Provided by BYU Purchasing
Douglas W. Buhler CPSM, C.P.M.

Part 1: Introduction & Overview
 Class Roll
 Handouts

Sample Form
 Sample Category List
 Payment Tools Charts
 Independent Contractor Agreement
Template & Guidelines
 Associate Buyer Application
 Slides posted on http://purchasing.byu.edu

 To Review Payment Processes, with emphasis on Fast Track, describing:
 What Fast Track is
 Why Fast Track Was Developed
 Who Can Use Fast Track
 What Can (and Can’t) Fast Track Be
Used For

(cont.)
 Show you how to process a fast-track requisition.
 Help you understand things you need to be aware of as an Associate Buyer.
 Increase your understanding of what we actually do in Purchasing —how and when we can help you.

 A Payment Method:
 Has Replaced Check Requisitions
 Has Replaced Independent Contractor
Check Requisitions
 An On-line Method, Replacing Preprinted Forms:
 On Purchasing’s Web Page
 Available Only to Associate Buyers

Payment Tools for Goods and Services
Over
$2,500
Under
$2,500
Under
$500
Do Not Negotiate with
Vendor. Use other
Payment Tools, or
Purchase Requisition
Purchasing
Card
•Goods or
Services
Purchase
Requisition
No Fast Track category, or greater than
$2,500
COD Check
(Convenience Check)
•Help needed to locate the vendor, good or service
•Corporate vendor who will not accept credit card & will not invoice BYU
(e.g Costco,
Sam’s Club)
•Restricted commodity
DO NOT negotiate with vendor in advance of submitting requisition
•Penalty for misuse
Fast Track
•Services within approved categories
•Purchasing has already established vendor
•Any amount
•Goods less than $2,500 where
Purchasing
Card cannot be used
•Vendor already established by
Purchasing
Y Expense
Travel
Reimbrsmnt
(including Corp.
Travel Card)
•Expenses while in travel status
•Conference registration
•Hosting
Rarely
Over
$500
Business
Non-Travel
Reimbrsmnt
•Used only when other payment tools were not available at the time of a True
Emergency
Penalty for misuse .

Payment Tools for
Research Subjects, Royalties, Refunds, Academic
Note: Refunds pay back to customers amounts they paid to BYU.
Reimbursements pay others for items paid by them on behalf of BYU.
Temporary Petty
Cash Fund
AP Upload Y Expense
Payments in cash to individuals for:
•Research subjects who must remain anonymous
College Controller
Requests and Approves
Payments are expected to be small amounts (e.g.
$5, $10)
Payments to individuals for:
•Royalties
•Refunds
•Research subjects
Payments to individuals for:
•Refunds
•Reimburse students for their own academic program costs
Payments expected to be smaller amounts (e.g. under $1,000)
No dollar limitation
Travel Dept will audit all such transactions Campus should try to group uploads to 5 or more people
Fast Track
Payments to
Corporations for:
•Royalties
•Refunds
No dollar limitation


 “Goods and services are to be acquired by or under the direction of the Purchasing
Department.”

 Not every expenditure is a purchase of
Goods and Services.
 Purchasing’s staff is not large enough to personally transact all purchases of
Goods and Services.
 Some purchases of Goods and Services can be more effectively handled directly by departments

 Originally check requisitions were approved for five low-risk categories; however, over the years the number of categories expanded. This ultimately created a reported $7.9 million of unauthorized purchases in 2001.
 Use of Check Requisitions was not
“under the direction of Purchasing.”

 Two controls that Check Requisitions lacked keep Fast Track Requisition Purchases
“under the direction of Purchasing:”
1. Must be handled by trained “Associate Buyers”
 Associate Buyers are trained by Purchasing so they can properly execute transactions as an extension of Purchasing within their departments.
2. Fast Track is valid only for specific, limited categories

 Fast Track Requisitions are approved by a trained
“Associate Buyer” and an Approver from your department.
 Fast Track Requisitions are valid only for certain categories that —
 Have lower risk
 Do not generally represent opportunities for
Purchasing to add value to the transaction.
 Commitments to Suppliers for Fast Track transactions may be properly made by Associate Buyers without involving Purchasing’s staff.

1) Attend this training Session.
(Monthly sessions like this are scheduled for others to attend).
2) Submit an Associate Buyer Application, documenting approval from your department to represent them as an Associate Buyer, and your agreement operate in compliance with Purchasing’s controls.
3) Your authorization will be activated by
Purchasing.

 See that University Policy is followed.
 See that those in your department who make Agreements with Vendors and
Independent Contractors receive training and follow University Policy.
 See that any Independent Contractor
Agreements are made and documented before work begins —not after the fact.

What Can I Use Fast Track For?
 Everything in the Fast Track Codes List, including:
 Non-negotiable Services, Fees and other Payments.
 Independent Contractors that fit under one of the
Fast Track Codes (without a Dollar limitation).
 Independent Contractors where the contract is for less than the “small dollar purchase” limit = $2,500.
 Purchases of Goods totaling less than $2,500 when
P-Cards are not accepted, and there is no value to be added by Purchasing.

What Can’t I Use Fast Track For?
 Anything that does not fit a Fast Track
Category Code.
 Anything that can be paid with a Visa
Purchasing Card
 Any Reimbursement that should be made through Y-Expense
 Anything that requires Purchasing to make commitments or place the order.

Buying Through Purchasing?
 … to be acquired by or under the direction of
Purchasing…
 Purchasing Helps You by:
 Handling higher-value / higher-risk transactions that are not eligible for Fast Track.
 Focusing on managing the highest value Supplier
Relationships —creating Agreements to govern transactions whether they are done with a Purchase
Order, P-Card or Fast Track payment.

 Q: Pay $800 to “Los Hermanos” musical group (identified with the band leader’s
SSN), to provide entertainment at a conference we are hosting.

 Q: Pay $800 to “Los Hermanos” musical group (identified with the band leader’s
SSN), to provide entertainment at a conference we are hosting.
 A: Fast Track, category ICO 7929.

 Q: Pay for Snow Removal Service at
Cougar Haven. (Paid to individual with
SSN, amount is $330.)

 Q: Pay for Snow Removal Service at
Cougar Haven. (Paid to individual with
SSN, amount is $330.)
 A: Fast Track, category ICO 8993. Some sort of attached Agreement should detail expectations.

 Q: Reimburse an employee’s purchase of a rare book for the University
Collection. The book cost $780.

 Q: Reimburse an employee’s purchase of a rare book for the University
Collection. The book cost $780.
 A: Best process is to have bought from the dealer with P-Card. As a reimbursement through Y Expense it would be audited and require justification to avoid a penalty.

 Q: Pay a Publisher or book dealer for 20 copies of a book at $49.95 each (= $999)

 Q: Pay a Publisher or book dealer for 20 copies of a book at $49.95 each (= $999)
 A: Purchase using P-Card. (If not a solesource you may want to have Purchasing try to buy it wholesale, by sending us a
Purchase Requisition.)

 Q: Reimburse a student for “gear” purchased at Costco, in the amount of
$254.62.

 Q: Reimburse a student for “gear” purchased at Costco, in the amount of
$254.62.
 A: Can be done with Y Expense as a
Business Non-Travel reimbursement, but will require justification. Should have used C.O.D. Check to pay Costco directly.

 Q: Engage a clinician / adjudicator for a
Jazz Festival.

 Q: Engage a clinician / adjudicator for a
Jazz Festival.
 A: Fast Track, category ICO 8000 (or
ICO 7929). Attach a Letter of Agreement spelling out duties and expectations.

 Q: Pay Prime Recordings $1540 in
License fees to record, manufacture and distribute a copyrighted song on a
Compact Disc album we are producing.

 Q: Pay Prime Recordings $1540 in
License fees to record, manufacture and distribute a copyrighted song on a
Compact Disc album we are producing.
 A: Fast Track, category ROY 8999.

 Q: Purchase two custom, exquisitely made Presentation Gifts, totaling $4,318.

 Q: Purchase two custom, exquisitely made Presentation Gifts, totaling $4,318.
 A: Purchasing needs to handle this transaction. Send us a Purchase
Requisition and work with us to get just what you want.