5D-0317 PURCHASING PROCEDURES
Special Procedures and Limitations
Items on Contract or From Restricted Sources
Emergency Procedures $5,000 or More
Procedure for Approving Invoices
Procedures for Completing Forms
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Other Documents
Items Available on State Contract
Kansas Correctional Industries Products and Services
University Policy Manual (PDF)
5D-0315 PURCHASING PROCEDURES
State of Kansas (State) purchasing guidelines must be followed when purchasing goods or services with funds on deposit with the state treasurer. These funds include general use funds, restricted funds, and sponsored projects. The State Department of Administration’s Division of Purchases controls the purchasing functions of all state agencies. For additional information see the Division of Purchases web site at: http://da.state.ks.us/purch/
There are some situations for which the Division of Purchases has delegated purchasing authority to the agencies (direct purchasing). The following procedures are based upon guidelines established by the State Division of Purchases and the Emporia State University Business Affairs Office (Controller’s Office). If these provisions conflict with any existing arrangement or authority for purchasing, such authority is hereby withdrawn. If any employee has specific questions concerning purchasing procedures, he or she should contact the Controller’s Office.
In order to provide for proper internal control, no one person should have the authority to approve purchasing and disbursement documents and also maintain the accounting records of the department (units). It is understood that staffing levels do not always allow for such separation of duties. When duties cannot be separated, special care should be utilized by the unit head to prevent any unauthorized activity. Questions regarding assistance in improving purchasing and disbursements controls should be directed to the Controller’s Office or the Internal Audit Office.
5D-0316 APPROVAL AUTHORITY
Each unit head should determine who has authorization to approve the documents related to purchasing and disbursements in that unit. If such documents are signed by someone other than the head of the unit, the delegation of authority and any related limitations on that authority should be documented in writing and forwarded to Accounts Payable.
The use of rubber stamp signatures is not permitted because access to stamps is difficult to control. The use of initials is also discouraged, except in circumstances where a unit head delegates approval to an employee by allowing that employee to sign the unit head’s name followed by the employee’s initials. Any purchasing documentation or invoices sent to the Accounts Payable Office without proper approval will be returned to the unit.
5D-0317 SPECIAL PROCEDURES AND LIMITATIONS
Employees will not use direct purchases for items to be placed in stock for future use. Direct purchase procedures are to be used only for emergency purchases. Regardless of the authority for direct or local purchasing, the services of the Division of Purchases should be used whenever possible to purchase items of a competitive nature. Invoices can not be split to keep within dollar limitations.
Items purchased from other departments of the University or other state agencies are not subject to dollar limitations; however, these transactions may require a contract cover sheet DA-146 and DA-146A (contact Accounts Payable). Items purchased from the Surplus Property Section, Department of Administration, are not subject to dollar limitations. Contact the Controller’s Office concerning necessary authorization to make such purchases.
Purchases from University or State employees, or family members of employees, must have prior written approval from the Controllers’ Office. These purchases will be very limited.
Trade-ins: Any purchase order with a trade-in must be accompanied by a Transfer of Property form available on InForms. All items being traded in are subject to current disposal procedures. Provide a statement in the description when items are purchased for resale or for repair parts.
5D-0318 ITEMS ON CONTRACT OR FROM RESTRICTED SOURCES
Open-End State Contracts: Contracts have been established with specific vendors for all commonly used items and services. Items or services included on open-end or fixed quantity contracts must be purchased from contract vendors. Most open-end contracts are listed at the state web site: http://da.state.ks.us/purch/contracts/Contract.asp. For contracts currently not listed at the web site, contact Accounts Payable x5145. Current contract number, dates, and other information must be used.
Office Supplies: Office supplies are available from the Physical Plant Storeroom, State of Kansas Products and Services, or open-end contracts. In InForms, see “supplies” for “Requisition for Office Supplies” with drop down box description listing for ordering. If questions regarding items is not listed on InForms, contact the storeroom x5019. Each office has a copy of the Kansas Products and Services catalog. If questions arise, contact Accounts Payable x5145.
Printing Supplies: Stationery, paper, and printing items are available from Emporia State Printing Services. See “paper” for “Requisition for Paper Supplies” in InForms with drop down box description listing for ordering.
Kansas Industries Products: State law requires the University to purchase certain items from the State of Kansas Products and Services Manufactured and Offered by Blind and Severely Disabled Kansans and Kansas Correctional Industries. Each office has a catalog for Kansas Products and Services. A Kansas Correctional Industries catalog is available in the Accounts Payable office. Information can be obtained online at: http://www.kancorind.com. The University cannot pay any other vendor for these items without approval from the Director of Purchasing or the Secretary of Administration. Contact the Controller’s Office for instruments to submit a request.
5D-0319 EMERGENCY PROCEDURES $5,000 OR MORE
For items costing $5,000 or more, prior permission from the Controller’s Office and the Division of Purchases is required. A prior authorization form from the Division of Purchases must be completed and submitted to the Controller’s Office. Permission from the Division of Purchases will be obtained by the Controller’s Office. When an emergency purchase has been approved and completed, the unit head should approve the invoice and send it to Accounts Payable. The approved prior authorization form should accompany the invoice. The form is available on the Division Purchase’s website.
Emergency purchases are those transactions required to obtain equipment, supplies, foods, or materials necessary for the preservation of life or property.
5D-0320 PROCUREMENT REQUIREMENTS
A purchase order should be submitted to Accounts Payable for the purchase of goods and services. The form is available on InForms. See “po” for “Purchase Order.” The following section provides additional information regarding specific purchases.
Advertising: The use of general-use funds appropriations for the purchase of advertising by the institutions under the jurisdiction of the Board of Regents must be approved by the University President, except that advertising costs necessary to meet affirmative action requirements may be paid from the general-use funds. Limited use of restricted funds for advertising is authorized when approved by the proper officials.
Binding: Available from the State Printer and may not be purchased from any other source without prior approval. Contact Accounts Payable.
Books: Copyrighted items are purchased on ESU purchase order. No dollar limitations apply.
Building Materials and Supplies: May be purchased from the Physical Plant or from local vendors. Orders of $5,000 or more must be processed through the State Division of Purchases.
Carpeting and Draperies: Some carpeting and draperies are available on state contract. Purchases of carpeting and draperies must meet certain fire codes. Guidelines are available in the Controller’s Office along with the necessary forms to be completed.
Contracts: All contracts must be reviewed and signed by the Controller or the President of the University. The department head should sign a purchase requisition and send with the contract to the Controller to authorize funding for the contract. Contracts of $10,000 or more must be sent to the Division of Purchases for approval.
Copying Machines: Copy machines must be leased from state contract or bid if requirements are not provided for on contract. Contact Accounts Payable in advance for details needed.
Drug and Pharmaceuticals: Most items are on state contract. Contact Accounts Payable.
Foods: Food may be purchased only for instructional purposes, except when fees are collected for this purpose, or for official hospitality.
Fuels other than Gasoline: May be purchased through the Physical Plant or from local vendors on a purchase order.
Gasoline: A business procurement card for state vehicle fuel and emergency repair purchases will be used when operating a state vehicle away from campus.
Insurance Premiums and Surety Bonds: State law does not allow for the purchase of insurance in most cases. Allow several months for processing because prior approval must be obtained from the State Insurance Commissioner and all insurance coverage must be bid by the State Division of Purchases.
Leasing of Equipment: Lease agreements must be approved by the Controller’s Office. When considering leasing equipment, contact the Controller’s Office for guidance. Leases of $5,000 or more must be bid. All lease agreements totaling $10,000 or more per year require the processing of a contract cover sheet, form DA-146 and DA-146A (contact Accounts Payable).
Leasing of Land and Space in buildings: Real Estate Lease Agreement Form DA-46 must be completed. Forms are available in the Accounts Payable office. This requires approval by the Division of Facilities Management. Requests should allow six months lead time.
Meals: May be purchased from restricted fee funds only when fees have been collected for that purpose. Meals may be purchased from general use funds per official hospitality guidelines below.
Memberships: All memberships must be institutional (no individual memberships allowed) and have beginning and ending dates. Memberships can only be paid in the fiscal year in which they begin.
Motor Oil: Motor oil may be purchased from the Physical Plant.
Office Supplies: Office supplies may be purchased from the Physical Plant Storeroom located in the Stormont Maintenance Center or from state contract.
Official Hospitality: Complete guidelines for official hospitality are available through the State website http://www.da.ks.gov/ar/ppm/ppm03351.pdf. Complete information must be provided to Accounts Payable on a regular purchase order, including department account # (must be paid from OOE – Fund No. 1000), vendor name and address, number of meals to be provided by vendor, meals provided (indicate lunch, dinner, etc.), host and title, date of event, purpose of event, anticipated benefit, list of persons attending the event (if more than 20, indicate total number attending and identify the group), estimate of expenses if encumbering funds before event or actual expense if paying the invoice.
Postage: In exceptional cases, postage may be purchased from the U.S. Postmaster by using a money-with purchase order.
Printing and Duplicating: Purchases must be made from ESU Printing Services or the State Division of Printing. All exceptions require prior approval by the director of ESU Printing Services.
Professional Fees: Fees are to be contracted for on an Agreement for Consultant form. The form is available on InForms listed as “consult.” Honorariums and similar payments for state employees should be contracted using the consultant form but will be paid as a salary supplement. State employees may be reimbursed for official travel at current rates. All contractual services must be approved by the Controller’s Office prior to being contracted.
Professional Services: Professional Services means services performed under a contract with a state agency by any: 1) Certified Public Accountant, 2) Attorney, or 3) Consultant. Consultant means an individual or firm providing contractual services in the form of professional or technical advice or opinions. If a department needs a contract for services, contact the Controller’s Office.
Prospective Faculty Interview Expense: The Board of Regents authorizes the chief executive officers of the Regents’ institutions to invite applicants to Kansas for interview without advance approval of the Board, provided that such invitations are reasonable, and further provided that they be for positions having the academic rank of assistant professor or higher, or the equivalent of such rank. The request for Approval of the Prospective Faculty Interview Expenses should be submitted to the Equal Opportunity Office, 202 Plumb Hall. The form is available on InForms as “candidat.” Original receipts must be provided.
Registration Fees: If a department wishes to prepay a conference or seminar registration fee with a credit card, the Registration Purchase Order should be completed, approved and submitted to the Controller’s Office. If paid as money with order, submit to Accounts Payable. Fees may be paid by the traveler and reimbursed on a travel voucher.
Repairing of Equipment: Repairs are requested on a purchase order. Permission to make repairs of $5,000 or more must be obtained from the State Division of Purchases in advance. This request will be made by the Controller’s Office.
Scientific Supplies and Materials: Many items are on state contracts.
Stationary: Stationary must be purchased from ESU Printing Services.
Subscriptions: Subscriptions must be in the University’s name, must have beginning and ending dates, and can only be paid in the fiscal year in which they begin.
Telephone: For service on present equipment or to obtain new service, contact Technology and Computing Services x5102.
5D-0321 PROCEDURE FOR APPROVING INVOICES
Only original invoices should be approved. Payment cannot be made from a statement. If the original invoice is lost, indicate that on the copy being approved. If grant funds are involved, send to Research and Grants; otherwise send to Accounts Payable.
- Confirm calculations on the invoice.
- Confirm invoice prices with contract prices.
- When claiming a credit, a credit memo must be forwarded with invoice.
Invoices for items purchased may be submitted for payment by indicating the following:
- Date goods received
- Specify whether the order is complete
- Department account number
- PO or Encumbrance # (if not encumbered indicate N/A)
- Full signature of person authorizing payment
- Date approved
Each department should obtain a stamp of the above information from State of Kansas Products and Services. The use of the stamp will assure that all needed information is entered on the invoice and will assure uniformity.
Purchases without prior authority should be carefully considered. Employees should make certain no rules or regulations have been violated. A purchase order is not required with direct purchases but a description of items purchased must be clearly indicated on the invoice. The purchase of items without a proper University Purchase Order is the personal responsibility of the individual until the warrant covering the invoice is issued by the State of Kansas.
Prior Authorization: Sole Source – The Prior Authorization Form is required when determining only one vendor is qualified t provide the requested supplies/services. Off contract purchases also require the use of the Prior Authorization Form.
“Money With” Purchase Order (two copies required, three copies required for grants): A purchase order is prepared in the format outlined. In addition, these orders must have anotice attached giving the cost of materials to be purchased. “MONEY – WITH ORDER” should be inserted at the lower part of the description on the purchase order. If a conference or seminar registration fee is to be prepaid, the following information must be given:
- Who: name of person being registered
- What: name of conference, seminar, etc.
- Where: location of conference
- When: dates of conference
- Meals: indicate whether or not meals are included in the registration
- List as: 1 lunch, 2 dinners, no meals, etc.
Distribution: The department forwards all copies to Accounts Payable except when a grant (department numbers also 710, 720, 721, and 722) is involved. When a grant is involved the department should send copies through the Grants Office.
5D-0322 PROCEDURES FOR COMPLETING FORMS
ESU Purchase Order (four copies required, five copies required for grants):
The department prepares a purchase order. This type of requisition is for purchases made directly by the University. The purchase order number is placed on the form by Accounts Payable. A purchase order is not used when goods have been received.
State of Kansas Contract Items (four copies required, five copies required for grants): A purchase order is prepared. In addition, the state contract number from which purchases are being made must be placed in the lower area of the description section of the order. (Do not obtain contract information from an old invoice or previously prepared purchase orders as the information is usually out-of-date.)
Items Sent to Topeka for Bidding (two copies required, three copies required for grants): A purchase order is prepared. Orders that total $5,000 or more (including shipping), for items that are not on State Contract, are let out for bidding by the Division of Purchases. Give complete description and specifications including name of the item, manufacturer’s model number, size and color. If units are used, show the number in the unit (i.e. 12 per box)
To obtain maximum benefit from competitive purchasing, it is essential that correct, complete and precise descriptions and specifications are provide which identify beyond question the exact item needed.
In many cases it is appropriate to use a brand name and identifying number (catalog or stock number) as part of the specifications provided the words “or equivalent” are used to avoid restricting the purchase to a particular brand or trade name. However, the brand name does not constitute complete specifications and sufficient additional specifications must be shown. Complete specifications and few restrictions permit more competition and better prices.
If the items being requested are to be used in conjunction with present equipment, “upgrade” needs to be indicated for inventory purposes. If it is necessary to purchase a particular company’s product, this information and the reasons necessitating such a purchase should be shown on the purchase order. Reasons shown should be objective and not personal preferences. Turn around time for the bid process is usually three to four weeks. Please allow lead time.
Special comments or conditions concerning purchase or shipment and the name and telephone number of the person in the department to be contacted for more information about the order should be noted near the bottom of the purchase order. Attach quotations, sketches, blueprints, catalog pages or any other material which may be helpful. Lengthy specifications should be provided on disk or by e-mail in addition to printed information so this information may be forwarded to the Division of Purchases electronically.
If used equipment is to be traded, describe the items to be traded just below the description of the new equipment. “Transfer of Property: for the item to be traded must accompany the purchase order.
5D-0323 REVIEW OF BIDS
If the department wishes to review the bids prior to placement of the order, this request should be shown on the purchase requisition. Such request should be made only when necessary because the review of bids will delay delivery. If this request is not made, the Division of Purchases will decide whether to contact the University before placing the orders. Use one of the following statements if review of bids is desired: 1) Please send bids for our review before issuing the P.O.V. 2) Unless P.O.V. is to be issued to the recommended vendor, please send bids for our review.
5D-0324 APPROVAL OF CONTRACTS
Contract Authority: Board of Regents policy requires that only the University’s Chief Executive Officer, or a specifically authorized designee of the Chief Executive Officer, shall execute contracts on behalf of the University. Only the President of the University and the Controller have been designated by the General Counsel of the Board of Regents as authorized to execute contracts on behalf of Emporia State University.
Contract Review: Various Board of Regents, state and federal policies and statutes govern the contents and approval of contracts executed on behalf of Emporia State University. The Controller of the University is responsible for ensuring University compliance with these policies and statutes. All contracts binding the University shall be reviewed by the Controller and referred by the Controller to the appropriate University Officer for signature.
Agreements of $10,000.00 or more: All contracts of $10,000.00 or more must be processed through the Controller’s Office on a State of Kansas DA 146 Form (Contract Cover Sheet) and a signature of the President or the Controller. A minimum of two weeks lead time should be allowed for this process to be completed in Topeka.
Real Estate Lease Agreements: All leases for real estate should be initiated six months in advance of the date the space is needed. These agreements will require the signature of the President or the Controller. Any commitment to lease space not owned by the University or space to be used by a non-University entity on an ongoing basis is included in this requirement. This policy applies even if no funds will be expended for the lease.
Construction Contracts: All contracts for construction of facilities requires the signature of the President or the Controller.
Service/Maintenance Agreements: All service and maintenance agreements must be signed by the President or the Controller.
Consultant Fee Agreements: All agreements for payment of consultants require the signature of the Controller. Consultant agreements over $5,000 require competitive bidding through the Department of Administration’s Division of Purchases.
University-related Organizations: University contracts with the Memorial Union Corporation, the ESU Foundation, and the ESU Alumni Association require the signature of the Controller.
Administrative Authorizations: A memorandum with the following statement must be attached to the contract when it is submitted to the Controller’s Office:
The attached contract has been thoroughly reviewed by the Department
Of ________________ and meets the needs of our department. All costs or
Commitments by the University are fully revealed in this agreement.
Account Number to be charged: __________________________
Department Head/Director’s signature: __________________________
Dean/Vice President’s signature: __________________________
Contract Authority: _______________________________
Failure to follow University policy on contracts may result in University employees acting outside their capacity of scope of employment. This may void the protection afforded State employees under the Kansas Tort Claims Act and result in personal liability. The Kansas Tort Claims Act requires State employees to operate within their assigned capacity.
Created: November 2000 |
Last Updated June 28, 2007