2.06B No Purchase Order, No Pay Policy

“No Purchase Order (PO), No Pay” Policy

Last Revised: June 30, 2025

Effective: April 9, 2025

Refer Questions to: Director, Strategic Sourcing

Scope

This policy applies to all offices and divisions of Gallaudet University.

Policy Statement

Gallaudet has implemented a “No PO, No Pay” policy requiring that all purchases for goods and services be supported by a purchase order (PO) that has been fully approved by the required parties prior to any payment being issued. See policy “2.02 – Authority to Approve Financial Documents” for further information on the parties necessary for approval of a PO.

Benefits of No PO, No Pay

The “No PO, No Pay” policy is beneficial to both the University and the supplier in that it:

• Strengthens internal controls by ensuring that those with applicable budgetary responsibility have properly authorized all purchases.
• Confirms the price of goods/services agreed to by the supplier and the University.
• Allows the supplier and the University to agree to the contractual terms and conditions of an engagement before the supplier commits to delivery.
• Improves the efficiency of the invoicing and payment process by creating a PO number that can be easily referenced on the supplier invoices.
• Allows the PO number to be used within enterprise resourcing planning systems to better track the status of payment as invoices move through the accounts payable process.
• Provides the budget administrator with a clear idea of what funds have been encumbered and what is still available to be spent and allows the University Finance office to more accurately project results.
• Holds both the supplier accountable for delivery and the University accountable for payment once the goods or services have been rendered.

Requesting Payment

In accordance with this policy, the previously approved PO number that is generated with the creation of the PO must accompany any request for invoice payment. All purchase requisitions must be created and approved before the purchase of goods and/or start of service.

Except as noted below in Exceptions to the Policy, any invoice presented for payment that is not accompanied by a PO number will be rejected for payment.

Exceptions to the Policy

While this policy is applicable to most of the University’s purchasing activities, certain transactions are specifically exempted from the “No PO, No Pay” policy. These include:

For more details or questions related to the exceptions to this policy, please contact Strategic Sourcing.

Approved by Gallaudet University Administration