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