INTRODUCTION

Purchases from an NMSU employee are not permitted. Employees must be paid for services through the Banner Human Resources System (HR). Refer to the BPM Manual, Financial Operations/Payroll Chapter 5B, subsection 5B.15.10 for additional information. Please verify employment by contacting the Payroll Office before the purchase.

NOTE: All reference to signatures indicates original, authorized signatures. Facsimiles, copies of signatures, or signing for another individual are not acceptable.

Employee travel related expenses should be processed on a Reimbursement Voucher. Refer to BPM Manual, Financial Operations/Trave,l Chapter 5C, or call 646-3006 for information regarding reimbursement requests for travel expenses incurred by employees for University business purposes.

5A.05

DIRECT PAY REQUESTS

Direct Pay Requests authorizes payments for items which are not required to be requisitioned into the Banner Finance System (FIN) system. The following types of purchases/services should be processed on a Direct Pay Request:

• Agency Fund purchases
• Awards (subsection 5A.05.05)
• Conference Registration Fees Related to Travel
• Freight not associated with a PO (i.e. UPS)
• Insurance for trips to Mexico
• Grant-In-Aid
• Honorarium (subsection 5A.05.15)
• Library purchases for books and periodicals
• Postage (Including overnight deliveries)
• Gasoline Credit Card Purchases (subsection 5A.05.10)
• Stipends (subsection 5A.05.20)
• Non-Employee Travel Reimbursements (subsection 5A.30.10)
• Refunds of NMSU tuition and fees related to Student Accounts
• Utilities (electricity, gas, water, telephone, excludes sanitation)
  

5A.05.05

Awards

Student Awards
All student awards should be processed through the Financial Aid Office.

Employee Awards
All cash awards given to employees related to employment are treated by the Internal Revenue Service as wages and must be processed through the Payroll Department. For processing instructions, see the BPM, Chapter 5, subsection 5B.15.10, One Time Payment Request (OTPR).

All other awards may be processed on a Direct Pay Request.

5A.05.10

Gasoline Credit Card Purchases

5A.05.15

Honorarium

An Honorarium is a payment made to a non-employee for which fees are not legally or traditionally required. To be classified as an Honorarium, no service should have been provided by the individual. If actual services are being provided, the payment should be classified as a service.

The payee signature on the Direct Pay Request form or an invoice with original signature is sufficient documentation to process the payment.

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5A.05.20

Stipends, Trainee Allowances and Participant Fees

NMSU Student Payments
The payment must be processed through the Financial Aid Office. Educational assistance awards, which require services to be rendered, must be processed through the E-Hire System.

NMSU Employee Payments
The payment must be processed through the E-Hire System.

Other Payees
For student related programs, participant payments should be processed on a Direct Pay Request. The payee signature on the Direct Pay Request form is sufficient documentation to process the payment. Non-participant payments, such as mentors, teachers, trainers, etc. must be processed through the Financial Purchasing System (FP).

For non-student programs, all payments must be processed through Financial Purchasing System (FP).

5A.10

CHECK WRITING POLICY

Centrally Billed Invoices
Accounts Payable will make every attempt to process centrally billed invoices that have discount payment terms within the discount period. All other invoices are paid within 30 days of the invoice date (net 30), unless other payment terms have been agreed to by NMSU through the Central Purchasing Office (CPO).

Except as indicated below, all checks are required to be mailed directly to the payee. In situations when it may be necessary for a department to directly receive a check the following guidelines will be followed:

1. Direct release of checks to departmental personnel may be permitted for:

• Employee travel reimbursements or advances
• Payments required to be released directly to the payee (specific legal terms, game official fees, etc.)
  
  The departmental representative will be required to present a picture I.D. to pick up the check in Accounts Payable.

2. Requests for one-time exceptions may be permitted if a Direct Pay Release Form has been submitted and approved in advance. Please note that the request may be denied in order to ensure sound internal control procedures.

3. The following checks are exempt from the above procedures:

• Financial aid awards
• Agency Fund purchases

Stop Payment Requests

Stop Payment Requests for checks already issued are to be requested using the Stop Payment Request form. The form is to be submitted to Accounts Payable.

Copy of Check

To request a copy of a check, please use Copy of Check form and submit to Accounts Payable.

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5A.10.05

Emergency Checks

5A.15

EMPLOYEE REIMBURSEMENT OF PERSONAL EXPENSES (NON-TRAVEL)

Expenses incurred by or on behalf of spouses/domestic partners of University employees during the conduct of University business are eligible for payment from University funds. It is the responsibility of the Department Head, Dean, or Director to ensure that the spousal expense is incurred during the conduct of University business.

5A.15.05

Business Meals

A business meal is defined as "A meal expense that directly precedes or follows a substantial and bona fide business discussion (including a business meeting at a convention), and that is associated with the active conduct of a trade or business." Employees may use the Procurement Card for business related meals purchased from an on-campus food service provider. Off-campus meals can be direct billed (through a Requisition) to NMSU only if the cost exceeds $100. All other meals should be paid for by employees and submitted for reimbursement. Meals will be reimbursed upon submission of a Reimbursement Voucher and valid receipt.

Criteria for Reimbursement:
Requests for payment of departmental meals must identify a NMSU-related business purpose for the meal and the names of all attendees or type of attendee if more than 20 attendees. The purchase of liquor is considered unallowable on University funds. The cost per business meal per person, including taxes and tip, may not exceed the following rates:

Breakfast.....$10.50
Lunch...........$16.00
Dinner....…..$26.00

The cost of meals exceeding these amounts may be paid by the University only as allowed by externally funded sources.

NMSU Catered Meals
All requirements apply to meals catered by NMSU Dining Services. Delivery and set-up fees associated with meals catered by NMSU Dining Services are not considered part of the meal per person cost.

5A.15.10

Employee Reimbursement For Purchases of Goods

Goods less than $2,500 purchased with personal funds for official University purposes will be paid upon submission of a Reimbursement Voucher. Receipts indicating the bill was paid (that is, marked "PAID" or balance due equals $0.00) must be attached. All receipts must be identifiable as to Payee, Item description and Amount of the expenditure. The department must provide any information not given by the receipt and all such additions must be attested to by the employee's signature on the Reimbursement Voucher.

All Purchases of Services and Purchases of Goods greater than $2,499 require an official NMSU Purchase Order (PO) issued through the Financial Purchasing System (FP).

NOTE: Sales tax is not reimbursable by NMSU for purchases of non-service items. Contact Central Purchasing Office (CPO) for questions regarding the University's tax exempt status and Federal/State tax ID numbers.

5A.15.15

Non-Allowable Purchases

Central Purchasing Office, Chapter 4, subsection 4.00.45, outlines purchases that may be considered unallowable on University funds.

5A.15.18

5A.20

Procurement Cards

For information on Procurement Cards, please see BPM, Chapter 4, section 4.40.60.

EMPLOYEE UNIFORMS

Uniforms and upkeep of uniforms, including laundering and cleaning, may be provided to NMSU employees through one of the following two options only:

• Reimbursement Voucher can be prepared to reimburse an employee for the cost of uniforms and maintenance of uniforms. Submission of original and externally produced receipts is required.
  
• Departments may create a Purchase Requisition for the purchase of uniforms and/or maintenance of uniforms. The department will be responsible for ordering and distributing the uniforms to employees. The maintenance of uniforms must be administered through the department.

NOTE: Departments will not be allowed to provide employees with an allowance or advance for the cost and upkeep of uniforms.

5A.25

INTERDEPARTMENTAL CHARGES

Interdepartmental Voucher forms (IDV) are used to process and record internal sales between departments. An IDV should not be used as a journal voucher to record charges within the same department and cannot be used to record salary transfers. If possible, avoid processing IDVs for amounts less than $10.00; instead, charges should be accumulated until they exceed $10.00.

Any credit or service department using the IDV billing process must have an established, documented work order system in place which allows for previous debit department authorization of work and provides adequate supporting documentation for all work performed.

NOTE: It is the responsibility of the service department to provide timely interdepartmental billings on all charges.

To process internally generated revenue on IDVs, services must be rendered by and charges must originate from one of the three following types of units:

• Established Internal Service Accounts. Credit account numbers and object codes are limited to account 795100. To create an internal service account, Accounting and Financial Reporting (AFR) should be contacted.
  
• Internal Income: Departments or units that are allowed to record internal income, such as auxiliary enterprises, athletics, independent operations, and agency funds. Credit accounts are limited to 506XXX.
  
• Receive Reimbursement: Departments or units authorized to receive reimbursement for work performed through an officially recognized internal subcontract in support of a restricted grant or contract, such as PSL and major University research units. Recognition of internal subcontracts will be determined by SPA. Credit account numbers are subject to the approval of AFR. The credit account is limited to 792800.

• Prior Approval: Other departments that have obtained prior approval from Financial Operations.

Transactions that do not fall into one of the above categories should be processed on a Journal Voucher rather than on an IDV. Journal entries will be subject to fiscal monitor for review and will require complete supporting documentation.

The Service (credit) Department generates IDVs after services are performed. The Service Department retains one copy (the yellow copy if using the 3-part NCR form), and the original and an additional copy (the original and pink copies if using the 3-part NCR form) with all attached supporting documentation in duplicate are forwarded to AFR for routing for approval. It is the responsibility of the Service Department to obtain a valid Finance System (FIN) Index (FOPAL) and account number of the department to be charged, before the service is performed. IDVs received without debit Indexes (FOPALs) will be returned to the Service Department.

AFR will review all IDVs and submit them to Data Control for entry and posting to the Finance System (FIN). One copy (pink if using the 3-part NCR form) will be forwarded to the ordering (debit) department to indicate that the transaction has been processed. Errors in the IDV billing should be referred to the Service Department as soon as possible. If adjustments are necessary, the Service Department should initiate the correcting Journal Voucher. The Journal Voucher should be forwarded to the proper fiscal monitor for approval.