Annual fees are expenses such as maintenance agreements, contracts, subscriptions, renewals, memberships, and insurance. Request a purchase order for these items before they are invoiced or as early as October. This will approve the purchase before the good or service is invoiced which is correct purchasing practice according to the Procedures Manual for Alabama State Community, Junior and Technical Colleges and Athens State College, Section VII, Section B 1 and 2. If it is not known what the amount of the invoice(s) will be, the Budget Manager can call the vendor for an estimate. It is best to use a high estimate to be sure the purchase order will cover the expense.
If any invoices are received by the Accounts Payable Office for payment covered by a purchase order dated after the invoice date (or effective date of service), the purchase order and invoice are returned to the Budget Manager for justification. The justification form is forwarded to the President. To avoid this, request purchase orders before goods and services are invoiced or in the beginning of the fiscal year. This will insure that annual fees are approved by purchase order.