All Policies and Procedures

Conditions of Purchase

• Shipments received prior to delivery date without previous approval of Wake Forest University may be returned or stored at seller’s expense.
• Whenever an actual or potential labor dispute or any other cause is delaying or threatening to delay timely performance of this contract, seller will give notice to Wake Forest University including all relevant information. If seller fails to deliver within the time specified on the purchase order without written notification in advance and waiver of delivery term by Wake Forest University, then the University may at its option revoke and cancel the contract.
• No charges of any kind, except sales tax and freight, not appearing on this purchase order will be accepted or paid by Wake Forest University. It is Buyer’s discretion to accept items shipped in excess of the quantity ordered and any overshipment may be returned at seller’s expense.
• The Purchase Order number must appear on all crates, packages, packing slips, invoices, and correspondence shipped or mailed to Wake Forest University. All items will be accompanied by assembly instructions and operating and repair manuals, as applicable. Wake Forest University count will be accepted as conclusive on all shipments not accompanied by a packing slip.
• The parts, material, and workmanship of all items are subject to inspection, testing and counting by Wake Forest University. Wake Forest University may reject for full credit or require prompt correction or replacement at seller’s expense, including the expense of unpacking, examining, repacking, storing and transporting of any item defective in material or workmanship or otherwise not in conformity with the purchase order. Goods will be delivered to the University in new condition and undamaged (unless otherwise specified).
• The seller warrants the merchantable quality of the goods sold hereunder and that such goods are fit for the purposes for which they were purchased. Such warranties are in addition to all express warranties and will run to the benefit of the University, its employees and agents. The sellers period of warranty with respect to each item will be at least as long as that of the manufacturer of such item, and seller will honor same.
• This order to seller is not transferable or assignable without the written permission of Wake Forest University. Seller is an independent contractor and is not an agent or employee of Wake Forest University.
• Seller warrants that it is the sole owner of the described goods and that it has the unrestricted right to convey a clear title to the University free and clear of all encumbrances.
• Seller agrees to comply with all applicable laws and regulations of Federal, State and Municipal government bodies and agencies, and will defend and save Wake Forest University harmless from any loss or damage arising out of any violation of such laws and regulations, or by reason of actual or alleged infringement of copyright, patent, or trademark.
• Seller agrees to indemnify and hold Wake Forest University harmless from all claims and liability resulting from the negligence of seller, its agents or employees in performance with respect to this purchase order.
• The equipment and material covered by this order must comply and conform to appropriate provisions and regulations of the Williams-Steiger Occupational Safety and Health Act of 1970. All orders must be shipped with the applicable MSDS sheets per the aforementioned Act.
• The seller will take affirmative action to insure that applicants and employees are treated without regard to disability, race, religion, color, sex, national origin or veteran status. The seller agrees to post in conspicuous places, available to employees and applicants forth employment, notices setting for the policies of nondiscrimination.
• This purchase order and the contract arising therefrom are governed by the laws of the state of North Carolina.

Donations and Gifts Tax Guide

Making a Donation

Generally making donations on behalf of the University follows the same guidelines as when an individual makes a donation to a charity. All or part of the donation may be deductible by Wake Forest University. Wake Forest requires that the donor receive an acknowledgement or receipt from the organization receiving the donation.

The acknowledgement should indicate the amount donated and what, if any, benefit was received for the donation.

For example, a $1,000 donation is made to an organizations for 4 seats at a table at a benefit dinner. Only $900 is deductible by Wake Forest as a contribution since the cost of the meal, $100 ($25 each), is not deductible as a charitable contribution. This is called a “Quid Pro Quo Contribution.” The organization should provide to the department/donor a letter of acknowledgement or receipt that indicates the amount that is deductible as a charitable contribution. The letter of acknowledgement or receipt received for the donation should be forwarded to the Tax Department.

Please contact the Tax Department for more information on making donations on behalf of Wake Forest.

Receiving a Gift or Donation

The Advancement Office is responsible for accepting gifts and donations for Wake Forest University.

As a general rule for non cash charitable contributions over $500 the donor must have a Form 8283 to file with his or her income tax return if he/she wishes to take deduction for the contribution. In addition, if a donor wishes to claim charitable income tax deductions totaling $5,000 or more in any tax year for gifts that are not cash or publicly traded securities, then the donor needs to obtain qualified appraisals of the property donated and Wake Forest must acknowledge receipt by signing the IRS Form 8283, which the donor then files with his or her federal income taxes. For securities that are NOT publicly traded the donor must have a qualified appraisal (not provided by Wake Forest) and a signed Form 8283 which is signed by Wake Forest.

Under certain circumstances if Wake Forest sells, transfers, exchanges or otherwise disposes of donated property within two years of the date of receipt of the property, Wake Forest must file Form 8282 (Donee Information Return) with the IRS reporting such action. Any department that becomes aware the disposition of a donated item should immediately notify the Tax Director in the Controller’s Office. Among the information required is the name of the donor, their address and tax ID or Social Security number, and any amount received upon disposition. If the transfer is made to a successor donee (that is, another nonprofit entity), information concerning that donee must be included as well. Form 8282 must be filed with the IRS within 125 days of the date of disposition with a copy to the donor. The Tax Director is responsible for preparation of the Form 8282 and its transmittal to the IRS and to the donor.

Employee versus Independent Contractor Determination

It is important for the University to properly classify potential service providers as independent contractors or employees. Prior to engaging in business with an individual that provides services to the University, a determination of status between independent contractor and employee is required by the Internal Revenue Service. The Employee/Independent Contractor Checklist should be used when a department needs the services of individuals to perform duties for Wake Forest.

The form is not needed for one time payments to guest speakers, panel participants, and roundtable participants.

If the company or individual completing the form does not agree with the determination, notification should be sent to Christy Lennon in Human Resources at clennon@wfu.edu. At this time, the department should request the company or individual to complete IRS form SS-8 “Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding”. If the determination by Human Resources is “employee”, the “employee” will be placed on payroll until a ruling from the IRS is made. The payment for services will be paid through Payroll and any business expenses incurred will be reimbursed by Accounts Payable.

If you have any questions, please contact Christy Lennon at clennon@wfu.edu.

Employee versus Independent Contractor Checklist

Fiscal Year End

This is the central location to find documents and information pertaining to Wake Forest’s fiscal year end.

FYE Closing Procedures & Updates Presentation
This presentation was delivered at the May 16, 2013, Campus Financial & Administration Representative (CFAR) meeting.

FYE Administrative Procedure
This document lays out policies, procedures and cut-off dates for the FY13 year-end close.

Banner Financial Training through Cognos

The documents below are key in aiding your financial reporting. The macros are used to format your reports once they are produced through Cognos. Be sure to save this file in the
C:\Userdata\Excel directory.

Campus Financial Reporting Instruction Manual
Campus Financial Reporting Quick-guide
Demonstration Video: Using Excel Macros for Cognos 8.4 Reports
Downloading and Installing Macros for Excel 2007 Instructions
Downloading and Installing Macros for Excel 2010 Instructions
Financial Reporting Macros

Key Year End Related Forms & Links

Accounts Payable

• Travel & Entertainment Voucher
• Expenditure Voucher

Accounts Receivable

• Deposit Accruals
• Deposit Revenue

Financial Accounting & Reporting

• Fixed Asset Information
• Journal Entry template

Invoice Submission and AP Payment Schedule

Where to Submit Invoices for Payment
Departments submitting invoices, credit memos, University Pcard statements and reimbursement requests should use interoffice mail to send all documentation to Accounts Payable at the University Corporate Center.

Invoice Processing Times versus Supplier Invoice Terms

Processing Times: Accounts Payable is committed to entering and processing complete and accurate invoices and reimbursements. Accounts Payable will process invoices within 5 business days and reimbursement requests within 10 business days. If the documentation is not complete, Accounts Payable will return the documentation to the appropriate person(s) for resolution. After the documentation is returned to Accounts Payable, the processing time starts over again.

Invoice Stated Terms: Accounts Payable will pay invoices according to terms stated on the invoice. Terms are payment deadlines that the vendor has negotiated with the requesting department or Procurement Services. Terms dictate how many days from the invoice date that the check will be processed.

To ensure all discounts are taken and the University pays within terms stated on the invoice, it is very important that invoices be forwarded to Accounts Payable as quickly as possible.
Accounts Payable processes checks on Monday, Wednesday and Friday. However, exceptions are made to accommodate campus or postal holidays.

Because of the potential for increased volume, Accounts Payable cannot promise immediate processing of invoices and reimbursements.

Checks are processed by a third party and will be mailed from Jacksonville, FL.

If checks must be printed outside the normal check run schedule, the department requesting the additional check processing may incur a $25 processing fee.

Journal Entry Procedures

Journal entries allow users to adjust existing balances or allocate charges to other departments
(i.e. copier, maintenance, telecom, etc.)

Anyone is allowed to prepare journal entries; however, the journal entry must be approved by the department head prior to submission to Financial & Accounting Services (FAS) in the UCC building, attention Ruth Smith. The required supporting documentation must accompany the journal entry or the entry will be returned to the appropriate department. Supporting documentation may be in the form of an invoice, work order, memo, report, etc. In addition, the entry must be on the Journal Entry form. Requests for entries not submitted on the proper form will be returned.

The journal entry form requires the following information:

• Preparer’s and approver’s initials
• Description (35 character limit)
• Department or Project/Grant number
• Account numbers
• Amount to be charged
• Detailed Explanation – not in the description line (this can be typed written anywhere in the
  body of the template)

Example journal entries are available to aid with proper presentation. Journal entries must be received by FAS by 5 p.m. on the 2nd business day following month end. All journal entries received after this deadline will be processed in the following month.

Month End Closing Procedures

All subsystems are to close their month by the second business day of the following month. This is also the date when journal entries are due to financial reporting. All journal entries received from campus departments are reviewed by Financial & Accounting Services (FAS) before they are entered. All journal entries received from within FAS must first be approved by the area manager and are then reviewed by FAS before they are entered.

The general ledger is normally closed by the fifth business day following month end. Once the ledger is closed, an email is sent by FAS to an established distribution to notify all appropriate campus users that the month is closed and they can view final reports online. These monthly reports should be used to assist departments with their analysis of actual to budget revenues and expenses. Departmental questions concerning monthly charges should be submitted to Ruth Smith at smithrr@wfu.edu stating the department number, account number, and questioned charge. Responses from FAS should be within two to three business days.

Account reconciliations are due to area managers by the 25th day of the following month. All area managers are responsible for reviewing account reconciliations for completeness and accuracy. A log of all account reconciliation’s and the person responsible form them is maintained on the shared drive. The account reconciliations and the log are reviewed monthly by FAS.

Payment Approval Procedures

Full Signatures are required when approving documents for payment. Initials are not acceptable. The approval signature means that the approver recognizes the items have been received, the funds are being used for a bona-fide business purpose and that the approver authorizes the payment.

Only those individuals documented on the “Authorization and Approval Levels” document approved by the University president or those documented on the Departmental Expenditure Authorization Form are allowed to approve invoices, reimbursement requests or P-Card statements. An authorized approver’s dollar limit must not exceed the levels designated by the University president.

When adding or removing approvers from your operating department, please complete a new Department Expenditure Authorization Form.

Each academic year, student groups need to complete the Student Organization Expenditure Authorization Form before payments can be processed.

If a student group does not know their faculty advisor, they should contact Steve Hirst, Director of Student Leadership and Organizations, by email at hirstsr@wfu.edu or the Student Government Treasurer.

Personal Service Tax

North Carolina requires withholding of 4% personal service tax from payments to non-North Carolina resident entities or individuals for personal services performed in North Carolina. Personal services for the purposes of withholding this tax are limited to services in the connection with a performance, an entertainment or athletic event, a speech that informs or amuses, or the creation of a film, radio, or television program.

The following must be true in order to withhold:

• The total payment within one calendar year exceeds $1,500. Withholding begins with the first installment for a contract where the total contract exceeds the threshold or with the first payment that causes the cumulative total to exceed the threshold.
• The services fall into one of the categories described above and were performed in NC by an individual who does not have a permanent residence in NC or by an entity that is formed under the laws of a jurisdiction other than NC.

This tax is assessed on payments to both individuals and businesses, including corporations. The only exceptions are as follows:

• Companies that are exempt from Federal Income Tax (such as non-profit organizations) are also exempt from personal service tax withholdings. A copy of the determination letter from the IRS that states the company is exempt from Federal Income Tax should be sent to Accounts Payable prior to payment.
• A corporation or limited liability company that can provide the University with a Certificate of Authority to transact business in the State of North Carolina, issued by the NC Secretary of State. This Certificate of Authority places the liability of remitting the NC personal service tax on the holder of the Certificate.
• If we contract with a promoter to find an entertainer but enter into a separate contract with the entertainer, then the finder’s fee paid to the promoter is not considered a service performed in NC, but rather in the state the promoter is located. However, the fee paid to the entertainer is still subject to the tax, if other listed criteria are met.

If withholding applies, then 4% of the total amount requested will be withheld and remitted to the NC Department of Revenue. If the requesting department wishes for the payee to receive the full contract amount, they can request for the payment to be “grossed-up” to compensate for the taxes; however, the department will be responsible for the additional amount to gross-up the payment.

Providing a WFU Tax Exemption

How and When to Provide A Wake Forest University Tax Exemption Certificate

When travelling on Wake Forest business some states will allow for a sales and use tax exemption for certain purchases. Generally the purchases must be used for the benefit of Wake Forest and must be paid directly by Wake Forest.

We currently have sales and use tax exemptions in the following states:

• Florida – Purchases must be paid for directly by the University either by using the P-Card or through Accounts Payable. If an individual pays with their personal card to be reimbursed by the University and the transaction is not exempt from the sales and use tax. The exemption certificate must be presented at the time of purchase and the goods or services purchased must be used in furtherance of Wake’s tax exempt purpose.
• Tennessee – Wake Forest University is exempt from the state sales on purchases made in furtherance of Wake Forest’s tax exempt purpose. Employees of the University will not be charged tax on hotel stays as long as the payment is made on the University P-Card or paid through Accounts Payable. Separate taxes on other services provided in conjunction with the hotel stay, such as room service or snacks provided by the hotel are taxable. A copy of the Certificate of Exemption must be presented at the time of purchase. New York does not currently accept the Streamlined Form F0003.
• New York – Wake Forest University is exempt from the state sales tax on purchases made n furtherance of Wake Forest’s tax exempt purpose. Employees of the University will not be charged tax on hotel stays as long as the payment is made on the University P-Card or paid through Accounts Payable. Separate taxes on other services provided in conjunction with the hotel stay, such as room service or snacks provided by the hotel are taxable.
• Indiana – The rental of meeting rooms to Wake Forest University is exempt from the state lodging and room rental tax, if the room is used to further the purpose of Wake Forest. The room charges must be billed directly to Wake Forest University. However the rental of hotel/motel rooms is not exempt from the tax. A Form ST-105 or Form must be submitted to the vendor at the time of the qualified purchase.
• Texas – Purchases must be paid for directly by the University either by using the P-Card or through Accounts Payable. If an individual pays with their personal card to be reimbursed by the University and the transaction is not exempt from the sales and use tax. The exemption certificate must be presented at the time of purchase; and the goods or services purchased must be used in furtherance of Wake’s tax exempt purpose. A copy of the Certificate of Exemption must be presented at the time of purchase. Texas also accepts the Uniform Sales & Use Tax Certificate—Multijurisdiction (Revised December 9, 2011). Texas has not yet passed legislation to accept the Streamlined Form F0003, but it in the process of reviewing and accepting the form.

Please contact the Procurement Office for copies of the Certificates of Exemption when needed.

Receipt Tax

When the University sells items, sales and use tax is not levied at the time of purchase. The vendor must be provided an exemption certificate in order to grant us an exemption of sales tax on such purchases.

When a department at the University sells items, the department must collect receipt tax at the time the item is sold. This tax is not refundable. The department making the sale is responsible for depositing the tax collected into account 111111-21021 and reporting it on the Monthly Departmental Sales Tax Form

If you have any questions, please contact ap@wfu.edu.

Sales and Use Tax

The University is NOT sales tax exempt unless the items being purchased are for resale (e.g., textbooks for resale, merchandise for resale).

The University must pay North Carolina sales tax on goods used for University business that is consumed in North Carolina. However, being a non-profit entity, the University can apply for a tax refund for certain items for which it paid NC sales tax. This is why detailed receipts are very important on the University P-Card and invoices. The amount of sales and use tax applicable for a refund is not charged to the department’s budget, but rather to a general University account.

Sales and Use tax cannot be refunded for the following items; therefore, no sales tax should be broken out and the entire amount should be expensed:

• Taxes paid on the purchase, lease, or rental of motor vehicles
• Taxes paid on airfare
• State sales tax paid on electricity, piped natural gas, local intrastate telephone services, and intrastate toll telecommunication services
• Local occupancy tax charged by the NC hotels and motels (this is a tax in addition to the regular sales tax)
• Local prepared food and beverage taxes levied in certain areas of the state (Wake and Mecklenburg County are two examples where a 1% tax is charged in addition to the regular sales tax rate); typically, this tax is charged on restaurant receipts and prepared food in some grocery stores.
• Scrap tire or white goods disposal tax
• Other State’s sales tax
• Reimbursement made to employees or other individuals for sales tax paid for items purchased on behalf of the University (but not purchased by the University).

Supplier Guidelines

• Any supplier representative who would like to meet with Procurement Services must contact us to schedule an appointment. Please refrain from “unannounced” visits to Procurement Services.
• Wake Forest University Reynolda campus does not have a centralized receiving facility. Suppliers will be instructed via Purchase Order to deliver to requisitioning department whenever possible. Large items may be shipped to the Facilities Warehouse and delivered to the requisitioning department. However, the Facilities Department must be given prior notice of the scheduled delivery.
• Wake Forest University Reynolda campus does not have a centralized billing address. All invoices must be mailed to the Billing Address shown on the Purchase Order.
• A Certificate of Insurance is proof that a supplier has liability insurance coverage. In order to limit its liability the Reynolda campus will not do business with suppliers that have less than $1,000,000 of liability coverage. Procurement Services will contact all suppliers that have vehicles or personnel on campus to obtain a copy of their Certificate of Insurance before placing the order.
• Any supplier delivery vehicle on campus must park in designated areas. Please do not park on any sidewalks or grassy areas.

Sourcing Goods and Services

For purchases of items or services less than $2500.00:

• Use Deacon Depot for your one-stop, user-friendly, e-Procurement shopping
• Use your University P-Card

For purchases of items or services over $2500.00:

• A Purchase Order (PO) from Procurement Services is required.
• Involving our department early in the purchase process increases the value we can provide to find the best sources of supply, favorable prices, and excellent customer service.
• Items that are sole sourced must have the Sole Source Approval Form signed.
• Any exception to these specifications requires review and prior approval by Procurement Services.
• Bids as outlined below in the Bid & Quotation Specifications are required.

Requisitioner (the person who wants to purchase something):

• Completes a purchasing requisition
• Sends requisition to Procurement Services (email, mail, fax)

Procurement Services:

• Sources the item (finds the best price, quality, and service)
• Creates the PO
• Sends PO to the supplier and a copy to requisitioner

Supplier:

• Ships the item(s)
• Invoices WFU

Requisitioner:

• Verifies the PO number on the invoice (really important part!)
• Approves invoice or obtains proper departmental approval
• Sends approved invoice to Accounts Payable for payment within 2 days of receipt
• The requisitioner should contact Procurement Services to resolve any problems that may arise during the procurement cycle.

Travel policies and procedures

Foreign Exchange Rates
When converting travel reimbursement requests from a foreign currency to the US dollar, you should use one of the following sites:

• exchangerate.com
• xe.com

If the exchange rate should vary or you have documentation of another rate (e.g., credit card statement), please provide that documentation with your reimbursement request.

Foreign Per Diem Rates
When traveling internationally, WFU will reimburse using per diem rates for meals and incidentals. You cannot combine actual receipts and per diem rates on the same trip. To find the per diem rates that apply, please visit the U.S. Department of State website.

Mileage Reimbursement Rate
The current mileage rate that Wake Forest University is reimbursing is .565 cents per mile.

Tips and Gratuities
As a general rule, travelers should not tip more than 20%. If a tip exceeds 20%, a business purpose must be included. For more detailed information on tips, please see the Tips and Gratuities section of the Travel, Meals and Entertainment Policy

Wire and ACH Processing

To better serve the campus and our supplier’s needs, we offer wire and ACH payments for paying certain types of vouchers. For immediate payment needs, suppliers that will only accept wire transfers, or for some recurring payments, we will allow wire and ACH payments through Wells Fargo.

In order to expedite and streamline the processing of wire and ACH transfers, we have established the following guidelines:

• Accounts Payable will process any completed wire/ACH requests received by 10 a.m. the same day.
• Any requests received after 10 am will be processed the next banking day
• Please complete the Wire / ACH form in its entirety
• Ensure that the form has the appropriate approval authority
• Complete business purpose
• Attach supporting documentation
• Ensure that any additional approvals that may be needed because of the funding source is obtained prior to sending to Accounts Payable

Any wire / ACH requests that are $200,000 or more will require two approvals from the following:

• Brandon Gilliland, Assistant Vice President of Finance and Controller
• Bruce Hoff Milam, Senior Vice President for Finance and Administration and Chief Financial Officer
• Carol Burns, Associate Controller
• Paul Heinrichs, Associate Vice President of Finance and Business Services
• Craig Thomas, Assistant Treasurer – Endowment

Important Notice: Requirements for International ACH Transactions
Effective September 18, 2009: Funds electronically deposited through the Automated Clearing House (ACH), also known as direct deposit, into a US bank account and either forwarded to a non-US bank account or funded by a non-US bank account, dollar for dollar, require the University to submit supplemental information with the ACH transaction. The supplemental information includes:

• Name
• Physical address of the receiver
• Identity of the receiver
• Bank
• Correspondent bank name
• Bank id number
• Bank Branch Country Code
• Payment Related Information
• Reason for payment
• The same information is needed for any intermediary financial institutions that are involved

For more information, please see Requirements for International ACH Transactions