Standing Order Procedure
Version
1.4
TRIM file number
N/A
Short description
A procedure on standing orders
Relevant to
All employees
Authority
This Procedure has been approved by Executive
Director Division of Finance in accordance with the
Policy on Delegations and Authorisations Delegation Schedule 1, GOV10.
Responsible officer
Manager Procurement
Responsible office
Division of Finance
Date introduced
30 June 1994 when approved
Date(s) modified
30 June 2000, 30 November 2003, 10 October 2011
Next scheduled review date
October, 2012
Related University documents
Related legislation
Public Finance and Audit Act 1983
Key words
procedure, encumbrance, budget centre manager
1.
PURPOSE
This procedure describes how to process standing orders for the regular and ongoing
acquisition of goods and services from the same supplier.
2.
SCOPE
2.1 This procedure applies to all Faculties and Divisions to acquire regularly
purchased commodities in an efficient manner. The use of a visa card, subject to
transaction limits, should be explored with the intended supplier, where
applicable.
2.2 Each standing order will be created for one year commencing on the 1 January
each year. To allow end of year processing the order will remain open until mid
January unless a new standing order has been created.
2.3 For operational purposes, the standing order can be rolled for one additional year
subject to a request from the delegated Budget Centre Manager for the cost
centre.
3.
PROCEDURE
3.1
Raising Standing Orders
3.1.1
3.1.2
3.1.3
3.1.4
3.2
Committing Standing Orders
3.2.1
3.2.2
3.3
The creation of a new standing order will be by using a purchase
requisition in the same way as an ordinary purchase order.
An existing standing order can be increased by an email from a Budget
Centre Manager or a purchase requisition.
All standing orders are to include the Clause TERMOCLS as part of the
purchase order header text. This clause states that the value shown is an
estimate only and is not to be taken as a legally binding contract.
Prices set for a standing order may be those included on government
contracts or set after inviting quotations or tenders. Prices need not be
fixed but may refer to a catalogue of price list less any negotiated
discount.
Where prices are not fixed, the estimated commitment will be calculated
in one dollar ($1) increments and the required value will be de-committed
at the time of payment.
During the year the Purchasing staff will monitor the standing orders in
Banner to ensure their relevance and close those no longer required.
Standing Order Register
3.3.1
3.3.2
A register of standing orders is to be maintained in Purchasing and will
be used at the end of each financial year to de-commit any outstanding
encumbrances
A standing order may be closed by using an encumbrance journal or
purchase order batch close process.
3.4
Responsibilities
Budget Centre Managers
3.4.1 Ensure that the purchase requisition is completed accurately with cost
centres and that sufficient funds are available for the purchase
3.4.2 Ensure that the invoices submitted for payment clearly identifies free and
taxable supply.
Division of Finance
3.4.3 Ensure purchase requisitions are accurately processed with correct
ledger codes and suppler in a timely manner
3.4.4 Encumbrance liquidations will occur during the year with the final one
carried out in mid January the following year.
Table of amendments
Version
number
1.1
1.2
1.3
1.4
Date
30 June
1994
30 June
2000
30
November
2003
10 October
2011
Short description of amendment
Originally policy submitted for approval
Amendments for the introduction of GST
Refine the procedure following processing changes
Procedure modified and updated into the new format