Financial Management Policy 30320
This policy prescribes the procedures governing expenditures of College funds and addresses expenditure documents prepared by the College for submission to the Shared Service Center for processing.
Disbursements of State funds are made to businesses or individuals that furnish goods or services to the College. To receive payment, these entities must submit vendor invoices to the Shared Service Center. The term, invoice, refers to the original vendor prepared bill. Another form of disbursement is the reimbursements paid to employees for College related business travel expenditures. Refer to GCC Policy No. 30800 for details on travel reimbursements.
Payments can be made from an itemized statement if a contractual agreement exists with the vendor allowing this practice. Under these circumstances, the payment terms for the itemized statement should be specified in the vendor contract.
Payments made prior to the receipt of goods and services are permissible only as described in CAPP Policy No. 20300 (Cash Disbursement Accounting). Advance payments that comply with CAPP Policy No. 20300 may be issued at year end as a mechanism for controlling year end cash balances when approved by the Director of Finance. These are generally restricted to payments under a lease or written contract with little to no risk of non-performance on the part of the vendor, but may include other payments that comply with CAPP.
The vendor payment due date is defined as either:
- the date on which payment is due under terms of the contract for provision of goods or services, or
- if such a date has not been established by a contract, thirty days after receipt of the vendor’s invoice at the Shared Service Center or thirty days after receipt of the goods or services, as recorded in eVA (Commonwealth purchasing system), whichever is later.
3. Processing payments
When the invoice is received at the Shared Service Center, they are responsible for performing a three way match between the purchase order (in eVA), the receipt information (in eVA) and the invoice. Invoices missing purchase order information or that have not been received will be routed back to the College for resolution.
3.1. For payments processed on small purchase charge cards – Small purchase charge cards (SPCC) may be used for purchases that comply with the Business Rules as determined by the Shared Service Center. SPCC Purchases are restricted to point of sale purchases, pre-approved meals, emergency purchases, on-line purchases requiring a user log-on, and professional memberships and related conference registrations.
4. Improper expenditures
DOA may question any State-funded expenditure (Section 2.2-1822, Code of Virginia). As such, Business Office personnel review all expenditures to ensure they are in compliance with State and College policies.
College purchases must be considered essential to the operation of the College and in support of the College’s mission to justify the use of State funds. Since all State-funded expenditures are subject to public scrutiny, the College should consider the appearance of unusual purchases on the College and on State government in general prior to authorization. Since individual circumstances vary widely, adequate documentation for unusual purchases should always be included with the voucher.
The following lists contain examples of expenditures considered to be improper uses of State funds. These lists are intended to provide general guidance to agencies in judging the appropriate use of State funds. However, any State-funded expenditure may be questioned, even those which are not included on the following lists.
Employee personal expenses such as:
- Books for classes (unless they remain property of the State).
- Snacks or refreshments.
- Baby sitting.
- Non-business related newspapers or magazine subscriptions.
- Personal articles that are lost or stolen.
- Tuxedos or other formal wear.
- Clothing (non-uniform) or repairs to clothing damaged in the workplace.
- All expenses related to personal negligence of the employee, such as traffic fines.
Agency-sponsored event expenses incurred which do not clearly support the agency mission such as:
- Retirement parties or employee going away parties.
- Holiday decorations.
- Alcoholic beverages.
- Charitable contributions.
- Gifts and flowers.
CAPP Topic No. 20300, Cash Disbursements Accounting
CAPP Topic No. 20310, Expenditures
6. Point of contact
Director of Finance
7. Approval and revision dates
7.1. Joyce Warnacut: June 15, 2018
7.2. Leadership Council: December 14, 2018