University Policies

Prepayment of Orders FIN-PUR-7.0

• Scope
• Policy Statement
• Reason for Policy
• Procedures
• History

Scope

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Policy Statement

Payment for goods or services shall not be made unless satisfactorily received prior to payment.

Exceptions:

1. Payments to local, state, and federal government entities.
2. Any procurement of goods or services where the source provides an instrument of security.
3. Where the funding agency has authorized prepayment.
4. Service and maintenance contracts where necessary.
5. Small orders (under $2,500.00) where the account manager approves prepayment.
6. Approval by the Assistant Vice President, University Procurement Services or campus director/Vice Chancellor.

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Reason for Policy

To assure satisfactory value is received prior to payment.

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Procedures

Prepaid orders shall be submitted to Financial Management Services for inclusion of check with order. Invoices for partial shipments will be accepted.

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History

This policy was established on February 18, 1992.

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