University of Rochester

Administration & Finance

Finance Home

Form F4 Payment Request Policy

I. Date of Initiation/Revision

Revision effective February 1, 2018.

II. Policy Classification

Senior Vice President for Administration and Finance and CFO – Controller’s Office (Finance Department)

III. Policy Statement

This policy promotes the proper stewardship of University funds by providing general guidelines for the appropriate and legal uses of University funds in support of the University’s missions. The University receives, from a variety of sources, funds that carry with them fiduciary responsibilities. Inherent in these responsibilities are the requirement to operate the institution under guidance set forth by the University’s Board of Trustees, to properly safeguard and protect University assets, and to comply with all federal, state, and local laws and regulations. This policy contemplates also that certain institutional duties and responsibilities have been delegated to the operating units (department/division) of the University involved in the conduct of business and to display sound ethical business practices in carrying out these responsibilities. This policy will adhere to and be in conformity with relevant Internal Revenue Service (IRS) rules/regulations at all times and subject to change as IRS rules change.

IV. Policy Summary and Definitions

Summary:

The Payment Request form (F4) may be used to initiate payments for which University payroll forms are not required. Each payment must be determined to be an appropriate, allowable, properly authorized expense according to Finance policy. This policy and related F4 form require departmental representatives to certify that University funds are being disbursed for valid business expenses and are allowable expenses for the accounts provided.

Definitions:

Adequate accounting: Defined by the IRS as follows:

You adequately account for your business expenses by giving your employer documentation of those expenses including invoices/receipts and proof of purchase.

Excess amount: Defined by the IRS as follows:

Any amount you are paid, including advances and allowances, that is more than the business expenses that you adequately accounted for to your employer within a reasonable period of time.

IRS: Internal Revenue Service of the United States of America.

Reasonable period of time: Defined by the IRS as follows:

Actions that take place within the times listed are considered as taking place within a reasonable period of time.

You adequately account for your expenses within 60 days after they were paid for or incurred.

You return any excess amount within 120 days after the expense was paid for or incurred.

Supporting documentation:

Documentation supporting the expenditure should always accompany a completed RFP form. To facilitate processing, supporting documentation should include:

V. Related Policies

Refer to the University’s Finance web site:

Delegation of Authority

The delegation of authority to disburse funds to otherwise qualified suppliers and service providers is granted to the University division/departments. This authority is communicated to Central Finance by the divisions/departments when they agree to the certification statement, by signing the F4 form, indicating the appropriateness of the business expense and account number provided.

VII. Responsibilities

Central Finance Department

Payment of expenses: The Accounts Payable Department processes completed valid F4 forms for payment and mails checks according to forwarding instructions.

Standard timeframe: AP Associates process RFPs for payment within 5 business days after they are received in AP.

Reporting requirements: The Accounts Payable Department reports payments to the recipients and the IRS on forms 1099 as appropriate for rents, non-employee prizes/awards, non-employee compensation/fees, health care/medical services, annuities, and royalties. Note that employee prize/award and compensation payments should be handled through Payroll for appropriate reporting on Form W2.

Department

VIII. Criteria

Below is a list of activities for which one or more preferred purchasing methods exist (should not be submitted to Accounts Payable via Payment Request):

See Related Policies and the Purchasing web site for additional information.

The Payment Request F4 form is most appropriate for the following.  Please note that this is not an absolute list but a general guideline for Payment Request usage. Payment Request is generally only acceptable for one-time type of payments.


Activity

Payment Terms

Acceptable on Pcard?

Audio Visual Services

Net 30

Yes, one-time service

Conference/Seminar registration

Immediate

Yes

Event Reservations

Net 30

Yes

Flowers for business events/activities, not personal milestones (birthdays, funerals, engagements, weddings, birth, etc.)

Net 30

Yes

Food and Beverage

Net 30

Yes, on-site business meals

Honoraria/Guest Speaker

Immediate

No

Insurance centrally managed by Budget Office or SMH Finance

Immediate

No

Department of Homeland Security - International Services Office

Immediate

No

Non-employee (includes guest speakers) travel expenses (i.e., lodging and transportation)

Immediate: when reimbursing non-employee

Net 30: when paid to lodging/transportation supplier

No, but F2 airfare is available for non-employees

Off-site utilities (phone, cable/dish, internet, power/water)

Net 5

No

Patient and insurance refunds for which automation/integration does not exist

 

Immediate

No

Payment must accompany notarized/official documentation (not thank you notes or normal correspondence)

Immediate

No

Performers/Entertainers (including DJs) one-time payments

Net 30

No

Petty Cash replenishments

Immediate

No

Prizes and Awards                 

Immediate

No

Professional/club/membership dues

Immediate

Yes

Publication costs

Immediate

Yes

Referees

Immediate

No

Refunds/Transfers to affiliates/foundations (Gift Office, banking activities)

Immediate

N/A

Revenue generating contract payments

Net 30

No

Royalty payments      

Immediate

No

Stamps

Immediate

Yes

Student Account refunds/aid initiated by Bursar’s office

Immediate

No

Study Participation/Incentive Payments

Immediate

No

Subscriptions

Immediate

Yes

Tax/Assessment payments

Immediate

No

Western Institutional Review Board (WIRB)

Net 30

No

Wegmans (including for example gift cards to study subjects and food and beverage)

Net 30

No

Taxi, Uber, Lyft, RTS rider tokens, Valet service for events, Ambulance (not executive car/limo services which should be on purchase order)

Net 30

No

VIII. Documentation

Department

The Instructions on the Forms page provides complete form instructions.

Central Finance

Documentation of payment transactions is retained per standard procedure.

Special Situations

Due to the nature of situations requiring special handling, exceptions to standard procedure require additional time to process.  Please contact Accounts Payable at AccountsPayable@finance.rochester.edu if you have a situation that seems unusual or may require special attention.

If you feel immediate same day payment is required please contact the Accounts Payable Manager or Treasury Manager for approval to use the EFT (electronic funds transfer) version of the F4 form.

If payment needs to be electronically transmitted to a foreign payee bank, please use the EFT version of the F4 form and submit to Accounts Payable.  Additional information about F4-EFT version usage is available in the Electronic Funds Transfer Policy

 

 

Page updated 2/1/2018
Maintained by the University Controller's Office. Problems with this site? Please contact our webmaster.