NOTICE TO READER:
Segments of this document in bold, italic print represent policy which can be changed only by authorization of the VMI Board of Visitors. All other segments represent procedures which may be changed by authorization of the Superintendent.
TABLE OF CONTENTS
45100 Disbursement Policies
45200 Disbursement Procedures
45300 Small Purchases Charge Card
45100 Disbursement Policies [Return to top]
It is VMI’s policy to require the highest standards of stewardship and accountability in the expenditure, disbursement, and control of all funds in its custody, regardless of the source of funding. State laws and regulations, to include the state procurement and conflict of interest laws as well as VMI policies govern the expenditure of all VMI funds, regardless of source. Disbursements of funds must be made in a manner that meets the 30 day payment requirements of the Prompt Payment Act, thus departments must timely submit disbursement requests to the Comptroller’s Office.
Accounts from which disbursements are made are typically categorized as state or local, depending on their funding source. Departments are responsible for adherence to applicable restrictions placed on their accounts. All expenditures and their resulting disbursements, regardless of source of funds, shall be reasonable and for official business purposes related to VMI’s mission. VMI will not pay for any purchases or expenses that are not mission related or that do not comply with all applicable laws and policies.
State funded accounts are those funds that are held by the Treasurer of Virginia. Local funded accounts are those funds that are maintained in a local bank account administrated by the VMI Comptroller. State and Local funded accounts are identified as follows:
Procedures for processing disbursements are the same for state-funded and local-funded accounts.
Certain types of expenditures are not allowed from any VMI funds. Examples include, but are not limited to, the following:
Alcoholic beverages (with the exception below)
Office holiday decorations and parties
Non-Corporate flowers and gifts
Personal items, of any type, for employees to include lost or damaged personal property
Snacks or refreshments for employees
Personal fines and penalties
Local funds may be used to purchase alcoholic beverages for functions that are official business of the Institute and that are related to its mission. These official business determinations shall be made prior to the purchase and at the time that the requesting department contacts the Comptroller’s Office as set forth below.
Certain expenditures require special approval prior to making the expenditure and its resulting disbursement. Contact the appropriate office prior to incurring obligations related to the following:
- Moving and relocation expenses - Human Resources Office
- Cellular phones and related service charges - Information Technology
- Attorney’s fees(Requires prior approval of the Office of the Attorney General) - Deputy Superintendent for Finance, Administration and Support
- Purchase of alcoholic beverages - Superintendent's Office, Chief of Staff
Purchases and disbursements must be approved by an authorized employee. Authorized employees are documented by completing an Authorized Signatures form. These forms are available in the Comptroller’s Office and shall be completed for each separate Colleague account maintained by the department. A new form shall be completed when personnel changes make old forms obsolete. Please take special note – by executing the payment voucher, the employee certifies the goods or services provided are for official business of the Institute and relate to its mission.
Exceptions to the policies described above may be granted by the Superintendent or the Deputy Superintendent for Finance, Administration, and Support. Justification must be provided and authorization obtained in advance.
Please contact the Comptroller’s Office with any questions related to VMI’s disbursement policies.
45200 Disbursement Procedures [Return to top]
The following sections provide the disbursement procedures.
45210 Payments to Vendors – Pro Forma [Return to top]
Pro Forma purchases are those where the vendor requires payment prior to shipping goods or providing services. Common examples of Pro Forma purchases include subscriptions, postage for bulk mailing, membership dues, and conference registrations. The Small Purchases Charge Card is the preferred method for making pro forma purchases. In the event the charge card is not accepted, departments shall use the Receiving Report/Request for Disbursement form to initiate payment for Pro Forma purchases. You must complete this form as per instructions. The department shall include the federal taxpayer identification number of the vendor on the form. Failure to provide this number will result in a delay in processing payment.
45220 Payments to Vendors – Purchase Orders [Return to top]
Departments shall use the VMI Receiving Report/Request for Disbursement Form to initiate payments for purchases made with a Purchase Order. An authorized employee shall sign this form. You must submit the completed form within five days of receipt of goods or services to the Comptroller’s Office.
When partial shipments are made, the department shall complete the receiving report only for those goods and services actually received. You must complete the form similar to the instructions above. When final shipment is made, you must complete another receiving report as described above to initiate final payment and forward it to the Comptroller’s Office within five days of receipt of goods or services.
45300 Small Purchases Charge Card [Return to top]
The Bank of America Visa Small Purchases Charge Card is used by departments for small dollar, repetitive purchases from participating vendors. The purchasing card is issued and regulated by the Purchasing Office. Departments shall contact the Purchasing Office to request a purchasing card.
The purchasing card allows cardholders to make small dollar purchases without obtaining separate Purchasing Office approval for each transaction. Cardholders may use the purchasing card to purchase supplies, equipment and contractual services.
The Institute receives one monthly invoice from Bank of America Visa; therefore, it shall make one payment to Bank of America Visa each month. Departments are responsible, as described below, for logging all purchases and reconciling their individual monthly statement. Without exception, all purchases made with the card are subject to all rules and regulations that govern the Institute's purchases.
In order to verify the accuracy of billing statements received from Bank of America Visa, departments shall maintain an accurate log of purchases made with the department’s purchasing card. The department shall maintain the log in the manner proscribed by the Purchasing Office.
As each purchase is made, you must record the purchase in the log. You must include all required information as noted on the log to include date of purchase, vendor name, description, object code to be charged, amount, eVA processing, etc.
Payment Cover Sheet
The monthly billing cycle cutoff is on or about the 15th of the month. At the end of each billing cycle, each cardholder shall reconcile their charges for the cycle. The cardholder shall submit the cover sheet to the Comptroller’s Office on or about the 26th of the month. The department shall maintain the Purchases Log and all supporting documentation (invoice, packing slips, credit receipts, etc.) for five years in accordance with state regulations. You must contact the Comptroller’s Office to coordinate retention and disposal of backup documentation.
Departments shall not reduce the amount payable on the statement; however, the department shall reconcile any discrepancies between the log and the statement. If you need to return an item for any reason, you shall send the item back to the vendor in the manner agreed upon. Credits for returned items may not appear on the current statement but shall appear on subsequent statements. If a cardholder and vendor cannot resolve a dispute, the department shall contact the Purchasing Office.
After reconciling the invoice to the log, the cardholder shall sign the certification stating that purchases were received in accordance with state regulations and are for official business of the Institute and support its mission. The cardholder’s supervisor shall verify this certification by signing the coversheet.
The bottom portion of the cover sheet records summary information obtained from the logs. The Comptroller's Office will use this information to distribute charges by Colleague account number and object code.