Vendor Controls

Approving Authority:	Council
Establishment Date:	8 December 2005
Date Last Amendment:
Nature of Amendment:
Date Last Reviewed:
Publication Reference:
Contact Officer:	Director, Financial Services

1.	Introduction 1.1 Vendors are created on the University Finance system by the central Accounts Office for any creditor, staff or student requiring a payment or reimbursement from the University. Maintenance of the Vendor Masterfile is managed by the central Accounts Office.
2.	Policy 2.1 The University will establish vendor controls to help ensure that payments are valid and have been authorised by the appropriate delegated signing authority. These controls will be designed to minimise the following risks associated with the recording of and payment to vendors: Duplicated vendors may be created on the Vendor Masterfile causing duplicated payments to creditors. Payments may be made to invalid creditors. Invoices may be paid twice. Invalid payments may be made to staff members. 2.2 The controls established to minimise the risks identified are: Payments >$19,999 will be approved and signed by one designated cheque signatory. Payments >$99,999 and any ‘open for cash’ payments will be approved and signed by two designated cheque signatories. Payments >$9,999 will be listed by the central Accounts Supervisor (or nominee) for daily cashflow. Samplings of invoices will be checked by the central Accounts Supervisor for payments of high value and large repetitive payments. The finance system will create a query alert when an invoice number is entered twice against a vendor to reduce the risk of an invoice being paid twice. EFT Audit Report will be checked, signed and dated by the central Accounts Supervisor for all creditors with new and/or modified banking details before any payment is made by EFT. The central Accounts Supervisor will not have access to create vendors or edit vendor details.
3.	Procedures 3.1 Data is extracted from the University Finance system by the central Accounts Supervisor for each month. 3.2 The parameters used for the report consist of any payments made on the Oracle system that are over $10,000 as well as any repetitive payment over $10,000 across consecutive months. 3.3 The report is reviewed by the central Accounts Supervisor and samples of paperwork are requested for selected items such as: Unusual and/or unknown vendor payments. Payments that seem to be duplications. Repetitive payments that seem to be duplicated. Repetitive payments that appear irregular. Large payments made to staff members. 3.4 The original paperwork is given to the central Accounts Supervisor to confirm the payment was: Authentic payment to a vendor eg registered ABN. Duplicated invoices are for original invoice payments. Repetitive payments are valid. Large payments to staff members have been approved and authorised by the appropriate delegated authority and relate to legitimate University expenses. 3.5 Any discrepancies will be followed up by the central Accounts Supervisor with finance staff within the local areas. 3.6 Where there has been a payment made in error, the creditor will be notified by letter. The letter will outline all relevant details pertaining to the error with either: A request for reimbursement to the University for monies forwarded to the creditor in error, ie where funds were transferred or a cheque has been presented, or Confirmation that the payment has been stopped as it was paid in error, ie where the cheque remains unpresented. 3.7 The report will be signed as being checked by the central Accounts Supervisor and all paperwork associated with the check and validation of payments will be filed in the central Accounts Office. To Top