Requisition
and Purchasing Policy
Approved
by: President and the Vice-President for Administration & Finance
Effective
date:
Amendment
Date(s):
November 1, 2004 (Media
Services Approval Requirements)
It
is the intent of the administration of
All
office supplies purchased with University funds should be obtained through the
bookstore. The cost of these materials will be charged against the appropriate
budget.
The
University does not pay sales tax on purchases of tangible property. Employees should obtain a Purchase Order from
the Accounts Payable Office for supply and equipment purchases to get the sales
tax exemption. The Accounts Payable
Office will send a tax exemption certificate to vendors when requested. The University reserves the right to deny the
employee’s reimbursement for sales tax paid on orders unless there was not any
other reasonable alternative for the purchase.
The
University is required by the Internal Revenue Service to report nonpayroll
expenditures to noncorporate entities, individuals, and partnerships for
personal services and rentals. The only payments reportable to corporations are
medical and health care payments and attorneys’ fees. Prizes and awards for
services performed by nonemployees or prizes and awards that are not for
services performed must also be reported.
The government requires the name, address, and taxpayer identification
number for each individual or entity receiving these payments. This information needs to be provided to the
Accounts Payable Office on a W-9 or substitute W-9 form before payments are
made by the University. Individuals or
entities that fail to provide this information are subject to the 30% backup
withholding and/or penalties for noncompliance. Corporate payees must complete
the W-9 form too for personal services and rentals to certify their exemption
from 1099 reporting prior to receiving a check from the University. If the individual or entity is from a foreign
country, research will need to be done by the Comptroller’s Office to see if a
tax treaty exists for an exemption and to identify the forms that need to be
completed.
All
funds deposited with the institution, regardless of source, are the
institution's funds and must be handled in accordance with institutional
policy. Although departments are allocated funds in their budgets, this
allocation is only an authority to requisition, not to purchase. Purchase
Orders are required for almost every business transaction that a department
conducts. The Purchase Order serves the
following purposes:
1. Permission from the
University for the department to make the purchase
2. A contract with the vendor
that defines the details of the items or services to be purchased including the
cost, payment terms, and shipping information
The
purchasing policy and coordination thereof is the responsibility of the Comptroller.
The President and the Vice-President for Administration & Finance must
approve any amendments to this policy.
The University requires the employee to use competitive pricing for products and/or services which total $5,000.00 or more. This includes purchase requests for similar items that cumulatively total $5,000.00 or more within a fiscal year period and can be bid under a term contract. Term contracts are to be bid annually by the department for items/services of a repetitive nature if a fixed price type contract or a unit priced requirements type contract can be obtained. A copy of all bids received for term contracts and the completed Bid Information Form outlining the vendor selected for the term contract for each fiscal year must be submitted to the Comptroller’s Office for review before any orders are made that fall under the term contract. The guidelines for conducting bids for term contracts are the same as outlined below for non-repetitive purchases. A department must not split or parcel purchases over a period of time for the purpose of evading competitive bidding.
The following bid guidelines must be
used for requesting goods or services:
1. The department must solicit the minimum written quotations from different vendors for the requested purchase. The chart below indicates the minimum number of bids required according to the estimated purchase amount.
|
Estimate Purchase Amount # of Bids |
|
$1.00-$4,999.99 One (1) verbal or written quotation |
|
$5,000-$14,999.99 Two (2) written quotations |
|
$15,000-$99,000.00 Three (3) written quotations |
|
>=$100,000.00
(non construction ) Request
for Information (RFI) to at least three (3) vendors |
|
>=$100,000.00 (construction ) See requirements below |
Construction
contract requirements: The
department must facilitate a competitive negotiation using a Request for Proposal
(RFP) document. This document must
describe the scope of services to be provided, list vendor requirements,
identify evaluation criteria and include any other pertinent information. A performance bond for 100% of the contract
price may be required for construction contracts. The performance bond, if required, must be
obtained from companies holding certificates of authority as acceptable
sureties. The RFP document should contain a technical section and a time-cost
section. In the technical section, the
vendor should include time-lines, projected required personnel, and schedules
for completing the project. In the
time-cost section, the vendor must detail the time and costs that will be
required to complete the project. The
standard time to allow for responses is thirty (30) days. Unlike a competitive sealed bid, there is no
public bid opening and all responses to the RFP and discussions with
prospective offers remain confidential until a contract is awarded.
2. The department must complete a Bid Information Form that outlines the reasons for the vendor selection. If the department solicited the required number of bids and could not obtain the minimum number of bids, then the solicitation process must be documented in detail on the Bid Information Form.
3. The quotations may be by letter or email and must include the following:
|
Vendor
Identification: |
|
Product
Information: |
|
1.
Name 2.
Address 3.
Phone # 4.
Contact person |
|
1.
Date of quote 2.
Description of
goods/services 3.
Terms 4. Amount |
4. The completed and signed Bid Information Form and the applicable RFP, RFI, and vendor proposals/quotations must be attached to the Requisition form. If the item/services fall under a term contract, then the “Bid on File” box must be marked on the Requisition form.
5. If a service purchase, consider the following:
a) Verify vendor liability insurance if work is performed on University
owned or leased property
b) Verify business/contractor’s license
c) Check references
6. Exceptions to competitive pricing include:
1.
Accounting
services
2.
Architectural and
engineering services
3.
Design/Construction
projects as approved by Board of Trustees
4.
Legal services
5.
Investment
management services
6.
Consulting
services
7.
Employment
services
8.
Advertising
services
9.
Purchases for the
purpose of resale
10. The lease, sale, purchase, transfer, disposal or any
other action involving an interest in real property
11. Utilities
12. Personal Services
13. Sole Source procurement (see details below for this exception)
14. Emergency procurement; this is limited to the
procurement of only the types of items and quantities or time period sufficient
to meet the immediate threat and shall not be used to meet long-term
requirements. A written basis and
justification for the emergency procurement including the date the emergency
first became known must be attached to the Requisition form to substantiate the
exclusion from the competitive pricing requirement.
Sole Source Procurement: The Department
must take reasonable steps to avoid using sole source procurement except in
circumstances where it is both necessary and in the best interests of the
Institution. The department must explain
on the Bid Information Form in a direct and concise manner the following four
points:
Federal Funding Exception Clause: If the
procurement is being made from Federal funds, the department must adhere to any
additional procurement standards as outlined the federal regulations per the
granting agency.
The
employee must complete the Requisition form to request merchandise or services
unless the purchase is classified as one of the types of purchases in Part II,
Section J. The Requisition form is used
by the Accounts Payable Office to generate Purchase Orders or payments to the
vendors. The Requisition form must be
completed in its entirety and written in a clear, concise manner before
proceeding through the approval process. Confirming orders are not permitted
unless authorized in advance by the Office of the Comptroller.
C. Requests for Checks
Requests
for checks on the Requisition form include payments for dues, conference
registrations, subscriptions, college fairs, maintenance and service
agreements, employment testing, licenses, liability insurance, property taxes,
postage, shipping, bank fees, contract agreements for the payments as outlined
in Part II Section J (6), cash advances for travel, and hotel accommodations if
Purchase Orders are not accepted.
All requests for checks must have supporting documentation attached for the issuance of a check, i.e. invoice from the vendor, registration form, dues or insurance renewal form, contract agreement, travel details for the cash advance requests. If advance payments are made for merchandise or events because a vendor will not accept a Purchase Order, a Prepaid Order Receipt form will be sent to the department that placed the order by the Accounts Payable Office to confirm that the merchandise was received or that the event occurred. The department needs to return this form along with a signed packing slip or receipts promptly to the Accounts Payable Office for filing with the check disbursement record.
All
Requisition forms for purchases must contain the proper signatures in order to
assure the purchase itself as well as proper payment. The signed Requisition
form is the authorization for the Business Office to commit the funds of a
particular budget account for that expenditure and to enter into a contract
with the vendor by producing a Purchase Order. Due to the volume of purchases
and levels of management within the institution, these are the routing
procedures:
1. Requisitions originated by
faculty members or staff personnel in the academic area need approvals from the
Budget Officer and the Dean of the respective school unless the Dean has filed
a statement with the Office of the Comptroller that his/her signature is not
required.
2. Requisitions submitted by
staff personnel in the administrative area need approvals from the Budget
Officer and the Vice-President of the respective area unless the Vice-President
has filed a statement with the Office of the Comptroller that his/her signature
is not required.
3. Requisitions for capital
projects need approvals from the Budget Officer and the Vice-President for
Administration & Finance.
4. Due to the specific nature
of some purchases or specific expertise requirements, some requisitions require
additional approvals as follows:
A. Printed materials and
advertising (excluding personnel advertising) need approval from the Director
of Public Relations.
B. Personnel advertising in the
academic area need approval from the Director of Personnel and the
Vice-President for Academic Programs.
C. Personnel advertising in the
administrative area need approval from the Director of Personnel and the
Vice-President for Administration & Finance.
D. Furniture requests need
approval from the Director of Physical Plant.
E. Computer technology requests
need approval from the Director of Institutional Computing.
F. Office equipment requests
(copiers and fax machines) need approval from the Director of Auxiliary
Services.
G. Media services (audio visual
equipment and classroom media equipment), excluding the TV Station and the
Recording Studio, need approval from the Media Services Coordinator.
H. Instructional equipment
requests need approval from the Vice-President for Academic Programs.
I.
All bulk mailings need approval from the Director of Bulk Mail
Services.
J. All requests for use of restricted
funds need approval from the Office of the Comptroller.
5. All other requisitions must
have the appropriate Budget Officer’s approval.
The
completed and approved requisition must then be forwarded to the Accounts
Payable Office to obtain approval from the Office of the Comptroller for a
Purchase Order to be issued or a payment made to the vendor.
All
purchases of materials and supplies require a Purchase Order except as outlined
in Part II, Section J. The Purchase Order is prepared
by the Accounts Payable Office once a Requisition form has been approved. It is
then mailed or faxed to the vendor confirming the order and a copy routed to
the person responsible for tracking the order as denoted on the Requisition
form. The Purchase Order may in some cases be hand carried to the vendor by the
purchaser. Purchase Orders are done daily for all approved requests received by
If changes are needed to a Purchase Order, the department must complete a Purchase Order Change Request form and send it to the Accounts Payable Office. This request will follow the same approval process as the Requisition form for a Purchase Order request.
The
need for occasional emergency purchases is recognized. Emergency purchases will
only be made with the authorization of the budget officer. Written
authorization must accompany a Requisition form for payment to the vendor the
following workday. Emergency purchases should be made when it is clearly
evident that failure to do so would be detrimental to the University. The
practice of emergency purchases should be curtailed as much as possible by
anticipating needs in time for the use of regular purchasing procedures. Good
planning practices will minimize the need for emergency purchases.
G. Receipt of the Goods
Upon receipt of the goods or services, an employee of the University must sign the packing list and/or the receiving copy of the Purchase Order. The signed packing list must then be forwarded to the Accounts Payable Department. An invoice cannot be processed for payment until these items are received. In cases of damage or shortage of shipment, the Accounts Payable Office should be notified in writing, including all details regarding the incident. Failure to comply with this procedure could result in a disallowment of any claim.
All
invoices should be sent directly to the Accounts Payable Office unless
otherwise approved by the Comptroller or outlined in Part II, Section J. In the event that a department receives an
invoice, it should immediately be forwarded to the Accounts Payable Office so
delays in the payment can be avoided. Past due invoices are very costly to the
institution. The vendor must prepare an invoice on a company form or letterhead
with the proper address of the company; this invoice must be numbered, dated
and list all of the items purchased with the prices for each item.
The
Accounts Payable Office will compare the Purchase Order with the invoices and
packing slips to verify that items, quantities, and prices are accurate. The
Comptroller or Assistant Comptroller will approve invoices for payment only
when the entire payable package indicates appropriateness.
The
Accounts Payable Office will publish a calendar annually for the University
that outlines the check request cutoff dates for departments and the check
disbursement dates. The calendar will be
available on the Business Office web site in addition to being sent to all
departments via email.
The University recognizes the need for other types of purchasing methods due to the nature of the types of purchases that occur. The approved methods are as follows:
1. Blanket Purchase Order- The Comptroller approves
requests from departments to set up Blanket Purchase Orders when the department
uses the vendor on a regular basis. The
employee must complete a Blanket Purchase Order Requisition form each fiscal
year. The Blanket Purchase Order is for a limited dollar amount and if the
purchases during the month exceed the Blanket Purchase Order amount, the
employee must complete a Purchase Order Change Request form to obtain
authorization before making additional purchases. The Accounts Payable Office will issue a new
Blanket Purchase Order each month to the vendor on behalf of the employee once
the Blanket Purchase Order Data Entry form has been completed and returned for
the prior month’s purchases. All
receipts and/or invoices for the prior month’s purchases must be attached to
the Blanket Purchase Order Data Entry form.
2. Local Purchase Order- The Bookstore and the
Physical Plant department have been authorized by the Comptroller to issue
Purchase Orders for purchases less than or equal to $500.00. The department should not make a purchase
that is over the allowed limit by dividing the purchase into two or more Local
Purchase Orders. If that much material is needed from one source, a Requisition
form should be prepared and submitted through the approval process for a
Purchase Order to be generated by the Accounts Payable Office. The person signing the Local Purchase Order
is responsible for using the proper account number, for having sufficient funds
in that account to cover the purchase, and for the content of the order. These
Local Purchase Orders are pre-numbered and are accounted for by each department
on an electronic spreadsheet that is monitored by the Accounts Payable
Office. Invoices are sent directly to
these departments by the vendor and each department must verify the accuracy of
the invoices. An Invoice Payment Data Entry Form with a copy of the Local
Purchase Order, packing slip, and invoice is sent to the Accounts Payable
Office for payment.
3. Textbook Purchase Orders- All textbook orders for the
University are placed by the Bookstore. The Bookstore generates pre-numbered
Textbook Purchase Orders for textbook orders using a specialized textbook
system. These Textbook Purchase Orders
are accounted for on an electronic spreadsheet that is monitored by the
Accounts Payable Office. Invoices are
sent directly to the Bookstore from the vendors and the Bookstore must verify
the accuracy of the invoices. An Invoice Payment Data Entry Form with a copy of
the Textbook Purchase Order, packing slip, and invoice is sent to the Accounts
Payable Office for payment.
4. Bookstore Purchases- Certain purchases by the
Bookstore have been approved by the Comptroller to be made without the issuance
of a Purchase Order due to the nature of the ordering process by the
Bookstore. These purchases include
magazines, convenience store items, cards, and services for resale (dry
cleaning, shipping). Invoices are sent directly to the Bookstore from the
vendors and the Bookstore must verify the accuracy of the invoices. An Invoice
Payment Data Entry Form along with the packing slip and invoice is sent to the
Accounts Payable Office for payment.
5. Library Acquisitions- All library acquisition
orders for the University are placed by the Librarian. Invoices are sent
directly to the Library from the vendors and the Librarian must verify the
accuracy of the invoices. An Invoice Payment Data Entry Form along with the
packing slip and invoice is sent to the Accounts Payable Office for payment.
6.
7. Food Service Requests to the
University’s Contracted Vendor- The University contracts with a third party for
food services. The University grants the
third party the exclusive right to direct, manage, operate and control the food
services requested by the University for the benefit of the University’s
students, faculty, staff and guests on the University’s premises. Departments may request food service for
University events from the third party vendor by entering into a food service
contract with the vendor. The budget
officer is responsible for using the proper account number, for having
sufficient funds in that account to cover the purchase, and for the content of
the order. After the food service
contract has been fulfilled, the food service vendor will submit the invoice
along with the food service contract to the Director of Auxiliary Services for
approval. The food service contract and
invoice are sent to the Accounts Payable Office for payment.
8. Standard Reoccurring
Payments-
The Accounts Payable Office will automatically pay standard reoccurring
invoices after obtaining authorization from the budget officer. Authorizations are renewed annually at the
beginning of each fiscal year and kept on file in the Accounts Payable
Office. All contracts entered into by
the University must be signed by the Vice-President of Administration &
Finance and be on file in the Accounts Payable Office in order for payments to
be made to the vendor. Examples of
standard reoccurring payments include utilities, maintenance & service
agreements, rental & lease agreements, medical service providers, cellular
phones, pagers, principal & interest payments on debt agreements, life
insurance premiums, and annuity agreements.
9. Payroll Withholdings- The Payroll Office submits
Invoice Payment Data Entry forms to the Accounts Payable department after each
payroll period for all payments that need to be paid to vendors, i.e. health
insurance, retirement, garnishments, state taxes. The Payroll Office submits Invoice Payment
Data Entry forms monthly to the Accounts Payable Office for the reimbursement
of employees for their flexible benefit plans, i.e. health and dependent care accounts. All receipts and documentation for these
reimbursements is kept in the Payroll Office.
Exhibits:
Bid Information Form
Requisition
Purchase Order
Purchase Order Change Request
Prepaid Order Receipt
Blanket Purchase Order Requisition
Blanket Purchase Order Data Entry
Form
Bookstore Local Purchase Order
Physical Plant Local Purchase Order
Bookstore Textbook Purchase Order
Contract for Independent Contractors
& Honoraria
W-9 Form
Food Service Contract
Invoice Payment Data Entry Form