The University, as a general policy, does not prepay for services or purchases. However, under exceptional circumstances, and with advance approval by the Associate Vice-President Finance and Administration, Chief Financial Officer (CFO) in accordance with the guidelines below, the prepayment will be considered.

1. The Director of Financial and Administrative Services will authorize prepayments under any of the following circumstances:

• The amount is less than $200.
• The supplier has provided an irrevocable standby letter of credit.
• The supplier has provided a credit reference from its banker satisfactory to the CFO.
• The supplier is a government agency that requires advance payment prior to completion of the sale.

2. To expedite the processing of prepayments, the department must forward the purchase order and supporting documentation of the attention of the Associate Vice-President Finance and Administration, Chief Financial Officer (CFO)  prior to the release of the purchase order. When the CFO is satisfied as to the documentation, the order will be approved and returned to the originator for processing.