Prepayment of Orders
FIN-PURCH-06
Note:
In 2019, university policies related to university purchases (formerly FIN-PUR-01 through FIN-PUR-35) were updated and consolidated into FIN-PURCH-01 through FIN-PURCH-14. The History section of this policy contains complete information on where the topics covered by each FIN-PUR policy can be found in FIN-PURCH. A few FIN-PUR policies have been rescinded or converted into Standard Operating Procedures, and the History section contains that information as well.
About This Policy
- Effective Date:
- 03-12-2019
- Date of Last Review/Update:
- 03-12-2019
- Responsible University Office:
- Procurement Services
- Responsible University Administrator:
- Vice President and Chief Financial Officer
- Policy Contact:
Baris Kiyar
Associate Vice President for Procurement
bkiyar@iu.edu
- Policy Feedback:
- If you have comments or questions about this policy, let us know with the policy feedback form.
Scope
The policy applies to all individuals responsible for university purchases, regardless of procurement mechanism.
Policy Statement
Payment for goods or services shall not be made unless satisfactorily received prior to payment subject only to the following exceptions:
- Payments to local, state, and federal government entities.
- Where the supplier provides an instrument of security in equal or greater value than goods and services to be procured.
- Where the funding agency has authorized prepayment.
- Service and maintenance contracts where necessary.
- Approval by University Procurement Services.
Procedures
Prepayments shall be approved and submitted to the supplier by University Procurement Services for inclusion of payment with order.
Sanctions
Failure to follow appropriate policies and procedures regarding the use of university funds and resources or in obligating the university to financial or legal transactions could put the university in financial and legal risk. Sanctions for failure to comply could result in disciplinary actions up to and including employee termination. Violation of state statutes could result in civil or criminal penalty and legal action.
Additional Contacts
| Contact | |
| Office of Procurement Services | Purchasing, P-card, AP, and SDM Support Form |
History
In 2019, university policies related to university purchases (formerly FIN-PUR-01 through FIN-PUR-35) were updated and consolidated into FIN-PURCH-01 through FIN-PURCH-14. The university purchasing policies related to conflicts of interest and commitment were updated and consolidated into UA-17.
FIN-PURCH-01 consolidates and updates:
FIN-PUR-1.0 (Purchasing Authority)
FIN-PUR-1.1 (Exceptions to Purchasing Authority)
FIN-PUR-1.2 (Delegation of Purchasing Authority)
Portions of FIN-PUR-2.0 (State and Federal Statutes and Regulations)
FIN-PUR 4.0 (Responsibilities in Acquisition Process)
FIN-PUR-16.0 (Transactions Utilizing the Pre-Disbursement Processor).
FIN-PURCH-02 updates and renumbers FIN-PUR-20.0 (University Procurement Contracts).
FIN-PURCH-03 consolidates and updates:
FIN-PUR-5.1 (Development of Vendor List)
FIN-PUR-5.2 (Use of Other Recognized Sources as Basis of Award)
FIN-PUR-5.4 (Emergency Situations)
FIN-PUR-5.5 (Purchase Order Award Criteria)
FIN-PUR-12.0 (Board of Trustee Reporting)
Portions of FIN-PUR-18.0 (Auctions and Reverse Auctions).
FIN-PURCH-04 updates and renumbers FIN-PUR-5.6 (Single-Source Orders)
FIN-PURCH-05 consolidates and updates:
FIN-PUR-3.5 (Purchases for Employees)
FIN-PUR-10.0 (Restricted Purchases).
FIN-PURCH-06 updates and renumbers FIN-PUR-7.0 (Prepayment of Orders).
FIN-PURCH-07 is a new policy.
FIN-PURCH-08 updates and renumbers FIN-PUR-9.0 (Furniture Purchases)
FIN-PURCH-09 consolidates and updates
FIN-PUR-3.0 (Purchasing Ethics)
FIN-PUR-3.1 (NAEP Code of Ethics).
FIN-PURCH-10 updates and renumbers FIN-PUR-11 (Release of Procurement Information).
FIN-PURCH-11 consolidates and updates:
FIN-PUR-14.0 (Disposal and Redistribution of University Property)
FIN-PUR-14.1 (Sale of Computing Equipment)
Portions of FIN-PUR-18.0 (Auctions and Reverse Auctions).
FIN-PURCH-12 updates and renumbers FIN-PUR-21.0 (Non-Solicitation on Campus)
FIN-PURCH-13 updates FIN-PUR-13 (Purchases from Historically Underutilized Suppliers)
FIN-PURCH-14 consolidates and updates:
FIN-PUR-10.1 (Protection of Old Growth Forests)
FIN-PUR-19.0 (Procurement of Appliances and Electronics).
Specific to purchasing policies, UA-17 (Conflicts of Interest and Commitment) consolidates and updates:
FIN-PUR-3.0 (Purchasing Ethics)
FIN-PUR-3.3 (State Conflict of Interest for Procurement Transactions)
FIN-PUR-3.4 (Gifts and Gratuities)
The following FIN-PUR policies were rescinded or converted into Standard Operating Procedures as follows:
FIN-PUR-6.0 (Common Construction Wage) was rescinded.
FIN-PUR-8.0 (Endorsement) was rescinded.
FIN-PUR-15.0 (Strategic Alliances) was converted into a Standard Operating Procedure.
FIN-PUR-17 (Procurement for Off-Shore University Activities) was converted into a Standard Operating Procedure.
Post-2019 History
The policy's additional contact information was updated on May 1, 2023.