Financial Services
Policies and Procedures - Financial Services
Policy 7 - Expenditure Policies
General Statement
The administration of The University of North Carolina at Greensboro, being mindful of its responsibilities to manage funds from all sources which are entrusted to it for carrying out its programs and activities, deems it advisable to promulgate written policies, guidelines, and procedures for the prudent expenditure of those funds. Such policies assist the University in meeting its obligations of public accountability and responsibility to the State of North Carolina and to other constituencies which have made those funds available. Our responsibility is to facilitate the support of quality programs while ensuring that resources for those programs are spent legally and wisely. The State Auditor, and other relevant agencies, have insisted upon certain standards.
These policies, guidelines, and procedures are applicable without exception to all funds owned or administered by The University of North Carolina at Greensboro. All expenditures of the University are to be consistent with applicable State and Federal laws and regulations; any restrictions, rules, or regulations placed on the use of the funds by donors and granting or contracting agencies; and prudent management practices. In addition, all expenditures from University funds must be reasonable and necessary for carrying out the programs and activities of the University, and are to be documented in a way which clearly substantiates such reasonableness and necessity.
Purchasing Policies And Procedures
Before expenditures are made against any University funds, there must be evidence that the Purchasing policies and procedures have been followed, thereby ensuring that a valid commitment of University funds has been made. Obligations incurred by any employee of the University in conflict with the Purchasing policies and procedures become personal obligations of the employee and not of the University. For a more precise and detailed description of those policies and procedures relating to purchasing commitments, reference should be made to the Purchasing Section of the Policies and Procedures Manual.
Approval Of Expenditures
Signature of the appropriate person responsible for a fund, or a designee,
is required for expenditures to be made against the fund. Since there are a
number of ways in which obligations are incurred and expenditures made, the
signature of the fund holder is required on those documents pertinent to the
situation. The individual with fund responsibility (usually a Department Head,
Director, Dean or other managment level position) has ultimate responsibility
for all transactions for their fund(s) and are held accountable.
Purchases made from Petty Cash:
Other purchases not requiring approval from the Purchasing Office prior to purchase. Items qualifying as purchases of this nature are specified explicitly by the Purchasing Office:
Intra-Campus Purchases:
In addition, prior to the time a check is written, each request for expenditure must be signed on behalf of the Vice Chancellor for Business Affairs by a designated employee of the Office of Financial Services. Requests for expenditures not meeting the documentation standards and other guidelines must be rejected, and a reason for such rejection clearly stated. Unless the problem is resolved by the requesting account holder, the Vice Chancellor for Business Affairs, who has final authority in resolving all questions relating to validity of expenditures, will not approve the payment.
Documentation Standards For Expenditures
Expenditures require the following documentation:
- Original Invoice from the vendor.
- Authorized Signature(s) of Fund Holder(s) or designee on the documents indicted in the section above relative to Approval of Expenditures.
- Evidence of receipt of goods/services including the Date on which the goods and/or services were received or performed and the signature of the person receiving the good, using the on-line receipt system, as applicable. Expenditure authorizations must be filed within 45 days of the date of the invoice/receipt.
- Expenditure Authorization, Form BANFIN-32, for those purchases not requiring approval from the Purchasing Office prior to purchase.
- Petty Cash Establishment/Reimbursement, Form BANFIN-34, for expenditures made using petty cash funds.
- Other pertinent supporting schedules and/or information required to document the expenditure. For example, entertainment expenditures require identification of persons or group being entertained, the location of the entertainment, and the purpose of the entertainment.
- Voucher form indicating account distribution of expenditures and approval for payment.
Documentation standards for travel expenditures are documented in the Travel Section of the Policies and Procedures Manual.
State Restrictions On Expenditures
The State of North Carolina forbids or restricts the expenditures of State Appropriated Funds for the following:
- Employee's moving expenses
- Entertainment
- Alcoholic Beverages
- Gifts
- Honoraria for employees*
- Excess travel expenditures unless allowed in Travel policies of the State. (See Travel Section of the Policies and Procedures Manual.)
*Such payments are additional payments to the employee's salary.
University Funds Restrictions On Expenditures
University funds are restricted or may not be expended for the following:
- Honoraria for employees must be treated as additional payments to the employee's salary and processed through Human Resources/Payroll system.
- Business gifts must be authorized by the appropriate Vice Chancellor or Chancellor and cannot exceed fifty dollars($50.00). They must be paid from a discretionary fund funded by Chancellor discretionary allocation.
- Travel expenditures must be consistent with Travel policies and procedures. Refer to Travel Section of the Policies and Procedures Manual.
- Entertainment expenditures must be consistent with Busines Entertainment policies. Refer to Policy 8.
- Expenditures must be consistent with the restrictions placed on the fund
by the donor or the University.