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					                          PROMPT PAYMENT POLICY

                 Re-Adopted by the NYSTAR Board June 2010

This Policy is intended to establish rules and regulations as required under
§2880 of the Public Authorities law describing the Prompt Payment Policy of the
New York State Foundation for Science, Technology and Innovation for the
payment of bills.

Subject to the conditions and exceptions set forth in §2880 of the Public
Authorities law herein, in the event any proper invoice is not paid promptly the
Foundation shall be liable for the payment of interest on late payments.

Definitions

For the purposes of this Policy these terms shall have the following meaning:

   1. “Contract” means an enforceable agreement entered into between the
      Foundation and a contractor.
   2. “Comptroller” means the New York State Comptroller
   3. “Contractor” means any person, partnership, university, non-for-profit,
      private corporation or association:
          a. Selling materials, equipment or supplies or leasing property or
             equipment to the Foundation; or
          b. Rendering or providing services specifically to the Foundation
             pursuant to a contract. For purposes of this policy Contractor shall
             not mean someone who has applied and received a grant award.
   4. “Designated Payment Office” means the office designated by the
      Foundation to which a proper invoice is to be submitted by a contractor at
      30 South Pearl Street, 11th Floor, Albany, NY12207.
   5. “Foundation” means the New York State Foundation for Science,
      Technology and Innovation.
   6. “Payment Date” shall mean the date on which a check for payment
      pursuant to an invoice is made.
   7. “Prompt Payment” means payment of a debt due and owing by the
      Foundation within 30 days before interest may accrue.
   8. “Proper Invoice” means a written request for a contract payment that is
      submitted by a contractor to the Foundation’s designated payment office
      setting forth the description, price and quantity of goods, property or
      services delivered or rendered in accordance with the terms of the
      contract, in such form and supported by such other substantiating
      documentation as the Foundation may reasonably require.
   9. “Receipt of a Proper Invoice” shall:
          a. Be the date on which an invoice is actually received in the
             designated payment office; or
       b. The date on which the Foundation receives the purchased goods,
           property or services covered by the proper invoice and which are
           acceptable to the Foundation.
10. “Setoff” means the reduction by the Foundation of a payment due a
    contractor by an amount equal to the amount of an unpaid legally
    enforceable debt owed by the contractor to the Foundation.

Responsibility

The Chief Financial Officer shall have the responsibility for the
implementation of the Prompt Payment Policy and the prompt payment of all
proper invoices. He or she shall have 30 days to file the policy with
appropriate government officials.

Prompt Payment Procedure and Schedule

a) A contractor shall request payment under a contract by submitting a
   proper invoice to the Foundation at its designated payment office at the
   time and in the manner specified in the contract.
b) The Foundation shall have 15 calendar days after receipt of a proper
   invoice at its designated payment office to notify the contractor of certain
   facts and conditions, including but not limited to those listed below, which
   in the opinion of the Foundation, justify a delay of the prompt payment:
1) there is a defect in the delivered goods, property or services;
2) there is a defect in the invoice;
3) there are suspected improprieties of any kind;
4) prior to payment a statutory or contractual provision requires an inspection
   period or an audit to determine the resources applied or used by the
   contractor in fulfilling the contract terms;
5) a proper invoice must be examined by the Federal government prior to
   payment;
6) the Foundation is prevented from making payment by reason of the
   existence of a lien attachment, or other legal restriction;
7) the necessary State government appropriation required to authorize
   payment has yet to be enacted; or
8) the contractor has failed to submit a proper invoice or other material in
   accordance with the terms of the contract. Any time taken to satisfy or
   rectify any of the above facts or conditions or any delay in submission of
   required material shall extend the date by which prompt payment must be
   made by an equal period of time.
c) Should the Foundation fail to notify a contractor of such facts and
   conditions within 15 calendar days of the receipt of an invoice, the number
   of days allowed for payment of the corrected proper invoice will be
   reduced by the number of days between the 15th day and the day that
   notification was transmitted to the contractor. Should the Foundation, in
   such situations, fail to provide reasonable grounds for its contention that a
      fact or condition justifying a time extension exists, the date by which
      contract payment must be made in order for the Foundation not to become
      liable for interest payments shall be calculated from the invoice received
      date.
   d) The Foundation shall make payment on a proper invoice within 30
      calendar days after receipt of the proper invoice, excluding holidays.
   e) For those payments made by the Office of the State Comptroller, the
      Foundation shall process payment within 22 days of receipt of proper
      invoice and OSC shall have 8 days to make payment.

   f) Except for payments described in subdivision (b) of this Policy and under
      Exceptions below, every payment by the Foundation to a contractor
      pursuant to a proper invoice is eligible for interest should the Foundation
      fail to make such payment within 30 days after the receipt of the proper
      invoice, excluding legal holidays.
   g) The Foundation shall not be liable for interest on any retention amounts
      withheld by the Foundation in accordance with the terms of the contract.

Declaration of Interest

Interest shall be computed at the rate set by the State Tax Commission for
corporate taxes when such interest exceeds $25.

Exceptions and extension of payment due date

Payments are not eligible for interest when they are due and owing by the
Foundation:

   a) under the Eminent Domain Procedure Law;
   b) as interest allowed on a judgment by a court pursuant to any provision of
      law other than §2880 of the Public Authorities Law;
   c) to the Federal government; to any State agency or its instrumentalities; to
      any duly constituted unit of local government, including but not limited to
      counties, cities, towns, villages, school districts, or any of their related
      instrumentalities; to any other public authority or public benefit corporation;
      or to its employees when acting in, or incidental to, their public
      employment capacity; or
   d) in situations where the Foundation exercises a legally authorized setoff
      against all or part of the payment due the contractor;
   e) in the awarding of grants or reimbursable expenses associated with such
      grants.
   f) If appropriated funds from which payment is to be made have not yet been
      appropriated or, if appropriated, not yet been made available to the
      Foundation, then the payment due date shall be extended by the number
      of calendar days from the date of receipt of an invoice to the date when
      such funds are made available to the authority;
g) If an inspection, performance verification, audit or other review or
   documentation independent of the contractor is specifically required by the
   contract or by other State, Federal, or local mandate, whether to be
   performed by or on behalf of the Foundation or another entity, or is
   specifically permitted by the contract or by other State, federal or local
   provision and the Foundation with the right to do so elects to have such
   activity or documentation undertaken, then the payment due date shall be
   extended by the number of calendar days from the date of receipt of an
   invoice to the date when any such activity or documentation has been
   completed, the Foundation has actually received the results of such
   activity or documentation conducted by another entity, and any
   deficiencies identified or issues raised as a result of such activity or
   documentation have been correct or otherwise resolved.
h) If an invoice must be examined by a State or Federal agency, or by
   another party contributing to funding of the contract, prior to payment, then
   the payment due date shall be extended by the number of calendar days
   from the date of receipt of an invoice to the date when the State or Federal
   agency, or other contributing party to the contract, has completed the
   inspection, advised the Foundation of the results of the inspection, and
   any deficiencies identified or issues raised as a result of such inspection
   have been corrected or otherwise resolved.
i) If the case of a payment which a contract provides will be made on a
   specific date or at a predetermined interval, without having to submit a
   written invoice, if any documentation, supporting data, performance
   verification, or notice specifically required by the contract or other State of
   Federal mandate has not been submitted to the Foundation on a timely
   basis, then the payment due date shall be extended by the number of
   calendar days from the date by which all such matter was to be submitted
   to the Foundation and the date when it has actually received such matter;
   and
j) If appropriated funds from which payment is to be made have not yet been
   appropriated or, if appropriated, not yet been made available to the
   Foundation, then the payment due date shall be extended by the number
   of calendar days from the date of receipt of an invoice to the date when
   such funds are made available to the Foundation.
k) To State or Foundation employees performing services in their public
   employment capacity (e.g. public employee travel).
l) To contractors of third party payment agreement (the MMIS fiscal agent).

Failure to pay contractor in a 30 day period and should it incur costs as a
result; contractor shall be reimbursed for reasonable expenses.

The provisions here shall be incorporated into and made a part of such
contract and shall apply to all payments as they become due and owing
pursuant to the terms and conditions of such contract, notwithstanding that
the authority may subsequently amend.

				
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