When are advance payments permissible, and what controls must accompany them?

When are advance payments permissible, and what controls must accompany them?

• A. When the vendor has a previous contract history and the payment is within the approved budget.
• B. When authorized by contract/regulation and supported by security or guarantees; require documentation of purpose and conditions for repayment or deliverables.
• C. When the payment is requested by an anonymous email.
• D. When the payment is below a threshold and there is no contract in place.

Answer: (B)