Accounts Payable Policy

This policy outlines how CalArts handles payments for goods, services, and reimbursements across the Institute. It ensures that all payment activity complies with tax laws, federal funding rules, and donor or sponsor terms.

Who It Applies To

This is an Institute-wide policy that applies to all departments, though individual departments may have more specific procedures.

Key Guidelines

• All payments must serve an essential business purpose and be properly authorized.

• Payments must be supported by original documentation (e.g., invoice or payment request)—statements alone are not sufficient.

• Departments are responsible for ensuring goods/services were received before submitting invoices.

Invoices without proper approval will be returned.

Payment Requests

Used for expenses not handled by P-Cards. Acceptable uses include reimbursements, travel and entertainment, catering and events, honorariums and awards, and donations (with presidential approval.)

Submitting Invoices

• Include vendor number, GL code, project code (if needed), PR number, and authorized signature.

• Submit via campus mail or to Accounts Payable in Vista Village Suite 105.

Vendor Management

• All vendors must be properly set up with tax documentation (e.g., W-9, W-8BEN).

• International vendors have additional requirements and must be reviewed by the Controller’s Office.

Payment Methods

• Method: Paymerang (ACH or check.) Wires are for international or exceptional cases (wire fees apply).

• Standard terms: Net 30

• Timing: Reimbursements processed bi-weekly

Compliance & Records

• AP records must be retained for 7 years.

• Departments using federal funds must keep procurement documentation on vendor selection and pricing.

Exceptions

Any exceptions require written approval from the SVP of Finance & Administration/CFO before processing. Presidential approval is required for exceptions at the senior VP level.