Financial Policies Training: Small Dollar Invoice Payment (2.1.8) Effective: May 17, 2010

1. Financial Policies Training:Small Dollar Invoice Payment (2.1.8)Effective: May 17, 2010

2. These PowerPoint slides are intended for training purposes. In the event of any discrepancy or interpretation difference between the policy and the slides, the policy dictates.

3. Agenda • Small Dollar Invoice Payments • What are they? • When are they allowable? • Other considerations • Initiating, Approving, Processing • Organizational unit steps • Accounts Payable • Special arrangements • Policy Violations • Resources

4. Small Dollar Invoices What are they? • Payment method within UC Flex • Real-time • Used to pay vendors • for the purchase of goods/services • $300 or less • Not used to pay individuals (including employees)

5. Small Dollar Invoices When are they allowable? • Invoices/prepayments of $300 or less • P-card can’t be used • Vendor doesn’t accept • P-card restriction on good/service • Vendor is not on university term contract • Doesn’t warrant a purchase requisition • Anticipated total annual expenditure for goods/services less than $3,000 • Item is not: lab animal, radioactive materials, weapons, ammunition, hazardous materials, select biological agents, prescription drugs or controlled substances

6. Small Dollar Invoices Other considerations: • The UC Flex transaction may be restricted to select org units within a VP or Provostal area • Pyramiding is not permitted Pyramiding charges—The use of split transactions in an attempt to break purchases into smaller dollar amounts and thereby circumvent established limits.

7. Initiating, Approving, Processing Small Dollar Invoice Payments Org unit steps • Complete “Small Dollar Invoice Authorization” Form • Initiator and reviewer/approver cannot be the same person • Reviewer/approver should not be subordinate to initiator if possible • Process transaction in UC Flex • SDI Direct Processor role • UC Flex document number recorded on top of the form • Invoice marked “PAID” • Documents to be kept in the org unit • Small Dollar Invoice Authorization Form with UC Flex document number • Invoice (original or copy marked “PAID”) • Any other supporting documentation • No need to contact or send anything to Accounts Payable unless special arrangements needed

8. Initiating, Approving, Processing Small Dollar Invoice Payments Accounts Payable • Pays the small dollar invoice • Within two business days from org unit posting in UC Flex • Check (only*) mailed to vendor* *unless special arrangements

9. Initiating, Approving, Processing Small Dollar Invoice Payments Special Arrangements • Required documents must accompany check to vendor • Org unit must contact Accounts Payable (AP) • Org unit sends documents required to accompany check to AP along with the UC Flex document number • Check to be forwarded to org unit (instead of mailed to vendor) • Org unit must contact AP and provide name of “org unit contact” to receive check • “Org unit contact” should be someone other than the initiator and the reviewer/approver

10. Small Dollar Invoice Payment Policy Violations • UC Flex role removed • Potential administrative/disciplinary action • Personal or non-university uses • Referred to Internal Audit • Reimburse the university

11. Resources • Financial Policies web site, www.uc.edu/af/policies,for • (under Financial Policies Documents) Small Dollar Invoice Payment (2.1.8) • (under Forms) Small Dollar Invoice Authorization Form • Policy questions e-mail:policyquestions@uc.edu