Processing External Payment Documents
The primary vehicles for expenditures and their respective uses are outlined below. A requisition/purchase order is generally
required for all individual purchases of goods and services greater than $2000.00. Purchase orders are issued for specific
goods or services and are encumbered to reserve funds for subsequent payment and represent a formal contractual
commitment. Blanket purchase orders are encumbered. However, they are issued based on an estimate of the total dollar
amount of purchases for a specific period of time and with a specific vendor. Blanket purchase orders are appropriate to
issue to vendors with whom purchases or payments are made on a regular recurring basis to reserve funds and to provide an
internal tracking method. If estimated total annual recurring expenses exceed $10,000.00, a blanket purchase order is
required. Invoices should reference the appropriate purchase order or blanket purchase order number and must be sent to
Accounts Payable for payment. Vendors may be instructed to send invoices referencing a blanket purchase order to the
ordering department for review and approval prior to submitting to Accounts Payable for payment.
Initiation of payment generating a check requires the following:
 An original invoice or receipt
 A purchase order (PO/PC/SC), or a Request for Payment (RFP). Other specialized payment forms may be utilized
dependent upon the circumstances (i.e., Refund Voucher, Agency Fund Voucher, etc.).
 In the case of purchase order type (PC/SC) a receiving (receipt of goods/services) document (RC) may also be
required to be entered into the financial accounting by Central Receiving.
Purchase Order (SC/PC/PO)
A purchase order document is used to encumber (obligate or reserve) funds in advance of ordering and clarify what service
(SC) and/or merchandise/commodity (PC) is to be provided by the vendor. Usually the amount of a purchase order is greater
than $2,000.00.
Submit a purchase requisition to Purchasing to be pre-encumbered on the department’s account(s). The Purchasing
Department will submit the purchase order to the vendor. Merchandise/commodities ordered (PC), when received will be
checked by Central Receiving. Quantities received, back ordered, canceled, etc. will be verified and recorded in the financial
system as a receiving document (RC). Purchase orders for services (SC) generally do not require that a separate receiver
document (RC) be processed prior to payment to a vendor.
The purchase of goods from Central Stores and certain other “internal transactions” are processed as PO transactions to
encumber funds. Payment on a PO represents an internal transaction rather than a payment to an outside vendor. PO
transactions do not require that a separate receiver document (RC) be processed prior to payment to a vendor
Blanket Purchase Order (SC)
Blanket purchase order is used to establish an encumbrance; obligating funds to cover estimated reoccurring invoice
payments for goods and/or services to a specific vendor over a period of time (maximum of usually fiscal year).
Use a purchase requisition form, but note “Blanket PO” and describe the goods and/or services to be provided over a period
of time and submit to Purchasing. Estimate total dollars (if not known) to be encumbered for this purpose.
Ordering department can make arrangements with the vendor to have invoices sent directly to the department. Upon receipt
of the invoice, the department would review the information on the invoice, verifying the purchase order number is
referenced, approve and route to accounts payable for processing for payment. Blanket purchase orders (SC) generally do
not require that a separate receiver document (RC) be processed prior to payment to a vendor.
Cash With Order Purchase Order (SC)
Mechanism used when the payment must accompany the order. This form should not be used in instances where follow up
documentation, such as ad tear sheets is required and should not accompany an invoice for merchandise/services already
purchased.
Use a purchase requisition form and indicate “cash with order.” Submit approved requisition to Purchasing for processing.
If the merchandise is shipped directly to the department, the department representative receiving the goods must verify the
goods and quantities on the purchase order’s receiving document, then sign, date and forward to the Purchasing Department
as authorization of payment.
Request for Payment (RFP)
The purchasing card (when allowable) shall be used for all small dollar purchases below $1,999.99 from external vendors.
The “Request for Payment” form may be used for any single small dollar purchase up to $1,999.99 for which the payee will
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not accept the Master Card purchasing card and for certain reimbursements of expense up to $1,999.99. It may also be
used for the following types of payments if purchasing card payments are not accepted:
 Advantage cash payments and meal plan payments
 Application fees*
 Appraisal fees*
 Attorney fees (subject to Chancellor’s Office approval)
 Cattle Purchases
 City/county fees or taxes
 Federal employee retirement benefit, life and health insurance payments
 Hay purchases
 Insurance premium payments*
 Intercollegiate Athletics event ticket purchases and ticket sales on behalf of other institutions
 Intercollegiate Athletics game guarantees
 Intercollegiate Athletics conference dues
 Intercollegiate Athletics game official conference payments
 Lawlor Events Center ticket sales payments
 Lawlor Events Center event settlements
 Legal settlements
 Medical school resident insurance
 Medical student emergency loans
 Memberships, dues and licenses (see section 1,068 of the UNR Administrative Manual)*
 Personal moving expense reimbursements to employees (attach “Request for Moving Expense” form)
 Rentals/leases*
 Royalties*
 Service/maintenance agreements*
 Special use fees*
 State of Nevada agency billing claims
 Student athlete insurance payments and medical claims
 Student athlete stipends, allowances, lab fees, testing fees, special assistance
 Tobacco grant award payments
 NSHE intra-institution billings (CCSN, DRI, GBC, TMCC, UNLV, WNCC)
 UNR Foundation reimbursements/payments
 USAC foreign university tuition
 USAC foreign director advances
 Utility bills (including telephone and cell phone bills)*
 Worker’s compensation insurance claims
*If individual payments exceed $2,000.00 a purchase order or blanket purchase order is required.
If estimated total annual recurring expenses exceed $10,000.00, a blanket purchase order (BPO) is required.
The pre-numbered “Request for Payment” form is available in the Controller’s Office or on the web at
http://www.unr.edu/forms/#payment.
Reimbursement to Employees
Non-travel related expenditures paid for by an employee on behalf of the university would be reimbursed to the employee
upon presentation of proper documentation and proper approval(s). Proper documentation consists of paid original invoices,
original charge slips, original receipts, or copies of advance statements with canceled check(s) attached and written
explanation as to why normal university procurement procedures were not followed (Purchase Order, Request for Payment
payable to a vendor/merchant, purchasing card.)
The receipt and a completed “Request for Payment” (RFP) (http://www.unr.edu/forms/#payment) form is to include the
following information:
 Who the check is to be payable to (complete employee name).
 What, detailed receipt of purchase. If detailed receipt is not available, detailed list of purchase and reason why
detailed receipt is missing.
 When the expenditure was made.
 How much, the amount of the reimbursement requested.
 If hosting, in addition to the RFP a “Host Expense Documentation/Approval” form
http://www.unr.edu/forms/#Miscellaneous is to be completed, approved and attached to the RFP form.
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

Disposition of check – if disposition is not indicated, the check will be routed to Cashier’s.
Reason for not using a purchasing card or requisition/purchase order.
All reimbursements to an employee must be approved by their supervisor or, in the absence of the supervisor, the
supervisor’s supervisor. In no event, may a subordinate of the employee approve the reimbursement and the employee may
not approve his/her own reimbursement.
Note: Where possible, individuals are to use a purchasing card, Request for Payment payable to a vendor/merchant, or
Purchase Orders rather than expend personal funds to avoid charging State of Nevada sales tax to University funds. If it is
necessary to expend personal funds, do not commingle the university expenditure with personal expenditures. Where
personal and business purchases are commingled, reimbursements may not be made.
Payments to Non-University Employees
There are several processes for payments to individuals who are not employees.
 Payment for services to an individual doing business under his/her social security number. Department and
individual are to complete an “Independent Contractor” (I/C) form (http://www.unr.edu/vpaf/controller/ics.html) and a
“W9” form (http://www.unr.edu/vpaf/controller/ics.html#forms).
 After completion, the I/C form with the W9 attached is forwarded to Controller’s Office for review and approval. To
initiate payment, the contractor is to invoice the department for the services rendered. After the service has been
provided, the department references the independent contract number on the invoice, approves, and forward to
Accounts Payable for processing. Because all payments for goods or services provided by non-employee individuals
is reportable as taxable, it is preferred to pay a contractor a lump sum fee and not reimburse travel and expenses
separately. Payments to guest speakers for expenses and services will be reported in total on an IRS form 1099 or
1042-S (foreign nationals).
 Payments to guest speakers are initiated by completion of a “Guest Speaker” and “W9” form
(http://www.unr.edu/forms/#payment). After completion, the Guest Speaker form with W9 attached is forwarded to
the Controller’s Office for processing. Because as a non-employee all income is taxable, it is preferred to pay the
speaker a lump sum fee and not reimburse travel separately. Payments to guest speakers for expenses and services
will be reported in total on an IRS form 1099 or 1042-S (foreign nationals).
 Payments to individuals who are not employees, who are participants or trainees in connection with meetings,
conferences, training or research projects and who is not presenting, consulting, speaking or performing the research
in the project, and are only participating as an attendee or as a test subject are paid with a completed “Participant
Support Payment Request” form and “W9” forms at (http://www.unr.edu/forms/#payment). To assist in defraying
the costs of personal maintenance while participating in a conference or training activity, participants may be paid
based on the type and duration of the activity. Such allowances must be reasonable, in conformance with policy and
procedures. Because as a non-employee all income is taxable, it is preferred to pay the participant a lump sum fee
and not reimburse travel separately. The payments to the participant will be reported in total to the IRS on form 1099
or 1042-S (foreign nationals).
 Reimbursement of interview expense – Complete a RFP form (http://www.unr.edu/forms/#payment) with the name,
address and social security number of the job candidate, attach the original receipts to the form, approve and forward
to the Controller’s Office for processing. If original receipts are not submitted, the payment is reported as taxable
income.
Note: Foreign National’s may not be contracted, paid or reimbursed without prior documentation substantiating the
individual’s immigration status. If the independent contractor, guest speaker, participant, or job candidate is not a U.S. citizen
or permanent resident, the requesting department must contact the Nonresident Tax Specialist (775-784-6662) before
contracting with or on behalf of a foreign national. If the participant is a foreign national, a completed IRS form W-8BEN
(Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) must be attached to the payment
request.
Rentals/Leases, Service/Maintenance Agreements or Utility and Telephone Bills
Rentals/leases, service/maintenance agreements or utility bills (electricity, gas, water, sewer, sanitation collection, etc.) and
telephone bills can be paid several different ways.
 If the vendor accepts MasterCard as a method of payment and billing is under the $1,999.99 limit established per
purchasing card transaction, the department can use their purchasing card. The invoice/billing will serve as the
receipt.
 If the Vendor does not accept MasterCard as a method of payment a RFP form (http://www.unr.edu/forms/#payment)
can be completed for payment if billing is under the $1.999.99 limit.
 If the billing is reoccurring (monthly/quarterly), a blanket purchase order (BPO) may be established through
Purchasing, however if the estimated total annual payments exceed $10,000.00, a BPO must be established through
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Purchasing. The vendor should be instructed to mail the reoccurring billings to the department for verification of
charges, for reference BPO number on billing, for approval and the department should forward to Accounts Payable
for processing.
Institutional Membership Procedures
Institutional memberships can be paid from state funds. Payments may be made from state funds under the control of vicepresidents or deans. However, before such a membership is paid, it requires the approval of the appropriate vice president,
dean or designee for determination that it is not a personal membership, the institutional membership is in the interest of the
university, and is not a duplicate membership.
Payment for individual memberships, professional association dues or individual licenses is not permitted to be made from
state funds. However, payment for such may be authorized from non-state funds by the appropriate vice president, dean or
designee and must result in the direct benefit to the university.
The determination as to what is of benefit to the university is to be made by the dean or director and
should not be delegated. Because of the diminishing level of returns to the university in authorizing
payment for such memberships, a determination should be made that an individual does not belong to several organizations.
For the same reason, care should be exercised that university funds are not
authorized for various individuals to belong to the same organization.
Any delegation of approval authority for memberships, association dues, or professional licenses must be in writing, update
every time a change in that delegation occurs, approve by the President or Executive Vice President and copies distributed
to the appropriate offices.
Individual Memberships: Memberships in organizations, which are not held in the name of the institution, but in the name
of an individual.
Professional Association Dues: (and other similar organizations). Dues to professional associations or
organizations for which an individual qualifies by virtue of educational background, the occupational field to which the
individual belongs, or because of interest.
Individual Licenses: Licenses which may be required of individuals in certain occupations by state or
local law (i.e., CPA licenses, real estate licenses, and medical licenses).
Stipends
Stipends are payments to employees as a lump sum payment or fixed amount over the contract period for compensation.
This type of payment is reported on the W-2 and is taxed at the graduated rate.
Stipend payments are processed only through the personnel/payroll system. An example of a stipend payment would be a
payment to a department chair for administrative duties and payments to ASUN government officers.
Scholarships
All scholarship payments must be processed on the Scholarship Request Form. The student must sign the form after
reading the “Taxability of Scholarship” statement for scholarship payment. The student must also check the appropriate box
regarding their citizenship status. All Scholarship Request forms must be approved by the Scholarship Coordinator and then
by the Nonresident Alien Tax Specialist.
There are two types of scholarship payments – compensatory and noncompensatory.

Compensatory Scholarship is income for services, i.e., researcher, teaching assistant, or graduate assistant. The
individual must be set up as employee and the payments must be paid through the payroll system. This income is
reported on a Form W-2 and is taxed at the graduated rate.

Noncompensatory Scholarship is income paid to or on behalf of an individual for the purpose of aiding study, training,
or research, and which does not represent compensation for services. The individual may not be required to work in
a lab or other place to retain the scholarship. It is specifically intended to defray the expenses of study, training, or
research. E.g., recipient is a candidate for a degree who must maintain a certain academic standing.
There are two types of noncompensatory scholarships - qualified and nonqualified.
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
Qualified scholarship – This income is to pay for tuition, fees, and books, supplies and equipment required for
courses. It is usually applied directly to the student’s account. Even though the athletic book stipend is not
applied to the student’s account, the income is specifically for books, so it would fit into this category.
This income is not subject to tax withholding and it is not reportable income.

Nonqualified scholarship – This is income the student receives that is above the cost of required tuition, fees,
books, supplies and equipment.
For U.S. citizens, Permanent Residents (Green Card Holders), and Resident Aliens for tax purposes, this income
is self reported. The student will not receive a Form 1099 and is not taxed withhold up front.
Nonresident Aliens for tax purposes are subject to withholding at 14%. This is reported on a Form 1042S. The
only way to be exempt from the tax is if there is a treaty between the foreign national’s tax residency country and
the U.S, and the recipient is qualified to take advantage of the treaty.
Athletic Stipends for room and board would fit into this category.
Awards
All award payments to students must be processed on the Award Request form. The student must check the appropriate
box regarding their citizenship status. All Award Request forms must be approved by the Scholarship Coordinator and then
by the Nonresident Alien Tax Specialist.
There are two types of award payments – compensatory and noncompensatory
Compensatory award – “For an award to be considered wages subject to employment taxes, there must be an employeremployee relationship existing between the one making the award and the recipient of the award. If no such relationship
exists, the award will not constitute wages.” Commerce Clearing House, Payroll Management Guide, Paragraph 623, Awards
and Prizes. If services are required to receive the award, the individual must be set up as an employee and must be paid
through the payroll system.
An example of this type of an award would be if a student spoke at a conference.
This income is reported on a Form W-2 and is subject to 25% withholding tax for U.S. citizens, Permanent Residents (Green
Card Holders), and Resident Aliens for tax purposes. Nonresident Aliens for tax purposes are taxed withholding at 30%.
This is reported on a Form 1042S. The only way to be exempt from the tax is if there is a treaty between the foreign
national’s country of tax residency and the U.S, and the recipient is qualified to take advantage of the treaty.
Non Compensatory Award – “Awards to non-employees by an employer are not considered income if the following conditions
are met: the prize or award was made primarily in recognition of the recipient’s past achievements in religious, charitable,
scientific, educational, artistic, literary, or civic fields; the recipient was selected without any action on his part to enter the
contest or proceedings; the recipient is not required to render substantial future services as a condition to receiving the prize
or award; and the prize or award is transferred by the payor to a governmental unit or tax-exempt charitable, educational,
religious, etc. organization designated by the recipient. If the individual receiving the award is an employee in some capacity
for the university, the award is paid through the payroll system and will be taxed and reported as if it were a compensatory
award.” Commerce Clearing House, Payroll Management Guide, Paragraph 623, Awards and Prizes.
An example of this would be if the non-employed student wrote a paper, and unexpectedly received an award for writing the
best paper.
If the recipient is not an employee and if the total income for the year is under $600, the income is not subjected to
withholding, but the recipient must self report the income. If the recipient’s total income for the year is over $600, the
recipient will not be subject to withholding, but the income will be reported on a Form 1099.
Nonresident Aliens for tax purposes are subject to 30% withholding tax and the income is reported on a Form 1042S. The
only way for a foreign national to be exempt from the withholding tax is if there is a treaty between the foreign national’s
country of tax residency and the U.S, and the recipient is qualified to take advantage of the treaty.
Employee Moving Expenses
If an employee is hired into a continuing position for which there is a critical need and which cannot otherwise be filled, and
moved from a location which is at least 50 miles from the new location, institutional funds may be used to pay for or
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reimburse the employee for certain specified moving expenses (pursuant to the State Administrative Manual, sections
0238.0-0252.0) http://budget.state.nv.us/SAM2002.pdf:
Relocation travel for the employee and immediate dependent family members
Travel expenses may be claimed for a one-way, economy-class (or equivalent) airplane ticket; or reimbursement for use of a
private automobile for one-way direct travel by the employee and/or spouse using the per diem, subsistence, and mileage
allowances detailed in state travel regulations.
Moving of household goods
Expenses may be claimed for moving up to 18,000 pounds of household goods in accordance with state moving regulations.
Where office and professional materials are deemed essential to the successful performance of the employee, they are not
counted against the household goods limit.
The expenditure of institutional funds (state and non-state) must not exceed the costs, permitted by state travel and moving
regulations, incurred by the employee. The amount of state funds expended for a given employee cannot exceed 1/12 of the
average UNR faculty salary (“B” contract base) as reported to the AAUP in the previous academic year (the amount is
updated every July 1; $5,810 in 2002-2003; $6,043 in 2003-2004).
If a unit wishes to pay or reimburse a newly hired employee for those expenses, it must forward a request to the respective
vice president through the appropriate administrative channels (i.e., chair, dean and/or director). A “Request: Moving
Expenses Reimbursement” form is available at http://www.unr.edu/forms/#payment. The request must identify the position by
number and title/rank, and an explanation as to why it is a critical need and cannot be filled if moving expenses are not
defrayed. It must indicate the amount requested and the source of the funds to be used.
If approved, the authorized moving expense may be paid directly to a moving company on behalf of the employee using the
requisition/purchase order process (over $2,000) through the Purchasing Department or through use of a university
purchasing card ($1,999.99 or less). A “Request for Payment” http://www.unr.edu/forms/#payment (with original itemized
receipts attached) may also be used to directly reimburse the employee for the authorized moving expense. A copy of the
approved “Request: Moving Expenses Reimbursement” must be attached to the requisition, purchasing card “statement of
account, or to the “Request for Payment”.
Note: As the payment or reimbursement of these expenses may create a tax liability, the advice and assistance of a tax
attorney or other tax professional should be obtained by the employee.
Refund Voucher
A “Refund Voucher” (http://www.unr.edu/forms/#payment) is initiated when the university is returning fees, fines and/or
deposits to an individual, vendor, or granting agency. The account to be charged is the exact account structure as on the
original receipt transaction.
Agency Fund Vouchers
An “Agency Fund Voucher” form (http://www.unr.edu/forms/#payment) is used for any payment from agency funds (fund
19XX accounts). Agency funds are funds established in the university financial accounting system to account for revenues
and expenditures of organizations associated with, but not a part of the university. The university is essentially performing a
bookkeeping function for these organizations. Supporting documentation or backup should be provided when available. The
respective faculty advisor must approve payments from student organization accounts.
Reoccurring Payments
Certain reoccurring monthly payments for the same amount based on formal agreements, leases, contracts, or notes may be
requested so as to allow the financial accounting system to automatically generate these payments. Such requests using
the “Request for Payment” form (http://www.unr.edu/forms/#payment) or a formal memo must be approved by BCN
Purchasing and accompanied by a legible copy of the contractual document. Student athletic stipend reoccurring payments
are exempt from BCN Purchasing approval.
Lost, Stolen, Stale Dated, Fraudulent Checks
Lost or Stolen Checks – Contact Accounting Services/Accounts Payable (ASAP) immediately 784-4159 or access “Request
for Stop Payment” form at http://www.unr.edu/forms/#Miscellaneous and submit to ASAP.
Complete the Request for Stop Payment form and fax or bring it to ASAP for processing. ASAP will place a stop payment
with the bank and generate a replacement if requested. If disposition of the replacement check is different than the original
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check, indicate the new instructions on the form. Once a stop payment has been placed with the bank, the check is no
longer valid.
If the check is not to be reissued, check the appropriate box on the stop payment form and provide explanation. After the
bank has confirmed the stop payment, ASAP will cancel the check and reverse the payment voucher in the financial system,
crediting the account(s) originally debited for the expense.
Spoiled or Stale Dated (over 180 days past date of issue) Check Initiate a memo to the ASAP Manager requesting
replacement of the check, bring/send memo and check to the ASAP Office. Because the physical check is present a stop
payment is not necessary. ASAP will reissue the check. If the disposition of the replacement check is not the same as the
original, indicate the change of disbursement in the memo.
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