Procurement Training

Procurement Services is responsible for the procurement of all goods and services required by Utah Valley University and all its departments. The most important function of UVU Procurement Services is to serve other campus departments and to help them obtain the supplies and services they need for effective operation. We are dedicated to implementing policies and procedures that incorporate the University's Core Themes and Administrative Imperatives by establishing operating procedures with which to locate and ensure adequate and continuing sources of supply, consistent with legal, budgetary, and delivery requirements of user departments.

It is our mission to:◦ Acquire goods and services on a timely and economical basis;◦ Assure compliance with all applicable state and federal laws and University regulations during the

procurement process;◦ Provide assistance, consultation, and advice regarding all procurement needs of the University.

Mission Statement

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

Purchasing Assistance

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U.C.A. 63G-6a: Utah Procurement Code◦ Various high-profile procurement-related issues

Update process◦ 2012 Legislative Session◦ 2013 Legislative Session

Effective Date: May 1, 2013 More changes coming.

Update to State Code

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New policies◦ 241, University Procurement◦ 242, Solicitation and Award of Procurement Contracts◦ 243, Small Purchases◦ 244, Requisitions and Purchase Orders◦ 245, Receiving Goods and Services◦ 246, Surplus Property

New UVU Policies

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204, Appropriateness of Expenditures 211, Employee Appreciation and Recognition (Gifts and

Rewards)

Other UVU Policies

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“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 4.1.1)

Expenditure Policy

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Computers◦ Computer Shop

Printers◦ HP

Audio/Visual Equipment◦ Contact Media Services

Furniture Construction/Room Changes Printing

Campus Standards

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Software, including apps◦ Software Ordering System

Campus-owned cellphones/aircards Office Supplies – Ordering On-line

Unique Ordering Requirements

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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

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Emergency procurements are procurements needed due to an emergency situation◦ Threat to public health or welfare◦ Serious threat to the functioning of the institution◦ Procurements made at Purchasing’s discretion

Urgent procurements are procurements that are needed due to a lack of planning or circumstances beyond the control of the requestor.◦ All procurement policies and procedures must still be followed.

Emergency vs. Urgent

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Small-Dollar Purchase Threshold◦ $5,000◦ $15,000 (Construction)

Large-Dollar Purchase Threshold◦ $50,000

Thresholds

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Intended for small-dollar purchases.◦ Per-purchase limit usually set at $1500.

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

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Request up to 5 checks per Index.◦ Stores Requisition.

Two types of checks: $150 & $500. Individuals must be authorized to pick up checks by

Responsible Party. Notification will be sent to the department when the

checks are available for pickup. Used LPC should be returned within five (5) days of

use.

Limited Purchase Check

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FlowchartThis is how it works regardless of:

Fund sourceSourcing method

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Do not include $0.00 commodity or FOAPAL lines. Use the same commodity code on every line. Replace the commodity default description. You can only use indexes for which you have Banner

authorization. Purchasing cannot adjust requisitions after they have been

completed, but you can. Once a requisition has been completely approved, it cannot

be changed.

Requisition Tips

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Highlight the line you want to delete. Press Shift-F6, click the record remove button on the

taskbar, or select remove from the record menu. If you can’t delete the line, you may need to complete the

line with erroneous information before deleting the line.

Deleting Comm./FOAPAL lines

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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

Required Approvals

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Required approval based on account code (commodity code), amount, and organization.

Approving officials receive an e-mail. Approval Queues

◦ FOAUAPP Check Approval Queue

◦ FOAAINP See Approval History

◦ FOIAPPH

Approval Process

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Lists all documents for which the user is the next approver.

To see all documents which the user must approve, uncheck the Next Approver box.

FOAUAPP

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List of queues on left, list of approvers on right. May be used to approve documents.

FOAAINP

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Enter req number and press execute query (F8).

FOIAPPH

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Documents can also be approved on UVLink.◦ Employee Tab, Financial Information

Folder

UV Link Approvals

Bids are completed by the Purchasing Office. Include minimum specifications in the requisition. Typical Timeline

◦ $5,000 to $20,000 3-5 days

◦ $20,000 to $50,000 5-10 days

◦ Over $50,000 2 – 3 weeks

Bid Process

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Requests for Quotes (RFQs)◦ Over $5,000, equal or less than $50,000.◦ Sent to three (3) or more known vendors.

Invitations for Bids (IFBs)◦ Over $50,000.◦ Posted on BidSync◦ Minimum of 10 days

Bid Process

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Multi-Stage Bid (MSB) Request for Proposals (RFP) Multi-Year Pricing Agreement/Contract

Requires justification◦ Fill out Justification for Enhanced Procurement Method

Enhanced Procurement Methods

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All individuals participating in a procurement, including contract administration, must adhere to the ethical requirements outlined in the Utah Procurement Code◦ Gratuities◦ Kickbacks◦ Fairness◦ Impropriety

Ethical Requirements

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Know and obey the letter and spirit of laws, regulations, and policies

Prevent the appearance of unethical behavior Protect confidential information Avoid conflicts of interest Do not accept gifts, gratuities, or kickbacks from vendors

which may appear to influence purchasing decisions.

UVU Procurement Code of Ethics

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State Contracts◦ Bid or RFP Completed by the State or WSCA◦ No Additional Competition Needed◦ Purchase Directly

University Contracts

Contracts

Sole source procurement may be used when a requirement is only reasonably available from a single supplier◦ Availability◦ Compatibility◦ Transition costs

Require justification◦ Sole Source Justification Form

Not reasons: price, time

Sole Source Procurement

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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

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Requisitions should have a good estimated amount◦ No $1.00 requisitions

Change Orders submitted through website form Additional items will not be added from invoice Analyzed to ensure compliance with policies, procedures,

and applicable contracts

Change Orders

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If products are delivered by the Receiving Dept., no reporting is necessary.

If products are delivered directly to department by vendor or picked up, send proof of delivery to the Receiving Dept.

If service, send confirmation of services rendered to the Receiving Dept.

Receiving is not required on Standing POs. Contact the Receiving Dept. via e-mail, receiving@uvu.edu.

Receiving

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If invoice is received in the department:◦ Verify that PO number is on the invoice.◦ Send the invoice to Accounts Payable, MS 109.

Memberships/Conferences/Subscription◦ Registration/subscription forms should be sent to A/P with the

requisition/PO number on them.

Invoicing

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Not allowed Exceptions determined by Purchasing

◦ Deposits◦ Progress Payments

Prepayments

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An unauthorized purchase is a purchase made without following the authorized procurement processes. 

An after-the-fact purchase occurs when a University employee places an order without first completing a requisition and receiving a purchase order.

Violations

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Result in duplicate payments to the vendor, for which the department is responsible.

Result in higher costs for goods and services Lead to significant vendor payment issues that can result in

problems for other departments on campus. Bypass the appropriate approval process. Place the University at financial risk and create potential personal

liability. Create additional, often unnecessary, work for administrative

support staff.

Violations – cont.

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Ways to Avoid Violations: If you have to place an order, create the requisition right

away.  Work with the Purchasing Office if you need the order expedited.

You must arrange a payment method BEFORE placing an order.  “I didn’t know…,” is not a valid excuse for violating policy.

Violations – cont.

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What to do if a violation occurs: If a violation occurs, fill out all sections of the Purchase

Violation Form.  ◦ An explanation of why policy was not followed ◦ Future corrective action

Attach invoice and send for authorizing signatures Vendor is paid DO NOT enter a requisition.

Violations – cont.

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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

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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

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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

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“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

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Reimburse a government entity for procurement performed by the government entity

Reimbursement for employee for an expenditure approved by Procurement Services.

Reimbursement to students as approved by FaBS. Include a detailed explanation on the check request. Check Requests received for reimbursement may be sent to

the VP as a violation. Questions regarding Check Requests are referred to Scott

Wood.

Check Requests – Proper Use

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Personal reimbursement program No P-Card or LPC Travel Office

Travel

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If you have questions, please call Procurement Services at 8301or e-mail procurement@uvu.edu

Thank You for Coming