3.7 Non-pay Expenditure

3.7.1 The Director of Finance is responsible for making payments to suppliers of goods and services to the University.

3.7.2 Invoices for goods and services should be sent to the Finance Office for payment at least once a week. The Finance Office should be informed of any invoices held by the departments which are the subject of delay, e.g. because of dispute with the supplier.  All invoices for payment must be made out to the University of Leicester.

3.7.3 Invoices should be signed by the budget holder in the department, or a member of staff with delegated authority. The member of staff (or budget holder) authorising an invoice for payment must be different from the member of staff responsible for signing the purchase order form.

3.7.4 The budget-holder's signature signifies that he or she is satisfied that:

  • the goods have been received, examined and approved as to quality and quantity or the work has been carried out satisfactorily
  • prices are correct and in accordance with contracts or quotations where appropriate, also that arithmetic is correct and available discounts have been deducted
  • an invoice has not previously been passed for payment for the same supply
  • the invoice constitutes a proper charge against the account code to be charged
  • the amount of the invoice is within the budget of the account code to be charged
  • where appropriate, an equipment inventory entry has been completed.

3.7.5 It is the University's general policy to pay for goods and services only after they have been received. If in exceptional circumstances a supplier requires payment in advance, the budget holder is responsible for ensuring that the goods or services are actually provided. If a substantial sum of money is involved the supplier should be asked to provide an advance payment bond (which is issued by the supplier's bankers and will allow the University to recover the advance payment if delivery is not made on time). If a bond is required departments should contact the Purchasing Manager for guidance.

3.7.6 Invoices relating to travel arrangements and hotel or conference bookings must be authorised in accordance with the rules for expense claims and must be annotated to show the purpose of the visit, the period of the visit (start and end dates) and the names of the members of staff to which the invoice relates.

3.7.7 Payments to suppliers should always be made on the basis of an official invoice. There are circumstances, however, where a payment needs to be made but there is no supplier invoice - the payment of a conference attendance fee is a possible example. On such occasions form CP1 (available on the Finance Office website) should be completed and submitted to the Finance Office for payment. Each form must be properly authorised and contain sufficient supporting details to substantiate the name of the payee and the amount of the payment.

3.7.8 Budget holders wishing to make payments in foreign currency should notify the Accounts Payable Office in good time. Wherever possible two weeks clear notice should be given before any foreign transaction. If this is genuinely not possible the budget holder should consult the Accounts Payable Office to discuss the best procedure for payment.

3.7.9 All cheques will be sent out by the Accounts Payable Office direct to the recipient, unless there are exceptional circumstances (as detailed below). Any relevant documentation to accompany the cheque, e.g.. conference registration documents, subscription renewal forms, orders, etc., must be sent to the Finance Office which will then ensure that it is enclosed with the cheque.

3.7.10 There will be a some exceptional situations where the cheque is required by a department, for example where cheque for prizes, elective loans, deposit returns etc are to be distributed in a controlled manner or where payment is required on delivery of goods. Any cheques that are not to be sent directly to the recipient must be collected from the Finance Office by a departmental representative.

3.7.11 Cheques for reimbursement of expenses or payment of fees will be sent direct to the person to whom they are due, either at a departmental or home address and must not go via a third party.

3.7.12 Cheques in excess of £15,000 require two signatures, or a lower figure if the Director of Finance considers it to be necessary.

3.7.13 Where appropriate, the President and Vice-Chancellor or the Director of Finance may approve the issuing of University credit cards to senior staff. Such credit cards shall be used for the payment of valid business expenses only, and the misuse of such cards shall be grounds for disciplinary action. Purchasing cards may also be issued to staff in departments and this is covered in the Purchasing Policy section of this document.

 

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