Payment of Accounts

Approving Authority:	Council
Establishment Date:	26 March 1997
Date Last Amendment:	28 January 2005
Nature of Amendment:	8.3
Date Last Reviewed:
Publication Reference:
Contact Officer:	Director, Financial Services

8.3	Introduction Flinders University operates on the principle of delegated authority. Heads of Faculty and Heads of Department assume operation control and financial accountability for their respective section. Personnel are designated as buyers within these sections and are responsible for ensuring that: expenditure incurred is solely for University purposes; expenditure has been appropriately authorised; the invoice or other documentation is addressed to Flinders University; goods have been received or the services rendered; quantity is correct and the quality is of acceptable standard; unit price and the cost extension is correct; invoice has not previously been paid; original invoice is submitted to the Accounts Payable section in a timely manner. Delegation of financial authority is documented and a register of signatures is maintained by the Financial Operations Section. Faculties are responsible for notifying the accounts section of any additions to, or deletions from the register. The University has a regular weekly cheque run for payment of creditors, employee reimbursements and advances. There is a second cheque run for salary claims and emergency student loans, which miss the regular weekly run.
	Principle Payment of accounts The university will pay creditors for goods and services received on receipt of a duly authorised invoice, and in accordance with the agreed terms of trade, taking account of discount available. Authorisation signatures Signatures will be accepted only from those officers who are authorised by delegation of the Resources Committee. Documents which have been authorised by a signature which is not registered to approve a cost will be returned to the faculty/division. Signatures are to be clear on all document copies to enable matching with the signature register. Initials will not be accepted for authorisation of expenditure. Cheque signing authority for pre-signed cheques Cheques drawn for amounts above $20,000 and below $100,000 will bear additional signature of a ‘signing officer’. Cheques drawn for amounts of $100,000 and over require the additional signatures of a ‘signing officer’ and a ‘counter signing officer’. A list of signatories is available from the Accounts Co-ordinator. The same person will not be permitted to sign in both capacities on the same cheque. The cheque signatory will be independent of the authorisation of expenditure and the payee of the cheque Prompt cheques Requests for prompt cheques will be issued only in an emergency, and will be approved by either the Executive Director of Administration (EDA) or the Director, Financial Services. Payments will be issued from a cheque book kept in the cheque safe by the Accounts Co-ordinator. Details of prompt cheques issued will be entered onto the finance system within twenty four hours of issue. Open for cash cheques The practice of opening cheques will be strongly discouraged. Cheques will be banked by the payees and cleared in the normal manner. Exceptions include: overseas visitors on short term visits; emergency student loans; petty cash reimbursements.
	Procedure 8.3.1 Receipt and processing of invoices 8.3.1.1 Invoices will be directed to the buyer in the department where the order originated. 8.3.1.2 After certification and approval, documents will be sent to the Accounts Payable section for computer processing.
	8.3.2 Certification of invoices and approval for payment 8.3.2.1 Invoice related to a purchase order The invoice will be checked to ensure that it matches the Purchase Order and has been receipted on the system. Discrepancies will be resolved with the vendor by the buyer. If the invoice quantity or cost is greater than the purchase order, and this is acceptable then: the purchase order will be adjusted on the system; or the invoice will be signed by the officer who authorised the purchase order approving the additional cost. 8.3.2.2 Invoice not related to a purchase order The invoice will be sent to the buyer to confirm the following: goods or services have been received and checked; invoice quantity and cost is correct; accounting flexfield is correct; signature of authorisation for expenditure. Any dispute will be negotiated between the supplier and the buyer. The invoice will be stamped and required sections completed, refer example below. Pay On Invoice      Date:.................................... Goods/Services received by:....................................... Charge Account: __ __ __ / __ __ __ __ / __ __ __ __/ __ __ __ / __ / __ __ Authorising Signature:................................................ The invoice will be returned to Accounts Payable. Note: Prompt attention by the buyer or designated officer in the absence of the buyer is essential to avoid delays in the processing of invoices for payment.
	8.3.3 Quality Assurance The Accounts Supervisor is responsible for quality assurance of invoice payments.