Policies & Procedures


 

Section: ACT
Part: POL
Statement No.: 3.0
Date: 07/01/08
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title:  Accounts Payable 

 

1.     All disbursements made by General Administration are processed through the Accounting Department. Disbursements are made on original invoices received from vendors. Payments are not made based on statements from vendors or photocopies of vendor invoices. 

 

Note:      In the event that a photocopy of the invoice is the only means that can be utilized for payment, the originator should submit a written justification statement that outlines the reason why the original invoice could not be submitted.

 

2.     Invoices must be matched with authorized receiving reports before payment is made. The receiving

        departments must verify goods or services are received and forward the receiving report to the Accounting department. Any invoices received by departments must be forwarded to Accounting. 

 

Note:      In the event a vendor does not provide a receiving report and the department misplaces the PO receiving report, the department head approval on the original invoice will serve as the receiving report for a matching PO transaction.  

 

3.     Discount terms offered by suppliers may result in savings for General Administration. Since payments cannot be made without a properly executed receiving report, it is important that receiving reports be processed by departments immediately after satisfactory receipt of goods or services in order take advantage of discounts.

 

4.      Checks are printed twice a week (Tuesday and Friday) by ITS at UNC-Chapel Hill. This allows for 

         efficiency within the disbursement function, and also maintains the prompt payment of invoices.

 

5.       Electronic Funds Transfers (EFTs) are processed once a week on Thursdays and if needed (50 or more

          EFTs), on Monday as well.  Therefore, sometimes processing twice a week.

 

6.       Checks are sent to the payee at the address on the invoice. If a check is to be delivered to someone other

          than the payee, a note containing special instructions must be attached to the invoice. If checks are

          undeliverable or unidentified they should be returned to Accounting for possible cancellation.

 

7.       Bank statements and reconciliation of all outstanding Accounts Payable should be completed by the 15th of every month. The reconciliation should include computer-generated checks, manual checks, check cancellations and any adjustments along with comparision of bank statement and FRS cash balances.