Purchasing Basics

Report
Procurement Training

The most important function of UVU Procurement
Services is to serve other campus departments.
Procurement Services helps these departments obtain
the supplies and services they need for effective
operation, while keeping within university policy and
State of Utah procurement statutes.
2

Procurement Services provides help with:
◦
◦
◦
◦
◦
Saving your department money
Sourcing assistance
Purchasing expertise and experience
Creating efficiencies
Upholding University policy and procedures
3




What are the rules?
What are my procurement tools?
When do I use each one?
How can I get more help?
4


You must have a valid PO number prior to
placing an order.
A requisition must be completed before a
Purchase Order can be generated.
◦ Remember that requisitions must go through the
approval process before they are sent to
Purchasing.

Requisitions are not POs and should not be
treated as such.
5

Regular PO
◦ Used to order specific items.
◦ Requisitions should include separate commodity
lines for each product/service.
◦ Orders that will have multiple invoices for the same
amount.

Standing/Open PO
◦ Used for contract orders that result in multiple
invoices for different amounts.
6

Modifications to POs can be requested using
the Change Order Request Form found on the
Procurement Website under Resources |
Forms
◦
◦
◦
◦
Increase/decrease
Cancel PO
Remove encumbered funds
Request changes to PO in any way
7

Computers
◦ Computer Shop




http://www.uvu.edu/computershop/
Desktop – Lenovo
Laptops – Lenovo
Mac Computers
◦ Tablet Computers – Requisition

Software
◦ New Software Ordering Website
 www.uvu.edu/procurement/software
◦ Not on website, P-Card or Requisition
 Register P-Card Software Purchases
8

Printers
◦ HP is the standard for all printers
◦ Network printers must be HP

Copy Machines
◦ No campus standard
◦ Check State Contracts
 http://generalservices.utah.gov/statewidecontracts/co
ntractsearch.aspx
9

Furniture
◦ Campus Standard (per building)
◦ Contact Jeana Miner

Construction/Room Changes
◦ Must have approval from the Space Committee.

Audio/Visual
◦ Contact Media Services

Printing
◦ Jobs over $500 must be approved by Printing
Services.
10



$3000 threshold for goods/services.
Orders over $30,000 must be advertised
and bids must be open for 10 business
days.
Items listed on current state contracts may
be purchased under those contracts.
11



Bids are completed by the Purchasing Office.
Include minimum specifications in the
requisition.
Typical Timeline
◦ $3,000 to $15,000
 3-5 days
◦ $15,000 to $30,000
 5-10 days
◦ Over $30,000
 2 – 3 weeks
12

Requests for Quotes (RFQs)
◦ Bids under $30,000.
◦ Sent to three (3) or more known vendors.

Invitations for Bids (IFBs)
◦ Bids over $30,000.
◦ Posted on BidSync to fulfill the advertising
requirement.
13

Request for Proposal (RFP)
◦ Proposals vs. Bids

Sole Source
◦ Product/Service only available from a single vendor.
◦ Compatibility.
◦ Proposed Sole Source orders totaling over $30,000
must be posted on BidSync.com for five (5)
business days.
14

Services performed by individuals.
◦ No product
◦ No companies


Requires Responsible Party signature.
Second Level approval required for payments
$1000 or more.
15



Deemed “Independent” by FaBS and Human
Resources.
Guest Speakers/Performers are always
considered independent.
Form can be downloaded from the Finance
and Business Services Website.
◦ http://uvu.edu/finance/reports-forms-files/
16

Intended for small-dollar purchases.
◦ Per-purchase limit usually set at $1000.



Monthly limit usually set at $5000.
Must keep receipts and documentation for
seven (7) years.
Must reconcile, sign, and date monthly
statements.
◦ Supervisor must review, sign, and date.

Written pre-approval must be obtained for
certain purchases (see policy).
17

Any purchase exceeding the per purchase limit (including shipping and handling)

Alcoholic Beverages

Capital Equipment or Fabricated Equipment

Cash Advances

Cell Phone Bills, Phones, and Accessories

Clothing

Computers, Laptops, and Projectors (including iPads and other tablets)

Construction or remodeling

Donations

Employee Benefits: entertainment, tuition, gifts, or flowers

Fines, late fees, penalties, (including parking tickets)

Furniture and Blinds

Gas or oil for any vehicles

Items monogrammed with University logo

Office Party items

Personal Purchases

Printing over $500.00

Rental or lease of vehicles, facilities, buildings or equipment

Services that would be considered either Payroll (PAF) or Independent Contractor Payments

Student events, tuition, scholarships, or stipends

Travel-related transportation, lodging, meals, etc.
18


P-Card Audits
Violations
Point Value
Personal Purchase
150
Splitting of Transaction
60
Purchase of Restricted Item
40
Lack of Signature on Monthly Statement
40
Receipt/Paperwork Missing
30/40/50
Fabricated Equipment or Furniture Purchase
30
Taxes charged on Purchase
10
P-Card Guidelines
◦ http://uvu.edu/procurement/policies/pcard/index.html
19



Office Depot, Office Max, Staples
Requires purchasing card.
Request an account by filling out the Office
Supply Vendor Access Request Form on the
Procurement Website.
◦ http://www.uvu.edu/procurement/venderaccountfo
rm.html

Items are usually delivered in 1 - 2 days.
20

Request up to 5 checks per Index.
◦ Request forms are ordered with Stores Requisition.




Two types of checks: $150 & $500.
Requestors and Pickers-up must be
authorized by Responsible Party.
Notification will be sent to the department
when the checks are available for pickup.
Checks should not be requested for “Just In
Case” situations.
21


Written pre-approval must be obtained for
certain purchases (see policy).
Used LPC should be returned within five (5)
days of use.
◦ Purchasing copy should have a brief explanation of
the purchase.
◦ Original receipt.
◦ Written Pre-approval (if applicable).
22

Advertisements for personnel recruiting

Alcoholic beverages

Capital equipment

Cash Awards or Prizes

Cash

Clothing

Computers, including desktops, laptops, and Macs (computer accessories are acceptable)

Donations

Fines, late fees, or penalties, including parking tickets

Furniture of any kind

Gifts (Gifts for employees in accordance with the Employee Appreciation and Recognition policy (Policy 211) are acceptable)

Hotels, Motels, Housing, or other Lodging (including deposits and holds)

Independent contractors

Loans

Memberships

Monogrammed items

Personal purchases

Printers

Telephones or other telecommunications devices or service (including cell phones)

Travel, including reimbursements, for University employees or guests
23






1st Violation
◦ Notification sent by Purchasing
2nd Violation
◦ 3 month probation
3rd Violation
◦ 12 month probation
4th Violation
◦ Withdrawal of privileges
Violations removed after twelve months, if no other violations
occur.
LPC Guidelines
◦ http://uvu.edu/procurement/policies/lpc/
24

Warehouse purchases are done on Banner
using the Stores Requisition screen
(FSAREQN).
Items are delivered within three (3) days,
some within 24 hours.
Use Account Code 720076.

Paper, paper cups, tissues, bags, forms.


25



“Any expenditure external to UVU that cannot
be purchased with a limited purchase check
or purchasing card must be obtained using a
requisition through the Purchasing
Department” (Policy 204.V.A.1.g).
Sales Tax.
Lack of proper controls.
26



Should only be used if the expenditure
cannot be feasibly made using an LPC, PCard, or PO as determined by FaBS and PS.
Include a detailed explanation on the check
request.
Check Requests received for reimbursement
may be sent to the VP as a violation.
◦ See Policy 204.

Questions regarding Check Requests are
referred to Scott Wood.
27

Vice Presidents must approve:
◦ all expenditures for $25,000 and above.
◦ all expenditures for memberships, floral, clothing, or
awards/gifts.

The President must approve:
◦ all expenditures for $100,000 and above.
◦ all expenditures for a memberships, floral, clothing, or
awards/gifts from his personal staff.


President’s Council must approve all expenditures
between $150,000 and $500,000.
The Board of Trustees must approve all expenditures
for $500,000 and above as an agenda action item in
their regular Board of Trustees meeting.
28










Personal expenses of any kind
Donations
Gifts to employees over $50 (other than approved recognition
programs)
Alcoholic beverages
Going-away receptions (reason other than leaving the
University)
Child care expenses
Intra-campus holiday cards paid for with appropriated funds
Flowers for weddings, baby showers, Secretary’s Day,
Valentines
Loans
Political contributions from appropriated funds
29

“Each school, department, unit, and
approving official must exercise prudent
judgment to ensure that the commitment of
funds is appropriate and justified for
institutional operations.” (Policy 204.IV.A)
30

A violation occurs when an individual
commits University funds without first
receiving the appropriate approval.
◦ Responsible Party, Second Level, Dean, VP
◦ Purchasing Office

Violations require VP acknowledgement and
signature.
31

www.uvu.edu/procurement
◦ Tips and FAQs
◦ Step-by-step instructions
 Written instructions
 Online interactive simulations
◦ Policies and Procedures
◦ Procurement Training
32
33

similar documents