Check Requests and Invoices
Disbursements made for university business services will generally be processed by either the Accounts Payable Department or the Bursar's Office. The Accounts Payable Department processes all invoices and check requests and the Bursar's Office provides all petty cash reimbursements. The Purchasing Department, though not directly involved in the disbursement process, creates all purchase orders by which many of the university's goods and services are obtained. The invoices generated through the processing of these purchase orders are then paid by the Accounts Payable Department.
Expenditure Types Allowable On Check Requests
The check request form is allowable only for the following types of expenditures:
- Membership and Dues
- Travel and Entertainment
- Postage
- Periodicals
- Books
- Royalties
- Honoraria
- Professional Fees
- Moving Expense
- Awards
Payments for any of the above should be processed via check request regardless of the amount. However, if any single item on the check request is greater than $10,000, the department must contact purchasing prior to processing to determine the proper payment method. If the total payment requested is greater than $10,000, but no single item is greater than $10,000, the check request should still be used. Please remember that this applies only to the ten expenditure types listed above.
If the expenditure type is not one of those listed above (ex. reproduction), the item must be procured via purchase order unless the total amount requested is less than $250. The Financial Affairs office will process reimbursements of up to $250 for reproduction, software, and repairs. Please refer to the instructions at the bottom of the check request form for guidance. As of 8/3/15, the cessation of personal reimbursements to faculty and staff extends only to office supplies.
Payments to Students & Employees
It is extremely important that any payment for work done by a student or employee of the university be processed through Payroll rather than through Accounts Payable. Failure to properly report these individuals as employees and remitting the appropriate portion of employer's tax puts the university and the individual at risk of incurring severe financial penalties from the IRS. If you are unsure as to the proper handling of payments to be made to an individual please contact the Human Resources department.
Honoraria, Stipends & Fees for Services Rendered
Payments to individuals (other than university students and employees) and other qualifying organizations for services rendered are processed by check request or invoice in the Accounts Payable department. All requests for payments to an individual must be accompanied by a completed W-9 form unless the individual has a W-9 (.pdf) on record in the Financial Affairs office. A completed Contract for Professional Services must also be attached to each request for payment. For one-time speakers only, the Speaker Agreement may be used in lieu of the Contract for Professional Services. Both the Contract for Professional Services and the Speaker Agreement are located in the Forms section.
Please note that both the Contract for Professional Services and the Speaker Agreement must be authorized and signed at the appropriate level of authority as provided by the Contract Administration Policy. Additionally, the Contract for Professional Services must be vetted through the Purchasing Department before it can be submitted to Accounts Payable for processing. For any questions or concerns regarding Loyola's policy on contracts please contact the Office of General Counsel at (504) 865-2657.
An assignment of income will occur in a situation in which payment would have been made to an individual in exchange for services performed, except the payee wants the payment to be donated to another person or entity, such as a charity or nonprofit organization. For example, an individual who is speaking at a university event might request that the university make a donation to a charitable organization in lieu of a stipend or honoraria payment.
Although the payment is made by the university to the charitable organization, to the IRS, the payment is still compensation to the speaker. Therefore, the income will be reportable to the speaker and the speaker will receive a 1099, not the exempt charitable organization. A W-9 for the individual must be received by the Financial Affairs Office before payment to the charitable organization will be processed.
Because the Financial Affairs office must verify with the Human Resources department that individuals are neither students nor employees of Loyola University before processing payments, please allow additional time for processing. All departments are encouraged to contact the Human Resources department prior to engaging the services of any individual to ensure the proper classification is determined.
Payments to non-resident alien individuals for services rendered are also processed in the Accounts Payable department. Guidelines for payment processing, documentation, and visa information can be found on the Center for International Education's website.