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Northern Arizona University
Purchasing Policy and Procedure

Prepayment of Contracts & Purchase Orders

POLICY:

Prepayment of purchase orders and contracts is discouraged. Prepayment is acceptable, however, for:

1. Small purchases (less than $1,000), where prepayment is required by the supplier.



2. Large purchases, under special circumstances, with the approval of the Director of Procurement and/or the Comptroller.



3. Subscriptions, where usual business practices require payment in advance, but not to exceed three (3) years.



4. Memberships in professional associations, where such memberships have demonstrated value to the University.



5. Equipment maintenance services, where such services are performed within the budget period.



6. Registration fees required in connection with attendance at conventions, conferences, and official meetings.

NOTE: Performance bonds or other guarantees may be required if prepayment is approved.