Procurement Training

Utah Valley UniversityPurchasing Basics

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.

Mission Statement

2

Procurement Services provides help with:◦ Saving your department money◦ Sourcing assistance◦ Purchasing expertise and experience◦ Creating efficiencies◦ Upholding University policy and procedures

Purchasing Assistance

3

What are the rules? What are my procurement tools? When do I use each one? How can I get more help?

Topics

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.

Requisitions/Purchase Orders

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.

Types of Purchase Orders

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

Change a PO

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

Commodity-Specific Ordering

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/contractsearch.aspx

Commodity-Specific Ordering

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.

Commodity-Specific Ordering

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.

When is a bid required?

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

Bid Process

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.

Bid Process

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.

Special Circumstance Purchases

14

Services performed by individuals.◦ No product◦ No companies

Requires Responsible Party signature. Second Level approval required for

payments $1000 or more.

Independent Contractors – A/P

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/

Independent Contractors

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).

Purchasing Card

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.

P-Card – Restricted Purchases

18

P-Card Audits

P-Card Guidelines◦ http://uvu.edu/procurement/policies/pcard/index.html

Purchasing Card (cont.)

19

Violations Point ValuePersonal Purchase 150Splitting of Transaction 60Purchase of Restricted Item 40Lack of Signature on Monthly Statement 40Receipt/Paperwork Missing 30/40/50Fabricated Equipment or Furniture Purchase 30Taxes charged on Purchase 10

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/venderaccountform.html

Items are usually delivered in 1 - 2 days.

On-line Office Supply Stores

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.

Limited Purchase Check

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).

LPC (cont.)

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

LPC – Restricted Items

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/

LPC (cont.)

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.

Stores/Warehouse Requisitions

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.

Check Requests – A/P

26

Should only be used if the expenditure cannot be feasibly made using an LPC, P-Card, 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.

Check Requests – Proper Use

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.

Required Approvals

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

Inappropriate Expenditures

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)

Expenditure Policy

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.

Violations

31

www.uvu.edu/procurement◦ Tips and FAQs◦ Step-by-step instructions

Written instructions Online interactive simulations

◦ Policies and Procedures◦ Procurement Training

Where can I find more info?

32

Procurement Services

Here to Serve You

33