Prompt Payment to Vendors and Employees (C-25.1)
Original Implementation: April 21, 1998
Last Revision: January 25, 2011
It is the intention of Stephen F. Austin State University to comply with the state's Prompt Payment Act and make prompt payments to both vendors and employees. It is also the intention of the university to process these payments using the most efficient means available.
Payment to Vendors
Three requirements must be met before a disbursement can be made to a vendor:
- There must be an approved order for goods or services that has been signed/authorized by the account manager or his designee.
- The goods or services must have been received. Acknowledging the receipt of goods or services is the responsibility of the department which placed the order.
- The vendor must provide an itemized invoice to accounts payable. If an invoice is received by the department, it should be date stamped and immediately forwarded to accounts payable.
The controller's office is responsible for processing payments in a manner which ensures compliance with the Prompt Payment Act once these three requirements have been met. In certain instances, interest will be paid to a vendor if payment is not made within 30 days of the later of:
- the date the university receives the goods
- the date the service is completed
- the date the university receives an invoice for the goods or services.
Such interest payment will be charged to the department if it caused the late payment.
Payment to Employees
Two requirements must be met before a payroll disbursement can be made to an employee:
- The employment must be approved via an Electronic Personnel Action Form (EPAF).
- There must be appropriate documentation that the employee performed services during the pay period. This usually requires employee time-keeping records and may include the data entry of a specified number of hours for hourly-paid employees.
The controller's office will process payroll checks for employees in compliance with the State of Texas payroll calendar, or as approved by the university president.
If a department requests the controller's office to process a payment outside its normal operating procedures for any reason, the department shall be assessed a special processing fee of $50.
Cross Reference: Tex. Gov’t Code Ch. 2251
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Controller
Board Committee Assignment: Finance and Audit