Out-of-Pocket Expense Reimbursement

Basis for Procedure

Out-of-pocket purchases can be reimbursed in one of two ways:

• through the standard accounts payable payment process, or
• from a petty cash account that has been established at the operating location.

Procedure Summary

The standard accounts payable payment process reimburses the project director's personal expenses directly from project funds.

Documentation of Purchase

For reimbursement through the standard accounts payable payment process, the purchase must be documented and submitted to the operating location office responsible for purchasing and accounts payable.

The documentation should contain the following information:

• project, task, and award (PTA) numbers
• expense type
• description of item or service
• supplier name, address, and to whom the check is made payable or cash will be paid
• price
• project director (or authorized designee) signature and date
• receipts

  If payment is made by check, the payee must be on the Supplier File. If the supplier does not already exist in the supplier file, a new supplier must be created.

  Note: If payment is electronic, then payee must be on the Supplier File and must have completed an ACH Enrollment Form.

  The standard Research Foundation Purchase Requisition Form or the Research Foundation Request for Campus Supplier Payments Form can be used by operating locations to document the purchase or a form can be developed for that purpose. The payment documentation must be reviewed for compliance and, if approved, sent to the appropriate business office at the operating location for payment.

  Reimbursement from a Petty Cash Account

  Out-of-pocket expenses can be reimbursed from the operating location's petty cash account if the project director needs to be reimbursed quickly. The following table outlines the steps necessary to request a reimbursement.

  Step	Role or Responsibility	References or Tips
  Make purchase using own funds.	Project Director
  Complete the Petty Cash Request form, a Purchase Requisition Form, or an equivalent operating location form.	Project Director	The form must indicate that the request is for a reimbursement
  Submit the appropriate form and a receipt or invoice for the payment to the appropriate operating location business office.	Project Director	The appropriate office is usually Purchasing or Accounts Payable.
  Review request form for compliance and to ensure that the payment has been authorized by the project director or designee.	Operating Location's Authorized Business Office Personnel	If the disbursement is approved, proceed to the next step.   If the disbursement is rejected, contact project director to negotiate or send requisition back for revision.
  Issue a check or disburse cash for requested amount to the project director.	Operating Location's Authorized Business Office Personnel	If cash is disbursed, recipient must sign for it to document the transaction.
  Replenish the petty cash account from project account funds.	Operating Location's Authorized Business Office Personnel	Refer to Petty Cash: How to Establish and Maintain Accounts for information on how to replenish the petty cash account.

Definitions

None

Related Information

How to Review a Request for Goods, Services, or Payment

Invoice and Payment Process

Petty Cash: How to Establish and Maintain Accounts

Forms

Request for Campus Supplier Payments

ACH Enrollment Form

Purchase Requisition

Petty Cash Request

Change History

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