When the University commits to a purchase from a supplier, the supplier is expected to have adequate resources or working capital in order to provide the needed goods or services. An advance payment to the supplier incurs additional costs for the University, presents the risk of loss of the funds advanced in case of supplier bankruptcy, and reduces the University's ability to negotiate in a dispute. As such, the University of Colorado does not make full or partial advance payment to suppliers unless necessitated and allowed under the PPS: Advance Payment to Suppliers.
If the an advance payment is necessitated by the specifics of the situation, the organizational unit must evaluate the associated risks. If the payment is greater than $10,000, the Advance Payment to Suppliers (ADV) Form must be completed and signed. Fiscal Compliance will review for Campus Controller/Delegate signature authority.
The PSC Procedural Statement: Advance Payment to Suppliers sets forth the university requirements regarding the issuing of advance payments to suppliers and regarding the use of the Advance Payment to Suppliers form.
