4.6.3 Payments - Accounts Payable

A. Purpose

This policy sets forth the general rules governing Accounts Payable policies for UT Tyler, including the Health Science Center(“University”). This policy explains requirements for the payment of invoices and bills by the University.

B. Persons Affected

This policy applies to all departments at the University that receive invoices, bills, statements, or collection reminders.

C. Definitions

Accounts Payable: Short-term liabilities reflecting amounts owed for goods and services received by the institution but for which the institution has not made payments. (Reference: UTS142)

D. Accounts Payable Policy

The Legislature intends for state agencies to exercise their legal authority in a fiscally responsible manner. A state agency is responsible for reviewing each voucher for accuracy and completeness before processing payment. Purchases, vouchers and supporting documentation must be maintained in agency files for the current fiscal year plus three subsequent fiscal years.

An electronic voucher is the document used to initiate and document most non-employee payments made from University funds. The voucher collects and contains information necessary to meet statutory requirements for disbursements, and provides information for the State Comptroller, the permanent accounting records, and for internal and external audits.

Properly approved and fully supported vouchers are the authorization for cash disbursements. It is the responsibility of Accounts Payable to review and approve all vouchers. Such approval is based upon satisfactory supporting documentation evidencing that goods or services were properly ordered, that the vendor has submitted invoice and/or certification, and that the goods or services have been received and are acceptable to the requisitioning department.

Prompt Payment Act. Texas' "prompt payment law" establishes when some types of payments are due. The law says that payments for goods and services are due thirty (30) days after the goods are provided, the services completed, or a correct invoice is received, whichever is later. All funds held by the University are subject to the Prompt Payment Act. Goods and/or services will be considered received when they have been accepted as usable or complete by the end user.
Sales Tax. The University does not pay Texas State Sales Tax. Texas Sales Tax Exemption Certificates may be obtained from Financial Services or Accounting. The University is not exempt from other states’ sales tax. Interstate purchases may be appropriately subject to sales and use tax.
State Comptroller Expendit. Detailed accounts payables related policies state agencies must follow are found on the Texas Comptroller’s Expendit web site.

E. Accounts Payable Procedures

Accounts Payable procedures for detailed State, System, and internal policies can be found on the University website.

F. References

UT System Policy: UTS142

Texas State Comptroller: Expendit

State of Texas Procurement and Contract Management Guide

General Appropriations Act

Texas Constitution Article XVI, Section 21

Texas Administrative Code: Title 34, Part 1, Chapter 5, Funds Management

Texas Government Code 2103: Expenditures by State Agencies

Texas Government Code 2251: Prompt Payment

G. Review