Faculty Directors are responsible for obtaining refund and cancellation policies from all vendors providing services to the program. Deposits and payments cannot be made until the SAO has received the refund/cancellation policies.
Although the policies will vary based on what the vendor is providing (i.e. housing, transportation, etc), generally, the policy should state how much the program will be reimbursed if a student withdraws and how much the program will be reimbursed if it is cancelled (i.e. due to a natural disaster, not enough students apply to the program, etc.).
If a faculty director is unsure whether the refund policy or deposit requirement carries too great of a financial risk, FDs are encouraged to consult with the SAO.