IS-1816 Pay On Invoice
Financial Administration
Release Date: 06/22/03
Revised: 05/09/06
Revised: 04/10/24
Introduction
The New Mexico Procurement Code and Central New Mexico Community College (CNM) policy and procedures establish that a request for pay on invoice is not an acceptable procurement practice. Any unauthorized procurement of goods and services made by a CNM employee is considered a pay on invoice and 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 does not validate the procurement of goods and services. Only authorized agents of the College may make procurements in keeping within the established process regarding the procurement of goods and services.
1. Prohibition of Pay on Invoice
1.1 Employees must adhere to the proper policy and procedures governing Procurement Card (P-Card), purchases or submittal of an authorized Purchase Requisition/Purchase Order Revision. P-Card holders are authorized to purchase goods and services that are less than $3,000.
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 violation requests should be made using the Pay on Invoice Violation Requisition in Workday. The name of the person responsible for the Pay on Invoice will be identified in this process. The requisition will be routed to the Purchasing Office and then to the appropriate vice president for approval. In instances where the division is not under a vice president’s purview, the pay on invoice violation request shall be directed to the Vice President of Finance & Operations.
2.2 The Chief Procurement Officer (CPO) generates a quarterly report that contains an accounting of the number of pay on invoice requests and submits the report to each vice president.
2.3 The vice president has the authority to deny or approve the requisition. If the requisition is approved, the vice president will recommend a resolution. If denied, refer to IS-1804 Central Purchasing, Section 4. 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 Office 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 Office, 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
- Pay on Invoice - Any unauthorized procurement of goods and services
- Procurement - Purchasing, renting, lease purchasing or otherwise acquiring items of tangible personal property, services, or construction.
Forms
- N/A