Transcription
MARYWOOD UNIVERSITYPURCHASING & ACCOUNTS PAYABLEHANDBOOK
Table of Contents:PageNumber Introduction 3 General Purchasing Policies - Unauthorized or Restricted Purchases6 Purchasing Procedures -The Purchase Requisition-The Purchase Order-Requisition for Emergency Supplies and Services-Confirming Orders-Purchases Requiring Prepayment9 Other Purchase Transactions That Do Not Require a Purchase Order .12 Policy and Procedures—Using the Purchasing VISA Credit Card .13 Travel & Business Expense Policy .15 Entertainment Policy .18 Independent Contractors 19 Copiers 22 Printing Services .25 Mailing Services .29 Post Office Services 31 Appendixes:Appendix AAppendix BAppendix CAppendix DAppendix EAppendix FAppendix GAppendix H3246627780849094Purchasing/Accounts Payable Forms . Descriptions of and Policies Relating to Line Items .Fiscal Procedures for Agency Accounts .Receiving and Ordering Advice for OfficeMax Solutions .Instructions—Preferred Travel Agency Usage Instructions—Preferred Local Hotel Usage Instructions—DHL Express Usage .General Purchasing Considerations .-Purchasing Documentation & Bidding-Sole Source PurchasesAppendix I Code of Ethics and Code of Conduct .Appendix J OMB Circular A-110 .Appendix K Governmental Regulations .298101102
INTRODUCTIONWhat can the Purchasing/Accounts Payable Office do for you?Hello. We are the Purchasing/Accounts Payable Office, also referred to as the Fiscal ServicesDepartment. We are located in the Liberal Arts Center, Room 70. This handbook details thepolicies and procedures of both offices. All employees and agents of the University whoparticipate in the purchasing process at Marywood University are to follow these policies andprocedures. The following pages will give you information on what we do and how we can assistyou in the Purchasing and Accounts Payable process.Functions of Purchasing (summary) Oversee all purchasing functions campus wide Serve as a liaison between the university and its vendors to obtain the best price andservice available and resolve any vendor problems Review all purchase requisitions for compliance, accuracy and appropriate approval Collect and compare receiving documents from departments with invoices from vendorsand review for appropriate supporting documentation and proper sales tax treatment andensure that all applicable discounts have been taken before invoices are processed forpayment by the Accounts Payable Office. Review and update as necessary purchasing policies and procedures and any forms ordocuments used to enact the purchasing function Assist and train university department personnel in purchasing procedures as necessaryThe Purchasing Office exists to serve all University departments in the procurement of allmaterial, supplies, equipment, and contracted services necessary to support the operations of eachdepartment and the mission of the University. Our goal is to obtain these goods and services aseconomically as possible within accepted standards of quality and service with delivery at suchplaces and times as are required by the departments in the best interests of the University and incompliance with all applicable governmental regulations and laws.Can I make a purchase without first contacting the Purchasing Office or without aPurchase Order?NO! Although department heads and other personnel may have considerable contact withvendors to obtain price quotations and obtain product and service information, such personnelmay not place orders with vendors. Only the Purchasing Office has the final authority to conductand conclude negotiations with vendors concerning prices and conditions of sale, including finalvendor selection, and only the Purchasing Office may place the actual order by way of an officialpurchase order form.Purchase orders will be mailed unless the Purchasing Office is instructed otherwise. In the eventthat a department would like an order faxed or phoned in, that is the responsibility of thedepartment. The department will be contacted when the purchase order has been issued and canpick it up, then phone or fax.3
Contact Fiscal Services for guidance before proceeding with any purchases. Do not presume thatyour actions will be approved after the fact. Exceptions will be worked out between FiscalServices, Purchasing, and the user department as circumstances and good business practiceswarrant.Please remember that the Purchasing function at Marywood is a cooperative undertaking betweenthe Purchasing Office, the vendor and the user department. In most cases, department headssuggest a vendor when a purchase requisition is submitted to the Purchasing Office. It ispresumed that the suggested vendor is selected by a department head after he/she has contactedseveral vendors and has reviewed the established purchasing criteria, namely, price, quality,service, shipping costs, availability, the lease/buy option if applicable, necessity, and otherconsiderations that may be appropriate (see Appendix H—General Purchasing Considerations fordetailed information regarding these matters). In some cases written documentation of bids, pricecomparisons, number and names of vendors contacted, etc. may be required with a purchaserequisition, though in most cases this documentation can remain in departmental files.The Accounts Payable Office is responsible for the payment of all goods and services oncampus. Contact Accounts Payable with questions and concerns about vendor payments, traveland expense claims, and independent contractor payments.How often are Accounts Payable checks issued?The Accounts Payable Department issues checks three times a week—Monday, Wednesday, andThursday. Checks are issued at approximately 12:30pm and are available for pick-up at theCashiers’ Window after 2:00pm. These times are approximate and can be changed or alteredunder certain circumstances. Ordinarily, it can take up to a week for a check to be issued. If acheck is needed as soon as possible, the requisition must be hand delivered to the AccountsPayable Assistant with a verbal request for the check to be issued ASAP. At that time therequester will be informed of when the check can be issued. Just marking “rush” or “needed by adate” is not sufficient for rush processing.Below is a list of items that the Purchasing/Accounts Payable Office can help you complete.Listed next to the task is the page number(s) where you will find instructions and advice onhow to complete this item.The Purchasing/Accounts Payable Office can assist you with these and other issues: Completing a purchase requisition, pages 9, 33 Ordering office supplies, pages 8, 77 Making travel arrangements, pages 16, 80 Finding a vendor for a product, page 94 Making reservations and arrangements for a speaker or visiting lecturer, page 21 Purchasing goods from on campus providers, such as the Bookstore, Printing Services,and the Post Office, pages 12, 36, 43, 71, 76 On-line ordering, page 134
Making a purchase at a local retail outlet such as Wal-Mart, Best Buy, or Circuit City,page 13 DHL, FedEx pick-up arrangements, page 90 Bus or vehicle rentals, pages 7, 15 Expediting order deliveries and resolving problems with vendors, page 9 Obtaining reimbursement for travel expense, pages 15, 37 Deciding which is the appropriate Fiscal Services form to use, page 32 Deciding what is the correct object point class number to use, page 465
GENERAL PURCHASING POLICIESALL PURCHASES OF SUPPLIES, EQUIPMENT, AND CONTRACT SERVICESTHAT ARE TO BE CHARGED TO UNIVERSITY DEPARTMENTS OR FUNDSCONTROLLED BY THE UNIVERSITY MUST BE MADE THROUGH THEPURCHASING OFFICE. LIMITED EXCEPTIONS TO THIS POLICY ARE NOTEDBELOW.For definition purposes, purchases, purchase transactions and procurement transactionsinclude the award and administration of contracts, agreements and subcontracts for the purchase,lease or otherwise acquiring of goods and services. The ordinary award or purchase document isthe official Marywood University Purchase Order, but other contract forms approved by the VicePresident for Business Affairs may also be used when necessary.The policies and procedures that follow apply to all such transactions supported by allfunds controlled by the University including federal, state, and other grant and contract funds.They incorporate long-standing procedures and practices of the University and also specialrequirements and regulations mandated by various agencies from which the University securesfunds for special programs.Unauthorized or Restricted PurchasesTHE UNIVERSITY CANNOT BE OBLIGATED EXCEPT BY PERSONSAUTHORIZED TO DO SO. The Board of Trustees and the President has delegated thisauthority to the Vice President for Business Affairs for all purchasing/procurement transactionsfrom funds controlled by the University.The Vice President for Business Affairs has further delegated this authority for purchasesto the Purchasing Office. Certain designated areas of the University by virtue of their specialneeds and the roles they fill at the University are authorized to issue purchase orders and/orinitiate purchase transactions independent of the Purchasing Office according to specialprocedures established for those areas. These areas are the Bookstore, and certain categories ofpurchases by the Library, MIS, Network Services, Physical Plant, and Printing Services. Noother departments may assume this privilege. No one else has the authority to enter into aprocurement transaction that binds or incurs a financial obligation for the University unless sodesignated by the President or the Vice President for Business Affairs. Purchases made byindividuals to whom this authority has not been specifically delegated are considered"unauthorized purchases" and are considered personal obligations of the person making thepurchase.An unauthorized purchase transaction or order is one that is made without the properauthorization of the Purchasing Office, or one of the areas noted in the preceding paragraph, andis intended to be charged to University funds. An unauthorized purchase may be evidenced by apurchase requisition that is sent in for approval to the Purchasing Office after the goods arealready purchased or ordered, or it may be evidenced only by an invoice from the vendor or by acheck requisition for payment of charges. Any individual who makes an unauthorizedpurchase has incurred a personal obligation and is personally responsible for the paymentof the charges incurred.The following is a list of items which cannot be purchased with University funds or whichhave restrictions attached to their purchase. This list should not be considered all inclusive, andgood judgment should dictate prudent use of University funds.6
Gifts, cards, flowers, plaques or monetary awards to individuals. Gifts and remembrances tohonor employees or external friends of the University are charged to budgets administered by thePresident of the University and the Assistant Vice President for Human Resources. In specialcircumstances, a gifts line item is approved for a departmental budget. Exceptions to this policymust be approved by one’s immediate supervisor. This is a Policy Statement that appears inthe Marywood University Policies and Procedures Manual—titled Gift Giving andRemembrances.Seasonal decorations such as for Christmas, for use in departmental offices, may not be chargedto department budgets. Such decorations are purchased by the Housekeeping Department only.Personal use items such as brief cases, desk pen sets, PDAs, coffee pots, and food items such ascandy or snacks for the department, may not be purchased from departmental budgets. Also,University personnel with purchasing authority may not purchase items for individuals for theirpersonal use or negotiate special discounts for University employees.Subscriptions. Only professional subscriptions related to a particular function of a departmentcan be charged to University budgets. Subscriptions must be in the name of MarywoodUniversity, C/O the department. Personal subscriptions to magazines, newspapers, etc. are notallowed. Departments are to avoid duplicate subscriptions of the same publication.Memberships. The only memberships subsidized by the University should be registered in theUniversity’s name, c/o the individual involved. The cost of individual memberships inprofessional organizations is the responsibility of the individual. However, professionalmemberships related to their work at the University are paid for the Sisters of the IHM with fundsprovided by the congregation. These funds are not to be included in a department budget.Computing Equipment/Software. The Director of MIS must approve all computer technologypurchases. Academic departments that wish to purchase inkjet printers, digital, video and stillcameras, or video editing equipment and other audio and video components, should contact theAssistant to the Vice President for Academic Affairs-for Technology, for suggestions and/orapproval. If there are any questions regarding these types of purchases, please confer with thePurchasing Office before any orders are placed.Equipment having an impact on utility services or that requires physical plant alterations must beapproved by the Physical Plant Department.Chemical Purchases. Special approval is required for all purchases of chemicals. Federal andState environmental regulations provide guidelines for the handling and storage of chemicals oncampus. The University is required to follow these guidelines that are for the safety of everyoneon campus. Therefore, one of the Environmental Safety Administrators must approve allpurchases of chemicals. Many of the chemicals used on campus have already been approved andthe names of these chemicals are maintained on a master list that can be accessed on theMarywood website, and therefore do not require a specific approval for every purchase. If adepartment wishes to order a chemical not on the list, then specific approval from one of theEnvironmental Safety Administrators is required before the Purchasing Office can issue apurchase order. Unapproved purchases/orders will not be honored and will be returned to thesender.Purchases for Clubs, Student Organizations & Agency Accounts. There are separate policyguidelines regarding these purchases. They are listed under Appendix C.Bus rentals to transport students must be processed through the Purchasing Office for allUniversity Departments. Whenever a bus is rented for transportation of students or employees of7
the University, the bus rental company must provide the driver. A current Certificate of LiabilityInsurance must also be provided to the University.Other vehicle rentals to transport students. The rental of vehicles other than a bus, to transportstudents, must be made through Enterprise Car Rental-the approved vendor on Campus.STUDENTS CANNOT RENT vehicles to transport other students or employees. An employeeover the age of 25 with a valid Pennsylvania Drivers License must be the designated driver andrenter. Arrangements must be made through the Purchasing Office via a purchase requisition.The employee should call Enterprise to reserve the vehicle. Due to safety concerns the rental of10 to 15 passenger vans is prohibited. Because the charges will be the responsibility of theUniversity, and the person driving the vehicle is a University employee, no additional insurance isnecessary; they are covered under the existing University insurance policy. Failure to complywith this policy places the respective individual fully responsible should an accident or damage toa rental vehicle occur. When renting a vehicle from Enterprise, regular purchasing proceduresdetailed in this Handbook should apply. For information regarding renting a vehicle for businesstravel by an employee, please see the Travel Policy and Procedures section in this Handbook .Brochures & Advertising. The Director of Communications must approve purchase requisitionsfor brochures and advertising before being submitted to the Purchasing Office. Any purchaserequisition not so approved will not be honored. Advertising for instructional departments mustbe processed through the respective department’s Dean’s budget. Employment advertising mustbe coordinated through the Human Resources Department.All contracts including leases and service agreements must be processed through thePurchasing Office accompanied by a purchase requisition. Department heads may not signservice contracts, leases, or rental agreements, unless permission to do so has been approvedthrough the Fiscal Services Department or the Office of the Vice President for Business Affairs.Agreements and contracts whose financial terms will be binding on the University must bereferred to the Vice President for Business Affairs before acceptance and execution. Suchagreements, contracts, and other official documents are to be forwarded to the Business AffairsOffice for review before being submitted to the Purchasing Office with a purchase requisition.Office Supplies. All departments must use OfficeMax Solutions to purchase their officesupplies. All orders must be placed on-line. Purchase requisitions or requests for reimbursementof office supply purchases, using a vendor other than OfficeMax, will not be honored withoutprior approval from the Fiscal Services Department. Please note the only exception that applies isif office supplies are purchased from the Marywood University Bookstore. For more informationregarding the purchasing of office supplies please refer to Appendix D titled OfficeMaxSolutions—Ordering & Receiving Instructions.Dining Services. Food served in any Marywood University facility is to be provided under thedirection of the University’s Dining Service—Chartwells. This would include luncheon anddinner meetings for lecturers, consultants, auditors, departmental guests, and departmentalmeetings that take place on campus. Exceptions to this policy must be approved by a VicePresident.Allowable/Unallowable Grant Purchases. Caution must be exercised for all purchases fromgrant accounts. Grant directors are responsible for observing restrictions or regulationsconcerning purchases from grant accounts. Ordinarily, the restrictions are included in the grantagreement or in regulations referenced in grant agreements. The general rule is that charges togrant accounts should be allowable, allocable and reasonable. Most federal grants and contractsmay refer to the cost principles included in Office of Management and Budget A-21 (OMB A21), which give guidance on allowable and unallowable costs.8
PURCHASING PROCEDURESThe Purchase RequisitionThe proper procedure to purchase or obtain any supplies, equipment, or services nototherwise delegated, is to submit a standard Purchase Requisition Form to the Purchasing Office.Upon completion, the purchase order number is written in the box located in the upper right handcorner of the requisition. For quick and efficient processing the requisition must be filled outproperly including pertinent information such as the suggested vendor—including an address, zipcode, and phone number; where the goods are to be delivered—including department, building,and room number; along with the date by which the items are needed. Also included should be acomplete and accurate description of the item(s)—including product or catalog numbers andquantity, the correct unit price, extended amount, and the budget number, along with the properobject point classification number. Make sure the person authorized to sign off on theappointed budget signs the requisition.If any of these items are missing or incomplete the Purchasing Office does retain the rightto return the requisition to the requesting department to be filled out properly. This will delay theprocessing of your purchase order and therefore it is advisable to review the form before sendingit to the Purchasing Office for completeness and accuracy.Please refer to Appendix A for complete instructions on how to fill out the PurchaseRequisition. A sample copy of the form is also supplied.The Purchase Order1. Upon receipt of a completed purchase requisition, the Purchasing Office issues anofficial Purchase Order.2. Two copies of the Purchase Order are printed. One copy is mailed to the vendor.One copy is forwarded to the department—this is considered the receiving copy.Please be aware that if you indicate on the purchase requisition that you are faxing orphoning in the order and instruct Purchasing not to mail a confirming copy, you willreceive only 1 copy of the Purchase Order. This copy can be used to fax or phone theorder in and then will also be used as the receiving copy of the Purchase Order.3. Immediately upon receipt of items ordered, the receiving copy of the Purchase Order issigned, dated, and sent to the Purchasing Office as evidence that items requested havebeen received. For partial deliveries, do not hold the receiving copy. Back orders canbe acknowledged on a back order acknowledgement form supplied by the PurchasingOffice.Please report immediately the following to the Purchasing Office:1.Delay in receiving goods ordered.2.Special attention requested but not rendered by the vendor.3.Claims, shortage, or damages noted upon receipt of materials. Do not return goodsuntil advised by the Purchasing Office.9
Ordinarily, the Purchasing Office will issue a purchase order for the items listed on thepurchase requisition to the suggested vendor on the assumption that the department has followedthe general purchasing guidelines. These guidelines can be found in Appendix H titled GeneralPurchasing Considerations. The Purchasing Office has the authority to challenge the orderingdepartment concerning the quality, quantity, and type of materials requested or to suggest anothervendor so that the best interest of the University may be served.As stated earlier, when office furnishings are needed, the department needs to speak to theSuperintendent of Housekeeping/Maintenance first. They will check to see if there is an existingpiece of furniture in storage that will meet the department’s needs. If not, they will advise you onhow and where to order the furnishing. When computer hardware or software is needed, therequests must be made to the MIS Department first. They will make a determination of whetheror not the equipment is necessary or whether or not it is already available on Campus.Requisitions for Emergency Supplies and ServiceThe Purchasing Office will be pleased to cooperate with any departments in taking care ofa GENUINE emergency. Purchases under this category include those items necessary forcontinuity of operations or situations which arise suddenly and cannot be reasonably anticipated.Contact the Purchasing Office for instructions as to the procedure when the emergencydevelops. A purchase order can be issued on short notice so that a purchase order number can begiven to a vendor by phone or so that a purchase order can be faxed to the vendor by the userdepartment. Departments should not phone or fax orders to vendors or make purchases without avalid purchase order number from the Purchasing Office.When necessary the Purchasing Office will assist departments by phoning or faxingorders. However, due to the volume of purchase orders processed by the Purchasing Office daily,it is preferred that the user department phone or fax their own orders once they are completed.Confirming OrdersAs stated above, orders may be placed by phone or fax if the circumstances warrant it. APurchase Order will then be sent to the vendor with the notation "Confirming Order-Do NotDuplicate”. Such orders may be placed by phone or fax only after a purchase order number hasbeen issued by the Purchasing Office.To obtain a purchase order number, a purchase requisition must be submitted to thePurchasing Office with a request that the user department be allowed to phone or fax the order.The Purchasing Office will then issue a purchase order and notify the user department of thepurchase order number.Purchases Requiring PrepaymentAs a rule, payment will not be made before goods or services are received. However,prepayments can be made in situations where it is required by a vendor or in cases whereprepayment results in significant savings to the University.A prepaid purchase must be processed on a purchase requisition. The purchase requisitionshould note that prepayment is requested. Documentation must be attached to the requisition10
justifying the need for prepayment.The final decision to determine if a prepayment may be made rests with the PurchasingOffice. Such orders may take an extra day or two to process. Check requisitions attached tovendor order forms will not be honored for prepaid purchase transactions.11
OTHER PURCHASE TRANSACTIONS THAT DO NOT REQUIRE APURCHASE ORDERCheck Requisitions are to be used only for subscriptions, membership renewals, and a limitednumber of special purchase situations authorized by the Accounts Payable Office or FiscalServices prior to the purchase being made. Proper back-up documentation, i.e. renewal forms,applications or invoices, should be attached to the check requisition. Any check requisitionwithout proper back up attached could delay the processing.PURCHASES MADE BY INDIVIDUALS AND SUBMITTED TO THE PURCHASINGOR ACCOUNTS PAYABLE OFFICE WITHOUT PRIOR APPROVAL WITH A CHECKREQUISITION WILL NOT BE HONORED FOR PAYMENT.Petty Cash Requisitions. Petty cash may be used for small purchases of less than 100. Pettycash requests are to be made at the Purchasing Office with a blue Petty Cash Requisition Formbefore a purchase is actually made except for emergency purchases.Receipts for petty cash expenditures are required for audit documentation. Receipts are tobe handed in to the Cashier's Office within 5 days of the receipt of the petty cash.Interdepartmental Charges. Departments may charge purchases made at the Bookstore, DiningServices, MIS and I-Tech Services to their respective department budgets. Personnel completean Inter-Departmental Charge Requisition Form (yellow) making sure to first have it authorizedby the chairperson or person with budget authority before submitting it to the department/areawhere the purchase is being made.Further instructions on how to complete each of these forms along with sample copies of theforms themselves can be found in Appendix A—Purchasing Forms.12
POLICY AND PROCEDURES FOR USING THE UNIVERSITY PURCHASINGVISA CREDIT CARDWhen placing an order, it is always preferable to use a purchase order and have thecompany direct bill us. However, there are some instances where a purchase order will not beaccepted. On-line orders are becoming more prevalent and more than likely need the use of acredit card. Sometimes a company doesn’t want to go through the trouble of establishing creditwith us if they know it’s going to be a small or one-time order. Smaller companies sometimesprefer payment up front. Also, some companies will agree to establish credit with us after the firstorder is prepaid either by check or credit card. In any of these instances the MarywoodUniversity VISA held in the Purchasing Office can be utilized.IMPORTANT: Each time an order is placed using the VISA, it must be pre-approved bythe Purchasing Department. The account number should not be kept on file and usedwhenever the department deems it necessary. If an order is placed without prior approvalfrom the Purchasing Department, the individual placing the order may be held personallyliable for the charge.On-Line Ordering & the Proper Use of the Credit Card1.Prepare a Purchase Requisition, just as you would for any other order. Under thedescription of the items that you are ordering, inform the Purchasing Assistant thatthe VISA will need to be used instead of a purchase order. Also give a reason as towhy the VISA is being used instead of a purchase order, i.e.: Company will notaccept purchase order, etc.After the Purchasing Assistant has determined that this is a legitimate use of theVISA, she will forward to you via e-mail the VISA information: name of account asit appears on card, account number, expiration date, and the 3 digit verificationnumber that appears on the back of the credit card. It is the department’sresponsibility to place the order using the credit card information provided. TheState Sales Tax-Exempt number will also be included in this information. You mustforward this number to the vendor so that we will not be charged sales tax on theorder. If Purchasing disallows the request, an e-mail will be forwarded to thedepartment with an explanation of how to proceed with the order without the use ofthe credit card.2.Purchasing will use the purchase requisition to encumber the department’s budget.The original purchase order will not be sent to the vendor, however the receivingcopy of the purchase order will still be forwarded to the department. When thedepartment receives their order, clear the receiving copy of the purchase order just asyou would for any other order. If you were given any documents with your order, aninvoice/packing slip, or if you received a confirmation for the order, please attachthese document(s) to the receiving copy and forward them to the Purchasing Office.3.If the total amount of the order is different from the original estimate, Purchasing willamend the encumbrance to reflect the true total.Using the VISA at Wal-Mart, Best Buy--or other local retail outletsAn alternative to using petty cash to purchase items at retail outlets that will not accept a purchaseorder, or direct bill the University is to use the V
Below is a list of items that the Purchasing/Accounts Payable Office can help you complete. Listed next to the task is the page number(s) where you will find instructions and advice on how to complete this item. The Purchasing/Accounts Payable Office can assist you with these and other issues: Completing a purchase requisition, pages 9, 33
