Transcript New Purchasing Basics Training

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Procurement Services is responsible for the procurement of all goods and services
required by Utah Valley University and all its departments. The most important function of
UVU Procurement Services is to serve other campus departments and to help them obtain
the supplies and services they need for effective operation. We are dedicated to
implementing policies and procedures that incorporate the University's Core Themes and
Administrative Imperatives by establishing operating procedures with which to locate and
ensure adequate and continuing sources of supply, consistent with legal, budgetary, and
delivery requirements of user departments.
It is our mission to:
◦ Acquire goods and services on a timely and economical basis;
◦ Assure compliance with all applicable state and federal laws and University regulations during the procurement
process;
◦ Provide assistance, consultation, and advice regarding all procurement needs of the University.
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Procurement Services provides help with:
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Saving your department money
Sourcing assistance
Purchasing expertise and experience
Creating efficiencies
Upholding University policies and procedures
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U.C.A. 63G-6a: Utah Procurement Code
◦ Various high-profile procurement-related issues
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Update process
◦ 2012 Legislative Session
◦ 2013 Legislative Session
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Effective Date: May 1, 2013
More changes coming.
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New policies
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241,
242,
243,
244,
245,
246,
University Procurement
Solicitation and Award of Procurement Contracts
Small Purchases
Requisitions and Purchase Orders
Receiving Goods and Services
Surplus Property
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204, Appropriateness of Expenditures
211, Employee Appreciation and Recognition (Gifts and
Rewards)
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“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 4.1.1)
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Computers
◦ Computer Shop
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Printers
◦ HP
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Audio/Visual Equipment
◦ Contact Media Services
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Furniture
Construction/Room Changes
Printing
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Software, including apps
◦ Software Ordering System
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Campus-owned cellphones/aircards
Office Supplies – Ordering On-line
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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
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Emergency procurements are procurements needed due to an
emergency situation
◦ Threat to public health or welfare
◦ Serious threat to the functioning of the institution
◦ Procurements made at Purchasing’s discretion
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Urgent procurements are procurements that are needed due
to a lack of planning or circumstances beyond the control of
the requestor.
◦ All procurement policies and procedures must still be followed.
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Small-Dollar Purchase Threshold
◦ $5,000
◦ $15,000 (Construction)
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Large-Dollar Purchase Threshold
◦ $50,000
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Intended for small-dollar purchases.
◦ Per-purchase limit usually set at $1500.
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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.
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Written pre-approval must be obtained for certain
purchases (see policy).
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Request up to 5 checks per Index.
◦ Stores Requisition.
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Two types of checks: $150 & $500.
Individuals must be authorized to pick up checks by
Responsible Party.
Notification will be sent to the department when the
checks are available for pickup.
Used LPC should be returned within five (5) days of
use.
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Flowchart
This is how it works regardless of:
Fund source
Sourcing method
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Do not include $0.00 commodity or FOAPAL lines.
Use the same commodity code on every line.
Replace the commodity default description.
You can only use indexes for which you have Banner
authorization.
Purchasing cannot adjust requisitions after they have been
completed, but you can.
Once a requisition has been completely approved, it cannot be
changed.
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Highlight the line you want to delete.
Press Shift-F6, click the record remove button on the taskbar,
or select remove from the record menu.
If you can’t delete the line, you may need to complete the line
with erroneous information before deleting the line.
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Vice Presidents must approve:
◦ all expenditures for $25,000 and above.
◦ all expenditures for memberships, floral, clothing, or awards/gifts.
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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.
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President’s Council must approve all expenditures between
$150,000 and $500,000.
The Board of Trustees must approve all expenditures for
$500,000
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Required approval based on account code (commodity code),
amount, and organization.
Approving officials receive an e-mail.
Approval Queues
◦ FOAUAPP
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Check Approval Queue
◦ FOAAINP
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See Approval History
◦ FOIAPPH
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Lists all documents for which the user is the next
approver.
To see all documents which the user must approve,
uncheck the Next Approver box.
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List of queues on left, list of approvers on right.
May be used to approve documents.
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Enter req number and press execute query (F8).
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Documents can also be approved on
UVLink.
◦ Employee Tab, Financial Information
Folder
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Bids are completed by the Purchasing Office.
Include minimum specifications in the requisition.
Typical Timeline
◦ $5,000 to $20,000
 3-5 days
◦ $20,000 to $50,000
 5-10 days
◦ Over $50,000
 2 – 3 weeks
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Requests for Quotes (RFQs)
◦ Over $5,000, equal or less than $50,000.
◦ Sent to three (3) or more known vendors.
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Invitations for Bids (IFBs)
◦ Over $50,000.
◦ Posted on BidSync
◦ Minimum of 10 days
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Multi-Stage Bid (MSB)
Request for Proposals (RFP)
Multi-Year Pricing Agreement/Contract
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Requires justification
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◦ Fill out Justification for Enhanced Procurement Method
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All individuals participating in a procurement, including
contract administration, must adhere to the ethical
requirements outlined in the Utah Procurement Code
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Gratuities
Kickbacks
Fairness
Impropriety
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Know and obey the letter and spirit of laws, regulations, and
policies
Prevent the appearance of unethical behavior
Protect confidential information
Avoid conflicts of interest
Do not accept gifts, gratuities, or kickbacks from vendors
which may appear to influence purchasing decisions.
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State Contracts
◦ Bid or RFP Completed by the State or WSCA
◦ No Additional Competition Needed
◦ Purchase Directly
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University Contracts
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Sole source procurement may be used when a requirement is
only reasonably available from a single supplier
◦ Availability
◦ Compatibility
◦ Transition costs
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Require justification
◦ Sole Source Justification Form
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Not reasons: price, time
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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.
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Standing/Open PO
◦ Used for contract orders that result in multiple invoices for
different amounts.
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Requisitions should have a good estimated amount
◦ No $1.00 requisitions
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Change Orders submitted through website form
Additional items will not be added from invoice
Analyzed to ensure compliance with policies, procedures, and
applicable contracts
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If products are delivered by the Receiving Dept., no reporting is
necessary.
If products are delivered directly to department by vendor or
picked up, send proof of delivery to the Receiving Dept.
If service, send confirmation of services rendered to the
Receiving Dept.
Receiving is not required on Standing POs.
Contact the Receiving Dept. via e-mail, [email protected].
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If invoice is received in the department:
◦ Verify that PO number is on the invoice.
◦ Send the invoice to Accounts Payable, MS 109.
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Memberships/Conferences/Subscription
◦ Registration/subscription forms should be sent to A/P with the
requisition/PO number on them.
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Not allowed
Exceptions determined by Purchasing
◦ Deposits
◦ Progress Payments
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An unauthorized purchase is a purchase made without
following the authorized procurement processes.
An after-the-fact purchase occurs when a University
employee places an order without first completing a
requisition and receiving a purchase order.
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Result in duplicate payments to the vendor, for which the department
is responsible.
Result in higher costs for goods and services
Lead to significant vendor payment issues that can result in problems
for other departments on campus.
Bypass the appropriate approval process.
Place the University at financial risk and create potential personal
liability.
Create additional, often unnecessary, work for administrative support
staff.
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Ways to Avoid Violations:
 If you have to place an order, create the requisition right
away. Work with the Purchasing Office if you need the order
expedited.
 You must arrange a payment method BEFORE placing an
order. “I didn’t know…,” is not a valid excuse for violating
policy.
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What to do if a violation occurs:
 If a violation occurs, fill out all sections of the Purchase
Violation Form.
◦ An explanation of why policy was not followed
◦ Future corrective action
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Attach invoice and send for authorizing signatures
Vendor is paid
DO NOT enter a requisition.
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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.
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Paper, paper cups, tissues, bags, forms.
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Services performed by individuals.
◦ No product
◦ No companies
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Requires Responsible Party signature.
Second Level approval required for payments $1000
or more.
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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/
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“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.
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Reimburse a government entity for procurement performed by
the government entity
Reimbursement for employee for an expenditure approved by
Procurement Services.
Reimbursement to students as approved by FaBS.
Include a detailed explanation on the check request.
Check Requests received for reimbursement may be sent to
the VP as a violation.
Questions regarding Check Requests are referred to Scott
Wood.
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Personal reimbursement program
No P-Card or LPC
Travel Office
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If you have questions, please call Procurement Services at
8301or e-mail [email protected]