Finance Division

Document approval

All payment documents are routed to the office responsible for the monetary oversight of the funds. The Office of Sponsored Research reviews documents submitted for payment on contract or grant accounts. The Pre-audit team reviews documents submitted on State Appropriated accounts, Facilities & Administrative accounts, Gift accounts, Receipt-Supported accounts, Institutional Funds accounts, and Endowment accounts. This review insures that purchases and services are within the scope of the account as established by the funding authority, and that sufficient funds are available to pay the invoice.

Vendor payments

Vendors and Independent Contractors who do business with the University are entitled to accurate and timely remuneration for goods purchased and/or services rendered. Merchandise that is acquired with a cost of less than $5,000 is considered a small order purchase and may be paid using the Check Request (K#) or the Purchasing Card (P-Card). To determine whether your purchase will require a purchase order, please see Purchases from Commercial Vendors. An individual who provides a service to the University and is not a University employee is considered an Independent Contractor by the IRS. The Independent Contractor payment document is generated via Finance Central by choosing Contractor from the Check Request menu.

Non-salary payments to individuals

University employees occasionally make out of pocket purchases for items to be used by their employing department. Reimbursements for these expenditures are made using the Check Request. Research subjects may be paid using the Check Request if the study is not considered confidential. Individuals (not faculty, staff, or students) who attend workshops or conferences at UNC are reimbursed for their participation and travel expenses with the Check Request. A list of expenses paid with the Check Request is found in the Business Manual Check Request.

Processing of payments - vendors and individuals (non-salary)

Disbursement Services issues payments to vendors and individuals (non-salary) by either check or electronic funds transfer (EFT) through the automatic clearing house (ACH).

• Checks are printed daily and mailed the following day to the payee via the US Postal Service. Checks may be returned to the document creator in a few special circumstances but is not recommended. Please see Distribution of Checks.
• Payments to both vendors and individuals (non-salary) may be sent electronically via the ACH. Employees who receive expense reimbursements are automatically paid in this manner. Vendors who wish to receive payments electronically should provide their banking information on company letterhead and include the name and email address of the individual who will be responsible for these payments. Other individuals who wish to be paid electronically should download the Direct Reimbursement Deposit Authorization form, attach a copy of a cancelled check and mail it according to the instructions. Electronic payments are issued twice weekly and will be reflected in the recipient's bank account within three business days.

Tax compliance – IRS form 1099 reporting

Disbursement Services, in accordance with IRS regulations, reviews all payments to individuals for services, payments to research subjects and workshop participants, expense reimbursements for which no original receipts were submitted, and payments to vendors who are sole proprietors. By January 31 of each year a 1099 is mailed, generated for any of the above when the total paid is equal to or greater than $600.00.

Tax compliance - tax withholding on non-residents

Disbursement Services, in accordance with NC General Statute Section 105-163.1 reviews all non-resident service payments to determine applicability of 4% withholding by the University. For more information related to 4% withholding see N.C. Income Tax Withholding Requirements for Non-Wage Compensation Paid to Nonresidents.

Maintenance of vendor database

Each business or individual who receives a non-salary payment must be established as a vendor to facilitate payment. Vendor creation is a web-based process managed by Disbursement Services that allows the department to establish a new vendor or change the address of a current vendor. Web vendor request is a secure site accessed via Finance Central.

Encumbrance/liquidation

Non-personnel Encumbrances and liquidations are effective tools for University account management. In the event that an encumbrance should be removed from your account, please complete an encumbrance liquidation request form and submit electronically to the liquidation technician in Disbursement Services for removal.