Accounting Policies (APPR15)

OVERVIEW

This procedure provides guidelines for securing foreign currency when required for purchases with foreign vendors.

REQUIRED FORM(S)

Direct Pay Request (DPR)

Invoice Approval Form (IAF)

PROCESSING STEPS

In certain situations, the University may purchase goods or services from a foreign vendor that requires payment in foreign currency. In these situations, the Associate Vice President for Finance's Office (AVPF) will need to be involved in the transaction to coordinate the currency exchange with the bank.

In all cases, the payment processing procedures discussed in APPR 02 and APPR 03 should be followed, depending if a purchase order is involved. Once these procedures have been completed, the recommended approach is for the requesting department to deliver the invoice documentation directly to the Controller's Office. This will help to ensure that the transaction is completed appropriately. If the requesting department forwards the payment request through campus mail for approvals, the DPR or IAF must clearly identify the need for foreign currency so the documentation will be forwarded by the Controller's Office to the AVPF. The AVPF's procedures depend on whether the vendor wants the funds in the form of a check or a wire transfer. Therefore, this information should be noted by the requesting department on the DPR or IAF as well as the department contact to receive the check, if applicable.

If the vendor requests a check in foreign currency, the AVPF has all of the necessary information when they receive the invoice and DPR or IAF. The AVPF will contact the bank to coordinate getting a check in the appropriate currency made out to the vendor. The bank will forward the check to the AVPF, which will then forward the check to the original requesting department. The department will then mail the payment to the vendor with any additional correspondence. The department will be charged via journal entry for the cost of the transaction including any applicable bank charges.

If the vendor requests a wire transfer of funds in foreign currency, the department will have to provide the AVPF with the specific wire transfer information from the vendor, as follows:

• Bank Name
• Bank Address
• Name on Account
• Account Number

Any additional information to be included upon request of vendor or department

The exact name and address must be provided in case the wire is going to a branch of a main bank. The AVPF will contact the bank to coordinate the wire transfer of foreign currency funds to the vendor. The wire transfer fee for the transaction will be charged to the same fund and organization that is paying for the purchase.