|Contracts With Private Companies and Non-Profits - 01-02|
The purpose of this policy is to ensure that the financial interest of Florida Atlantic University is protected in contracts with private companies and non-profit organizations.
Before FAU enters into a contract with a new sponsor that is either a private company or a non-profit organization without an acceptable credit history, Sponsored Programs may request a copy of its most recent audited financial statements. In addition, payment terms of the contract will require an advance payment equal to two month's average expenditures over the life of the project upon execution of the contract, and monthly payment of invoices during the period of performance. If a sponsor fails to pay FAU within 30 days of a submitted invoice the sponsored account will be frozen, Sponsored Programs will issue stop work order, and the company/organization will be charged interest on the amount of the invoice at a rate in accordance with Section 55.03 of the Florida Statutes. Contract and Grants will contact the company/organization to inquire on the status of the payment. If payment is not received within 60 days of the original invoice date, Sponsored Programs will send notice requesting to terminate the project.