After-the-Fact Purchase Transactions

An "After-the-Fact" purchase transaction is a purchase that has been made by a faculty or staff member without prior issuance of an approved purchase order/contract or use of a Purchasing Card, and then, an attempt is made to initiate a purchase order/contract after-the-fact in order to pay the supplier invoice. Such transactions violate Lock Haven University Procurement Policy.

After-the-Fact purchase transactions create significant payment and supplier relationship problems for Lock Haven University. In many cases, these transactions:

· Place Lock Haven University at financial risk and result in higher than necessary costs paid for products and services

· Create unnecessary administrative effort within the procurement department and other administrative offices

· Violate purchasing policies

· Lack competitive bids for transactions with an aggregate dollar value of $10,000 or more

· Result in supplier contracts with unfavorable terms and conditions signed by unauthorized Lock Haven University personnel

· Could result in duplicate payments to the supplier

Instructions for Payment of Unauthorized After-the-Fact Transactions

If you initiated a transaction that created an After-the-Fact supplier invoice, it must be processed via a Settlement & Release Form.