UAMS ADMINISTRATIVE GUIDE

NUMBER: 8.1.07
DATE: 4/16/99
REVISION:
04/14/03

SECTION: FINANCE DEPARTMENT
AREA: GENERAL ACCOUNTING
SUBJECT: PAYMENT WITH FOREIGN CURRENCY

PURPOSE

The purpose of this policy is to establish the procedure for making payments to foreign vendors that require the payment to be made in a foreign currency.

PROCEDURE

When a department receives an invoice with a demand for payment in foreign currency, the following steps should be taken.

(1)      E-mail a request to Joni Pearson in the Finance Dept. with:

a.       Type of currency needed.

b.       Amount of foreign currency.

c.       Vendor address.

d.       Fund, object, and center to be charged.

(2)     If the requesting department prefers, a wire transfer can be made directly to the vendor’s bank account.  Request should be made to the Director of Treasury Operations, Jim May, UAMS Treasurer’s Office  via email and must include the following:

a.       Type of currency needed.

b.       Amount of foreign currency.

c.       Vendor name and address.

d.       Vendor’s bank routing number and account number.

e.       Fund, g/l account, and cost center to be charged.

(3)     All documentation should be mailed to General Accounting, Finance Dept., #545, on the date the request is made.  The actual invoice must be signed by the authorized party as received and/or ready to pay.  No purchase requisition is required.  No draft will be requested until the documentation is received.

(4)       The Finance Dept. will electronically request the foreign draft from Bank of America.

a.       The foreign draft is usually received within 24 hours.

b.       A journal voucher entry will be prepared to charge the correct cost center.

c.       The foreign draft number and journal voucher number will be e-mailed back to the requesting department.

d.       The foreign draft number will be used in the description field of the journal voucher and will print on the              general ledger.

e.       Unless otherwise requested, the Finance Dept. will mail the draft and back-up documentation to the vendor.

(5) Any questions regarding foreign currency payments should be addressed to General   Accounting Manager,  Joni Pearson, at 686-6813.