Expenditures

ACCOUNTS PAYABLE - Payment should be requested only on original invoices -- not from carbon or photocopies. Sometimes the vendor keeps the original. In that case, the department should request that the vendor send the original or a certified copy of the original so payment can be made. Certified means a notation on the invoice, or an attachment to the invoice, signed by the vendor stating that it is a copy of the original. If the vendor refuses, because of their office procedures, payment may be made from the carbon copy of the invoice after documenting on the invoice that the vendor does not send originals. A list of these vendors is maintained in the Business Office showing what color invoice to pay from.

Problems have occurred in the past, with one department paying from an original invoice and another department paying the same invoice on a carbon copy. Sometimes duplicate payments are requested by the same department. MSU Billings pays about $18 million in accounts payable each year. If procedures are not followed, it is impossible to avoid duplicate and improper payments.

The state warrant writing system requires the payee's nine digit taxpayer identification number (Federal Tax ID Number) or Social Security number before a payment or refund can be processed. Please ask the vendor, student, or other service provider for an ID number, and write it above the vendor name on requisitions. This will ensure prompt payment to that vendor. (Note: some vendors print their ID number on their invoices.)

PAYMENTS FOR SERVICES - Payments MSU Billings makes to independent contractors, businesses, or individuals for services rendered must be reported by MSU Billings to the IRS on Form 1099.

We have new statement of service forms which combine the old statement of service card with the IRS Form W9. On these forms, the individual verifies that they performed the work and verifies their taxpayer ID number. This new change is very important. MSU Billings faces a minimum $50 penalty per form for reporting under an incorrect ID number. Please forward the W9 to the Business Office with the requisition so a Form 1099 can be prepared at the end of the calendar year.

As a rule, individuals who perform personal services under the direct control of MSU- Billings are to be paid through the Payroll Office as employees. An employer-employee relationship exists in these instances. If you have questions regarding how an individual should be paid, contact the Payroll Office.

The IRS is very strict about payments on 1099s and W2s. Generally, if there is any question about whether a person is an employee or an independent contractor, the IRS leans toward "employee". Contact the Payroll Department if you have any questions.

OTHER PAYMENTS - For other required payments, a requisition should be prepared and sent to the Business Office with invoice/proper documentation attached. All payments on behalf of MSU Billings must be made by the State Accounting Division in Helena.

WARRANT (CHECK) WRITING - Generally, a check will be issued by Helena within 7-10 days after receipt of a requisition in the Business Office. Under special circumstances, a check can be received in 3-7 days. If a department needs a check in 3-7 days, a completed and signed requisition with the proper documentation should be hand carried to the Business Office with instructions that it is a priority item. In cases of emergency checks required in less than 3 days, please contact a claims clerk.

Lack of proper documentation, such as the original invoice, the Fund Controller's signature, or the taxpayer identification number will delay payment.

REIMBURSEMENT FOR EXPENDITURES - MSU Billings has procedures to handle most expenditures, even on short notice, and these procedures, as detailed above, should be followed. If an individual must purchase an item for MSU Billings and wishes to be reimbursed, a completed requisition signed by the Fund Controller(s) with proper documentation attached should be sent to the Business Office. Proper documentation is an original paid receipt showing the vendor, the date purchased, a description of the items purchased, and the amount paid.