5.2 Advance Payment to Vendors

5.2.1 Objective #

To provide policies for the University of Tennessee Foundation (UTFI) on the methods of prepaying outside vendors for goods and services.

5.2.2 Policy #

1. Generally, payment for goods or services cannot be made until after goods are received or services are provided. However, payment or partial payment can be made before goods or services are received for the following: (1) registration for conferences and seminars, (2) purchases of postage, (3) subscriptions to trade magazines and periodicals, (4) purchases of items from specialty establishments requiring that payment accompany the order, (5) advance payments to vendors which would result in documented significant savings to UTFI, and (6) with the written approval of the Chief Executive Officer, or Chief Financial Officer (or designee).
2. Many vendors will waive the advance payment requirement when it is explained that UTFI is a not for profit organization.
3. Upon a request for advance payment that requires the written approval of the Chief Executive Officer or Chief Financial Officer, UTFI departments will forward the request to the Foundation’s Contracts and Purchasing Coordinator via email. Documentation to support the advance payment such as reason advance payment could not be waived, vendor contact and phone number, must be included.
4. Vendor should submit an invoice for payment
5. If payment must be made via credit card, the UTFI Business Office can pay the deposit using the UTFI procurement card.

Updated: June 1, 2021