Indiana University - Disbursement Voucher Restrictions

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. The DV supporting documentation policy can be viewed at http://www.indiana.edu/~vpcfo/policies/accounting/i-420.html

Procurement Cycle/Purchasing

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

The DV process generally restricts payments made directly to vendors for goods and services, particularly those for professional services. Payments that are restricted from the DV are to be handled by standard procurement processes described under the section "Procurement Cycle/Purchasing" above.

The following restrictions on the use of the DV apply:

  • 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. The appropriate document is 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 may not initiate DVs where they are the payee.
  • Compensation for Services over $1,000. Payment for services over $1,000 require a Purchase Order. Payment for services over $5,000 require an agreement signed by Purchasing and a Purchase Order, please contact Purchasing for information on preparing an agreement.

The following types of direct payments to suppliers are not allowed on the Disbursement Voucher:

  • Trophies, plaques, and other prizes may not be paid using the payment reason Prizes and Awards.
  • Payments for the following purposes may not be made under the payment reason of 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
  • Telecommunication charges are not allowed to be processed under the payment reason Utilities, Postage and Freight.
  • Regardless of the dollar amount, the following items may not be purchased (on a DV or otherwise), 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.