SECTION 75: Vouchers

1. This voucher was designed to simplify payment when a requisition and purchase order are not required because of the nature of the payment.  If permissible under university policy, the MSU Purchasing Card or University Stores Open Orders should be used whenever possible.  When purchasing goods in excess of MSU Purchasing Card limits (more than $2,500 per item), route Direct Payment Voucher to Purchasing for approval.
2. Permissible payments without dollar limitation would include:
   1. Training seminars provided either on campus or off campus by outside vendors unless the training was included as a part of the negotiated purchase of equipment or software, etc. (See conference registrations below.)
   2. Lecturers, speakers or independent contractors (for further discussion of these payments see Section 76).
   3. Entertainers.
   4. Purchase of reprinted articles when the vendor does not require a University purchase order.
   5. Magazine subscriptions only when the publisher does not accept payment by  the MSU Purchasing Card (Master Card).  Otherwise, the MSU Purchasing Card must be used.  See #3 below.
   6. Conference registration fees only when the MSU Purchasing Card is not accepted.  Otherwise, the MSU Purchasing Card must be used  See #3 below.
   7. Payment of conference costs (facility, food service, etc.) where the University is the conference sponsor. This does not include conference expenses for faculty and staff who attend the conference.
   8. Payment to a supplier for food purchased off campus while not in travel status consistent with the provisions of Section 45 of this Manual.
   9. Memberships in professional organizations and associations in accordance with University policies outlined in Section 47 - General Dues 47 I (A).
   10. Refunds. (NOTE: Refunds of $2.00 or less will not be issued.)
   11. Utility payments for University installations (telephone, gas, electricity).
   12. Consultants (exclusive of engineers and architects).  See Section 76.
   13. Honoraria.  See Section 76.
   14. Prepayment of airfare for non-University travelers (see Section 70).  Units are encouraged to utilize the Direct Billed airfare service available through the University Travel Office.  See Section 70.
   15. Repairs to machinery and equipment not under a purchase order contract or serviceable through Stores Open Orders (section 220, item VI).
   16. Payment of off-campus lodging expenses for University guests.
   17. Advertising - Payments for newspaper ads, magazine ads, billboards and other miscellaneous advertisements can be made using a Direct Payment Voucher (Exclusion:  Employment ads and other ads placed in the Lansing State Journal should be ordered by contacting University Stores Open Orders.)
   18. Supplies - Payments for supplies where the MSU Purchasing Card (Master Card) cannot be used, or line item amount is greater than $2,500 (see item A.4 below) and items are not available through MSU Stores.

       It should be noted that proof of receipt of goods (e.g. packing slip) should be kept on file in the department and will be required (as part of the voucher package) if submitting a Direct Payment Voucher for "same-day" processing.  If no receiving documentation is available, department must make an explicit representation on the face of the voucher that goods were received.

   19. Prepayment for goods or services should generally be avoided.  In unusual circumstances, any prepayments should be clearly noted on the face of the voucher with reason for prepayment.
3. Utilizing the MSU Purchasing Card to pay for magazine subscription and conference registration allows for more timely payment and reduced processing of accompanying paperwork.  Not all conferences and subscription services accept credit cards and some of these costs exceed the Individual transaction limit on the Purchasing Card.  The use of the MSU Purchasing Card will not be required in these cases.
4. Use of this voucher does not replace the normal purchasing procedure and therefore cannot be used in situations which require a requisition and purchase order. When purchasing goods in excess of MSU Purchasing Card limits ($2,500), route Direct Payment Voucher to Purchasing for approval before sending to Accounting. This voucher must not be used for a transaction after a purchase order has been issued - a duplicate payment to the vendor may result.

Downloadable Direct Payment Voucher forms are available from the Controller's Office Forms Download internet site.  When departments are using downloaded forms, be sure to mark your copies using either a red rubber stamp or red marker with the word “COPY” in the lower right corner of the form.

1. The voucher must be typed by the initiating department, giving the complete name and address of the payee, the department name, account number(s), object code(s) and amount(s) to be charged. Payee tax identification is required for reportable payments (see below).
2. Special preparation is required if the payment is reportable to the Internal Revenue Service.
   1. If the payment represents rents, royalties, prizes or awards, advertising or compensation for services rendered by a nonemployee (including payment for related parts or materials) or reimbursement of undocumented travel expenses of a nonemployee (individual, sole proprietorship or partnership) the payment must be reported to the Internal Revenue Service on IRS Form 1099 MISC. (See the following paragraph for special case of payments for medical services and legal services.) In these instances, the payee's home or personal business address and social security number or federal employer identification number (FEIN) must be shown on the Direct Payment Voucher.
   2. For a sole proprietor or individual, the name of the individual (owner) and their social security number or federal employer identification number (FEIN) must be given. For reportable payments to partnerships, the FEIN is the appropriate tax identification number. For all payees, the business entity classification must also be clearly stated on the voucher (individual, sole proprietor, partnership or corporation). The University generally does not have to report these payments made to corporations.
   3. Payment for medical services and legal services must be reported on IRS Form 1099 MISC for all payees including corporations. For these payments, the payee's FEIN must be provided.
   4. If the payee is a nonprofit organization, none of the above-listed payments must be reported. If the payee is a nonprofit organization, this disclosure must be made on the Direct Payment Voucher. Documentation of this status can be obtained by having the payee complete an IRS Form W-9, Request for Taxpayer Identification Number and Certification to be submitted with the Direct Payment Voucher. An example of this form is provided in exhibit 75-B which may be copied for departmental use.
3. Only one person or company can be paid on a single voucher unless the check is to be made jointly payable.
4. The purpose for payment must be indicated in detail in the body of the voucher and should include dates, where applicable, such as in the case of performers or memberships.
5. All check mailing instructions and wire transfer instructions need to be highlighted in the body of the voucher. For Special Handling of voucher or check, see section VI.
6. Sales tax should not be included in the total payment as the University is sales tax exempt.  The exception to this would be when proceeds have been collected from participants or a taxable agency account is being used (non-MSU funds), in which case Sales Tax should be included.
7. Any detail, including invoices or contracts explaining the reason for the payment, should be stapled to the original or white copy.
8. If the MSU Purchasing Card cannot be used to pay conference fees, the voucher must detail the attendee, date, and location of the conference.   Copies of the original conference materials (documenting specific items, such as meals included in the conference fee) must accompany any related travel reimbursement voucher.
9. Material to accompany the check, if any, should be attached to the 2nd or blue copy.
10. The voucher must be signed by an authorized signer for the account(s) being charged.  Please sign this voucher using blue ink to help distinguish the original from copies.
11. A Direct Payment Voucher of $25,000 or more must be cosigned by someone administratively higher unless the voucher is signed by a dean or an officer of the University. For personal service payments, see Section 76 for further signature authorization requirements.

1. Direct Payment Vouchers cannot be used to pay compensation or honoraria unless the payee meets the criteria of an independent contractor (see Section 76).
2. Direct Payment Vouchers cannot be used to pay enrolled students for services of any kind. Payment must be processed through Payroll.
3. Direct Payment Vouchers cannot be used to award scholarships or grants to currently-enrolled students. These payments must be channeled through the scholarship authorization process in the Office of Financial Aid. Questions concerning this process should be directed to the Office of Financial Aid at 353-5991.
4. Additional payments which are prohibited include:
   1. Physical plant supplies including paint, plumbing, electrical, heating, ventilating and air conditioning or other building supplies where federal, state, local or University building codes apply.
   2. Purchase of hazardous materials including cleaning solvents, controlled substances, radioactive materials, weapons and ammunition.
   3. Recurring payments, such as equipment rentals or leases and standing open orders.
   4. Reimbursements to University employees, including reimbursement of local meals at off-campus facilities. Reimbursement Vouchers should be used in such instances.
   5. Maintenance and repairs to machinery and equipment under a Purchase Order contract or serviceable through Stores Open Orders (see section 220).
   6. repayment of airfare for University employees.
5. Questions concerning the propriety of using Direct Payment Vouchers should be addressed to Voucher Processing, 360 Administration Building, telephone 353-4882.

1. Departments should retain a copy and forward the original and one copy to Voucher Processing for verification and approval.
2. A Direct Payment Voucher charged to a research grant account (account numbers in the range 61-0000 through 61-9999) must be forwarded to the Office of Contract and Grant Administration, 301 Administration Building, for approval. Contract and Grant Administration will forward the voucher to Voucher Processing.
3. When line item amount is in excess of MSU Purchasing Card limits ($2,500), route Direct Payment Voucher to Purchasing for approval before sending to Accounting.
4. After audit, Voucher Processing will forward the voucher to Accounting for payment.
5. Accounting compares the signature on the Direct Payment Voucher to the signature on authorized signature forms.
6. Accounting will assign a voucher check number and prepare the check.
7. The check is mailed directly to the payee with the copy.
8. The paid voucher is distributed as follows:
   • Original - Accounting Department
   • Copy - Payee

This voucher facilitates payments of a common nature to more than one payee (e.g. fee refunds, payments to conference participants, etc.) and eliminates the need to prepare a separate voucher for each payee. (Note: Refunds of $2.00 or less will not be issued.)

Downloadable Multiple Check Voucher forms are available from the Controller's Office Accounting Forms Download internet site .  When departments are using downloaded forms, be sure to mark your copies using either a red rubber stamp or red marker with the word “COPY” in the lower right corner of the form.

1. The form must be typed by the initiating department giving the complete name and address of each payee, the department name, account number and object code to be charged. If the payee is on campus, the address must conform to requirements established by the Campus Mail Service. If the payments represent compensation to individuals for services performed as independent contractors, the social security number and home address of each payee must be included on the form in order to comply with IRS regulations. See Section 76 for the criteria for independent contractor status.
2. If more than fifteen lines are necessary, separate Multiple Check Vouchers, each totaled and signed by an Authorized Signer, must be prepared.
3. Multiple Check Vouchers may only be charged to one account and one object code.
4. Receipts, where applicable (conference receipts, etc.), should be stapled to the top white copy.
5. The Multiple Check Voucher must be signed by an authorized signer.  Please sign the voucher using blue ink to help distinguish the original from copies.

1. The original and the copy should be forwarded to Voucher Processing (see item D.2 below for Contract and Grant accounts). The initiating department should retain a copy for their files.
2. Multiple Check Vouchers with charges to research grant accounts (account numbers in the range 61-0000 through 61-9999) must be forwarded to the Office of Contract and Grant Administration, 301 Administration Building, for approval. Contract and Grant Administration will forward the voucher to Voucher Processing.
3. After approval, Voucher Processing will forward the voucher to Accounting for payment.
4. Accounting compares the signature on the Multiple Check Voucher to the signature on authorized signature forms.
5. Accounting will assign voucher check numbers and prepare a check for each payee listed.
6. The checks are mailed directly to the payees.
7. The paid voucher is retained in the Accounting Department.

1. To reimburse a petty cash fund.
2. To reimburse individuals who use their own funds for legitimate University business purposes.
3. Use of this voucher does not replace the normal purchasing procedure and therefore cannot be used in situations which require a requisition and purchase order. When purchasing goods in excess of MSU Purchasing Card limits ($2,500), route Reimbursement Voucher to Purchasing for approval before sending to Accounting. This voucher must not be used for a transaction after a purchase order has been issued - a duplicate payment to the vendor may result.
4. Use of the MSU Purchasing card or University Stores Open Orders is recommended when permitted by MSU Policy and where accepted by suppliers.
5. Magazine subscriptions may only be reimbursed if the publisher will not accept payment by MSU Purchasing Card.  See I.A.2.e and I.A.3. earlier in this section.
6. Purchases made by individuals from their own funds have a limited reimbursement of $2,500 for any one item, receipt or invoice.
7. Reimbursement is limited to material or services obtained directly by the individual making the purchase (such as material picked up from a vendor in the local area).
8. Under no circumstances are purchases made by individuals to be delivered to or through the University's Receiving Department. Purchases delivered in this manner (without a purchase order number) are not readily identifiable and cause severe delivery problems.
9. Payments for supplies where the MSU Purchasing Card (Master Card) cannot be used or line item amount is greater than $2,500 and items are not available through MSU Stores.

   It should be noted that proof of receipt of goods (e.g. packing slip) should be kept on file in the department and will be required (as part of the voucher package) if submitting a Reimbursement Voucher for "same-day" processing.  If no receiving documentation is available, department must make an explicit representation on the face of the voucher that goods were received.

10. Items that individuals cannot purchase directly and then seek reimbursement for include:
    1. Physical plant supplies including paint, plumbing, electrical, heating, ventilating and air conditioning or other building supplies where federal, state, local or University building codes apply.
    2. Purchase of hazardous materials including cleaning solvents, controlled substances, radioactive materials, weapons and ammunition.
    3. IRS Form 1099-Misc reportable payments.  Payments to independent contractors should be made on a Direct Payment Voucher.  See Section 76 for the criteria for independent contractor status.

The Reimbursement Voucher Form (exhibit 75-d) is available from the Controller's Office Accounting Forms Download internet site. Submit original (with signatures) and one copy marked "copy" in the lower right corner. Mail to Voucher Processing, 360 Administration Building.

1. The form must be typed by the initiating department giving the complete name and address of the payee, the department name, account number(s) and object code(s) to be charged.

   If the payee is on campus, the address must conform to requirements established by the Campus Mail Service. THE PURPOSE OF THE EXPENDITURE MUST BE NOTED ON THE VOUCHER.

   Generally, reimbursements will be issued by check.  If the payee has a "Direct Deposit Authorization"  on file in the Payroll Department, they may request direct deposit of their reimbursement to the bank account they have stipulated on their payroll "Direct Deposit Authorization" form.  Selection of direct deposit reimbursement is accomplished by marking the "Direct Deposit Requested" checkbox at the top of the reimbursement form, and providing their MSU ZPID Number (MSUNet ID for Students) in the appropriate space on the form.  The choice of either check or direct deposit method of payment is at the option of the payee.

2. Several purchases may be listed on one voucher. A Reimbursement Voucher will not be prepared until the total to be reimbursed exceeds $2.00.
3. An original paid receipt showing date of purchase, details of items purchased, and amount of payment should be attached to the original voucher for each purchase. If no detailed receipt is available and the amount is less than $25.00, the purchaser's signature is required in the signature column. If no detailed receipt is available for an expenditure greater than $25.00, a memo explaining the purchase and the reason why a receipt is not available must accompany the voucher. This memo must be signed by the purchaser and approved by the chairperson or director of the department. In the case of a business meal, the memo should also document attendees, business purpose, and whether or not alcohol is included in the charge.

   It should be noted that proof of receipt of goods (e.g. packing slip) should be kept on file in the department and will be required (as part of the voucher package) if submitting a Reimbursement Voucher for "same-day" processing.  If no receiving documentation is available, department must make an explicit representation on the face of the voucher that goods were received.

4. The voucher requires the signature of the person to be reimbursed and the signature of someone administratively senior to the payee who is also an authorized signer for the account(s) charged. It is generally not appropriate for the payee to also authorize their own reimbursement. However, deans and vice presidents may authorize their own reimbursement.  Please sign the voucher using blue ink to help distinguish the original from copies.
5. If it is not possible for the payee to sign the Reimbursement Voucher due to the payee being out of the area or otherwise unavailable for an extended period of time, it is acceptable for the payee to sign a faxed copy of the fully completed voucher.  The signed voucher must reflect the detailed and total claim submitted on their behalf.  The departments should attach this faxed copy (marked as "COPY") to the original, which will state "Faxed Signature Attached" in the payee signature space prior to submitting the voucher for payment.

   In unusual circumstances, when the department is unable to obtain the certification of the payee either by original signature or by fax:

   1. The payee may submit an endorsement of the claim made on their behalf using e-mail.  The payee must acknowledge the business purpose, items purchased and voucher amount in their e-mail.  This e-mail should be printed out and attached to the original voucher, which will state "E-mail Attached" in the payee signature space.  Or,
   2. Someone administratively senior to the payee may sign in the payee signature space along with the statement " Signing for Payee."  [Please note:  By signing, the "signer" certifies that they have received verbal authorization to file the claim on behalf of the payee.]
6. Purchases made via the Internet.  If a purchase is made on the internet, the receipt obtained must conform to the same standards as a receipt obtained in a face-to-face transaction (i.e. it must contain the details of what was purchased, the cost, and proof of payment).  If any of these attributes are not presented or lacking, additional documentation will be required.  For example, if a web receipt does not indicate proof of payment, you will also need to submit a credit card statement showing the purchase was made (any other personal data on the statement should be redacted for privacy purposes).

   It should be noted that proof of receipt of goods (e.g. packing slip) should be kept on file in the department and will be required (as part of the voucher package) if submitting a Reimbursement Voucher for "same-day" processing.  If no receiving documentation is available, department must make an explicit representation on the face of the voucher that goods were received.

1. Departments should retain a copy and forward the other copy to Voucher Processing, 360 Administration Building, for verification and approval.
2. A Reimbursement Voucher with charges to research grant accounts (account numbers in the range 61-0000 through 61-9999) must be forwarded to the Office of Contract and Grant Administration, 301 Administration Building, for approval. Contract and Grant Administration will forward the voucher to Voucher Processing.
3. When line item amount is in excess of MSU Purchasing Card limits ($2,500), route Reimbursement Voucher to Purchasing for approval before sending to Accounting.
4. After approval, Voucher Processing will forward the voucher to Accounting for payment.
5. Accounting compares the signature on the reimbursement voucher to the signature on authorized signature forms.
6. Accounting will process the transaction and assign a check number or direct deposit number as appropriate.
7. A check or Direct Deposit Notification form is mailed to the payee at the address indicated on the voucher.

   If the payee has requested direct deposit of their reimbursement, the payment will be deposited to the bank account specified on their "Direct Deposit Authorization" form on file in the Payroll Department.  Their bank account will be credited two bank business days after the reimbursement is processed by the Accounting Department.

8. The paid voucher is distributed as follows:
   • Original - Accounting Department
   • Copy - Sent to the payee along with the check or Direct Deposit Notification form.

1. eVoucher (eV) is a Michigan State University electronic disbursement voucher for certain payments less than $75.00. Generally, payments otherwise prepared with Direct, Multiple Check, Travel, and Reimbursement Vouchers can be made with an eVoucher.
   
   eVoucher may not be used for the following:
   • compensation to any MSU employees or MSU students
   • memberships (expense object code 075
   • donations (expense object code 076)
   • Nonresident Aliens (see MBP Section 77)
   • scholarships or grants to currently-enrolled students
   • checks that need special handling (i.e., rush checks/check pick ups or checks set aside (pulled) for special mailing)
   
   Contract & Grant accounts 61-0000 - 61-9999 may use eVoucher only for expense object codes 020, 022, 030, 041, 061, 062, 071, 072 and 082.
2. You may not use the eVoucher for payments representing compensation to individuals for services performed as independent contractors. See Section 76 for the criteria for independent contractor status.

1. The eVoucher form is available on the web at the Controller’s Office eForms page, eaccounting.msu.edu. Prior to initial use of the eVoucher, every user must be set-up in the system by Accounting (355-5000). Also, every Common Unit Code (CUC) and applicable eVoucher approver must be properly authorized by completing the eVoucher Approver Access Request Memo (ARM).
2. Training on how to properly use the eVoucher is also available. Contact Accounting (355-5000).

1. Once authorized for eVoucher use, log on to eaccounting.msu.edu and proceed to the ‘eVoucher’ link to get started. You will enter all required information and submit the voucher for processing.
2. Where applicable, complete and valid payment support documentation (invoice, receipt, etc.) is required for ALL vouchers. However, submission of this documentation with the voucher is NOT required for eVoucher processing. Rather, this documentation MUST be kept on file in the department (with the fund ledger on which the eVoucher charge appears) for expense verification and ledger reconciliation purposes. It is the responsibility of the department to maintain this payment support documentation and to have it available upon request of Accounting, Contracts & Grants, Internal Audit, or others.
3. Upon submission, your eVoucher will be given a pre-ledger identification number that can later be used in the eVoucher system to look up the check number of the actual payment. During your monthly account (fund ledger) reconciliation process, you are expected to update your supporting documents with the payment date and check number and then maintain the documents with the rest of your fund ledger supporting files. Beyond this minimum requirement, the specifics of how a unit manages its eVoucher supporting documents should be determined at the department level. As with all of your department accounting records, these files need to be maintained and available for a minimum of seven years.

1. Once submitted, vouchers are automatically routed via the Forms Tracking Utility (also accessible at eaccounting.msu.edu) to the necessary authorized approvers for the accounts being charged (as established by the department with responsibility for the account - contact Accounting for questions regarding automatic routing for your department/account). For reimbursements to employees, the eVoucher will also be routed to the payee so that the payee may certify that the expenses claimed were necessary and reasonable in carrying out MSU responsibilities and are reimbursable under MSU policy. An eVoucher payee is not allowed to approve his or her own reimbursement.