It is the policy of the CSU to use safe, efficient, and cost effective methods for the timely disbursement of university funds. The term disbursement covers the payment process for advances, prepayments, purchases, services, reimbursements, refunds, and other expenditures to vendors, employees, and students. These functions are administered by Accounts Payable and Student Financial Services.


The campus President is delegated authority and responsibility for effective oversight of all state funds held by the campus and all funds held in a fiduciary capacity. The campus President has delegated to the Chief Financial Officer (CFO) responsibility for implementing this policy. The campus CFO may delegate in writing to additional staff members, in part or in whole and with appropriate limitations, authority to disburse or expense from campus authorized funds.

Documentation and Segregation of Duties

Funds disbursed in settlement of official university commitments and activities are properly authorized by written approval per our campus Delegated Fiscal Authority and Responsibility, supported by documented business purpose, substantiated by applicable receipts, correctly processed for payment, and in compliance with applicable federal, state, CSU, campus and tax regulations. In addition, payments are scheduled to maximize available discounts. Proper segregation of duties are maintained so no one person can disburse funds unilaterally.


Exceptions to the Disbursement Policies and Procedures will be in writing by the appropriate Vice President of the funding source.

Payment Methods

Use of safe, efficient, and cost‐effective methods for the timely disbursement of university funds are identified below. All business units’ payments equal to or greater than $50,000 (per payee) will require a second level approval from the documented minimum signature delegates for the campus, with the exception of the HMASB Business Unit, in which all payments greater than or equal to $5,000 will require a second level approval.

The primary and preferred methods of payment by the CSU is through electronic means such as Automated Clearing House ("ACH"), procurement card, or by electronic wire transfer. Accounts Payable notifies the Treasury of monies disbursed electronically from any CSU commercial bank account when an individual transaction is equal to or exceeds $200,000.

Automated Clearing House (ACH) Transactions

Automated Clearing House (ACH) or Electronic Funds Disbursement (EFT) payments are made with the following considerations in mind, as applicable:

  • Multi‐level passwords and segregation of duties are utilized to safeguard payment process.
  • Standard dual custody, approval steps, verification of valid payee for general vendor/employee reimbursements, and payment data security measures must be utilized.
  • Returned and rejected ACH payments must be investigated and resolved in a timely manner.

Procurement Card (ProCard)

  • It is the policy of the CSU that procurement cards be used to improve the efficiency, flexibility and convenience related to purchasing, and paying for goods and certain approved services.
  • ProCards are used to improve payment efficiencies, flexibility and convenience related to purchasing. Allowable use is documented in the campus Procurement Card Guidelines as in compliance with ICSUAM 5250.00.

Wire Transfers

  • Can be utilized as needed, generally for international payments, released under dual custody.
  • Use of pre‐approved templates are preferred, once approved under dual custody.
  • Wire transfers in excess of $200,000 shall be released with a future date value of +1 day.

Paper Checks

  • Established controls and procedures to safeguard physical location of check stock include storage of stock in an area restricted to specific individuals or behind locked office, not accessible by general public.
  • Printed checks are logged in a log book.
  • Printed checks awaiting distribution are held in a restricted area.
  • Printed checks for employees are sealed and disbursed via campus mail unless they are marked for pick up, in which they are held in a restricted area.
  • The formal process to secure a new digital signature for check printing requires approval of the campus President and an update to Wells Fargo Bank signature authorizations. Prior digital signature are removed and stored in a safe.
  • Payment exceptions must be investigated and resolved in a timely manner.