Policies & Procedures Manual - Elizabeth City State University

400.1.34Adopted: 06/14/05General ConsiderationsELIZABETH CITY STATE UNIVERSITYDelayed Receiving/Payment for Special Acceptance ConsiderationsIt is occasionally in the best interest of the university and the State to delay prompt payment ofoutstanding invoices. These situations typically involve larger dollar amount procurements where finalreceiving and approval for payment, i.e., “contractual acceptance”, is contingent upon satisfactorydelivery and installation by the vendor.Departmental AuthorizationFinal approval and acceptance of these types of orders will be authorized be the requesting departmentusing criteria which have been predetermined and agreed to by the vendor, the end user, and the ECSUPurchasing Department.Departmental ContractOnce criteria have been established, the requesting department must designate a contact person who isresponsible for the final acceptance of the order. This person must request that the PurchasingDepartment place a “ withhold payment flag” on the purchase order when it is issued and remove theflag once all receiving criteria have been met. The flag will prevent final payment of invoices postedagainst the order until the department contact requests removal.Examples of UseThis procedure should not be used when ordering any of the following:a. Term contract itemsb. Standing or Maintenance Ordersc. Catalog, stock, or off the shelf itemsd. Regular items below $5,000.Some representative examples of procurements in which a withhold payment flag maybe useful are:a. Specialized or customized scientific equipment such as Lasers or. ElectronMicroscopes that require extensive installation, set up, and calibration whichmust be performed by factory trained and authorized representatives to protectwarranty considerations.