Virginia Tech Foundation

Requests for Payments

Following is a list of information concerning payment requests: (State or federal law regulations require most of this information).
1. The Foundation requires original itemized receipts attached to the payment request forms; photocopies are not normally acceptable. When original receipts have been included with a university accounting voucher, a copy of these receipts and information indicating the state disallowed amount should be attached to your request for Foundation reimbursement. If a copy is the only documentation available for payment, the Foundation requires that the reason be documented on the face of the request for payment.
2. The Foundation is EXEMPT from Virginia sales tax with the exception to the purchase of taxable services, such as meals and lodging. Sales tax charges should be deleted from invoices. Foundation staff will appropriately deduct sales tax in accordance with Virginia law. When purchases are made through the Foundation, vendors should be informed that the Foundation is tax exempt. If you need an exemption letter or have a sales tax question, please contact the Foundation´s disbursements group. Phone numbers are on the website: http://www.vtf.vt.edu.
3. Requests to pay honorariums and independent services must include the payee´s Tax Identification Number (TIN) and home address for tax purposes. (Payment to a university employee for such services is prohibited.) The Foundation cannot directly pay a non-resident alien; all individual payees must be U.S. Citizens. To ensure compliance with IRS regulations, payments to non-resident aliens should be made through a university account. The Foundation requires a completed W-9 for all independent services prior to issuing payment.
4. Payments to a business should include a Tax Identification Number (TIN). If a sole proprietorship or other business does not have a TIN, the check must be made payable to the individual performing the service and that individual´s TIN is required.
5. Campus mail codes should be noted on all addresses when applicable.
6. Meals while on day travel (not overnight), must be for a business purpose in order to be reimbursed. (Please refer to Internal Revenue Service Code Sections 274 and 162). Expenses must be substantiated as to (1) amount, (2) time and place, and (3) business purpose. The business relationship of any person(s) being entertained must also be stated. Meals or travel expenses for spouses or family will be forwarded to University Payroll for W-2 consideration, as the IRS generally considers such reimbursements to be taxable income to the employee. The Foundation follows the university´s guidelines concerning one day travel.
7. The Foundation generally follows the university´s travel guidelines. The business purpose for all travel costs must be documented on the request for payment, and all expenses for a particular trip should be submitted together. Following are certain items that travelers should note:
8. Express Purchase Order (EPO) forms are limited to purchases up to $2,000. Other restrictions are listed on the form. Forms are distributed in quantities of 25 and can be obtained from the Foundation Accounting Office. The Request for Payment form should be used if a continuation sheet is needed.
9. The Foundation automatically transfers ownership to the university of purchased assets valued at and above $2,000. The only exception to this rule is computer equipment purchased regardless of the amount which will be copied to the University Fixed Asset & Inventory Services.
10. Enhancements, renovations, additions, or improvements to university owned or leased property must be approved in writing, in advance by the University Architect and/or Physical Plant. This includes but not limited to: services for planning, services for equipment, installation, the purchase and installation of major equipment (including refrigeration units not kitchen units) and window air conditioners. Approval for leased properties must be obtained from the University Real Estate Management Office. Approval for Athletic related properties must be obtained from the University´s Executive Vice President. This also includes fence installation. Physical Plant needs to approve fence installation due to cited issues such as warranties, the possibilities of hitting underground wires/cables, proper installation, etc.
11. Foundation staff are responsible for assigning account codes for the disbursement; therefore, please leave this areas on the Request for Payment form blank.
12. The Foundation Accounting Office must pre-approve VTF Purchase Orders prior to using them for purchasing goods from vendors. A Foundation officer must approve contractual agreements, other than Purchase Orders and Express Purchase Orders.
13. An authorized user may not sign for his or her own reimbursement on Foundation funds. While alternate signatures of review may be included, the signature of an authorized user is required for processing the payment. Signature stamps cannot be accepted. For audit purposes, there must be two independent individuals to handle the request (cannot prepare the request for payment and sign as the authorized user as well). When the individual is the only authorized user their supervisor may sign.
14. Contracts with university departments and an outside entity must be approved by Virginia Tech General Counsel (OGC) regardless of the funding (State or Foundation funds). If the contract is in the name of the university, the Virginia Public Procurement Act applies and the OGC must review and approve the contract before submitting to the Foundation for payment. When payment is submitted, a copy of the OGC approval must accompany the payment request. Any questions concerning contracts, please contact OGC of Virginia Tech at 231-6293.
15. When construction is to be done on university owned property, Physical Plant´s pre-authorization/approval must be obtained before submitting payment request to the Foundation. Approval must be obtained regardless of the fund. Please refer to University Policy 5405. If you have any questions please contact Physical Plant at 231-9900.
16. The purchase of certain equipment through the Foundation is restricted. This equipment includes radioactive materials, radiation survey instruments, laboratory equipment, medical and dental equipment, refrigerators, freezers, fume hoods, biological safety cabinets, lasers, X-ray equipment, respirators, construction equipment, scaffolding, motor vehicle equipment, manufacturing equipment, forklifts, powered pallet jacks, pallet trucks, fork trucks, aerial lifts and mechanical power presses. All such purchases need to be pre-approved through Environmental Health and Safety Services (EHSS). This process assures that all equipment is registered with the State of Virginia and that all personnel that operate such devices are trained properly and licensed by the university. Before equipment is ordered, EHSS must give written approval to buy, and the university must have the pre-approval from EHSS. If you have any questions or concerns please contact an EHSS Co. Director at ext. 231-5364.
17. Foundation funds can be used for faculty and staff recruitment expenses under certain guidelines. This includes expenses incurred when bringing family members of final faculty/staff candidates to the university campus. IRS rules and regulations will be used to determine what allowances are made. In addition some such expense reimbursements are required by IRS regulations to be reported as income. The Foundation will copy University Payroll on such reimbursements and they will determine whether the allowable expenses should be included on the individuals W-2 Form. This would only be allowable if the authorizing fund holder has monies in a fund that could be used for this purpose. Candidates not chosen will receive a 1099 from the Foundation if required by IRS regulations.
18. Virginia Tech Services (University Bookstore and Volume II) charge slips are processed using the same policies and guidelines as any other payments processed by VTF. They are required to clearly state a business purpose for the purchase and have a contact person listed in case there are questions. There are also tax implications for certain purchases including gift certificates, gifts, prizes and awards. If these types of purchases are made, the department may be contacted and required to furnish information about the recipients which may include names, Banner ID numbers, Taxpayer ID numbers and addresses.