LIMITED PURCHASE CHECK LIMITED PURCHASE CHECK ORIENTATIONORIENTATION

Accounts Payablewww.ap.admin.utah.edu

145 Park

Sandy Jones1-5748

sandra.jones@admin.utah.edu

AGENDAAGENDA• INTRODUCTION• PURPOSE• ACQUIRING CHECK STOCK• HOW TO USE THE CHECKS• DOCUMETATION• SENDING TO AP• POSITIVE PAY• PROHIBITIONS• VIOLATIONS• CONCLUSION

• Q & A• QUIZ

PURPOSE OF HAVING A PURPOSE OF HAVING A CUSTODIANCUSTODIAN

• POLICY • to ensure that policies & procedures

are followed correctly

• SECURITY• keeping checks locked away, you are

the only one with access

• ACCOUNTABILITY • taking responsibility for your stock

and keeping it up-to-date

THE PURPOSE OF HAVING LPC’s IS…

CONVENIENCE• Can be used for purchases

under $1,000.00• Vendors are paid immediately,

leaving room for negotiable discounts and tax exemption

• The departments have more control over petty purchases

ACQUIRING THE CHECK STOCK

1

123

2

(1)

(1)(2)

(3)

HOW TO USE THE CHECKS…HOW TO USE THE CHECKS…

(1)

(2) (2)

(3) (4)

• APPROVALS • obtain proper signatures and approvals

(reimbursements, meals, alcohol)• DECRIPTION- who, what, when, where & why

• Leave no room for questions• Business meals & entertainments section

• DATES • date of function(s)

• DOCUMETATION• all receipts & invoices must be originals • ONE invoice per check - no exceptions

• W-9 & DOUBLE NAME VERIFICATION

HOW TO USE THE CHECKS…HOW TO USE THE CHECKS…

HOW TO USE THE CHECKS…HOW TO USE THE CHECKS… & & TURNING THEM IN TO APTURNING THEM IN TO AP

• Send the yellow copy and the backup, nicely stapled with the receipts taped down.

• Double check!! • Is the information legible? Did everything

transfer over to the yellow copy? Is the chart field correct? Etc.

• YOU are responsible for: • making sure that Accounts Payable receives

your copies • Reconciling your management reports

frequently

APPROVALS

• Reimbursements must be authorized and signed

by the payee’s direct supervisor

• Meals/entertainment must be authorized by the

dean or director

• New memberships must be authorized by the

dean, director, or hospital administrator

• Subsequent memberships may be signed by a

supervisor

POSITIVE PAY…POSITIVE PAY…WHAT IT IS AND HOW TO USE IT

POSITIVE PAYPOSITIVE PAY

• POSITIVE PAY is an on-line check register that connects directly to Wells Fargo

• Reporting checks to the bank on a daily basis helps to prevent fraud & helps with a more rapid bank reconciliation

• INNR & Reg $ Differs

HOW TO USE THE POSITIVE PAY HOW TO USE THE POSITIVE PAY SYSTEMSYSTEM

• MAINTAIN

• Use maintain to enter new checks, undo and/or

update.

• VOID

• This can only be done after the file has gone to the

bank (otherwise, it’s a spoil)

• DISPLAY

• This is a list of all checks you have recorded into the

system; you may use this as your register.

HOW TO USE THE POSITIVE PAY HOW TO USE THE POSITIVE PAY SYSTEMSYSTEM

• Entering the checks-

• Dates may be changed to six months ago

and up to a year in the future, the color will

show a change

• Any data can be undone or updated before

the file is sent to the bank

• The file is sent to the bank every day after

business hours

HOW TO USE THE POSITIVE PAY HOW TO USE THE POSITIVE PAY SYSTEMSYSTEM

• VOIDS-• a check may be voided if the file has been

sent to the bank

• SPOILS-• you spoil a check if the bank has not

received the file or the check is otherwise unusable (un-spoil)

• STALE DATES-• checks that are dated more than six

months old are no longer valid and need to be voided and stopped

PROHIBITIONSPROHIBITIONS

• ISSUING A CHECK FOR OVER THE $1,000.00 LIMIT

• PAYMENT ON BEHALF OF NON-RESIDENT ALIENS OR TO FOREIGN VENDORS

• EMPLOYEE TRAVEL - HOTEL DEPOSITS AND CONFERENCE PRE-REGISTRATIONS ARE THE ONLY TRAVEL RELATED PAYMENTS THAT ARE ALLOWED

**Prohibitions are defined within the user’s guide

VIOLATIONSVIOLATIONS

• A $12.00 processing fee will be charged to the default chart field

• Three violation within a 90 day period

will result in a loss of privileges

• We all make mistakes, even me! Some of the most common include:• Missing information• Missing documentation• Amounts do not agree• Incorrect signatures or lack of

CONCLUSIONCONCLUSION

• THESE CHECKS ARE YOUR RESPONSIBILITY

• READ THE USER’S GUIDE!!!• It is vital that you familiarize yourself and your

department with the University’s policies, procedures, and guidelines to avoid violations and loss of privileges.

• The user’s guide can be found on the Accounts Payable website

http://www.ap.admin.utah.edu/IDX/LPCIDX.html

• Q&A

• QUIZ