Cash Disbursement
Cash Disbursement
Effective as of: 01.01.2006
American University of Armenia

Policy for Publication

Policy Number: Number Not Yet Assigned


April 28, 2016: Under Review due to changes in RoA law


Cash disbursement

 

In accordance with the legislation of RA, all local payments are to be made in Armenian drams. All requests for cash disbursements and bank transfers are made in writing using the Memo or Cash Disbursement Form (see Appendix 1.2), or the Purchasing Request Form (see Appendix 3.4) with the signature of the authorized person (project director, center director, head of department) and approved by COO or CFO or Provost when the payment amount is equal and more than 150,000 AMD.  The request should be submitted  with a minimum of one day prior to disbursement for the amounts less than 200,000AMD and two days for the amounts exceeding 200,000AMD. The written request form shall include the following information (for cases not covered by centralized purchasing, such as visa extension, invitation processing fees, etc. as well as for all cases covered by centralized purchasing):

  • funds from which the disbursement shall be made with indication of the budget    category;
  • the amount in Armenian drams
  • the name of person authorized to receive the requested amount;
  • the specific purpose the money will be spent for.

 

The person receiving cash is responsible for providing appropriate receipts, which confirm that the money has been spent for the purpose stated in the request. All the receipts must be acceptable for Tax Inspection (receipt shall include: a) when the counterpart is a legal entity - the full name of the legal entity, tax code, signatures and seal of service/goods provider; b) when the counterpart is a physical person – full name, passport data, address and signature of the physical person). If there is no receipt for goods purchased, additional 11% will be charged on expenses. If there is a receipt with indication of name of physical person, passport data, address of the goods provider, 10% tax will be charged on the appropriate expenses.  If there is no receipt for the provided services, then Tax withholding will be done according to the scale for salaries and honoraria.

 

If the request is for a bank transfer, then an invoice for transfer should be submitted to the AUA Financial Services department. The invoice for transfer should include all the information required by the Tax Inspectorate (number and date of the invoice, the name, tax code, bank details, address, seal of service/goods provider and name, tax code, bank details, address of the payer).

 

The amounts exceeding 300,000 drams will not be disbursed in cash. They will be made only through bank transfers.

Taking into consideration, that cash transactions are limited by the RA law to a maximum of 3,000,000 drams per month, the AUA Financial Services department will stop cash disbursement during a month, whenever it will exceed the set level, immediately informing the department head and suggesting that the transaction be made in the following month or by a bank transfer. This does not refer to the salaries.

 

The AUA Financial Services department does not have authority to make any disbursements for research center expenses if the combined balance of a center’s cash account, based on amounts received in Yerevan and Oakland, has reached a negative amount of 1,000,000 AMD. Any disbursement above the negative 1,000,000 AMD level must specifically secure such approval from the President. This restriction, however, does not refer to the cost reimbursable projects.