Financial Reporting of any differences.

.612 Real Property/Space Management

  • Determines that University space is or is not available and advises the department of availability or non-availability.
  • When University space is available advises the department of the location and requirements to use the space.
  • Advises department to prepare a JMU Purchase Requisition form for leasing Non University owned
  • space. Sends a Space Questionnaire form and Intent to Lease form to the department for completion. Provides the fair market value price for Harrisonburg, Virginia to the department.
  • Advises Budget Office and Financial Reporting of proposed lease costs for the intended fiscal period.
  • Reviews Space Questionnaire and Intent to Lease forms. Requests additional information from the requesting department and/or other University offices and departments as needed.
  • Prepares Lease Justification, Space Categorization and Request for Proposals for Lease of Space forms.
  • Completes a formal inquiry to the Office of the Attorney General (if applicable as determined by Real Property) to determine the acceptability of lease contracts.
  • Prepares an economic analysis of a prospective lease, from proposals offered, to determine if the terms of the lease are favorable.
  • Negotiates terms and costs of the lease.
  • Completes lease documents for the University and distributes fully executed documents to the JMU offices of Financial Reporting, Accounts Payable, the requesting department, the Landlord and the Division of Real Estate Services.
  • Maintains and monitors lease files for the University.
  • Reviews and forwards Lease Input Document to the Division of Engineering and Buildings, Real Property Management.
  • Prepares payment vouchers (monthly) for properties leased by the University and forwards to the Office of Accounts Payable.
  • Prepares capital outlay forms and documentation required for capital leases.
  • Advises the Office of Financial Reporting of plans to acquire capital leases. Provides copies of forms and documentation if requested.
  • Completes SCHEV On-Line and Deleted Space survey and includes leased properties.

.613 Financial Reporting

  • Receives a copy of the Lease Justification form from Real Property/Space Management. AVP Financial Services reviews and approves the lease justification, requests additional information as needed and determines that the agreement to acquire property is truly a lease. Determines that the lease is either an operating or a capital lease.
  • Notifies Real Property if a lease request is a capital lease.
  • Reviews and updates the Statement of Values received from the Division of Risk Management to ensure adequate insurance coverage. Returns completed forms to the Division of Risk Management.

.614 Accounts Payable

Receives payment documents for lease payments, verifies amounts and dates of payments according to the lease document and/or a certified correct invoice.

Processes monthly or annual lease payments.

.620 Equipment - Installment Purchases, Leases and Rentals

.621 Department

  • Prepares Purchase Requisition forms for equipment installment purchases, leases and rentals. Forwards completed forms to the Office of Procurement.
  • Completes and distributes the Leased/Rented Equipment Installation Form. (This form also serves as a receiving report.)
  • Completes Accounting Vouchers or other payment documents, if required by the Office of Accounts Payable, for monthly payments.
  • Confirms lease payments for the fiscal year as requested by the Office of Fixed Assets.

.622 Fixed Asset Accounting

  • Prepares economic analyses for prospective equipment installment purchases, leases or rental agreements as deemed appropriate.
  • Obtains Treasury Board approval to finance items costing $10,000 or greater, not financed through the Treasury Board.
  • Completes and sends forms to the Department of Accounts to update FAACS.
  • Determines if leases are Capital or Operating leases.
  • Confirms lease payments made during the fiscal year with departments.
  • Enters lease commitments into the FIS to encumber funds.
  • Records capital leases in the FIS.
  • Includes disclosure of operating leases in the Financial Statements.
  • Prepares documents necessary to finance equipment through the State Treasury Board financing program.
  • Verifies payments against terms documented in the executed lease or rental agreement.

.623 Accounts Payable

  • Receives payment documents for lease, rental and installment payments, verifies amounts and dates of lease payments to the approved payment schedule.
  • Refers to the Leased/Rented Equipment Installation Form to determine the starting date of the lease and receipt of the leased items.
  • Processes documents for lease payments.

.624 Procurement Services

  • Receives and processes approved Purchase Requisition forms for equipment installment purchases, leases and rentals.
  • Provides information as requested, to prepare the economic analysis, to the Office of Financial Reporting.
  • Provides information to the Office of Financial Reporting to determine if a lease is a capital or operating lease.
  • Retains written justification for leasing an item when the economic analysis results suggest an outright purchase or an installment purchase. (For example, a rapid change in technology or the vendor will not pass title.)
  • Determines the method of procurement, prepares the purchase order and obtains the item.
  • Provides the terms, payment schedule and executory cost of leases to the Office of Financial Reporting and the Office of Accounts Payable.
  • Sends a Lease/Rented Equipment Installation Form and a copy of the purchase order to the department originating the Purchase Requisition form.

.700 Form Preparation and Submission

.710 Leased/Rented Equipment Installation Form

.711 Required

The University requires this form when a department receives and accepts leased/rented equipment. The form establishes the receiving date for the Office of Accounts Payable.

.712 Where to Obtain Blank Form

An electronic blank form is available online.

.713 Number of Copies

Complete four forms.

.714 Where to Send Completed Form

Send one completed form to the Office of Fixed Asset Accounting, One to the Office of Accounts Payable; and one to the Office of Procurement Services. Retain one copy in Departmental files.

.715 Form Preparation Instructions

Following are instructions for the preparation of the Leased/Rented Equipment Installation Form.

  Date: The date the department completes the form.
  Department Name: The name of the department receiving the leased/rented equipment.
  Department's Organization No.: The five-digit organization number assigned to the department.
  Account No.: The account code for the item of equipment being leased or rented.
  Purchase Order No.: The number of the purchase order issued for the leased/rented equipment.
  Vendor's Name: The name of the vendor providing the leased or rented equipment.
  Equipment Manufacturer: The name of the company that manufactured the equipment.
  Equipment Model Number: The model number of the leased/rented equipment item.
  Equipment Serial Number: The serial number of the leased/rented equipment item.
  Monthly Lease/Rent Payment Amount: The amount of the monthly lease/rent payment. DO NOT include costs associated with overages for copy machines, maintenance agreement or incidental costs.
  Installation Date: The date the department receives and accepts the leased or rented equipment.
  Lease Period: Enter an "X"  in the box indicating the number of months that the lease is in effect.
  Contact Person (Signature): The name of the departmental contact for the lease.
  Telephone No.: The telephone number for the contact person.
  Print Name: The name of the contact person.
  Title: The title of the contact person.
7005 Procurement Procurement Services (7000)

.100 General

This section provides requirements and regulations for all procurements made for James Madison University by faculty, staff, and administrators whatever the source of funds. The requirements cover all procurements charged to University funds, including Educational and General, Auxiliary Enterprises, Sponsored Programs (Grants and Contracts) and Local/Agency Fund Accounts.

James Madison University must process all procurements within the policies and procedures set forth in the Rules Governing Procurement of Goods, Services, Insurance and Construction AND the Commonwealth of Virginia Purchasing Manual for Institutions of Higher Education and their Vendors.  Both of these documents can be accessed directly at http://www.jmu.edu/procurement/departmental-guide/02.shtml.

The objective of effective procurement is to obtain high quality goods, supplies, and services, at low prices that are both fair and reasonable. Individuals must procure goods and services fairly and impartially to avoid impropriety or the appearance of impropriety.  The University expects individuals involved in procurement for the University (requestor, approver, or those having responsibility for entering the orders) to exercise prudent judgment.  All purchases regardless of dollar amount are easily available for public review.

.110 Un-Authorized Purchases

Purchases not made according to these procedures are subject to Non-Payment of the vendor invoice by the University.  At the discretion of the Director of Procurement Services departments that do not follow the procedures are subject to having their departmental purchasing delegation removed.

.200 Control Responsibilities

.210 Department

  • Makes only authorized procurements according to University policies and procedures.
  • Properly prepares and distributes manual or electronic procurement documents according to this procedure.
  • Ensures that the signatory authority for the Department ID shown on the manual or electronic procurement document approves the request.
  • Confirms that sufficient funds are available in the department's budget to cover the cost of the purchase.
  • Maintains departmental records of all purchases to preclude duplicate orders.
  • Ensures that the University is obtaining the best possible value when procuring goods and services.
  • Takes necessary steps to ensure that an individual who places an order does not complete the receiving document for that order.
  • Performs procurement actions timely to preclude the need for special action or granting of an exception.
  • Reconciles departmental purchase records to Financial Information System Reports on at least a monthly basis. Refer to Section 3035, "Reconciliation Guidelines,".
  • Contacts ILT Operations for printing requests that meet the criteria for design services contained in the Identity Leadership Team website for information concerning university publications, such as editorials, graphics, and web standards.
  • Contacts Facilities Management prior to initiating any procurement that may modify, repair, renovate or alter any campus facility, major equipment or building system.
  • Verifies equipment specified meets the Equipment Safety Labeling & Listing requirements http://osha.gov/dts/otpca/nrtl/nrtlmrk.html

.220 Office of Procurement Services

  • Administers the University purchasing function to assure compliance with University policies and procedures, state laws, and regulations regardless of delegated purchasing authority.
  • Develops or approves procurement policies, procedures and forms.
  • Notifies appropriate levels of management of improprieties.
  • Monitors procurement delegation for compliance, withdrawing delegated authority when warranted.
  • Procures items costing $5,000 or more, items costing less than $5,000 if requested by department, sole source items, and restricted items (as listed on the Procurement Services WebPages and on the manual DPO Form) to include conducting the applicable procurement process, when required.
  • Returns any incomplete procurement documents (electronic and manual) to the originating department with the reason for not processing the document.

.300 Restricted Purchases

.310 Emergency Procurements

The University restricts emergency procurements to those items that are necessary to eliminate a situation that could threaten the loss of life or property or cause injury. In these situations, University employees should take the actions necessary to resolve the emergency. In an emergency, departments may procure the goods or services necessary without competitive bidding. The individual handling the emergency should contact the Office of Procurement Services, if possible, before taking any actions. The department or individual involved should prepare a full justification for the emergency purchase and the necessary procurement action. The appropriate administrative official or their designee should prepare the documentation and forward copies to the Director of Procurement Services for approval. Emergency procurement procedures may be used to purchase only that which is necessary to cover the requirements of the emergency.

.320 Procurements Performed by the Office of Procurement Services

The Office of Procurement Services is responsible for procuring goods and services valued at $5,000 or more, purchases costing less than $5,000 if requested by department, sole source purchases, restricted items, Equipment Trust Fund at $5,000 and above, and services (as detailed on the Procurement Services Webpage).

When Procurement issues a solicitation for a specific good or service, the buyer in Procurement Services will often issue the eVA Direct Order to document the award made at the completion of the competitive solicitation process.  The buyer seeks approval prior to aware to ensure the price does not exceed the department's funds.  Procurement will ensure the vendor receives copies of the Direct Order.  Procurement Services will keep the department informed in regards to the issuing of a Direct Order.  The requesting department may access the Direct Order through the eVA Procurement System.  The amount indicated on the Direct Order issued supersedes the Purchase Requisition.  The originating department should use the dollar amount of the Direct Order, not the Purchase Requisition, for budget reconciliation purposes.

In some situations, especially related to "on-demand" contracts, the department will enter the Purchase Requisition into eVA, including all appropriate back-up documentation and appropriate expenditure authority approvals.  The Purchase Requisition, for requests $5,000 or more, will flow to Procurement Services for review and approval.  In this situation the department is responsible for ensuring the vendor appropriately receives the orders.

.321 Sole Source Purchases

Sole source procurements costing $5,000 or more require a written justification. Departments requesting sole source purchases costing $5,000 or more should prepare an electronic (eVA) Purchase Requisition and attach a justification using the standard form provided by Procurement Services (see “FORMS” on the Procurement Services website) for the sole source request.

.322 Restricted Purchases

The Office of Procurement Services must procure restricted items no matter the cost of the goods or service.  The following are restricted items not allowed for purchase by a JMU department:

  ♦  Non-Virginia Correctional Enterprise Furniture
♦  Narcotics or dangerous drugs
♦  Alcoholic beverages
♦  Firearms and ammunition
♦  Property leases
♦  Purchases from a state employee
♦  Cellular phones
♦  Professional services
♦  Non-professional services that require other Commonwealth approvals
♦  Air conditioners
♦  Copier rentals
♦  Vehicles
♦  Construction/renovation (require Facilities Management approval)
♦  Two-way radios (require FCC approval) 

Other restricted items may be added at any time.  JMU Procurement Services updates the most up-to-date list on its website (click here: Procurement - restrictions).

.323 Recurring Procurements

The University must competitively procure goods and services that are anticipated to be recurring in nature if the onetime cost exceeds $4,999.99 or accumulated cost exceeds $50,000 over a twelve month period. The Procurement Services Department requires an electronic eVA Purchase Requisition and will complete the applicable procurement process on behalf of the department.  Frequently, recurring purchases of goods or services will result in a term contract being negotiated on behalf of the University; however, Procurement Services may also recommend the use of an existing cooperative contract rather than soliciting a new agreement.

.330 Acquisition of Property

The Office of Real Property is responsible for acquiring buildings and land for use by the University. University departments should contact that office before making any arrangements to rent, lease or purchase land or buildings.

.340 Capital Outlay Projects

The Office of Facilities Planning and Construction is responsible for overseeing Capital Outlay, Construction and Professional Services projects.  University departments should contact that office concerning all capital outlay (construction) projects.  Construction projects that are defined as "Capital Outlay” typically cost greater than $2,000,000.00.  The Office of Procurement Services is responsible for handling the procurement process of awarding a contract for capital outlay construction as well as purchasing furniture, furnishings and equipment for installation within a capital outlay construction project.

.350 Printing and Publication Services

When printing projects are $5,000 or more and cannot be part of an existing printing contract or handled through the JMU Copy Center, the Office of Procurement Services must competitively solicit the service. Depending upon the complexity and dollar value of the project, this process may require from 3 to 90 business days.  After determining the vendor to receive the award, the Office of Procurement Services will contact the requesting department and request a completed eVA Purchase Requisition for the accepted/negotiated cost.

The University provides printing services including envelopes, business cards and stationary through the Copy Center.

.360 Duplicating Services

The University provides copying services at various locations on the campus and all departments are highly encouraged to use the on-campus copy centers. The James Madison University Telephone Directory lists the various locations under "Copy Centers."

.400 Delegated Purchasing Authority

The University has delegated certain procurement authority except "Restricted Purchases," to Departments. The University expects these departments to comply with purchasing regulations and exercise prudent judgment when procuring goods, supplies, and services.  Employees who make purchases must first obtain approval of the departmental approving authority for the Department ID  charged. The University does not require departments to accept delegated purchase authority. When departments do not accept delegated authority, the Office of Procurement Services will perform the procurement function. Departments, not accepting delegated authority, must complete and submit an eVA Requisition for Purchase for all purchases.  Departmental delegation can be revoked, at the discretion of the Director of Procurement Services, due to repeated or severe non-compliance to JMU and Commonwealth Procurement Policies and Procedures.

.410 Purchases Costing $4,999.99 or less

Departments may procure goods and services, except "Restricted Purchases, valued at $4,999.99 or less through the eVA Procurement System. The University prefers that departments use the Small Purchase Charge Card (SPCC) for all vendors who accept the card. On-line auctions (example: e-bay) is allowed when all rules governing Procurement procedures and Accounts Payable payments are met. Accounts Payable will audit each of these transactions for compliance.

Purchases may be made through the Internet using the SPCC. All purchases of this type must be recorded in eVA as a confirming order. The department should be sure that the vendor has a secure Socket Layer (SSL) Version 2.0 or greater. To ensure that the vendor has a SSL, the Address Window must start with https://. Information about the vendor's security certification is available under Help on the browser tool bar. This may not occur until the payment information is requested.

The individual making the purchase must request a vendor invoice, or an itemized receipt. For purchases through the Internet, print a copy of items purchased after the order is placed and retain it for departmental records and reconciliation of monthly SPCC purchases.  Ideally, the invoice or itemized receipt will be electronically attached to the eVA order.

Employees should not use cash or a personal credit card except in an emergency, when no other method of payment is accepted.

.420 Departmental Direct Orders (DPOs) for Purchase Excludable from processing in eVA Procurement System

The DPO (word document found on Procurement Web Site) is to be used for items when the department and/or the vendor needs paper documentation of an order that is not required to be entered into eVA (it is an eVA exclusion).  eVA may also still be used to process this type of order, using the "X02 PO Category Code.

The department head is responsible for the proper administration of the DPO to ensure proper procurement practices and for ensuring that there are sufficient funds in the departmental budget to cover the expenditures of the DPO.  A DPO is only appropriate when the item is appropriately excluded from eVA and the total order is under $5,000.  Orders $5,000 and over must be processed through Procurement Services regardless of any eVA exclusion.

For all invoices without an eVA DO number shown on it, the department must complete an Accounting Voucher to initiate payment.

Before completing the DPO form, refer to subsection .300 "Restricted Purchases," and to restrictions printed on the DPO form. Individuals making purchases should ensure that the vendor excludes sales tax, as the University is tax exempt.

.430 Delegated Purchase Authority

The University has delegated authority to departments to purchase goods or services costing $4,999.99 or less through the eVA Procurement System via an eVA Direct Order (DO) or Purchase Card Order (PCO). This DO/PCO may be used by university departments to purchase goods and services directly from a vendor, if the total cost, including freight is $4999.99 or less with the exception of the items listed under "restrictions."  Orders shall not be "split" to stay under the $4,999.99 or less amount.  Split ordering is prohibited and can result in the departmental delegation being revoked or suspended.

To complete a DO/PCO purchase through eVA, less than $5000, the department should obtain quotes/proposals from catalogs or directly from the vendors. Procurement regulations require only a quote when using the DO/PCO for orders $4,999.99 or under.  It is preferred that Departments obtain one quote from a Micro-Small, Small business, Woman-owned or Minority-owned business (certified through the VA Department of Small Business & Supplier Diversity).  After identifying the best source, the department may complete the DO/PCO and place the order directly with the vendor.  When departments place orders by telephone, they should clearly mark the DO, "CONFIRMING ORDER - DO NOT DUPLICATE" and show the name of the vendor's contact person and basic information to explain the purchase.  Confirming orders are prohibited for orders over $4,999.99.  The department may mail or hand-deliver the DO/PCO to the vendor for orders not placed by telephone or not automatically delivered electronically through eVA.

While the official Departmental Delegation is $4,999.99, departments may receive one quote/proposal from a Micro-small, Small, Woman-owned, or Minority-owned business (certified by the Virginia Department of Small Business & Supplier Diversity) that is also an eVA Self Registered Vendor up to $10,000.  The department will process the requisition in eVA (prior to any notification of award to the vendor), including any quote/proposal received.  Procurement Services will then verify the vendor is certified with VDSBSD and is an eVA Self Registered vendor.  If both criteria are met, Procurement Services will approve the order without the need to seek further competition.  If both criteria are not met, Procurement Services will follow internal normal procedures which may include competitively soliciting the goods/services.  Confirming orders or split orders to remain under the $10,000 limit are prohibited.

.500 Purchases from Campus Facilities

.510 Bookstore

University departments may purchase a variety of supplies from the Campus Bookstore.

.520 Postal Services

Departments may purchase postal stamps directly from Postal Services.

.530 Catering and Special Events

Departments shall request catering services by contacting the Catering and Special Events office.

.540 Facilities Management

Departments may request various services from Facilities Management by submitting a Customer Request through the AiM system. Facilities Management requires a Work Order before providing services. Departments may contact Facilities Management to determine what services are available.

Employees should contact their Building Services Coordinator for building maintenance requests for the building where they are located.

.541 JMU Warehouse Complex

The JMU Warehouse Complex maintains stock items such as cleaning supplies and light bulbs. A list of the stocked items is available from the warehouse. Departments may request items by completing the Warehouse Requisition Form at the Warehouse window.

.550 Computer Repairs or Assistance

Departments should contact the Help Desk (Telephone 83555) to request computer repairs or assistance. The Help Desk requires the ESN Number of your computer to issue a work order.

.560 Telecommunications

Requests for telephone services such as, to move or change an existing phone, obtain a telephone or request repairs, requires a memo or an E-mail describing the services requested. The memo should include an Department ID to charge for the services and the signature of the approving authority for the Organization designated.

.600 Goods and Services Exempt From Procurement Documentation

♦  Student Scholarships - The Office of Financial Aid and Scholarships must approve all scholarships.

♦  Moving and Relocation Services (See Section Number 5010, Moving & Relocation)

♦  Travel related expenses (See Section Number 4215, "Travel")

The following are allowable, excludable items/categories that do NOT need to be procured through the eVA Procurement System.  Items listed in BOLD DO NOT QUALIFY for the exclusion. Every attempt was made to list these items with clarity and relevance to typical JMU purchasing of goods.  Should you need further explanation of these items/categories or assistance in determining whether an exclusion is appropriate for your purchase, you may contact Procurement Services at 568-3145.

 
  1. Over the counter charge card purchases made with the VISA Small Purchase Card. To qualify for the exclusion, the purchase must be made at the site of the sale and picked up by the individual card holder at the time of the purchase.
    ** Phone orders and web orders do not qualify as an exclusion **
  2. Travel and lodging including any expense coded to expenditure codes 128100 through 128800 as well as 122400, 122700 and 122800. Included in this group are conference registrations, lodging, meals, and moving and relocation expenses
  3. Professional organizational membership dues.
  4. Training classes sponsored by a professional organization when payment is made directly to the professional organization sponsoring the training class.
    ** Payments made directly to a company or third-party for training services are not excluded **
  5. Entertainment(speakers, lecturers, musicians, performing artists/models)
  6. Honoraria
  7. Exhibition rental fees for exhibitions of historical artifacts or original works of art. The rental fee may include charges other than the rental of the exhibition, such as transportation costs. Works of art, musical scores for rental purposes are excluded.
    ** Purchases of art or musical scores are not excluded **
  8. Placement of advertising in newspapers, magazines, journals, radio, television, etc.
    ** This exclusion does not include the purchase/subscription of Newspapers, journals, magazines etc **
  9. Accreditation fees and academic testing services
  10. Award of grants by agencies and institutions to public bodies or tax excluded non-profit charitable organizations.
    ** This exclusion does not apply to the expenditure of grant funds by agencies and institutions for the purchase of goods and/or services (see APSPM 13.8e) **
  11. Medical (Health Care) Services when the service is provided by a hospital or an individual licensed and authorized by law to engage in the prevention, diagnosis, or treatment of human illness, injury, or physical disability, mental health, mental retardation, substance abuse, or emotional condition.
    ** Contracts and purchase orders between the agency or institution and temporary service providers or independent laboratory testing companies are not excluded from purchasing through eVA **
  12. Public Utilities (electric, natural gas, water, sewer).
  13. Purchases made using the DPS-authorized multi-state drug contract.
  14. Purchases made using DPS Contract #91026, Express Delivery Services.
    **Currently the State contract (DPS#91026) for express delivery services is with United Parcel Services (UPS). Thus, services provided by Federal Express or other like carriers are not covered under this exclusion. Should you use the services of companies other than United Parcel Service (UPS) for delivery services, these transactions will need to be processed through the eVA Procurement System.**
  15. Revenue contracts, e.g., scrap, recycling or contracts with $0 payment made by the Commonwealth, e.g., contracted out Bookstore, Food service operations.
  16. As of July 1, 2016 due to HB823 and revisions made to Chapter 680 2.2-614.4 Code of Virginia, Government to Government is no longer a valid eVA exclusion. Orders must be processed through the eVA system per normal procedures utilizing the X02 PO Category Code.
  17. Purchases from public auctions (non-electronic).
  18. Surplus property. An example would include JMU purchasing surplus property from another state agency, or when Federal surplus is purchased from DGS warehouse.
  19. Reimbursement to employees for small dollar purchases less that $100 do not need to go through eVA, however these expenditures will be assessed the 1% fee. Part 2 - After July 1, 2005 the VISA Card must be used if the vendor accepts VISA.

JMU was also approved by DPS August 9, 2004 for the following eVA exclusions through June 30, 2005, or until revoked by DPS, whichever is later:

 
  1. Local funds (8-XXXXX) owned by trust-agent organizations (e.g. student organizations like SGA Swimming, etc. - NOT Auxiliary Enterprises). These funds are non-state and are not owned and controlled by JMU. JMU, as custodian or fiscal agent for Local/Agency Funds, processes transactions on behalf of the owner of the funds. Per JMU Financial Procedures Manual Section 3045, all deposit and expenditure transactions must be handled in accordance with university procedures.
  2. Intercollegiate athletic event entrance and related fees (e.g. basketball tournaments, game officials, etc).
  3. Unplanned and unanticipated travel and travel-related expenses under $5,000 when incurred by the Athletic Department while traveling.
  4. Purchases made by JMU employees or agent while located in another country and the required goods/services are purchased from a vendor located in that country and the purchased goods/services will be used in the country where they are purchased.

.700 Processing Procedures

.710 eVA Procurement System

  • Departments must process all orders through the eVA Procurement System unless their purchase meets the one of the definitions of the nineteen eVA exclusions (see Section .600)
  • Departmental buyers will be granted access to the eVA Procurement System by submitting two forms directly to Procurement Services (http://www.jmu.edu/procurement/departmental-guide/15.shtml):
    • eVA Acceptable Use Acknowledgment
    • eVA Access Request Form
  • Departmental Buyers must attend a mandatory User training session offered by IT Training Services
  • Those acting in a Departmental Approver role may attend the User training session.

.711 Department

  • Process non-excluded eVA purchases through the eVA Procurement System (this is the majority of all purchases).
  • Process excludable eVA purchases (see Section .600) through the eVA system using the "X02" PO Category Code (thus noting it is normally excluded from eVA) OR by submitting a manual purchase requisition and DPO (if vendor requires a purchase order) OR direct payment using a University Accounting Voucher and notating the appropriate exclusion number in the space provided OR use the Small Purchase Charge Card (if within appropriate dollar amount) to make payment and reconcile the transaction with the appropriate exclusion number in the field provided.
  • Verifies that sufficient funds to cover purchase are in the Departmental ID listed on the completed form.

.712 Office of Procurement Services

  • Serves as data steward for all purchases processed through eVA Procurement System.
  • Procures or approves all goods and services for items over $4,999.99 and all restricted items.
  • Reviews and signs all agreements/contracts for goods/services regardless of dollar amount or eVA exclusion (See Policy 4100).

.713 Office of Accounts Payable

  • Matches the eVA Direct Order, Purchase Card order or manual DPO to vendor invoices, verifies coding, and determines that transactions are appropriate state expenditures.
  • Verifies that the approving authority for the account shown on the purchasing document has properly authorized the purchase.

.720 James Madison University eVA Purchase Requisition

.721 Departments

  • Completes and submits electronically a purchase requisition through the eVA Procurement System.
  • For eVA exemptions as outlined in Section .600, the Department prepares and distributes completed forms as outlined in subsection .820.
  • Verifies that sufficient funds to cover purchase are in the departmental account listed on the completed form.

.722 Office of Procurement Services

  • Reviews requisition, obtain bids (if applicable) selects a vendor and issues the appropriate Direct Order.
  • Distributes copies of the completed eVA DO to vendor (if applicable).
  • Notifies originating department and distributes a copy of the Purchase Requisition either electronically through the eVA Procurement System or manually through inter-campus mail.

.800 Forms Preparation and Submission

.810 Direct Order (DO), Purchasing Card Order (PCO) and Paper Form of Department Purchase Order for eVA exclusions only

.811 Required, eVA Procurement System

The eVA generated DO/DPO is required for all non-excluded eVA goods and services.  An eVA generated DO/PCO is also an option for any excluded good or service when the vendor requires a purchasing document.

The Departmental Purchase Order (word document, found on Procurement Services website (www.jmu.edu/procurement) may be used ONLY for excludable eVA goods and services totaling $4,999.99 or under.

.812 Where to Obtain Blank Forms

The hardcopy DPO for excludable eVA goods and services is a Word document available online

.813 Number of Copies

Follow procedures on DPO for copies.

.814 Where to Send Completed Copies:

A (DPO) or (PCO) generated through eVA will normally be electronically sent to the vendor and copy transferred to the eVA buyers watch box which is monitored by Procurement Services.  If the vendor does not accept electronically orders, the Department is responsible for being sure the DPO or PCO reaches the vendor via facsimile transmission or via email (this process should be rarely used; only in the case where the item(s) being purchased is under $4,999.99 in total (if over the user must work directly with Procurement Services), is excluded from entry into eVA (see Section .600) and a vendor requires a formal purchase order).

.815 Forms Preparation Instructions

Hardcopy DPO Preparation

  TO: (Vendor) Enter vendor information including complete company name, street address or post office box number, city, state, and ZIP code, vendor phone number, vendor fax number and vendor identification number (i.e. FIN, FEI or Social Security number).
  Deliver To: Departments who wish to have delivery made directly by the vendor to their department should type their building name and room number in the space provided. Departments wishing to have their goods delivered to the JMU Facilities Management Warehouse for delivery by warehouse or buildings and grounds personnel, should type "Facilities Management Warehouse" in the address portion of this space. Also include on the ATTN: line the name and telephone number of the person responsible for the purchase.
Partial shipments are allowed only if vendor does not require partial payment. One payment will be made when all items are received.
  Send Invoice To: Unless your department is listed as an option, mark the Accounts Payable block. Please Note: For any invoices without an "eVA DO #" shown on it, the department must complete an Accounting Voucher to initiate payment.
  Date Ordered: Enter the date purchase order is typed and sent to vendor.
  Delivery required on or before: Enter the date delivery is required. Choose a realistic date or check with the vendor for lead-time. DO NOT use ASAP or any other abbreviation or phrase that is not a specific date.
  Work Order Number: FOR FACILITIES MANAGEMENT USE ONLY.
  Restricted Items: Any restricted item listed CANNOT be purchased using this form.
  Exclusion #: Enter the appropriate exclusion number that corresponds with the goods/services being purchased.
  Detailed Description: Enter full description of item(s) ordered including model numbers, stock numbers, colors, sizes, and any other information necessary to identify exactly the item you require. List what, if any, equipment, supply or services the item is to be based in conjunction with or of which it is an integral part.
  Quantity: Enter quantity required.
  Unit: Enter unit of measure, i.e. each, doz., set, etc.
  Unit Price: Enter unit price of item(s) ordered. The department is responsible for ensuring the correct price is entered.
  Amount: Enter the result of multiplying quantity by unit price.
  Explanation of Non-Eva Purchase If No Exclusion # is provided: Provide explanation as to why this purchase is not being made through eVA.  If the order does not have an exclusion number appropriate for the items being ordered (contact Procurement Services with questions), your department will be charged the 2% fee.
  Organization Code, Account Code and Amount: Enter the organization number, expenditure account code, and corresponding amount that go with each code. See Section 2010, "Department Organization Numbers", and Section 2015, "Expenditure Account Codes and Definitions"