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431 monthly statements supported by signed counter tickets. This order expires on , 19 ." 4. The department will supply a list of employee names that will be authorized to make purchases under the open purchase order. 5. Delivery tickets will be collected as they are received from the authorized purchaser and forwarded to the Department Head with the purchase order number written on the ticket. 6. The department head will compare the delivery tickets with the monthly statement. If the delivery tickets match the monthly statement the vendor will be paid. Otherwise, the department is responsible for resolving the situation. DISBURSEMENT OF INVOICES To process and invoice for payment is as follows: 1. The department head will approve the invoice for payment when it is received. The original invoice and attached copy will then be forwarded to the Finance Department. Payment will be made from the original inwoice only. 2. The Finance Department will verify approval and process for payment. 3. The purchase order will be liquidated when all items requested have been received and submitted for payment. Checks will be mailed to the vendor directly from the Finance Department unless other arrangements are made with the Finance Director. Please be sure all backup that needs to be mailed with the check is attached to the invoice and signed if necessary. CONTINUING CONTRACTS General Statute 153A-13 states that "continuing contracts" are contracts "some portion or all of which are to be performed in ensuing fiscal years." The primary factor in determining when a specific contract is a "continuing contract" is whether it is possible for the other party to the contract to fulfill part or all of the contract in the current year. Thus, there are two basic types of "continuing contracts": 1. Contracts that require fixed monthly amounts of service over a period of months or years. A common example is a rental contract that provides equal payments per month over the life of a contract° 2. Contracts that prohibit all or part of the provision for goods and services by the other contracting party before a specific date at the end of the current fiscal year. In both of these cases, the contract itself specifies the amounts that can become due and payable during the current year. If a type 2 contract does not specify that delivery must occur in an ensuing year, it should not be considered a "continuing contract." Therefore, unless the contract or purchase clearly specifies a date at which service may begin, the Finance Director should not consider it to be a "continuing contract." The following wording, when added to the face of purchase order before issuance, will accomplish this purpose: "Delivery of goods and services to be provided hereunder will not be accepted by the purchaser before * ." *Insert first day of the fiscal year in which the contract is to be paid. It should be noted that unless the statement is enforced and deliveries are rejected before the specified date, the goods actually received in the current year will be charged to the current year. Ail "continuing contracts" automatically encumber the appropriations for the new budget year on July 1 of that budget year, to the extent that the contract can legally be fulfilled in the new year by the other contracting party. PURCHASE ORDERS AND CONTRACTS OUTSTANDING AT JUNE 30 There are two options for handling purchase orders and outstanding at the end of the fiscal year. These options are: other contracts