Transcript Northern Arizona University Purchasing Policy Training Module

ADS Session
Internal Audit Findings: Review of
Procurement Policies and Processes
Presented by:
Contracting and Purchasing Services
Carol Luckey
Purchasing Manager
Contracting and Purchasing
Services (CPS)
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Formerly Purchasing Services
Departmental Areas:
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Accounts Payable
Campus Supply/Shipping and Receiving
Contracting
Property Administration
Property and Liability/Insurance
Property Surplus
Purchasing
CPS Emails
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Departmental Email Accounts:
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[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Procurement Policies and Processes
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Purchasing Policy Overview
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Departmental Purchase Orders, or PD’s
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The Importance of Coding Documents
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Your Responsibility in Contracting
Purchasing Policy and Departmental
Purchase Orders
Purchasing Policy
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Policies that affect purchases:
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Purchasing Policy
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Comptroller Policy
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Terms of Grant Documents
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Federal Regulations
Purchasing Policy
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PD’s and PO’s are not Payment Documents
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All Purchase Orders (PD’s and PO’s) should be sent to the
vendor when the order is placed
Bidding Limits:
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$0 - $5,000 PD or P-card
$5,001 - $24,999 PO
$25,000 - $49,999 PO with 3 Quotes
$50,000 and up Sealed Bid Process
Do not artificially split orders to avoid limits
Purchasing Policy
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RQS’s are used to request purchases
over $5,000
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All purchases must have evidence of
public purpose
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Failure to follow purchasing policy may
result in a purchasing violation
Departmental Purchase Orders (PD’s)
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A PD is a decentralized purchase order
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Up to $5,000 (including sales/use tax, freight, etc)
The policy for PD’s can be found at:
http://www.nau.edu/purch/Procedures/304.05_Departme
ntal_PO.htm
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All other applicable policies must be adhered to
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The department must maintain all backup to
validate expense
The Importance of Coding Documents
Susan Weaverling
Accounts Payable Coordinator
Coding Documents
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Object codes
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Other important coding requirements
Object Codes
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Object Codes
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Categorize purchases for reporting purposes
Sub Object Code
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Further categorize purchases
Note:
If your Dept/Unit is not set up with the correct
code contact the Budget Office or Sponsored Projects for
assistance
Object Codes
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Refer to Comptroller Policy-CMP400
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Common Coding Errors
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7540-10-Interviewees documented-use PD and not GAE
7540-20-Reimbursement Documents-use for non-employee
reimbursements such as travel-often see 73 types used
7390-10-Food-often see office supply codes
7396-10-Registration-often see office supply codes
7830-Capital Equipment-often see 73 codes
Other Important Coding Requirements
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Header-Shipping/Billing
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Shipping Location-is your building number
Shipping Additional Info-the room for delivery
Commodity
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The code used should describe your purchase
and be consistent with the object and sub-object
Extended Description-this should describe your
purchase in detail
Reminders-Receiving/Invoices
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Receipt/Invoice
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Instruct vendors to send invoices to Accounts Payable
(AP)
AP will scan and e-mail invoices
Enter RC document in Advantage
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For Item Type and Unit other than BLK, you do not need the
invoice/you can receive from the packing slip
For Item Type with Unit equal to BLK-you need to receive the
actual amount of the invoice
Statute requires payment in 30 days- A.R.S § 35-342
Reminders-End of Year
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Goods and/or services received on or before
June 30 must be paid in the fiscal year received
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Multi Year accounts must follow this same
process
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Occasionally transactions cross fiscal years and
are treated on a case by case basis
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All payment transactions will be processed on a
PD or PO, no memos will be used
Your Responsibility in Contracting
Angela Helmer
Contracts Administrator
Contracting Website
Contract Administration
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Contract Definition
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Signature Authority
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Contract Routing
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Departmental Responsibility
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Master Contracts
Contract Definition
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Contract Definition:
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A contract is created when there is a mutual exchange
of promises upon reasonably understandable terms
and conditions. A contract does not have to be
reduced to writing in order to be enforceable; however,
as used in this presentation, the term contract is
intended to mean a written form of communication. It is
important to note that many types of documents can
constitute a contract, including invoices, memoranda
and quotes
Signature Authority
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Signature authority is delegated by the President
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Authorized Signers List
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If there are terms and conditions on any document given to
you by a vendor and a signature is required, it must be
executed by an authorized signer
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Failure to follow contracting policies may result in an
employee’s personal liability
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Cancelling or modifying a contract must be coordinated
through CPS
Contract Routing
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Grants and Contracts, CAS, and Legal Affairs
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Contract Signature Request (CSR) form can be found on
the CPS Website, under Forms
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Always go to the website to obtain the current version
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Departmental Representative must complete and sign,
indicating they have read, can administer the contract and
have received all approval required
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Allow ample time for processing
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Include information that a contract is tied to a procurement
when submitting backup for RQS document
MASTER CONTRACTS
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Master Contracts
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Benefits
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Contracts that have been negotiated by Contracting and
Purchasing Services for goods and services that are used
regularly across campus
Departmental representatives can sign the vendor’s agreement
without having actual delegated signature authority as the contact
terms and conditions are in place through prior negotiations
Modifications
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Must be made through CPS
Questions