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Purpose

The Student Org Payment Request process aims to align with University/System policies and mitigate longstanding financial issues. This shift to a more controlled and monitored system of financials will allow student organizations to manage their funds better and eliminate the possibility of incorrect/inappropriate transactions leading to deficits and violations of university policy and the IRS code.

Policies to Know

OBFS Policy 2.5 Expend Custodial Funds on Behalf of Owner

“University of Illinois System units serving as liaisons between the system and owners of money held in custodial funds are responsible for expending custodial funds at the request of the fund owner. They accomplish this by submitting transactions to initiate the expenditure and retaining documentation needed to support it.”

OBFS Policy 8.1.5 Determine the Allowability of Specific Financial Support or Sponsorship Payments to Outside Organizations

Financial Support and sponsorship payments may be made to a non-University entity (“Recipient”) to support initiatives that promote or advance one or more of the University of Illinois System’s missions. To make a financial support or sponsorship payment to a Recipient, the Recipient must have a Banner Vendor ID. Financial support or sponsorship payments to Registered Student Organizations (RSOs) that comply with this policy are allowed.

The Student Org Finance Center (SOFC) within the Department of Student Engagement is the only authorized unit on campus to expend and transact the RSO custodial funds.

UAFR Weekly Tips – 3/2/2022

Did you know that Registered Student Organizations (RSOs), which are accounted for within custodial funds, are not legally part of the University of Illinois System?

Therefore, these RSOs, which are accounted for in custodial funds, cannot utilize any of the following:

  • U of I System’s Federal Employer Identification Number (FEIN);
  • U of I System’s sales tax exemption on purchases;
  • U of I System’s tax-exempt status to solicit charitable donations to their organization;
  • U of I System’s departmental C-FOPs for making purchases on behalf of their organization;
  • U of I System’s credit card terminals for processing credit card receipts on behalf of their organization;
    • and
  • U of I System’s purchasing power or discounted pricing for their organization’s purchases.

For further details, refer to Section 2. Custodial Funds within the Business and Financial Policies and Procedures.

More Resources

All Registered Student Organizations are required to follow the Student Org Payment Request process. The process ensures the student org has sufficient funds to proceed with department/on-campus purchases. This involves student orgs to submit documentation to the SOFC to request an on-campus purchase. Critical to this process is the role played by departments/on-campus vendors.

  1. Request of Estimates
    Student Orgs should consult with vendors on the cost of services desired to be received, projected venue expenses, or product(s) to be purchased.
    • If a vendor has expenses listed on their website and an estimate is not required, this may be used by the student org as their supporting documentation.
    • The vendor (department) should be transparent about the cost of services and products. An overestimate is preferred to an underestimate.
  2. Payment Request Submission/SOFC Balance Review (Student Org step)
    Student Org Treasurer will submit a Payment Request via the online Payment Request.
    • If a vendor has expenses listed on a website, this may be used by the student org to proceed to the next step.
    • Like all other student org benefits, compliance must be met for the Student Org Finance Center to process a Payment Request. Access Student Org Compliance Requirements.
    • If a student org plans to use proceeds from an event to cover expenses, this will be considered in the submission reviewed by SOFC staff.
    • If the student org has sufficient funds, 110% of the estimate submission, the Payment Request will be approved.
  3. Request of Services, Venue, or Product
    Student org will submit an Approved Payment Request to the vendor. The Payment Request will be in the form of a PDF.

    Image of a Student Org Payment Request Approval

    Services & Products

    • Student orgs should submit/present the Student Org Payment Request Approval to the vendor as verification that the organization is financially solvent.
    • Vendors may proceed with services and product sales with an assurance that they will receive payment from SOFC.

    Venue (space/facility)

    • Student orgs should submit/present the Student Org Payment Request Approval to the vendor as verification that the organization is financially solvent.
    • Vendors may proceed with confirming space/facility and any additional services (i.e., multimedia, setup, etc.) associated with venue reservation with an assurance that they will receive payment from SOFC.

    Failure to Acquire Student Org Payment Request Approval

    • Kindly remind student organizations that a Student Org Payment Request Approval is required to provide services and products requiring payment.
    • If a vendor proceeds with providing services, products, and a venue to a student org that has not submitted a Payment Request before the services/products are rendered, the vendor will not receive payment for services.
  4. Payment Request for Services, Venue, or Product by Vendor
    To receive payment for services rendered, product(s) sold, and venue rental, the vendor will be required to send a PDF invoice to StudentOrgFinanceCenter@illinois.edu to the specifications below:
    • Invoices must include the Name of Vendor (dept), Vendor’s Complete CFOAP, Name of Student Org, a detailed list of items provided (item, quantity, price/item, amount, total), and an invoice number.
    • Invoices must be submitted within 30 days of the date of services provided.
    • SOFC staff are happy to advise on an appropriate invoice.
    • Payment will be processed within two (2) business days, pending any issues needing to be addressed.

Vendors cannot transfer funds to pay themselves for services rendered, product(s) sold, and a facility rental fee. This will be considered an inappropriate charge. Inappropriate transactions will be reversed, and an email will be sent to the staff member in violation referencing the Student Org Purchase Process.

Sample Invoice

Image of a sample invoice form

  1. Communicate with the student org about your expectation to receive a Student Org Payment Request Approval.
  2. On-campus vendors should only provide student org rates to student orgs. Note: providing services, support, and advisement to student groups that are not registered introduces liability to the University with no accountability measures for the student org.
  3. Do not provide or render services to a student org that has not presented a Student Org Payment Request Approval. Your department will not receive payment!
  4. Ensure invoices are in the appropriate format. Include the Name of Vendor (dept), Name of Student Org, a detailed list of items provided (item, quantity, price/item, amount, total), and an invoice number. The SOFC staff are happy to assist in reviewing the invoice template to ensure compliance.
  5. Unsure if a Payment Request is legitimate? Email SOFC, and we’ll be happy to verify!
  6. Communicate with our office immediately should you have any questions.
  1. What happens if a vendor/department processes a JV?
    If a department/on-campus vendor helps themselves to a student org’s funds, the SOFC will reverse the transactions. Communication will be sent via email to the staff violating the process.
  2. What happens if students request a service and space without approved Payment Requests?
    The vendor should kindly remind the student of the Student Org Payment Request process. It is the responsibility of the student org to plan to ensure sufficient funds for the desired services/products.
  3. What happens if I allow a student org to receive services without a Payment Request and submit a payment request?
    The SOFC will deny the payment request, citing the SOFC Payment Request Policy. The vendor must obtain approved Payment Requests before services are rendered.
  4. What is the method for submitting an invoice?
    The SOFC will only accept and process invoices in the form of a PDF emailed to StudentOrgFinanceCenter@illinois.edu.
  5. When should I send invoices to the SOFC to be paid?
    Invoices should be sent promptly and no more than 30 days after service rendered. To ensure we can process the invoices within two business days, please send them as soon as the service has been provided. If a department waits until the end of the month to submit all invoices, this will create a backlog and not allow us to be expedient with our process.
  6. What happens if students augment their desired services beyond the 110% approved Payment Request?
    The vendor/dept should ask the student to resubmit a Payment Request, including the newly negotiated costs. The vendor is expected to be clear with the student org if costs for services rendered are more significant than the approved amount. Please indicate this to the organization to avoid placing the vendor responsible for costs beyond the estimate. The SOFC will only cover the costs approved.
  7. Who should I contact if our department has questions regarding the Payment Request process?
    You can email StudentOrgFinanceCenter@illinois.edu or call 217-300-8757, option 1, then 3.
  8. Why was this process implemented?
    The current process establishes a shared responsibility between the student organization and the vendor. This allows Treasurers to manage their funds better through this transparent process. Previously, the most significant issues that arose from vendors were the charging of incorrect fund numbers and the creation of thousands of dollars worth of deficits.
  9. What if our department makes purchases for student orgs using a P-Card, T-Card, iBuy, or a PO?
    Departments cannot execute transactions of this kind as it violates OBFS Policies 2.5, 8.1.5, and 18.6. The staff member identified as in violation will be contacted and instructed to correct the violation.
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