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Buying » Disbursement Voucher Guidelines

Disbursement Voucher Guidelines

Because the disbursement of University funds is involved in the processing of every Disbursement Voucher, the document's use is subject to certain policies and restrictions.

View the DV Policy

When to Use a DV

The DV is not designed to replace standard University procurement methods or documents nor is it intended to alter or circumvent the procurement policies mandated by The Board of Trustees of Indiana University. It is not a substitute for sanctioned procurement channels. A number of authorized procurement processes exist that provide efficiency and timeliness to the department in their buying efforts. These are:

• Standard Purchase Order (PO)
• Automated Purchase Order (APO)
• Procurement Card

The Disbursement Voucher and the Purchase Order (PO) are used for different reasons. Generally, the PO is used for the order of supplies, equipment, and services. If you are unsure whether to use the DV, a Purchase Order, or a procurement card, please contact the Purchasing office on your campus.

Restrictions

A Disbursement Voucher cannot be used in the following circumstances:

• Reimbursement to an IU employee for personal services – With the exception of “Payment to Research Participant,” IU employees must be paid for services through the regular payroll process.
• Payment to University departments – Instead, use a Transfer of Funds, Budget Adjustment, or Internal Billing document.
• Purchases of capital equipment – Contact the Purchasing Department for this type of payment.
• Payments for software upgrades – Contact the Purchasing Department if more information is required.
• Installment payments – A DV can only be used for a one-time payment. Installment transactions should be done on a Purchase Order.
• FIS Users – FIS users may not initiate DVs where they are the payee.
• Compensation for Services over $1,000 – Payment for services over $1,000 requires a Purchase Order. Payments for services over $5,000 require an agreement signed by Purchasing and a Purchase Order. Please contact Purchasing for information on preparing an agreement.

A Disbursement Voucher cannot be used for the following goods and services:

Payment Reason: Prizes and Awards

• Trophies, plaques, and other prizes

Payment Reason: Compensation for services or Payments for Contractual Agreement

• Consulting fees
• Magazine and newspaper ads
• Advertising
• Photographs
• Printing
• Workshops
• Exhibits
• Hospitality
• Temporary services
• Credit and collection services
• Honoraria, speaker fees, and lecture fees over $5,000

Payment Reason: Utilities, Postage, and Freight

• Telecommunication charges

Other goods and services: Regardless of the dollar amount, the following items may not be purchased on a DV, nor are they reimbursable.

• Alcoholic beverages
• Automobiles
• Animals
• Controlled substances
• Donations or contributions
• Firearms, ammunition
• Flowers
• Furniture
• Items considered personal in nature
• Purchases representing a conflict of interest
• Radioactive chemicals and substances
• Retirement gifts or parties

Responsibility

As with any university policy or procedure, every contingency cannot be articulated. It is the responsibility of the IU employee involved with expending University funds to do so in a prudent, ethical, and authorized manner. If uncertainty exists about the suitability of a particular transaction, it is incumbent upon the employee to seek clarification of the appropriateness of the transaction before proceeding.