Disbursement Services Section (APY)

POLICY 4

Effective Date: 04/01/2000

Last Modified Date: 01/17/2007

State Law Prohibits Advance Payment

State law requires that materials, goods, supplies, or services be received before payment can be made. Therefore, advance payments cannot be made except as indicated below.

Exceptions

Check with Order

When the vendor requires that payment accompany the order (vendors such as governmental agencies, or new subscriptions to publications that will not permit billing), submit a requisition accompanied by a completed order form to Materials Management. The requisition must accurately reflect all related charges, including shipping and handling. Transactions of this nature (known as "check with order") generate a Purchase Order, which is then processed through Disbursement Services. Upon request, the check to the vendor may be returned to the department for special handling. Subscription and membership renewals may be submitted on an on-line Check Request accompanied by either an invoice or specific renewal notice from the vendor.

Custom Manufacture

Prepayment can also be approved if an item is being custom made for a department, and the vendor is the sole supplier of that item. Departments should attempt to locate alternate vendors. If a prepayment is required, schedule it to minimize the amount of time between payment, delivery, and use of the goods based on departmental needs.

Risk Assessment

Departments that have met the requirements for prepayment must also assess the risk to the University of making the prepayment. For assistance in doing so, contact Risk Management Services at 962-7360 or e-mail.

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