Policy No.: 104.0
Revision No.: 3
Effective Date: 5/1/97
Category: Purchasing
Title: Policy & Procedure Overview

The mission of the Procurement Department is to assure maximum value at minimum cost for purchases of goods and services. In order to utilize the Procurement Department effectively, take note of the following procedures:

A. Before entering any discussions with any vendor, that vendor must be approved by the Procurement Department. No discussion or resultant agreement can be recognized by the University with an unapproved or unregistered vendor. Normally, the Director of Procurement or Asst. Director of Procurement are the  only individuals authorized to request bids from vendors. If you require direct contact with the vendor, prior approval must be obtained from the Director of Procurement or Asst. Director of Procurement unless the vendor is on the list of preferred vendors. Specific departments may be granted this approval based on the technical requirements of their purchases. B. The Electronic Purchase Order Requisition (EPOR) or paper purchase order requisition (POR) is the method used to initiate the purchasing process. C. Dollar value of purchase determines the signature and investigation protocol for all purchases. The approval process is as follows:

Expenditure Limits	Level 1	Level 2	Level 3	Level 4
Up to $1,000.00	x
$1,000.01 to $10,000.00*	x	x
$10,000.01 to $25,000.00*	x	x	x
Over $25,000.00**	x	x	x	x

Level

1.	Cost Center Manager
2.	Budget Center Manager
3.	Chancellor, President, or Member of Executive Cabinet
4.	Finance Committee of the Board of Regents

* If higher level signature has been obtained, lower level signature is not required.

** Any transaction over $25,000 also requires the signature of the Controller.

D. As provided in the annual budget, funds are available to expend for purposes which are specifically approved by the Board of Regents. It is the responsibility of each Budget Center and Cost Center manager to understand the budget in detail and to ensure that all expenditures and commitments of funds are proper and do not exceed limits established for each budget.

E. Approval Authority: Requirements

1. All documents related to purchase commitments, payments or reimbursements must have a dated signature. 2. Payments will be made based on properly approved documentation. The requirements for approvals are based on the amount and are listed in this section. 3. Individuals with approval authority cannot approve reimbursements of travel and entertainment expenses for themselves. Approvals must be obtained at a higher level. 4. Approval authority signatures and documentation are reviewed by Procurement or Accounting Department personnel before any transactions take place.

F. Approval Procedure for Purchase Requisitions for Over $25,000

1. All purchase requisitions  involving contracts for over $25,000 must be approved by the Finance Committee before purchase orders may be issued for these requests, and before contracts, if any, associated with the requests, may be signed. 2. For each such purchase requisition of over $25,000 a packet should be sent to the Controller's Office containing the following:

a. Completed and signed purchase requisition. b. A completed Finance Committee Approval Form. c. Original unsigned contract, if any, associated with request. d. Bids from vendors. e. Any other supporting documentation which helps clarify the request.

3. The Controller's Office will review each request and submit it to the Finance Committee for approval. Requisitions will be given to Procurement as soon as the Finance Committee's approval is received.

(JJP-6/97)