ANSWERS TO FREQUENTLY ASKED FSCU QUESTIONS 1. Are there rules, regulations, or laws that specifically prohibit advance payments or prepayments?
The California Constitution Article XVI, Sec. 3 and Sec. 6, prohibits gifts/donations of public funds. Since the State has received no benefit and the subsequent receipt of goods/services cannot be guaranteed, a prepayment is considered a gift of public funds. The State Controllers Office requires claims presented for payment to include a penalty of perjury certification that the services were rendered and the supplies were delivered. (See Claim Schedule, STD. 218 Cont., 218DD, and 218ET.) Advance payments must be specifically authorized by statute (State Contracting Manual Section 7.32).
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