Part 3: Your Authority to Act, and Your Responsibilities as an Associate Buyer

1. Part 3:Your Authority to Act, and Your Responsibilities as an Associate Buyer

2. Associate Buyer Stewardship • As an agent of the University you need to understand and apply the following concepts: • Authority and Agency Limits • Ethical Standards • Maintaining Positive Relationships • Obtaining Best Net Value • Enhancing Competition and Negotiating from a position of strength for Win—Win outcomes • Alliance with the Purchasing Team

3. Authority & Agency Limits • Granted Authority • Delegated Authority • Apparent or Implied Authority • Authority Limits

4. Delegated Agent Authority • Authority has been delegated to campus departments to make purchases as designated by policy. • Departments in turn authorize individuals to review, approve, or sign for purchases made. • As an Associate Buyer you will receive specific delegated authority to create and approve Fast Track Payment Requests. • As an agent, you represent the University.

5. Apparent or Implied Authority • If the vendor reasonably believes that the requestor is an authorized agent of the university, then requestor can become an agent because he/she has “apparent” authority. • The risk of over-committing the University beyond the requestor’s actual authority is real. The results can damage vendor relations, put University at risk, and not achieve best net value for the University. The employee may also be liable for commitments made.

6. It’s all about Commitment! • Basic Principle: BYU Employees must not make commitments that are not within their delegated authority or agency. • The following factors determine agency: • What the expenditure is for. (Is it a Fast Track category?) • How it will be paid. (P-Card Holders and Associate Buyers have specific delegated authority to use those payment tools.) • Who we are paying. (Sometimes there are Human Resources implications.)

7. What is a violation of my Delegated Authority? • Acting as an Agent of BYU to make any commitment you are not authorized to make. • Attempting to use Fast Track for anything that is not within the Fast Track Commodity/Service Classes. • It is a violation of University Policy for anyone who is not an Associate Buyer to make a commitment that will require Fast Track for payment to an Independent Contractor or Supplier.

8. How will violations be handled? • First Offense: A letter will be sent to the vendor, the person submitting the check requisition, that person’s controller and dean/director, stating that the vendor interacted with someone who was not authorized to make commitments on behalf of the university, but as a courtesy, payment will be made after a review process.

9. How will violations be handled? • Second Offense: A letter will be sent to the vendor, the person submitting the check requisition, that person’s controller and dean/director, reminding them of the first infraction and subsequent letter—stating that the University will not be making payment, and advising the vendor to look to the person with whom they contracted for remuneration.

10. Fast Track Dollar Limits • No specific limits are set for Fast Track transactions, though the requirements for CFO approval over $1,000,000 and Legal Review apply to Fast Track transactions. • You are responsible as an Associate Buyer to see that Fast Track payments are fair and competitive, even though bidding procedures are not required, and there are not set dollar limits within most of the Fast Track Commodity / Service Categories.

11. Ethics • “ A set of moral principles or values; the principles of conduct governing an individual or group.” Webster • Ethical Decision, “ Conforming to accepted professional standards of conduct.” Webster

12. Ethical Supplier Relationship Management • Guard confidential vendor information. Do not share with other BYU or Church entities wishing to sell products or solicit donations. • Be sensitive to purchase price information. • Purchases are for BYU benefit, unless offered to all employees. • Interactions maintain the integrity of BYU and persons involved. Treat all vendors in a professional and considerate manner. • Our Standard Procedure: Confidential Proposals.

13. Conflict of Interest • “Carefully consider all circumstances and possible consequences of business and personal dealings that might be in conflict with their Church employment” PTPD Umbrella Policy • Employment status must not be used to influence business transactions for personal benefit, nor relative or work associate. • Avoid situations or activities that could, or appear to compromise one’s ability to perform duties in the best interest of the institution. • “Disclosure of Possible Conflict of Interest Form”.

14. Code of Ethics • Purchasing individuals must have a highly developed sense of professional ethics to protect personal institutional reputation for fair dealing. A code of ethics has been adopted by the National Association of Educational Procurement (NAEP) to strengthen ethical awareness, and provide guidelines for the purchasing profession.

15. Code of Ethics--NAEP 1. Give first consideration to the objectives and policies of my institution. 2. Strive to obtain the maximum value for each dollar of expenditure. 3. Decline personal gifts or gratuities. 4. Grant all competitive suppliers equal consideration insofar as state or federal statute and institutional policy permit. 5. Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.

16. Code of Ethics--NAEP 6. Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the product. 7. Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes. 8. Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier; and/or be willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of my institution permit

17. Gifts • Vendors Like to be thought of as generous—for their own business reasons—not ours. Avoid personal offerings, but don’t overreact. • Good rule of thumb: can this be shared around the office? • Determine ahead of time how gift offerings can be declined. • Insist on buying lunch during period of negotiation. • Purchasing pays own travel expenses when visiting vendor facilities.

19. BYU: Gifts from Vendors or other Outside Sources Policy 19 August 2002 BYU personnel may not solicit nor accept gratuities, favors or anything of monetary value from any firm, organization or contractor with which the University does or may conduct business. Faculty, administration and staff shall neither solicit nor accept gratuities, favors or anything of monetary value from any firm, organization or contractor with which the University does or may conduct business. If they do so, they will be subject to University disciplinary action. The only exceptions to this policy are advertising items of nominal value such as a modest desk calendar, pen, pencil, note pad, etc.