Purchasing and Business Services Manual (PUR)

Interim Posting

Note: At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.


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Effective: 3/1/1965

Revised: 11/12/2014

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PUR 201–02: Authority for Procurement

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Purpose

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To define the authority for committing the university to the procurement of goods and services

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Sources

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Arizona Board of Regents Policy Manual - 3-802
University policy

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Policy

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Purchasing and Business Services is the central authority for the procurement of goods and services required by any university department or agency. All procurements must be made in accordance with the Board of Regents’ policies and the rules and regulations prescribed by the chief procurement officer.


Authority for Committing University Funds

No individual other than the chief procurement officer has the authority to place an order directly with a supplier, to enter into a contract or lease, or to obligate the university in any way unless:

  1. the president of the university specifically authorizes an individual to do so in writing

    or

  2. the chief procurement officer delegates purchasing authority to specific individuals for a specific term or purpose.

Committing University Funds

The commitment of university funds is authorized only by issuing a purchase order or by signing an approved contract.

Unauthorized Procurements

Procurements or other commitments made by unauthorized personnel are not legal and binding upon the university and may result in a personal obligation for the individual making the procurement or commitment.

Exceptions
For transactions of less than $100,000, the chief procurement officer may make an exception and issue a confirming purchase order after the responsible employee has completed an Approval of Commitment of University Funds form, has certified that he or she has read and understood The Rule Book for Purchasing at Arizona State University, and has been advised that the fact that he or she has reviewed the rule book will be taken into consideration should there be another violation of purchasing policies and procedures.
For transactions of $100,000 or more, the responsible employee must initiate an Approval to Issue Purchase Order form. This form is sent to the chief procurement officer for a recommendation of approval or denial. The chief procurement officer sends the form to the Office of General Counsel for a recommendation of approval or denial. The form is then sent to the senior university administrator authorized to approve the transaction. The names of senior administrators authorized to approve this form may be obtained from the chief procurement officer.
In either of the above cases, if a confirming purchase order is issued, it will contain language to provide the supplier involved with notice that this and all future procurement must comply with Arizona Board of Regents and Arizona State University procurement policies, and that all purchase orders must be issued by an authorized representative of ASU Purchasing and Business Services.

Authority for Funding Procurements from Departmental Budgets

Departments may authorize Purchasing and Business Services to procure goods or services with funds from departmental budgets by sending Purchasing and Business Services an online document through Advantage.

The approval placed on the online document certifies that sufficient funds are available in the account, that the requested procurements are legitimate expenditures against the account, and that all the necessary internal approvals have been obtained. Such approvals could be required by the appropriate department chair, dean, vice president, or other internal authority.


Method of Encumbering Funds

Advantage will pre-encumber funds automatically for those offices using the online system.

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Exceptions

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As exceptions to this general policy, university employees may obligate university funds via the following methods:

  1. making a purchase that does not require a purchase order under PUR 301–02
  2. making an on-campus purchase under the PUR 302 series
  3. making a purchase using one of the small order systems under the PUR 304 series

    or

  4. making a purchase using the Departmental Professional Services Order under the Financial Services Policies and Procedures Manual— FIN 421–01, “Guest Lecturers, Consultants, and Other Independent Contractors.”

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Cross-References

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For further information on contract approvals, see PUR 202, “Contract Signature Authority.”

For further information on purchases that do not require a purchase order, see PUR 301–02, “Purchases Not Requiring a Purchase Order.”

For further information on making an on-campus order, see the PUR 302 series.

For further information on small orders, see the PUR 304 series.

For use of the Departmental Professional Services Order, see

  1. the Financial Services Policies and Procedures Manual— FIN 421–01, “Guest Lecturers, Consultants, and Other Independent Contractors,”

    and

  2. PUR 307–04, “Retaining Consultants and Independent Contractors.”

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