Polytechnic University
POLICIES AND PROCEDURES
Purchasing and Accounts Payable
The following policies and procedures cover the purchase of and payment for goods and
services. Through these policies and procedures the University establishes responsibility
and authority at appropriate levels of the organization with emphasis on checks and
balances through the review of significant transactions. This establishes a proper internal
control environment.
The vice presidents are responsible within their respective areas for ensuring that goods
and services are ordered appropriately and for ensuring that goods and services are
delivered at the cost, quality and quantity indicated on either a purchase order or invoice.
The University Financial Operations Office is responsible for adherence with both
University and external regulatory requirements regarding approved vendors, dollar
thresholds, competitive bids (quotes), appropriate approval levels (signatures) and related
departments (orgs) to be charged.
The University will from time to time conduct internal audits to ensure compliance with
these policies and procedures. In addition, the University’s external independent auditors
review these procedures as part of their annual audit. Ordering goods and services
without a purchase order is a serious violation of University and government
policies and violators will be subject to disciplinary action.
Purchase Requisition
In order to purchase goods and services for the University,
a Purchase Requisition form is required to be completed by the requesting department.
All appropriate information must be completed by the requisitioner for the form to be
accepted by the Purchasing Department. Required information includes:
Vendor name, address and telephone/fax numbers
Org # and Account # to be charged
Description of goods/services to be ordered
Quantity
Item description
Person to receive the invoice/ PO confirmation
Address and person to receive shipment
Required approvals
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Minimum Requirements for Requisition Purchase requisitions are required for the
procurement of goods and services of $1,000 or more. Although the University does not
require a purchase order for amounts under $1,000, some vendors may still require a
purchase order.
Tax Exempt Status The University is a tax exempt organization under Section 501 ( c )
(3) of the Internal Revenue Code.
The University is exempt from New York State and Local Sales and Use Tax. The
University has filed an Exempt Organization Certification with its regular vendors. If
departments make purchases under $1,000 without a purchase order they are sometimes
charged sales tax. The Financial Operations Office does not pay the sales tax indicated on
invoices received. The University’s exemption from New York State and local sales and
use tax does not extend to employees of the University. For example, employees who
purchase office supplies and pay for them with their own funds (cash or credit card) are
charged sales tax. Employees subsequently request reimbursement by the University for
these purchases. The University is not required to reimburse employees for these taxes.
Bidding Requirements
requirements:
The University requires the following bidding
1) Purchase requisitions under $1,000 do not require bids.
2) Purchase requisitions from $1,000 to $5,000 require a written quote or invoice
from the vendor.
3) Purchase requisitions from $5,000 to $10,000 require two written competitive
bids.
4) Purchase requisitions over $10,000 require three written competitive bids.
Rare exceptions to this policy may be made with the concurrence of the responsible Vice
President. An example where a Vice President may waive the bidding requirements is
when particular goods or services are unique in that they can be obtained only from one
specific source. This “sole source” explanation must be in writing and signed by the Vice
President.
Purchases may not be split to avoid bidding requirements and/or required approval levels.
Processing of Purchase Orders
Purchase orders are processed in the order received
by the Purchasing Area. Please allow a few days for processing time. Incomplete
purchase requisitions will result in processing delays. A copy of the Purchase Order
generated by the Purchasing Area will be sent to the department and/or vendor based
upon the instructions on the requisition.
Major Contracts
Contracts covering goods and services in excess of $25,000 on an
annual basis must be re-bid every three years.
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Blanket Purchase Orders Blanket purchase orders may be processed for items which
are typically ordered on a regular basis and are usually not of a significant dollar value.
User departments should estimate the total dollar value of orders over a certain period of
time (e.g. 6 months) and indicate on the purchase requisition the types of items which
would be covered by the blanket P.O. (Quantities would not be indicated). The
Purchasing Area will assign a P.O. number. This number would be given to the vendor by
the user department when placing an order. Blanket purchase orders must be approved by
the Controller.
Required Approval Levels See the Signing Authority Guidelines. The following
approvals are also required:
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Computer/system related purchases of $1,000 or more must be approved by the
Information Systems Department (Help Desk, x3123) prior to submitting a
requisition to the Purchasing Area.
All purchases of chemicals and compressed/liquefied gases must be approved
by the University Safety Officer prior to submitting a requisition to the
Purchasing Area. Approval is required on all orders even if the order is less than
$1,000.
All purchases of radioactive materials must be approved by the Radiation Safety
Officer. Approval is required on all orders even if the order is less than a $1,000.
All purchases of goods, that are requested to be delivered to a location other
than a University address, must be approved by the responsible Vice President
on a purchase requisition. The reason for such deliveries must be indicated (i.e.
research performed at another university, etc.).
Payment of Invoices See the Signing Authority Guidelines.
Upon receipt of an invoice, departments must ensure that the appropriate related goods
and services were received and obtain the proper written approval before sending the
invoice to Accounts Payable (JB 454) for payment processing. Invoices must be
submitted for payment on a timely basis.
Consultant Contracts with Individuals
A purchase requisition and the University’s
Consultant Agreement must be prepared for individuals providing services to the
University. The individual must provide either a social security number or taxpayer I.D.
number. The University is required to issue a Form 1099 for payment of services
provided. The Consultant Agreement must be signed by a vice president (authority may
not be delegated). The purchase requisition/PO serves as an internal mechanism to
encumber the funds related to the contract for the fiscal year and also to obtain the
required approvals. Contact the Purchasing Area or Financial Operations Office for a
copy of the Consultant Agreement.
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Signing Authority Guidelines
Non-Sponsored Projects (all orgs except 4 and 6 ledger)
These guidelines are intended to provide information, strengthen internal controls as well
as speed the processing of purchase requisitions and invoices. Please note that all
invoices should be addressed to the originating Department and NOT accounts payable..
A department should stamp each invoice and obtain the proper approval before sending it
to Accounts Payable (JB 454) for payment processing. Please adhere to these guidelines
to avoid processing delays.
Over $10,000
All purchase requisitions over $10,000 require written approval by the VICE
PRESIDENT responsible for the applicable area. This authority cannot be delegated. The
Vice President for Finance and Administration or the President may sign when applicable
VP is not available.
$10,000 and Under
Department Heads have the authority to sign purchase requisitions or invoices of $10,000
or less. No other approval is necessary unless an individual vice president requires it. A
Department Head may designate a senior staff member who is also authorized to sign.
This approval must be submitted to the Financial Operations Office in writing along with
a signature specimen of the designee. Approval dollar thresholds must be indicated for
the designee.
In very rare instances (legal bill or personal travel reimbursements) when a purchase
order is not required, the same approval guidelines apply to the payment of invoices.
Since purchase orders exceeding $10,000 must be approved by a vice president, related
invoices that follow for payment only need to be approved by the Department Head.
Authorized specimen signatures and the related departments (orgs) are maintained by the
Financial Operations Office. Department Heads are responsible for notifying the
Financial Operations Office of any changes in approval levels (persons authorized and
related dollar limits).
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106762696
Sponsored Projects/Contracts & Grants (4 and 6 ledger orgs)
Over $10,000
All purchase requisitions over $10,000 require written approval by the VICE
PRESIDENT responsible for the applicable area. This authority cannot be delegated.
The Vice President for Finance and Administration or President may sign in case of
emergency when the vice president is not available.
In addition, the Principal Investigator (Manager) for the sponsored project (org) and a
staff member of the Contracts & Grants area must approve.
$10,000 and Under
Principal Investigators have the authority to sign purchase requisitions or invoices of
$10,000 or less. No other approval is necessary unless an individual vice president
requires it. A staff member of the Contracts & Grants area must also approve.
In very rare instances (legal bills or travel expense reimbursements) when a purchase
order is not required, the same approval guidelines apply to the payment of invoices.
Since purchase orders exceeding $10,000 must be approved by a vice president, related
invoices that follow for payment only need to be approved by the PI.
Authorized specimen signatures and the related sponsored projects (orgs) are maintained
by the Financial Operations Office. Principal Investigators are responsible for notifying
the Business Office of any changes in approval levels (persons authorized and related
dollar limits).
Revised 10/05
106762696