IS - 1816 Pay On Invoice

Policy

CNM Board Policy

Employee Handbook 4.01 Code of Conduct and Workplace Behavior

Administrative Directive

Introduction

The New Mexico Procurement Code and Central New Mexico Community College (CNM) policy, administrative directive and procedural steps establish that a request for pay on invoice is not an acceptable procurement practice.  Any procurement of goods and services made by an employee of CNM in regard to pay on invoice must be reported immediately to the appropriate vice president so that decisions regarding the authorization of such procurement for goods and services can be determined and any necessary corrective action considered.

Note, the issuance of a purchase order for goods and services under this administrative directive does not validate the procurement of goods and services.  Only authorized agents of the College may make procurements within the realm of delegated authorities and in keeping within the established process regarding the procurement of goods and services.

1.   Prohibition of Pay on Invoice

1.1     Employees of CNM may not purchase goods or services without either adhering to the proper policy and procedures governing the Departmental Purchase Order (DPO) Program, Procurement Card Program or submittal of an authorized Purchase Requisition/Purchase Order Revision.  Purchasing Card and DPO holders are authorized to purchase goods and services that are less than $2,000 and no single item in excess of $1,000, without a Purchase Requisition because they have authorization from the Purchasing Department to use the process established for those acquisitions.

1.2     Pay on Invoice transactions do not comply with New Mexico State Statute and CNM Policy.

2.   Reporting Pay on Invoice Violations

2.1              All pay on invoice requests made to the Purchasing Department are submitted to the appropriate vice president using the Pay on Invoice Violation Form.

2.1.1    The Purchasing Department Director generates a quarterly report that contains an accounting of the number of pay on invoice requests and submits the report to each vice president.

2.2              The vice president either denies or authorizes the request and recommends a resolution and provides direction to the Purchasing Department, if the request for payment is approved.  Pay on invoice requests can result in disciplinary action.

3.   Pay on Invoice Authorization

3.1        Pay on invoice transactions may only be processed upon authorization of the 
appropriate vice president.  Authorizations are sent to the Purchasing Department 
for processing and denials are sent back to the requestor.

3.2        The unauthorized procurement of goods and services is handled on a case-by-case basis. Based upon review and evaluation by the Purchasing department, a pay on invoice request can be referred to the internal auditor or legal counsel.  Requests for pay on invoice that exceed $1,000 are copied to internal audit and the appropriate vice president.

4.   Definitions

Forms:

Support Materials:

Reference Materials: