University Procedure P3-100A: Vendor Prepayments
- Purpose & Scope
- To clarify approvals which may be necessary when a vendor requires prepayment.
- See Policy 3-100, Section II. Definitions
- In reference to Policy 3-100, Section III.D.2. (vendor prepayments)
- This section of the policy on University Procurement addresses certain procedural
issues – specifically, “Advance payments may not be made except to specified government
agencies, vendors with minimum prepayment requirements, and in certain other cases
as determined appropriate by Procurement.”
- The University, through the purchasing process, is occasionally asked by suppliers
to make prepayments as a condition of sale for goods that are to be delivered at a
future date. The risk associated with these types of transactions requires that the
University take additional steps to ensure that the University’s interests are protected.
- Purchase orders over $5,000 where prepayment has been requested by suppliers may require
approval of the cognizant vice president and the Director of Procurement & Contracting
Services before these types of payments can be made. Transactions that are for amounts
larger than $10,000 may also require the approval of the Vice President for Administrative
Services or his/her designee.
- This Procedure is not intended to apply to routine transactions such as subscriptions,
scholarships, payments required by grants/contracts, leases, rents or any other prepayments
that are routinely required and accepted as part of standard industry practice, and
which fall outside the purchase order process.
- Policies, Procedures, Guidelines, Forms and other related resources
- 3-100, University Procurement
- Procedure [reserved]
- Guidelines [reserved]
- Forms [reserved]
- Other related resource materials [reserved]
- If you have questions concerning this Procedure, please contact the Director of Procurement
& Contracting Services at (801) 581-6857.
- Procedure P3-100A added February 8, 2011 in response to Internal Audit recommendation
to clarify when prepayments may not be appropriate or in the University's best intersts.
Date: Feb. 8, 2011