CONTROLLER’S OFFICE PROCEDURE

 Procedure                         Subject                         Effective          Revised
  Number                                                             Date              Date
 C-AP-01         Direct Pay Procedure                            10/04/2010        10/04/2010

I.      Overview
The University of North Florida Controller’s Office is permitted to make direct payments for certain expenditures
without prior approval of the Purchasing Director. However, if the Vendor requires a purchase order, submit a
requisition to purchasing indicating that requirement in the document text field. Obligations eligible for this type
of payment are listed below. Obligations eligible for this type of payment are listed below.

II.     Expenditure Guidelines
Authorized personnel are expected to exercise good judgment in the approval of expenditures. The following
factors should be considered when reviewing expenditures for approval:
            A. Appropriateness
            B. Sensitivity to the values of the University
            C. The effect that certain types of expenditures may have upon the public image of the University
            D. The overall purpose to be served
            E. The cost savings to the University
            F. Availability of Budget within the funding source

III.    Allowable Expenditures
 Expenditures allowable under the Direct Pay guidelines are outlined below. Please be reminded that for all
Direct Pay requests, the department is responsible for securing a signed W-9 or W-8 form as per the IRS
regulations and procedure. Departments are also reminded that for new vendors a Vendor Application Form must
also be completed. Once completed, these forms should be forwarded to the Purchasing Department for
processing. You may locate these forms on the Controller’s and Purchasing’s website on the following
WebPages respectively:

When making a payment to an international vendor, please be advised that a signed original W-8 form must be
secured by the department. Copies or facsimiles of the W-8 form are not allowable under IRS regulations.

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The following are the guidelines for items allowable with a Direct Pay Invoice:

            A. Utilities

            B. Catering with approved UNF contractors and Food Purchases
                  1. E & G and certain other funds may not be used for Catering or food purchases.
                      Individuals in authorized official travel status are reimbursed on a per diem basis.
                      a.     Travel within 50 miles of the Headquarters or where there is no overnight stay does
                             not provide for any per diem or meal allowances.
                  2. Where a Concession Fund Index is used, the expense must be in compliance with the
                      Concession Fund Procedure and documented with the payment.
                  3. Where an Auxiliary Index is used, when allowable or fees must have been collected from
                      the participants for the expense and a prior approval form must be attached providing
                      justification for the activity/expense.
                      a.     Auxiliary Indexes and or departments must have been approved by the Auxiliary
                             Oversight Committee with planned budgets.
                      b.     The expense may not primarily benefit UNF employees.
                  4. Where Sponsored Research Indexes are used, a Prior Approval form, issued by OSRP
                      must be attached and the expense must be specifically authorized in the grant.

            C. Background Screenings for Employment

            D. Library vendor payments-Books, CD’s, Periodicals and interlibrary loans

            E. Entertainment contracts
                  1. Require an original contract approved by the Director of Purchasing or the Vice President
                      of Finance and Administration whichever is applicable.

            F. State insurance premium payments
                   1. Insurance payments, such as Summer Camps, must have the approval of the Office of
                       Environmental, Health & Safety.

            G. Remittance of other related payroll liabilities

            H. Athletic game officials, not covered under agreement with officiating association. Requires the
                   1. A properly completed W-9.
                   2. A form or contract containing:
                              a. The printed name and address and original signature of the payee.
                              b. Date of service and Amount of the payment.
                              c. Authorized Department signature approving the expense.
                   3. Must not be for any UNF employee. Please contact HR for instructions.

            I.   Athletic booking fees

            J.   Non-Employee-Payment & Payments to Research Subjects
                     1. May not be paid for any services performed for the University.
                     2. Payments for services require a contract. Please check the Purchasing Webpage for
                        contractual services policies and procedures at:
                     3. Completed W-9 or W-8.
                     4. Payments are all 1099 reportable to the Internal Revenue Services.
                     5. The payment must be to an individual and may not be to a company.
                     6. Payments may not be paid to a University Student.

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       7. Payments must be made for a legitimate activity or purpose, in accordance with approved
          expenditure guidelines, document the nature of the payment, and be in the best interest of
          the University. Examples would be:
              a. A payment to a research subjects,
              b. A payment to an individual for participating in a survey, or
              c. Any other needed incentive provided it is properly justified and documented,
              d. Please note that there are restrictions regarding payments to certain types of
                  research subjects and any payment dealing with this issue must be reviewed by
                  the Compliance Director in Sponsored Research. If there is a question as to
                  whether this criteria applies, please contact OSRP and review the OSRP website

K. Postmaster payments
      1. Includes bulk mailing, box rental, and metered mail machines.
      2. The purchase of stamps from E & G must be for official business and not for greeting
         cards or special invitations, including holiday events.

L. Employee reimbursement of moving expenses as authorized in F.S. 216.011(1)(kk)

       1. Reimbursements made directly to the employee and submitted through the Direct Pay
          form: (not to be used where a third party vendor provides for the move)
           a.      Reimbursements made directly to the employee and submitted on a direct pay form:
           b.      Requires a prior approved authorization form for moving expenses obtained from
                   Human Resources.
            c.     A TAR is not required for relocation moving expenses, such as, lodging or
           d.      Requires a letter from the department stating the distance of the move from the
                   employee’s former work location to the new residence. To be considered a
                   qualifying event, the distance must be at least 50 miles. Stating that the distance
                   is simply greater than 50 miles is not sufficient to cover this requirement.
            e.     Requires a letter stating that the employee will be a full-time employee in the
                   new location at least 39 weeks of the 12 months immediately following the date
                   of hire.
           f.      Departments may include both “d” & “e” above in one letter.
           g.      Requires original receipts.
           h.      Items not authorized by the State include:
                   1. Insurance covering the personal belongings of the employee
                   2. Unpacking fees
                   3. Extra stops
                   4. Pets
                   5. Meals
                   6. Lodging in the vicinity of the new headquarters at the end of the move or that
                        is not in direct route to the new location.
                   7. The cost of an employee hiring someone to help with the move.
                   8. Gas, except for a rental vehicle used to facilitate the move.
                   9. Side trips taken in route to visit friends, family or for sightseeing excursions.

       2. All payments for moving expenses require that departments obtain a prior approval
          authorization form from Human Resources prior to the move. This form may be found at
          the following site:

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              a.   For a third party mover, this form must be submitted to Purchasing with your
                   requisition, and to secure services of a common carrier (mover),
           b.      Where the University will reimburse the employee, this form must be submitted to
                   Accounts Payable with all payment requests, including any items that may be travel
                   related to the move.
        3. Specific guidelines regarding the distinction between Qualified and Non-Qualified
            Moving Expenses are outlined on the Purchasing webpage at the following link:

M. Medical Expenses
     1. For injuries incurred while on athletic trips not covered by insurance.

N. Sales Tax collections remittances

O. Third party payments for international travel

P. Airline Tickets for group travel for Athletics Teams, SG or Study Abroad trips.
   For a more detailed explanation regarding travel rules, please refer to the Controller’s Travel link
   1. These guidelines consider all expense to be for official University business, except as
         provided and authorized specifically by University policy and procedures as explained in
         this document or listed on the Controller’s webpage.
   2. In all cases, where any reimbursement or expenditure paid directly to or on behalf of an
         authorized traveler, a TAR/TA is required.
   3. A P-Card may use your in reference to items covered in this statement.
   4. The following will provide some additional information regarding travel for these respective
         areas but is not intended to be all inclusive of the procedures for the respective areas and if
         further information is needed please contact the Accounts Payable supervisor:

         a.        Athletics Team Travel
                   i.     TAR’s are required for all coaches with a list of student team members
                   ii.    Team members must sign for any meal per diem allowances they receive from
                          the coach.
                   iii.   Pregame meals taken during a regular meal time will be considered as part of
                          the per diem allowance.
                   iv.    Given that Per Diem allowances for meals is required. Receipts for meal
                          purchases with the P-Card must be deducted from the reimbursement voucher
                          in consideration of the Per Diem allowances.

         b.        SG Travel
                   i.   Student groups authorized by SG and the University may allow one individual
                        student to be a trip leader where multiple students are traveling as part of a
                        planned and SG approved program.
                   ii. However, due to student activities, procedures provide for one TAR to be
                        approved with attached lists of the other student travelers.
                   iii. These students are deemed to be traveling on official business of SG in accord
                        with SG bylaws and must adhere to the University’s policy and procedures
                        regarding travel authorization and reimbursement.

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                       c.      Study Abroad & TLO
                               i.    Expenditures paid on behalf of students who are not traveling on official
                                     business of the University, must be paid from fees collected from the student,
                                     unless the student is determined to be on official business on behalf of the
                               ii. TLO or other Study Abroad trips are generally not considered to be Official
                                     University business for students, since these expenses are generally paid on
                                     behalf of and for the students benefit with regard to their curriculum program.
                               iii. Students may receive financial aid awards to cover program expenses.
                               iv. TAR’s are required for the study abroad faculty leaders, but not the students.
                                     Faculty or staff leaders must have a TAR approved by the University official
                                     responsible for travel and the appropriate division Vice President, if
                                     international travel is involved.
                               v. Expenses paid for students generally must be paid from local agency funds held
                                     in custody for students.
                               vi. Requires a list of students scheduled for the trip for which expenditures are paid.
                               vii. Must meet specific requirements for the programs with an approved budget.
                               viii. Cash balances and funding must be sufficient to support Study abroad trips prior
                                     to any expenditure being incurred. Expenses must be paid in accordance with
                                     the planned and preapproved budget. Departments dealing with a TLO trip
                                     should contact the office at Undergraduate Studies or review their website at:
                               ix. Cash balances remaining in the TLO or Study Abroad Program fund in excess
                                     of all expenses must be returned to the students.
                               x. A P-Card may use your in reference to items covered in this statement.

           Q.      Reimbursements for non employee overpayments
                   Including refunding of remittances received in error, such as an overpayment of a Summer
                   Camp fee by a non-UNF affiliated person.

           R.      Repair of office equipment using approved vendors
                   1. See
                   2. For on-site office and class room equipment repairs not covered under the above referenced
                      purchasing policy, contact the vendor of your choice. Submit the invoice using the direct pay
                      method. If the vendor will not invoice for the repair, then you may use the P-Card for
                      repairs up to $300.
                   3. Note that the purchasing department should be notified of office and classroom equipment
                      requiring shipment to a vendor off-site repair facility.

           S.      Photography services, if it is with an approved University contractor (please see the following
                   link on the Purchasing website: or

IV.   Processing Procedures

      Each department within the University shall review the services that the vendor is providing to determine whether
      the expenditure type is on the approved direct pay listing prior to keying a direct pay invoice in Banner. If the
      expenditure is eligible for direct pay, the department may order the service and key a direct pay invoice for payment
      for the invoice. The departments will:

      1.        Acquire an original invoice from the vendor with supporting documentation
      2.        Access FAAINVE from Internet Native Banner

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3.    Press <Tab> to prompt Banner to assign the next available Banner Invoice number.
4.    Press <Tab> to skip the multiple field check box. (This is never used at this time)
5.    Verify that direct pay is selected. Press <Tab>
6.    Enter the Banner ID number in the vendor field, Press <Tab>
7.    Verify that the name of the vendor is correct.
8.    Perform a Next Block function.
9.    Enter the date of the invoice. Press <Tab>
10.   Leave the transaction date as today’s date. Press <Tab>
11.   Verify the address if not correct change the sequence number to appropriate address. If the appropriate
      address is not in the system email Accounts Payable or Purchasing with the N number and the new address to
      be added. Press <Tab>
12.   Remove the discount code. Press <Tab>
13.   Enter the bank code AC, Press <Tab>
14.   Enter a payment due date. (At least 5 days into the future) Press <Tab>
15.   Enter the vendor invoice number identified on the invoice. Press <Tab>
      Note: Banner will not allow you to input duplicate invoice numbers for the same vendor. If the invoice does
      not have a unique number, use the following methodology to create one:
      a.      The first 3 characters of the invoice number should be the payee’s initials.
              1.     For individuals, this includes the first initial of the first name, the first initial of the middle
                     name, and the first initial of the last name. If a middle initial is not available, this character
                     should be excluded.
                     i.     Example: John Little Smith should appear as JLS.
      b.      For corporations, this includes the first three letters of the company’s name.
              1.     Example: Dell Corporation should appear as DEL.
      c.      The next (6) characters will be the date of the transaction (MMDDYY).
              1.     Example: March 1, 2008 will appear as 030108.
16.   Press <Tab> to skip the Credit Memo field.
17.   Go to the top of the screen and choose Options, Pick Document Text, Enter Text in the Text field, this text
      should explain the charges and/or a justification for the charges. Each line of text needs a check mark in the
      print field box. If you don’t put a check mark in the print box on each line, the text will not print out on the
      invoice and you may be disapproved for not keying Document Text.
18.   Press save and then exit by pressing the black X in the tool bar.
19.   Perform the Next Block function.
20.   Enter the commodity code for the invoice. Press <Tab>
      Note: This needs to start with a 7. If you’re keying a liability account number 231003, leave the commodity
      code blank and type a description in the description box (if you key 231003 as your commodity the Banner
      system will error out).
21.   Enter the approved dollar amount of the invoice. Press <Tab>
22.   Enter the discount amount, if applicable. Press <Tab>
23.   Enter the dollar amount for any additional fees on the invoice, if applicable. Press <Tab> Result: The total net
      amount of the invoice will appear.
24.   Perform a Next Block function.
25.   Tab to index field and enter the appropriate Index. <Tab> to account number and Enter account number if it
      isn’t already populated; continue to <Tab> to bottom of screen.
26.   Check your available balance. Go to the top of the screen and pick options, then Available Balance. Next
      Block and your balance should show. Exit by hitting the Black X in the tool bar.
27.   Perform the Next Block function.
28.   Make sure you are in balance.
29.   Write the Banner Invoice number in the upper right corner of your backup in red ink
30.   If in balance Press the complete button
31.   Forward backup to Accounts Payable for approval and payment.

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