Utah Valley University Purchasing Basics

1. Utah Valley UniversityPurchasing Basics Procurement Training

2. Mission Statement • 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.

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

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

5. Requisitions/Purchase Orders • 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.

6. Types of Purchase Orders • 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.

7. Change a PO • 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

8. Commodity-Specific Ordering • 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

9. Commodity-Specific Ordering • 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

10. Commodity-Specific Ordering • 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.

11. When is a bid required? • $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.

12. Bid Process • 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

13. Bid Process • 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.

14. Special Circumstance Purchases • 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.

15. Independent Contractors – A/P • Services performed by individuals. • No product • No companies • Requires Responsible Party signature. • Second Level approval required for payments $1000 or more.

16. Independent Contractors • 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/

17. Purchasing Card • Intended for small-dollar purchases. • Per-purchase limit usually set at $1000. • Monthlylimit 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).

18. P-Card – Restricted Purchases • 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.

19. Purchasing Card (cont.) • P-Card Audits • P-Card Guidelines • http://uvu.edu/procurement/policies/pcard/index.html

20. On-line Office Supply Stores • 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.

21. Limited Purchase Check • 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.

22. LPC (cont.) • 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).

23. LPC – Restricted Items • 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

24. LPC (cont.) • 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/

25. Stores/Warehouse Requisitions • 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.

26. Check Requests – A/P • “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.

27. Check Requests – Proper Use • 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.

28. Required Approvals • 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.

29. Inappropriate Expenditures • 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

30. Expenditure Policy • “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)

31. Violations • 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.

32. Where can I find more info? • www.uvu.edu/procurement • Tips and FAQs • Step-by-step instructions • Written instructions • Online interactive simulations • Policies and Procedures • Procurement Training

33. Procurement ServicesHere to Serve You