'No PO, No Pay' policy
The University’s Financial Regulation Section 4.4.4.c. mandates a ‘No PO, No Pay’ Policy:
“Except where approved by the Director of Procurement or where placing orders using a Purchasing Card……., the procurement of all goods, works and services must be based on a purchase order issued to the supplier prior to the delivery of the goods or commencement of the service or works, using a purchase ordering system”.
Benefits of ‘No PO, No Pay’ policy
- Ensures that purchases are authorised before goods, services and works are supplied.
- Enables the University to process invoices efficiently thus ensuring a positive payment profile with suppliers/contractors.
- Allows accurate timely reporting, budgeting and forecasting across the University.
- Removes potential risk to the University by formally agreeing the terms of engagement before the supplier/contractor commits to deliver.
As a reminder, all University employees must:
- not commit University funds without prior issue of a purchase order.
- use a University approved supplier in compliance with the Procurement Regulations.
- raise an appropriate purchase order, gain its approval and communicate the purchase order number to the supplier/contractor
In accordance with the University’s ‘No PO No Pay’ policy, any invoices received from a supplier/contractor which does not clearly state a valid Purchase Order provided by the University will be rejected and returned to the supplier/contractor. The only exceptions to this relate to supplies in relation to the list below.
Exception to ‘No PO, No Pay’
The following expenditure/circumstances do not require POs. The Exceptions List currently covers:
- Telecommunication services (landline and mobile)
- Utilities (i.e. Electric, Gas, Water, Refuse)
- Postal services
- Grant (payments) to research partners and collaborators, where the University acts as lead partner
- Student recruitment commission
- Conference/training registration and accommodation directly associated with an event (normally at the same location with other attendees)
- Rent (where covered by a signed Long-term Lease Agreement) – short term rental requires a PO
- Rates (Council and Water)
- Payment of VAT on goods delivered from outside of the UK, and held at the border until the payment has been made, given that the University has opted out of postponed import VAT accounting
- Vehicle tax
- Payments to or on behalf of Public Bodies – non-procurement related payments only. A PO should be raised in respect of any procurement related spend
- Payments to salary sacrifice scheme providers
- Library publisher payments on behalf of academics, where a (limit) purchase order is not practical
- Payments to individuals (scholarships, bursaries, salaries, travel expenses, prizes, awards and refunds)
- Gift vouchers for volunteers, e.g. research project participants (pre-approved by the Tax Office)
- UKVI CAS statements administered by Student and Academic Services
- Student memberships agreed as part of training agreements
- Personal professional membership subscriptions required for role, where pre-approval has been gained from the Director of Finance
- Payments to artists/groups in processing sales of their works and tickets for their shows at the Attenborough Arts Centre
- Purchases from Amazon through the University’s Amazon Business account (that comply with the Procurement Regulations, including using a Mandatory Contract, where there is one)
- Purchasing and Credit card payments, that comply with the P-Card Policy, including low value, generally one-off in nature purchases (below £2,000 over a four year period)
This list is under constant review and any further changes will be communicated to our suppliers by email.
Emergency Purchase Order
In exceptional circumstances an Emergency PO reference can be supplied followed with an official PO number generated from Smarter Purchasing system within 3 (three) working days.
Invoices received without a current valid purchase order number (or an incorrect purchase order reference) will be returned unpaid to the supplier/contractor.
The supplier/contractor will be instructed to contact the University employee who requested the goods, services or works to obtain the necessary purchase order information. Please ensure that any purchase order numbers quoted are current and valid. If a limit order is issued to the supplier, please ensure that the value has not already been completed or exceeded with the placement of the new commitment.
All invoices must be addressed to University of Leicester at the address below and sent as a PDF to email@example.com.
PO Box 7717
University of Leicester Invoices
Corby Delivery Office
Alternatively, printed invoices can be sent directly in the post to the address above.
Proforma invoices, which cannot be used for VAT purposes, will not be processed.