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FINANCIAL POLICIES AND PROCEDURES - ACCOUNTS PAYABLE <br />C-1. Payment Policy <br />Accounts Payable is responsible for paying City debts owed for goods, services, materials, <br />equipment and certain special financial transactions. Accounts Payable also assists departments in <br />reconciling differences between vendor invoices and department orders. See the PeopleSoft <br />Expenditure System user manual for procedures in processing expenditure orders. <br />C-1a. Vendor Payment Policy <br />The City’s policy is to pay vendors according to payment terms. The City’s standard business <br />practice is that invoices are due and payable within 30 days from date of invoice. Most <br />businesses cycle their accounts payable on a monthly basis. Our intent is to operate our <br />accounts payable in a manner consistent with these general business practices. The weekly <br />accounts payable cycle is intended to level the work flow within Accounts Payable and to take <br />advantage of discounts available through early payment. <br />The following payments are exceptions to the thirty-day rule: <br />Cash discounts available <br />Contracts where City receives share of revenue (e.g. airport parking lot) <br />Written contracts where a specific due date is listed (invoice must reflect due date) <br />Progress payments on public works contracts <br />Prepayments required (e.g. subscriptions, dues, lodging, transportation) <br />Payments to referees, games officials, etc. <br />Miscellaneous cash advances or reimbursements to employees or officials (e.g. travel) <br />Petty cash fund replenishment <br />Refunds to citizens on overpayment (e.g. assessments, recreation classes) <br />Rental/Lease payments <br />Rehabilitation Loans/Commercial development loans where City is the lender <br />Debt service payments <br />Credit Card payments <br />Utility payments and recurring services payments (e.g. telephone, window washing, <br />burglar alarm system) <br />Payments to other governments and agencies (e.g. Room Tax distribution, telephone <br />excise tax payments for 911 system to LCOG) <br />Credit memos (if original invoice has been paid) <br />Insurance claims <br />Food caterers <br />Vehicles <br />Federal grant expenditures <br />Financial Policies and Procedures Manual 10/02 <br />Page C.1 C_AcctsPayable.docx <br /> <br />