Answer |
|
No. There is no specific statute that would prohibit payment from being rendered. However, a public entity has an obligation under Article VII, §14 to ensure that it receives the materials and supplies or services to avoid any payment being considered a donation of public funds. Some public entities provide in their internal policies or contracts a provision that they will not tender payment until receipt of the materials and supplies or completion of services rendered. Although not required, this type of a provision is used to protect the public entity from issues of compliance with Article VII, §14’s donation restrictions, by requiring delivery or completion prior to payment.
A public entity should follow any of its internal procurement rules and any applicable contractual language. As a best practice, the public entity should at least obtain an invoice for the material and supplies or services prior to any payment. The time between payment and delivery should also be considered. It would be inappropriate to pay for goods or services with public funds if the future delivery date exceeds a reasonable amount of time from date of payment. Finally, the public entity should make sure that takes all steps necessary to seek return of any public funds tendered in the event that it does not receive the materials and supplies or services to be rendered.
Louisiana Legislative Auditor website: 04/24/2025 10:11:37 PM
|