|Policy Number: 1.2||Effective Date: June 2006|
|Responsible Unit: Financial Services - Purchasing||Last Revised Date: April 2021|
|Phone: 520-621-5449||Email: email@example.com|
Purpose and Summary
Procurement policies articulate the procedures, rules and standards that govern how goods and services are to be acquired by University departments/units and financial policies govern what may be purchased and any restrictions. The purpose of this policy and procedure is to ensure departments and individuals are aware of their responsibilities around the acquisition of goods and services and to help minimize or eliminate procurement and financial policy violations.
This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.
- University departments/units and employees are required to make all purchases of goods and services in accordance with the policies and procedures prescribed by the University and ABOR Procurement Policies.
- Unit heads at all levels are responsible for ensuring that a system is in place in the unit which promotes purchases of goods and services in accordance with these policies.
- Financial Services Purchasing is under no obligation to authorize payment for expenditures not made in compliance with the applicable policies, and financial responsibility for any such payment can become the personal liability of the employee who effected the improper purchase or transaction.
- Unauthorized purchases will result in notices of violation and can result in disciplinary action and investigation under the Misuse of University Assets policy.
- Deans and vice presidents should review violations brought to their attention, and decide whether to authorize payment of the expenditure in question, taking into account the seriousness of the violation and the benefit or detriment to the University.
- Regardless of method of purchase, violations that could cause an embarrassment to the department/unit or University or appear to involve criminal activity or misuse shall be made known as appropriate, to the Department Head, Dean, Senior Vice President for Business Affairs and Chief Financial Officer as expeditiously as possible in accordance with the Misuse of University Assets Policy .
- Questions may be directed to the Purchasing office to determine whether a purchase is in accordance with the University Purchasing Policies or to your Fund Accountant to determine if it is an allowable expenditure with University funds.
Frequently Asked Questions
- What are some examples of procurement policies and procedures that govern how good and services are to be acquired by University departments?
An example of such rules and procedures are: 1) The competitive sealed bidding selection process; 2) procurements of either goods or services, or both, costing $25,000 or less; 3) procurements of either goods or services, or both, not exceeding $100,000; 4) the Request for Bid or Proposal process; and 5) exceptions to the competitive selection process, e.g. sole source procurements, emergency procurements, livestock/animal procurements, and professional services.
- What are some common violation areas that I should be aware of to ensure my department and I maintain compliance?
Generally, the most prevalent violations are: 1) purchases using an inappropriate fund source; 2) dividing a purchase into components to avoid a mandatory competitive selection process (all purchases exceeding $25,000 are subject to a competitive selection process in accordance with Purchasing Policy 4.5, or procured as an exception to the competitive selection process); and 3) use of University funds to make purchases for personal benefit or for non-university business.
- In addition to this Purchasing Manual, where else can I find financial policies that govern what may be purchased and any restrictions on the acquisition of goods or services?
Expenditure rules listing allowable items that may be purchased by fund type and examples of types of expenditures that are prohibited using University funds may be found in the Financial Services Manual (FSM) Policy 9.10. Since a large number of University purchases are made using the Purchasing Card (PCard), purchase restrictions and prohibitions applicable to PCard use may be found at PCard Program Policy Restrictions.
* Please note that sections titled Frequently Asked Questions and Related Information are provided solely for the convenience of users and are not part of the official University policy.