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| Issuing Department: Business Office |
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| Subject: Purchasing |
Latest Revision Date:
September 19, 2005
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POLICY
The Western Oregon University Business Office provides campus with general
and specific purchasing policies to complement the OUS purchasing policies.
The specific areas covered in this policy are:
Competitive Procedures Exemptions
Competitive Process for Purchases of $5,000 to $50,000
Competitive Process for Purchases over $50,000
Agency Funds
Boise Cascade Office Products/OfficeMax
Computer Hardware and Software
Entertainment Expenses - Meals/Refreshments
Fixed Assets
Interdepartmental Purchases
Memberships and Dues
Personal Funds Reimbursements
Petty Cash Funds
Price Agreements
Procurement Card (VISA) Program
PURPOSE
Along with WOU's internal purchasing policies, WOU intends to follow the
purchasing policies set by OUS and outlined in OUS's Financial
Administration Standards Operating Manual. WOU strives to seek
competition and the lowest prices within the parameters of quality and
delivery.
When practical, consideration should be given to minority, women, and
emerging small businesses.
To avoid conflict of interest issues, WOU does not purchase goods or
services from its employees as a matter of policy. Exceptions must be
approved by the Director of Business Services.
WOU does not allow purchases of used goods unless an exception is approved
by the Director of Business Services.
PROCEDURES
Competitive Procedures Exemptions
Departments need not follow, regardless of value, the requirements of the
competitive procedures described for the following types of purchases:
• Contracts for the provision of educational services.
• Single seller goods and services. When purchasing from a single seller,
institutions shall document findings to support the determination that the
product is available from only one seller.
• Brand name goods and services or product prequalification. Institutions may
specify brand name in the procurement of goods and services if that particular
product or service has specific documental attributes not found in other
products. In addition, when specific design or performance specifications must
be met for a product to be purchased, an institution may specify a list of
qualified products by reference to the prequalified product(s) of particular
manufacturers or sellers.
• Advertising and media services contracts.
• Price-regulated goods and services. Institutions may, regardless of dollar
value, contract for the direct purchase of goods or services where the rate or
price for the goods or services being purchased is established by federal,
state, or local regulatory authority.
• Purchases under federal contracts. When the price of goods and services has
been established by a contract with an agency of the federal government
pursuant to a federal contract award, OUS and its institutions may purchase
the goods and services in accordance with the federal contract without
subsequent competitive bidding. In addition, specific equipment that is
expressly required under the terms of the contract and that is only available
from one source is exempt from competitive procedures.
• Copyrighted materials. Institutions may purchase copyrighted materials
without competitive bid and regardless of dollar amount. Copyrighted materials
covered by this exemption may include, but are not limited to, textbooks,
workbooks, curriculum kits, reference materials, and audio, visual, and
electronic media.
• Investment contracts.
• Food contracts. This exemption shall apply exclusively to the procurement of
food and food-related products.
• Periodicals, library books, and library materials.
• Maintenance services for the useful life of goods. Institutions may purchase
maintenance services for the useful life of goods directly from the vendor of
those goods.
• Used personal property (valuation must be substantiated and purchase must be
approved by the Director of Business Services).
• Goods purchased for resale.
• Intercollegiate athletic programs. OUS and its respective institutions may
specify a product by brand name or make or the products of particular
manufacturers or sellers when procuring equipment and supplies used in
intercollegiate or interscholastic athletic programs.
• Media for athletic programs.
• Athletic contest agreements.
• Cadaveric organs.
• Hotel sites for large conferences and workshops.
• Dues, registrations, and membership fees.
• Gasoline, diesel fuel, heating oil, lubricants, and asphalt.
• Purchases of supplies, maintenance, and services for ocean-going vessels
when they are in other than homeport.
• Equipment repair and overhaul.
• Goods and services purchased in foreign countries.
Exemptions from competitive procedures may be granted for a particular
contract or contracts not otherwise exempted under these rules by the
president or chief financial officer of the institution. Sufficient
documentation must be retained regarding the need for such exemptions.
Competitive Process for Purchases of $5,000 to $50,000
The informal procurement process may be used for all purchases of supplies,
equipment, and services where the estimated cost exceeds $5,000 but does not
exceed $50,000, and where OUS or any of its institutions chooses not to follow
the formal procurement process. The informal procurement process may also be
used for any procurement regardless of the estimated cost if use of the
informal procurement process will not interfere with competition among
prospective contractors, reduce the quality of services, or increase costs.
The informal process may be accomplished through the solicitation of
competitive quotes from at least three vendors. Solicitation may be
accomplished by advertisement and/or by OUS or any of its institutions
initiating a request to vendors to make an offer. Written, oral, or
electronic quotes may be solicited.
When procuring goods or services through the solicitation process, information
regarding vendors contacted, basis for selection, prices of various vendors,
and other information pertinent to the solicitation must be clearly
documented. If three vendors are not reasonably available, the justification
for soliciting fewer vendors shall be documented.
Competitive Process for Purchases over $50,000
The formal procurement process shall be used, unless other exemptions apply,
for all purchases of supplies, equipment, and services where the estimated
cost exceeds $50,000. Multiple contracts, purchase orders, or purchasing
requisitions shall not be issued separately with the intent to circumvent the
formal purchasing process.
The formal process may be accomplished in either of two ways the institution
selects:
Invitation to Bid -- The formal bid process will require that the invitation
to bid be advertised in a manner that is likely to reach bidders. The
advertisements shall include information regarding the goods or services to be
purchased and the time schedule for the receipt of such goods or services. The
contract under this process shall be awarded to the lowest responsive and
responsible bidder who meets the specifications of the contract.
Request for Proposal (RFP) -- The formal Request for Proposal process shall
follow the same guidelines as the formal bid process except that the
specifications and price will not necessarily be the predominant award criteria.
Award criteria shall be detailed in the Request for Proposal.
Agency Funds
Clubs, groups, and organizations who are affiliated with Western Oregon
University but do not receive funds from WOU (including incidental fees)
should establish an Agency Fund with the Business Office. Contact the
Director of Business Affairs to setup a new fund. The Business Office will
create the appropriate FIS Fund and Index and will act as a third party
fiduciary for these funds.
The club/organization advisor must complete a Student Agency Accounts
Signature Form and return it to the Business Office. The Business Office will
mail a copy of the signature form each fall term to the advisor for annual
review. Once the fund is established, monies should be deposited at the
Business Office Cashiers.
A Student Agency Fund Activity Request for Funds must be submitted to the
Business Office for withdrawal of funds. If the funds request is to pay an
outside vendor, a W-9 must be on file in the WOU Accounts Payable Office for
the vendor. If the purpose of the funds request includes prizes and/or
awards, a list of recipients (including SSN and address) and award values is
required.
Agency Funds are not required to follow WOU purchasing policies.
No WOU club/organization should deposit money into a local bank.
Boise Cascade Office Products/OfficeMax
Expanding on a State of Oregon Department of Administrative Services price
agreement with Boise Cascade Office Products/OfficeMax, WOU has established an
office supply purchasing program. The use of Boise Cascade/OfficeMax is
optional. The program offers low prices, easy ordering, and free delivery
direct to campus departments. Rebates are granted for ordering electronically,
purchasing in quantity, and paying quickly.
The accounts payable area of the Business Office maintains the program for the
institution. Departments should request a Boise/OfficeMax Update Form from
accounts payable to establish a "Consignee and Cost Center” to use the
program. Once a department is setup with Boise/OfficeMax by Accounts Payable,
they order directly from Boise/OfficeMax over the web using their online
account. Departments can charge their purchases to their Boise/OfficeMax
account or to their departmental procurement card.
A packing slip will accompany goods when delivered. Departments should verify
that all items are received. For purchases charged to a Boise/OfficeMax
account, accounts payable will process a Banner FIS invoice that will
electronically route through the department for approval. For purchases
charged to a departmental procurement card, see the “Procurement Card (VISA)
Program” section below. Departments should verify the invoice or procurement
card amount against the packing slip. If a department has a discrepancy in
their order or has items to return, they should contact Boise/OfficeMax
directly to resolve the issue.
Computer Hardware and Software
Purchases of computer software, hardware, and any peripheral which will be
attached to a University computer or whose software will be loaded onto a
University computer (with the exception of supplies such as toner, removable
disk media, and flash memory) require a University Computing Services Purchase
Request be processed prior to the purchase. Using the Purchase Request System
at www.wou.edu/purchaserequest, the purchase request must be submitted by the
individual department. The department making the purchase should complete the
request and the request will electronically route to the appropriate
departmental and University Computing Services personnel for approval. Once
the request has been approved, the University Computing Services office will
process a purchase order in Banner FIS for the purchase. The following types
of information must be provided on the purchase request:
Employee and Department Responsible for the Purchase
Brief Description of Hardware/Software to be Purchased
Expected Uses and Benefits
Cost and Source of Funds
Location of Hardware/Software
Denial Effect and Other Quotes
Entertainment Expenses
Serving of Meals, Refreshments, and Beverages for Groups and Individuals
Charges for meals, refreshments, and/or beverages for groups and/or
individuals, either employees or non-employees, must be approved in advance by
the President, Provost, Vice President for Finance and Administration, Vice
President for Student Affairs, or Vice President for University Advancement.
An "Approval Form for Serving Meals and Refreshments" must be signed by the
appropriate institutional executive (one of the five listed above), and that
institutional executive must maintain a separate audit file for these forms
and all supporting documentation. A copy of the form must accompany the
payment document when submitted to the Business Office.
Agency funds and Western Foundation funds are exempt from these approvals.
Term Definitions:
Beverages are defined to include coffee, tea, soda pop, and/or juice.
Refreshments are defined to include doughnuts, muffins, cookies, and beverages.
Meals are defined to include any food more than the above.
For a meal, refreshment, and/or beverage expense to qualify as a reimbursable
expense it must fall under one of the following areas as defined in the OUS
Financial Accounting Standards Operating Manual (FASOM) sections as noted.
Expense per person may not exceed the current instate meal per diem rate.
Candy does NOT qualify as a reimbursable expense.
Employee Recognition Awards
FASOM 13.01(E)(3)
Departments may wish to honor employees for outstanding achievements, length
of service, or on retirement. It is, however, inappropriate to expend
institutional funds for these purposes. Departments may pursue other funding
(e.g., Foundation) for such activities.
Non-Employee Groups and Guests - Refreshments, Meals
FASOM 13.01 (G)(2) (28612 account code)
Expenses for luncheons, meals, snacks and beverages for hosting non-employee
groups and guests must be approved by the President, Provost or Vice President
for Academic Affairs, Vice President for Finance and Administration, Vice
President for Student Affairs & Enrollment Management, or Vice President for
University Advancement.
When hosting an individual guest, a guest meal plus one employee's meal may be
paid or reimbursed up to the current instate per diem rate. Employee
recruitment meal(s) are included within this. Actual expenses up to the
current instate per diem rate will be the maximum paid or reimbursed. Receipts
and a list of attendees are required.
Meals Served at Meetings
FASOM 13.01(M)(3) (28612 account code)
a) Meal charges, in general, may be paid using State funds when a planned,
interdepartmental or inter-institutional meeting is called for a specific
purpose and the meeting has a formal agenda with the meal(s) included as part
of the agenda.
b) A formal written agenda is required.
c) Receipts and a list of attendees are required.
d) Inter-departmental/academic unit meetings should involve two or more campus
departments. A single department should not schedule meetings for itself
through the meal period.
e) An inter-departmental meeting may be scheduled through the meal period when
it is necessary to do so in order to complete the agenda during the workday.
f) It is not appropriate to pay for meals when the meeting is less than three
hours in duration and starts less than one hour before or ends less than one
hour after the mealtime.
g) Meals may be paid or reimbursed up to the current instate per diem rate.
Refreshments Served at Meetings
FASOM 13.01(R)(2) (28611 account code)
a) Non-alcoholic beverages may be served at planned, inter-departmental or
inter-institutional meetings where there is a specific purpose or agenda, and
the meeting will last for three or more hours and there are no convenient
refreshment facilities available, or using such facilities would excessively
disrupt the meeting.
b) For purposes of this section, a meeting is defined as an assembly of
persons to discuss business, relate information, instruct employees, or
similar purposes. A formal written agenda is required.
c) Receipts and a list of attendees are required.
d) Departments may follow their internal approval process where beverages only
are served at meetings. Beverages only do not require executive approval.
Fixed Assets
WOU maintains a perpetual inventory of fixed assets owned or controlled by
WOU. Therefore, purchases of fixed assets must be approved by WOU's Property
Control Specialist. This approval is obtained electronically whenever a fixed
asset purchase is processed through Banner FIS.
Fixed Assets are also referred to as Non-expendable Personal Property and are
defined as:
a) Tangible personal property owned, leased, controlled or possessed by an
institution. Such property must satisfy three criteria:
1) It is not consumed in the normal course of business.
2) It has a unit value of $5,000 or more.
3) Its useful life exceeds one year.
b) Chattels such as equipment, furniture, machinery and vehicles.
c) Books, periodicals and reference materials -- regardless of value -- in an
established reference library or audio-visual department.
d) Livestock used for breeding, as draft animals, for dairy or beef
production, for experiments or for instruction, regardless of value.
Non-expendable personal property is added to the fixed assets inventory by the
following transactions in Banner FIS: Newly purchased items are added as
temporary assets when an invoice processed for payment is coded to a fixed
asset account code. These temporary assets are converted to permanent assets
by the property control specialist. Items received through gifts and loans
are added as permanent assets.
Other assets (e.g. land, buildings, and improvements other than buildings) are
added to the inventory on a yearly basis. The Business Office and Physical
Plant analyze the applicable expenses for the fiscal year to determine the
asset records to add.
WOU's Property Control Specialist distributes a listing of all assets held on
its inventory once a year to the responsible departments for their review.
Interdepartmental Purchases
Some campus departments resell items to other departments. For example: WOU
Bookstore and Educational Media Department. Departments can buy from these
sources directly and the department making the sale will process the charge
through the Banner FIS Journal Voucher (JV) system. To obtain a departmental
food services charge card, an employee must submit a WOU Departmental Food
Service Card Agreement form. In order to charge purchases at the bookstore to
a departmental index, a WOU Bookstore Departmental Charge Authorization form
must accompany the purchase.
Memberships and Dues
Membership fees or dues for governmental and professional organizations must
be approved by the President's Staff representative for the department and by
the membership representative of the Business Office. These approvals are
obtained electronically through Banner FIS. The following basic guidelines
should be considered when authorizing memberships:
Does the membership benefit WOU as an institution, as opposed to the individual?
Membership in an organization made up of public officials and
administrators is generally institution-related and considered a benefit to
Western.
Membership in an organization engaged in activities closely related to an
individual's employment, and made up of interested persons from government,
private, and commercial fields, may be considered a benefit to WOU due to
various factors including knowledge gained and publications received.
Institutional membership in the local chamber of commerce is specifically
authorized, but memberships in civic organizations, such as Rotary, Kiwanis,
Lions, etc., are usually not allowable.
Is the membership institutional rather than individual?
Membership in an association devoted primarily to a profession is usually
considered personal and not paid by WOU.
Are there already other memberships in the organization paid by WOU?
When associations charge a full rate for an initial membership and lower
rates for associate memberships, duplicate memberships may be paid as long as
only one full institutional membership per association is paid.
Personal Funds Reimbursement
WOU employees may request reimbursement when personal funds are expended for
institution-related expenses. A "Personal Funds Reimbursement Form" should be
processed promptly and all purchasing rules must be followed. The request
must identify the departmental accounting to charge and must be approved by
the department head (a person other than the requestor). The electronic
approval routing to departments will be overridden by the Business Office
since the hardcopy of the reimbursement form provides the appropriate
departmental approval. Whenever possible, employees should use the purchase
order process or the WOU issued VISA card for purchases. Expenditures from
personal funds should be done as a last resort.
Petty Cash Funds
Departments may request through the Business Office to setup a Petty Cash
Fund. Purchases that are acceptable through petty cash funds are items low in
price; generally less than $25.00. Items that are not acceptable would be
tuition (at WOU or at another institution), registration fees, or any "on
campus" purchase (such as Bookstore, Cubby Hole, or Ed Media). Any small
purchases that are charged to the institution should not be paid through a
petty cash fund later. Whenever possible, departments are encouraged to use
the WOU-issued
VISA card for purchases not processed on a purchase order.
A Department must submit a completed "Petty Cash Fund Advance" form to the
Business Office to setup a Petty Cash Fund. Once the responsible employee
receives the fund, that employee must secure and limit access of the funds to
selected employees. The employee who received the petty cash fund may be held
personally responsible for said funds depending upon the circumstances if a
loss of funds occurs. Any losses the individual is not held responsible for
will be charged to the department. In the event of termination of the
employee responsible for the petty cash fund, the fund must be returned
immediately to the Business Office.
At all times, receipts and cash must equal to the amount of the petty cash
funds originally advanced. When your receipts are approximately 75% of your
petty cash fund, or you have receipts more than three weeks old, you should
submit the receipts to the Business Office for reimbursement. Attach the
receipts to a completed "Petty Cash Reimbursement" form and send them to the
Business Office.
Small receipts need to be taped to a sheet of 8 1/2" x 11" paper. More than
one receipt may be attached to a sheet of paper, providing all receipts are
visible. A purpose for the expenditure must be included with each receipt.
The total of the amounts on the "Petty Cash Reimbursement" form must equal the
total receipts.
The cash on hand should be counted at least once a month to assure that no
loss has occurred. It is advisable to count the cash on hand each time
reimbursement of funds is requested.
The Business Office will issue a check to the responsible employee in their
normal daily check run. The employee may cash the check at the Cashier's
Office if they wish. If the check is more than $200, the employee should
contact the Cashier's Office in advance to make arrangements for the check to
be cashed.
Business Office personnel will perform periodic audits of the departmental
petty cash funds.
Price Agreements
The Department of Administrative Services Purchasing Division and other OUS
institutions negotiate price agreements for various commodities with vendors.
The cost-savings and contract language of these agreements can be beneficial
to WOU. Departments are encouraged to utilize these agreements for their
purchases whenever possible. The Department of Administrative Services
agreements are available online through the Vendor Information Program (VIP).
The Business Office's Purchasing Agent can provide departments with
information on available price agreements and on accessing the VIP system.
Prizes and Awards
Institution funds may not be used to purchase prizes and awards. Agency Funds
and Western Foundation funds can be used to purchase prizes and awards. If
prizes and/or awards are purchased with agency funds, a list of recipients
(including SSN and address) and award values must be submitted to the Business
Office. The Western Foundation is responsible for tracking and reporting
prizes and awards purchased from their funds.
Purchasing Approval
Approvals of purchases are obtained electronically through Banner FIS. The
approval queues are set up for each department by their organization code. The
minimum requirement for approvals is one person at the departmental level and
final approval by the Business Office. Departments may choose to have more
than one level within their department. A person who approves for the
department should not be the person inputting the transaction into Banner FIS.
Fixed Assets require an additional approval by the WOU Property Control
Specialist. This approval level is between the departmental and Business
Office approval levels. Membership and Dues require additional approvals by
the appropriate President's staff member and the membership representative of
the Business Office. These approval levels are between the departmental and
Business Office approval levels.
Procurement Card (VISA) Program
The WOU issued Departmental Purchasing Card (DPC) program was established to
provide a more rapid turnaround of purchases for low dollar value goods, and
to reduce paperwork and handling costs. By using DPC the traditional
requisition - pricing inquiry - order placement - delivery of goods - invoice
– voucher review - payment cycle is greatly reduced. Departments who have
been issued credit cards can purchase goods in-person, by telephone, or over
the Internet, and receive goods within the limits of this procedure. Payments
to vendors are made via the Visa settlement system. Accounts Payable will
make monthly settlements with the bank.
Departments wishing to have a purchasing card start the process by filling out
a departmental purchasing card agreement form. The person normally signing
this form is the department head/chair who, for the purposes of this program,
is known as the card custodian. The custodian may authorize one or more
persons to use the card on behalf of the department. Multiple cards may be
requested by each department, but only one request form per department.
Contact the Campus Card Coordinator at 838-8210 for further information.
The custodian and each buyer will be issued a copy of this procedure. A person
may not become a buyer unless so authorized in writing by the custodian.
The Campus Card Coordinator will maintain all records of credit card requests,
limit changes, cardholder transfers and lost/stolen/destroyed card information.
Authorized Credit Card Use
The departmental purchasing card will have the name of the department to which
it is issued embossed on it. ONLY persons authorized in writing by the card
custodian are authorized to use the card. Buyers may make purchases on behalf
of others in their department. The department to which the card is issued is
responsible for all charges made with the card.
Use of the credit card shall be limited to the following conditions:
• Spending limit will be adhered to.
• As applicable, Merchant Category Code blocking will be adhered to.
• Cash advances will not be drawn using the departmental purchasing card.
The credit card WILL NOT BE USED for the following:
• Personal purchases
• Cash Advances
• Computer Hardware/Software/Peripherals
• Telephone calls/monthly service
• Fees and services (245XX - 25199 account codes)
• Capital equipment and upgrades (40101, A8011 account codes)
• Other capital expenditures (401xx, A80xx account codes—with the exception of
40190-Library Purchases which are allowed)
• Travel
• Maintenance and Repairs (235xx account codes)
• Rentals and Leases (240xx account codes)
• Dues and Memberships (28901, 28902, 29005 account codes)
• Employee-Related Tax-Reportable/1099 Expenses (285xx account codes)
• Purchases involving the following account codes:
o 20169 Awards and Prizes
o 23080 Utilities and Maintenance - Non-Employee
o 28610 Entertainment
o 28612 Hosting Groups and Guests
o 28630 Non-OUS Participant Support - Tuition and
Registration Fees
o 28631 Non-OUS Participant Support – Other
o 28931 Selling and Marketing Costs
The credit card MAY BE USED for the following:
• Office Supplies
• Laboratory Supplies
• Housekeeping/Maintenance Supplies
• Computer Supplies (such as toner, removable disk media, flash memory)
• Minor Equipment and Appliances*
• Subscriptions
• Conference/Seminar Registrations
• Publications/Reprints
*Computer-related purchases require a University Computing Services Purchase
Request to be processed as outlined in the Computer Hardware and Software
section of this policy.
The custodian and persons so authorized in writing by him/her assume liability
for the total dollar amount of both authorized and unauthorized purchases plus
any administrative fees charged by the bank in connection with card misuse.
The card may also be revoked. In the event of criminal misuse of the card,
the person making the purchases may also be subject to disciplinary action up
to and including dismissal and criminal sanctions.
Making a Purchase
Procurement procedures permit the purchase of goods to be made from a "Vendor
of Choice". This implies the possibility of not comparing sources or
competition between vendors. However, it is also WOU policy to seek
competition and the lowest prices within the parameters of quality and
delivery. Accordingly, whenever making a credit card purchase, buyers will
check as many sources of supply as reasonable to the situation to assure best
price and delivery. Also, where practical, consideration should be given to
small, minority and women owned businesses. Where appropriate, the Purchasing
Department will establish price agreements and identify preferred suppliers.
Buyers will use the following checklist when making a purchase:
If vendors furnish standing price quotations or catalog prices on a
recurring basis, check that the price listed is current.
Determine if the goods are available, meets the specification and
delivery requirements, etc.
Confirm that the vendor agrees to accept VISA.
Direct the vendor to include the following information on the shipping
label and packing list:
Cardholder's name and telephone number.
Complete delivery address.
It is extremely important that documentation concerning all purchases be
sent to the buyer ordering the merchandise. This will ensure that the
documents necessary to reconcile the monthly statement are available.
If necessary, advise the individual within your area who receives
merchandise of the vendor's name and order number, anticipated delivery date,
number of boxes expected, carrier (UPS, Fed Ex, etc.). Ensure that the buyer
is notified when delivery is made.
Internet purchasing requires additional efforts to safeguard institutional
funds. The following recommendations are a minimum.
Ensure vendor is an established company that can fulfill order. Always obtain
the company name. Always obtain a contact name and telephone number. Screen
print appropriate information such as product description, pricing, and
special conditions.
Ensure the Internet site uses encryption technology to keep financial
information safe. You should be able to find a security logo or statement to
the effect that the site is secure.
Record-keeping
Whenever a credit card purchase is made, either over the counter, by
telephone, or by Internet, documentation will be retained as proof of the
purchase. Such documentation will be used to verify the purchases listed on
the monthly statement of account.
When the purchase is made over the counter, the buyer will retain the invoice
and "customer copy" of the charge receipt. The buyer is responsible to check
that the vendor lists the quantity, fully describes the item(s), and excludes
sales tax, prior to the buyer signing the slip.
All purchases will be recorded on a "Purchasing Log".
When the goods are received after placing a telephone or Internet order,
retain all shipping documentation.
Review of Monthly Statement
At the end of each billing cycle, the custodian will receive directly from the
bank his/her monthly statement of account that will list the transactions for
that period.
The custodian will check each transaction listed against the purchasing log,
receipts and any shipping documents to verify the monthly statement. The
reconciliation of the bank statement to the purchasing log will consist of the
following:
Receipts and shipping documents exist for each purchase.
The goods were received.
The buyer complied with applicable procedures.
Record-keeping
Whenever a credit card purchase is made, either over the counter, by telephone, or by Internet, documentation will be retained as proof of the purchase. Such documentation will be used to verify the purchases listed on the monthly statement of account.
When the purchase is made over the counter, the buyer will retain the invoice and "customer copy" of the charge receipt. The buyer is responsible to check that the vendor lists the quantity, fully describes the item(s), and excludes sales tax, prior to the buyer signing the slip.
All purchases will be recorded on a "Purchasing Log".
When the goods are received after placing a telephone or Internet order, retain all shipping documentation.
Review of Monthly Statement
At the end of each billing cycle, the custodian will receive directly from the bank his/her monthly statement of account that will list the transactions for that period.
The custodian will check each transaction listed against the purchasing log, receipts and any shipping documents to verify the monthly statement. The reconciliation of the bank statement to the purchasing log will consist of the following:
- Receipts and shipping documents exist for each purchase.
- The goods were received.
- The buyer complied with applicable procedures.
The original sales documents (packing slip, invoice, cash register tape and credit card slips, etc.) for all items listed on the monthly statement MUST be neatly attached in purchasing log sequence to the statement. This data attachment is critical to provide audit substantiation. IF THIS ROUTINE IS NOT ADHERED TO, THE CREDIT CARD MAY BE REVOKED. The careful matching of complete support documents to the log and then to the statement is vital to the success of this program.
Once the monthly statement is reconciled, the custodian should sign the purchasing log and forward it to the appropriate department head for approval. The custodian's signature/approval of a monthly statement indicates that the buyer was authorized to make those purchases and those purchases were made in accordance with the applicable procedures.
The monthly statement and all attached documentation as required above must be forwarded to the Campus Card Coordinator no later than the 25th of the following month.
The Campus Card Coordinator will review the submitted monthly documentation for compliance with current purchasing policies, appropriate signatures, and verification of supporting documentation.
AUTHORITY
With passage of the 1995 Higher Education Efficiency Act, the Oregon
University System (OUS) was granted exemption from State purchasing rules.
OUS's purchasing policies are outlined in their Financial
Administration Standards Operating Manual, Section 13. OUS's rule
580-040-0200 grants Western Oregon University the authority to purchase within
the guidelines of OUS competitive procedures.
APPROVAL
WOU's purchasing authority primarily resides with the central Business
Office. The Business Office's purchasing agent has authority to give final
approval on purchases up to $24,999. A few departments have been delegated
purchasing authority equivalent to the Business Office's purchasing agent's
authority. The Director of Business Services approval is required for all
purchases of $25,000 or more.
Approval: Mark Weiss, VP for Finance & Administration
Date: September 19, 2005
A hard copy of this document is always available in the office of Human Resources.
Use the following URL to hyperlink to this policy: "http://www.wou.edu/policy/201" |
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