Payments - Documentation Requirement for Expenditures
REG 07.05.01
Accounts Payable
Authority: Vice Chancellor for Finance and Business
History: First Issued: November 1, 2001.
Related Polices:
NCSU REG07.65.11 -
Travel Reimbursements
Additional References: Controllers Office Website
Contact Info: University Controller (919-515-3824)
1. Purpose
The following statement outlines documentation requirements for expenditure of
any University funds.
2. Documentation Requirements/General Guidelines
Expenditure documentation should provide sufficient background information to
respond to the following questions:
2.1. Why (purpose)? - Explain the purpose, detail the reason, or describe how the
expenditure relates to the departmental program for which the funds were granted
or appropriated.
2.2. When ? - Provide the date if an expenditure of funds is for a specific event,
long-distance telephone call, etc.
2.3. Who ? - When an expenditure is for an item where there is the "appearance of a personal benefit (e.g., travel, entertainment,
refreshments, etc.), you must provide documentation indicating those persons
involved/attending the event for which the expenditure applies.
2.4. Where ? - List the location of the event.
In addition to answering the above questions, documentation should be
sufficient to indicate that the primary purpose of the expenditure is for the
benefit of the University and, therefore, is not for the direct benefit of any
employee. The guidelines listed above are not intended for procurement of
equipment, material or services requiring the use of a university purchase
requisition. Please refer to the University Purchases and Stores Manual for
those requirements.
Individuals designated as Account Custodians have the responsibility to
ensure that proper documentation procedures are followed for the accounts which
they control, and to ensure that only authorized expenditures are made from
their accounts. Lack of appropriate documentation will be considered cause for
nonpayment or nonreimbursement of expenditures.
3. Additional Documentation Requirements
3.1. Consult Travel Reimbursements.
3.2. Alcoholic Beverages - State Budget regulations forbid payment or
reimbursement for alcoholic beverages or "set-ups" from State
appropriated funds at any time under any circumstances. Contract or Grant funds
follow the same rule unless a letter from the grantor approving expenditures for
that purpose is on file with the Office of Contracts and Grants. Expenditures
for alcoholic beverages from other trust funds (e.g., gift accounts) should be
strictly limited and must have the signature of the appropriate Director, Dean
or Vice Chancellor.
3.3. Food or Refreshments - State Budget regulations forbid the payment of food
supplies or refreshments from State appropriated funds for departmental
receptions, office functions (e.g., a retirement or commencement party), student
orientation functions, "coffee breaks" at employee workshops or
seminars, and like events. Contract or Grant funds follow the same rules unless
there is a letter of approval on file in the Office of Contracts and Grants or
explicit wording in the contract or grant document approving expenditures for
this purpose. Payment requests for food or refreshments from non-contract and
grant trust fund (e.g., gift accounts) must include the appropriate
documentation and the approval (signature) of the appropriate Director, Dean or
Vice Chancellor.
3.4. Personal (employee) Reimbursements - Reimbursements, (such as entertainment
of University guests, meals while in nontravel status, or supplies), to an
employee must be approved by an individual at a higher level of authority or a
designee of the Director, Dean or Vice Chancellor.
3.5. Long Distance Telephone Calls - Documentation of long distance telephone
calls should be available in the department for periodic audit or review.
3.6. Membership Dues - Payments to higher education and related state and national
associations for institutional or individual memberships should be carefully
reviewed to determine that substantial benefits accrue to the University.
Individual memberships paid from State Funds shall be kept to an absolute
minimum; however, a request may be approved for payment from State Funds by the
Director, Dean or Vice Chancellor when:
3.6a.the benefit to be derived and eligibility for membership is due to the
individuals's position in the University, and
3.6b. the individual's association membership terminates at the same time the
employee terminates employment with the University.
3.6c. Payment for membership dues in civic or political organizations, "clubs" or like organizations are not permitted from any University
fund source.
3.6d. Questions regarding documentation or the appropriateness of an expenditure
should be directed to the University Accounting Office Accounts Payable Manager.
