SECTION 75: Disbursement Voucher (DV)

1. The Disbursement Voucher is to be used to pay for goods and non-payroll services when a requisition and purchase order are not required because of the nature of the payment. Use of the DV does not replace the normal purchasing procedure and therefore cannot be used in situations which require a requisition and purchase order. Use of the MSU Purchasing card or University Stores Open Orders is recommended where permitted by MSU Policy and where accepted by suppliers.
2. Examples of permissible DV payments include:
   1. Payments for supplies totaling $2,500 or less where the MSU Purchasing Card cannot be used and items are not available through MSU Stores.
   2. Lecturers, speakers, entertainers, or independent contractors for $600 or less (for further discussion of these payments see Section 76).
   3. Purchase of reprinted articles when the vendor does not require a University purchase order.
   4. Conference registration fees only when the MSU Purchasing Card is not accepted. Otherwise, the MSU Purchasing Card must be used.
   5. Payment of conference costs (facility, food service, etc.) where the University is the conference sponsor.
   6. Payment to a supplier for food purchased off campus while not in travel status consistent with the provisions of Section 45.
   7. Memberships in professional organizations and associations when the MSU Purchasing Card is not accepted. Memberships must be in accordance with University policies outlined in Section 47 - General Dues 47 I (A).
   8. Refunds. (NOTE: Refunds of $2.00 or less will not be issued.)
   9. Utility payments for University installations (telephone, gas, electricity).
   10. Honoraria for $600 or less. See Section 76.
   11. 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.
   12. Repairs to machinery and equipment not under a purchase order contract or serviceable through Stores Open Orders (section 220, item VI).
   13. Payment of off-campus lodging expenses for University guests.
   14. Advertising - Payments for newspaper ads, magazine ads, billboards and other miscellaneous advertisements. (Exclusion: Employment ads and other ads placed in the Lansing State Journal should be ordered by contacting University Stores Open Orders.)
   15. 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).
   16. Prepayment for goods or services should generally be avoided. In unusual circumstances, prepayments should be clearly noted in the Explanation field with the reason for prepayment.
   17. To reimburse individuals who use their own funds for legitimate University business purposes. 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).

   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.

   Proof of receipt of goods (e.g. packing slip) is required (as part of the DV’s scanned attachments). If no receiving documentation is available, department must make an explicit representation in the DV Explanation field that goods were received.

The DV will be input by the initiating department, using MSU's Financial System. Required fields are noted with an *. Refer to Exhibit 75–A for a list of Payment Reasons.

Only one person or company can be paid on a single DV.

The purpose for payment must be indicated in the Explanation field and should include dates, where applicable, such as in the case of performers or memberships.

A check (with stub) is the only document the vendor will receive. The DV includes a large Check Stub Text section in the Payment Information tab. Text included in this section will appear on the check stub and will be crucial information for the vendor to use to credit your payment. Use this section to include invoice number, account number, customer number, and other descriptive text to ensure that your payment will be properly credited by the vendor. In almost all cases, the Check Stub Text information will be sufficient. In very rare situations, a document may need to be sent with payment and this will require Special Handling (see item V).

All check mailing instructions and wire transfer instructions need to be included in the DV. For Special Handling of voucher or check, see item V.

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.

Supporting detail, including receipts, invoices or contracts explaining the reason for the payment, must be scanned and attached to the DV with a note in the Notes and Attachments tab. Departments must retain original invoices and receipts on file until the DV has posted to the general ledger.

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 be attached for related travel reimbursement payment (see Section 70).

A Disbursement Voucher of $25,000 or more will automatically be routed for College level approval.

Disbursement Vouchers cannot be used to pay compensation or honoraria unless the payee meets the criteria of an independent contractor (see Section 76).

Disbursement Vouchers cannot be used to pay enrolled students for services of any kind. Payment must be processed through Payroll.

Disbursement 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.

Additional payments which are prohibited include:

1. Physical Plant supplies including paint, plumbing, electrical, heating, ventilation 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. Maintenance and repairs to machinery and equipment under a Purchase Order contract or serviceable through Stores Open Orders (see section 220).

Questions concerning the propriety of using a Disbursement Voucher should be addressed to Voucher Processing, Hannh Administration Building, 426 Auditorium Road Rm 360, telephone 355-5000.

For all reimbursement related e-docs (including DV’s), if the Fiscal Officer (FO) is the payee or the custodian/recipient of a Cash Advance, the e-doc must be ad hoc routed and/or approved by a FO delegate, a Dean/Assoc.-Asst. Dean, Director, Chair, or College-level budget officer. Lack of the required ad hoc routing will result in Accounting's disapproval of the e-doc.

For reimbursements to employees, if the employee is not the DV initiator, the DV must be ad hoc routed to the employee for approval/verification of expenses incurred. Lack of the required ad hoc routing will result in Accounting's disapproval of the e-doc.

A DV charged to a research grant account (RC sub-fund) will automatically route to the Office of Contract and Grant Administration for approval.

After audit, Accounting will approve the DV for payment, or disapprove and provide an explanation. If disapproved, notification will be routed to the Action List of the initiator and all approvers.

Checks are mailed directly to the payee, or, if reimbursing an employee who receives payroll via direct deposit, funds will be direct deposited.