You and Your CourseOpportunities
Research and Teaching
Our ResearchResearch Degrees
Partners and Community
- About JCUJCU Connect
- Cairns Institute External
- Australian Institute of Tropical Health & Medicine
- About JCU
Courses and Study
- Why JCU?
- Arts and Social Sciences
- Biomedical Sciences
- Environmental Management
- Health Studies
- Information Technology
- Marine Science
- Nursing and Midwifery
- Occupational Therapy
- Public Health and Tropical Medicine
- Social Work
- Speech Pathology
- Sport and Exercise Science
- Veterinary Science
Course by level
Cities, campuses and study centres
- Services and support
- QTAC Packaged Offers
- International Students
Fees and Financial Support
Exams & Results
- Student forms
The Learning Centre
- Learning Centre Services
- Getting Started
- Peer Assisted Study Sessions
- Develop Your English
- Maths and Statistics
- Short Courses and Workshops
- Downloads and Booklets
- Safe work and study at JCU
Research and Teaching
I want to...
About JCU Research
- Research Performance
Research Centres and Institutes
- Division of Research & Innovation
- Celebrating Research @JCU
- JCU Research Contacts
- Master's by Research
- Fees and Scholarships
- I want to...
Partners and Community
FMPM 290 Prepayments
The intent of this policy is to set out the requirements regarding the approval of, security over and management of prepayments.
Approval of prepayment for goods or services
Assess risk and ensure the security of prepayments
Ensure receipt of goods or services
Management of Bank Guarantees
Director, Financial and Business Services
Definitions (Related Glossary Terms)
Prepayments represent funds paid in advance of receiving the goods or services to which the payments relate. They are a purchasing activity and accordingly must comply with FMPM 710: Policy - Purchasing and FMPM 291: Procedure – Prepayments.
The goods or services to which prepayments relate may be received at one future point in time or continually over a period of time in the future.
Prepayments for transactions (excluding travel related expenses) of less than $5,000 will be expensed directly and not apportioned over the time period for which the expense relates.
Travel related expenses will be expensed in the period in which the travel is undertaken.
The main types of Prepayments made by the University are:
“Up Front” Payments for Goods and Services; and
Up Front Payments for Goods and Services include:
Corporate Credit Card purchases in circumstances where goods and services are paid for at the time of placing the order, prior to delivery of the associated goods/services; and
Certain goods and services, by their very nature, require payment in advance of being supplied. Common examples of these include:
subscriptions and memberships;
utility costs (e.g. rates and insurances);and
A supplier may request the University to pay a percentage of the value of an order in advance of the goods/services being delivered. This is most common with larger orders of specialised equipment, where the supplier incurs costs related to the manufacture and/or shipping of the goods.
The financial responsibility and risks associated with prepayment transactions rests with the Faculty or Division undertaking the transaction.
Prior to approving a prepayment, the Financial Delegate must assess the financial risk and take appropriate action to secure the prepayment. In assessing the security of prepayments consideration should be given to the provider’s reputation, prior dealings, and the economic conditions prevailing in the provider’s industry.
An option available to secure a prepayment is a Bank Guarantee. A Bank Guarantee represents a guarantee made by the Bank that the Bank will pay the beneficiary (JCU) the sum stipulated on the Guarantee. A Bank Guarantee must:
be in the name of James Cook University;
be for a sum not less than the University’s maximum exposure;
cover the period between the date of the payment and the expected date of when the goods/services will be delivered; and
be forwarded to the Manager, Finance & Taxation, Financial and Business Services.
The management of Bank Guarantees is the responsibility of the Director, Financial and Business Services.
For enquiries in relation to this FMPM Policy please contact AccountsPayable@jcu.edu.au
Deputy Vice Chancellor, Services and Resources
Date for next review
Policy Sponsor and Approval Authority updated to reflect the approved Policy and Delegations Framework
Quality Standards and Policy Unit
Finance Committee (13/11/2012)
Finance Committee (06/11)
There are no other related documents.