PURPOSE

To identify the responsibility and requirements of the college for disbursement and expenditures of college funds.

REFERENCES

• RCW 28B.50.320 (Fees and other income—Deposits—Disbursements)
• SBCTC ctcLink Accounting Manual, section 40.60 Expenditures
• Article VII of the Associated Students Financial Code

POLICY

The policy of the college is to make all payments for expenditures, refunds, fund transfers, loans, scholarships, and payroll by check from local funds, or drawn against state treasury funds, consistent with accepted fundamentals of internal control.

Likewise, local checks are signed by the College President and such other person as designated by the Board of Trustees as provided by RCW 28B.50.320. The college will make payments based upon documented support forms.

PROCEDURES

Expenditures
Requests for expenditures for goods and services, equipment and supplies are made to the Business Office through the use of purchase requisitions (see also, Purchasing Procedures Policy).

All source documents must be intact for payment to be made. Source documents include the authorization for purchase (Purchase Requisition, Travel Expense Voucher, etc.), the invoice or other billing document (registration form, subscription form, receipts, etc.) and proof of receipt of goods or services.

Prior to payment, the college must also audit the accounts payable documents as follows:

• Verify quantities on the invoice match the payment/purchasing document and the receiving document.
• Verify unit price on invoice agrees with that indicated on the purchase documents.
• Verify extensions and footings are correct.
• Verify discounts are taken where appropriate
• Verify correct account codes
• Verify payment authorization from budget manager.

Cash Disbursements
All payments made by the college are to be based upon documented support forms such as: cash receipts journal summary, payroll worksheets, purchase order, voucher distribution, invoice voucher, and travel voucher. An invoice voucher is used to substantiate payment to a vendor in the space provided. A voucher distribution is used to record the account distribution when a purchase order is not involved. A travel expense voucher is used to substantiate payment to travel expenses to employees (see, Travel).

It is the responsibility of the Vice President of Administrative Services to employ the following internal control procedures relative to cash disbursement:

• Ensure timely payment of valid liabilities in accordance with the most favorable terms of the billing document.
• Separation of employee duties with regard to (a) initiation of orders, (b) approval of voucher, (c) preparation of checks, (d) mailing of checks, (e) recording of disbursements.
• Clearly defined responsibility of disbursement
• Cash disbursement properly and satisfactorily verified.
• Local checks are signed by the College President and such other person as designated by the Board of Trustees as provided by RCW 28B.50.320.