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Policy Number: C.E.S.P. 9-10Date Revised: 12-2-2004
Summary: Establishes Guidelines for Rebates Received from Vendor
Rebates are incentives offered by a vendor to provide additional consideration or
compensation to encourage the purchase of goods and/or services from that vendor.
Examples of rebates include but are not limited to cash, credit toward future purchases,
free goods (including food and beverages), and coupons. Authorized rebates are the
property of the University of Arkansas Cooperative Extension Service and are used
to offset the expense incurred to generate the rebate. Rebates to Extension may not
be used for individual or non-University purposes.
When making direct purchases, departments may not solicit rebates from vendors. Unsolicited
rebate offers must be submitted in writing to the Purchasing office for approval before
the rebate is accepted. In general, quantity or payment discounts should be negotiated
by the Purchasing office in lieu of supplier rebates or incentive payments. However,
when a rebate or incentive payment is approved it shall be returned to Extension as
a check rather than credits to make additional purchases. Rebate checks must be made
payable to the University of Arkansas Cooperative Extension Service. The rebate check
must be deposited to the appropriate account and unit using the same Fund, Orgn and
Account from which the purchase was made. If the purchase order or contract only provides
for rebate credits, credits shall be used promptly to purchase needed goods and services
for the University program or activity that generated the credit.