9.18 Small Dollar/Direct Purchase Procedures

Last Revised Date
Thursday, July 5, 2018 - 11:33 am

Procedure Information

Number: 9.18  
Responsible Unit: Procurement and Contracting Services Last Revised Date: 07/05/2018
Email: pacadmin@email.arizona.edu Phone: 520.621.1747

Purpose and Summary

Procurement & Contracting Services (PACS) has established an efficient, cost-effective method for departments to purchase and pay vendors for certain small dollar transactions. This procedure provides guidelines and additional information on small dollar expenditures.

Source

Purchasing Policies Manual, including, but not limited to sections:

Purchasing Card (PCard) Policies Manual

Scope

This procedure applies University-wide, including Main Campus, the Arizona Health Sciences Campus, the Phoenix Biomedical Campus, and the University of Arizona – South. In addition, this procedure applies to all extension off-site campus units both domestic and international.

Definitions

  1. Arizona BuyWays: The University’s web-based E-Procurement system that provides access to multiple vendors and contracted pricing via UAccess Financials Shop Catalogs.
  2. Purchasing Card (PCard): A University credit card for traditional small dollar purchases that is used wherever Visa is accepted. All transactions made using the PCard must benefit and support the University's mission of education, research and public service and be in compliance with the Purchasing Card Policies Manual and University policy for allowable expenditures.
  3. Small Dollar Direct Purchases: Purchases not exceeding $10,000 that can be made utilizing the University Purchasing Card (PCard) or Arizona BuyWays when existing University Contracts or Inter-Departmental sources cannot satisfy the need. All small dollar purchases must be used for University of Arizona business only, not for personal use.

Procedures

Determining Purchase Method and Allowability

  1. Prior to making a purchase, review 9.01 Introduction to Expenditure Policies and Procedures to determine which purchasing method to use.
  2. Determine if existing University Contracts or inter-departmental sources can satisfy the need. If needs cannot be satisfied from existing University Contracts or inter-departmental sources, then select a vendor that meets your needs at a reasonable cost and use the Purchasing Card, if allowable under PCard policy. Orders may also be placed via Arizona BuyWays.
  3. Obtain competitive quotes prior to placing an order, whenever feasible. If practicable, Small Dollar Direct Purchases should be restricted to Small Businesses.
  4. To determine if expenditures are allowable under University policy, refer to the following or contact your Fund Accountant or FSO Financial Compliance:
    1. 9.10 Requisitions/Reimbursements
    2. Purchasing Card Policy for detailed instructions, including PCard specific restrictions, pre-approval and exception procedures when placing orders with the PCard.
    3. Individual purchases to any merchant may not exceed $10,000 under the Small Dollar Policy. Pyramiding, or fragmenting, is making a purchase greater than $10,000 and paying for the item(s) in separate payments of less than $10,000 over an interval of time. Intentional fragmenting of a purchase may result in civil or criminal penalties under the Arizona Board of Regents Procurement Policy. For more information refer to Purchasing Policy 1.2 General Acquisition and Violation Procedures.
  5. If none of the small dollar purchasing options fit your requirements, if the vendor of choice is not capable of accepting the PCard, or if the purchase is not allowed on the PCard, prepare a Requisition. Include a note on the Requisition that the purchase could not be completed using the small dollar alternatives. If the vendor is not a Small Business, documentation must be provided with the Requisition as to why it is impracticable to utilize a Small Business.
  6. If a small dollar purchase must be accompanied by a contract requiring signature, send the contract to the Contracting Office for approval and signature prior to making the purchase.
  7. The use of personal credit cards or cash for making small dollar purchases and then seeking reimbursement on a Disbursement Voucher is discouraged because this is more costly for the University to process.

Placing Orders and Delivery

  1. Orders may be placed by phone, electronic commerce, fax, at the Vendor’s place of business, or directly with the University’s inter-departmental source.
  2. Orders should be shipped directly to the Department and not to Central/Medical Receiving except orders placed via Arizona BuyWays.
  3. When placing an order with a non-contract vendor always ask for the University discount.
  4. When the vendor is making the delivery be sure to provide the following: employee name, phone number, address, building name, and room number.

Documentation and Audit of Small Dollar Purchases

  1. It is the department's responsibility to submit auditable records, including original documentation and proper authorization, for small dollar purchases to FSO Financial Compliance when using the University Purchasing Card. While the transaction documentation is stored as imaged documents in UAccess Financials, the written documentation for deviation from a University-Wide Contract or Strategic Alliance shall be maintained in the department’s/unit’s files, and should be readily available in case of an audit.
  2. When small dollar purchases are made using Arizona BuyWays, PACS will maintain the audit records.
  3. Purchases may be subject to review or audit by Procurement and Contracting Services, FSO Financial Compliance, Internal Audit, or external auditors to ensure policies and procedures are being followed and that restricted items are not being purchased using one of the small dollar direct purchase methods. Fraudulent or intentional misuse of the Procurement purchasing tools, including the PCard, will result in cancellation of the card and/or possible criminal changes under the University of Arizona's Misuse of University Assets Policy.

Related Information

Arizona BuyWays
Business Purpose Guide
Contracted Vendors
Guidelines for PCard Documentation Submission
Misuse of University Assets
Purchasing Card (PCard) Policies Manual
Purchasing (PCard) Program Information
Purchasing Policies Manual