SUBJECT: Business and Financial Affairs Handbook Amendment
CHAPTER IV. PROCEDURE FOR PURCHASING, ENCUMBERING
ACCOUNTS, TRAVEL, DUPLICATING, ETC.
At its January 19, 1994 meeting, the Board of Regents heard on first reading a proposed amendment to Article III, Section 1.s which would authorize the administration to make expenditures of up to $25,000 without prior express approval of the Board of Regents. At its February 28, 1994 meeting after the second reading, the Board of Regents approved this amendment to the University's By-laws.
At the March 8, 2001 Board of Regents Budget and Finance Committee meeting, the administration presented an item for discussion to increase the Board expenditure approval limit from $25,000 to $50,000.
The Board of Regents Budget and Finance Committee concurred the limit should be increased due to inflationary changes over the years, and to accommodate more efficient and timely University procurements. However, to ensure the Board fully complies with its fiduciary responsibilities, the Committee desires to have all items approved by the administration between $25,001 and $50,000 listed each month and included for ratification as a Consent Agenda item.
The proposed change to the Business and Financial Affairs Handbook, the underlined portion of the text, is attached.
President Farley recommends the Board of Regents approve the amendments to the Business and Financial Affairs Handbook as detailed in the attachment.
Date Jerry B. Farley, President
PROCEDURE FOR PURCHASING PROCUREMENT,ENCUMBERING ACCOUNTS,
1. PLACEMENT OF PURCHASE ORDERS
1. Policy. All purchase orders and agreements involving Washburn University for financial obligations of any kind must be approved in advance and signed by the Treasurer. The Treasurer shall submit to the Board for its consideration any purchase requisition, quotation or bid for a purchase in excess of $50,000. All purchases between $25,001 and $50,000 will be listed and presented as a consent agenda item for ratification by the Board.
The Treasurer is empowered to delegate to the Director of Business Services, Purchasing Manager, or other Business Office employees the details of approving certain requisitions and the clerical operations necessary for placing the order and assembling the material in voucher form in preparation for payment. This applies to the obligations of the General Fund, University Restricted and Agency Fund, Government and Research Fund, Endowment Fund, Student Loan Fund, Employee Benefit Contribution Fund, and any other fund so designated by the Board of Regents.
1.1 All purchase orders and agreements involving Washburn University of
Topeka in financial obligations of any kind must be approved in
advance and signed by the Treasurer or
his a designated official. This
applies to the obligations of the General Fund, University Restricted
and Agency Fund, Government and Research Fund, Endowment Fund, Student
Loan Fund, Employee Benefit Contribution Fund, and any other fund so
designated by the Board of Regents. Washburn University of Topeka as
a public institution is required to meet statutory procedures
established by the State of Kansas and University Bylaws established
by the Board of Regents. In the handling of federal grants,
institutes, and other governmental programs, additional rules and
regulations applicable to such programs must be met. In many cases,
these require confidential, competitive bids. The responsibility for
administering the centralized purchasing functions is assigned
exclusively to the Business Office.
Your cooperating with the approved University purchasing procedures will help avoid embarrassment with government agencies, vendors, auditors, etc. In addition you may avoid incurring a personal financial responsibility.
1.2 All financial commitments and obligations for which the University is
legally liable must be created as a result of a purchase order issued
by the Business Office or a contract executed by the Business Office.
The head of each department or office, cooperating with the Purchasing
Agent Manager, is responsible for obtaining bids or costs and submitting
them with recommendations to the Business Office. All purchase requests,
receiving reports, bids, invoices, statements and other information
related to financial obligations must be presented to the Business
No full-time member of the faculty or staff shall negotiate sales,
compete for sales, or be a vendor for University business.
It is the responsibility of each department head to remain within the
appropriations for each account in his/her budget. For administrative
purposes, audit reports, and Board of Regents meetings, it is
necessary that each requisition indicate the use of the article or
materials or the purpose of the service being requested. Any
requisition submitted to the Business Office which does not give full
particulars as to the use or purpose may, of necessity, be returned to
the requesting department and will require additional time before an
order can be placed.
Each department is responsible for anticipating its needs and
combining orders wherever possible to maintain an optimum inventory of
materials and to minimize order processing costs.
The University does not pay the federal excise tax or state sales tax
on items purchased for educational use.
All department purchases including library books and periodical purchases shall be completed before June 1, as all orders placed must be delivered, invoices approved for payment, and payment made early in June. Although the fiscal year does not end until June 30, it is not possible to meet the statutory requirements, prepare all the statements required by the auditors, and assemble the necessary data for the following year's published budget unless the routine of purchasing and paying bills, except emergency and day by day operations, is completed early in June.
The use of claim vouchers is not permitted in making purchases except
when advance approval, in each instance, is obtained from the
Agent Manager for payments not readily adapted to purchase
orders. In instances where this procedure is approved, the claim voucher
is to be signed by an authorized official of the firm, the vendor's
invoice is to be attached to the claim voucher, and these documents are
to be submitted to the Purchasing Agent within two business days after
the approval of the use of the claim voucher. The use of the article of
material or the purpose for which the service was purchased is to be
stated on the claim voucher.
The University maintains a University Restricted and Agency Fund. Any
commitment obligated by an individual or organization is the personal
obligation of the individual creating the commitment unless the
request is properly handled through the University Business Office in
accordance with University procedures and policies applicable to such
funds. The University is subject to the same legal requirements for
the management of the University Restricted Funds as are applicable to
its General Funds. If the unencumbered balance or cash balance
available for the account is inadequate for the payment of any request
submitted to the Business Office, the entire obligation becomes the
responsibility of the individual making the commitment. It is
recommended (required for Washburn Student Association, Washburn
Student Bar Association and Departmental Agency Accounts) that any
long term arrangements or requests involving a large sum of funds
should be processed through the Business Office, and any contract
signed by an organization's officers should also be approved by the
Business Office with a copy filed with the Business Office.
Purchases which will require expenditures for more than
$50,000 are to be presented to and approved by the Board of Regents at
their regular business meeting before an obligation is created in the
name of the University or organization. Items which require Board of
Regents approval must be submitted well in advance of the next scheduled
Regent's meeting in order to be placed on the agenda for that
meeting. Contact the Purchasing
Agent Manager for agenda deadlines.
All Washburn Student Association and Washburn Student Bar Association
Agency Accounts and all Departmental Agency accounts are to follow the
purchasing procedure as set forth contained in this Chapter, Sections
1 through 3. Agency Payment Requisitions and Authorization forms
should be used only for reimbursements for cash purchases, payment of
utilities, and for other purchases only as authorized in advance by
the Purchasing Department. All other purchases should be made in
accordance with the standard purchasing procedure of processing a
Purchase Requisition in advance of making the purchase or commitment in
the name of the University or organization. For further information
relative to procedures for handling agency accounts,
you are referred
refer to Chapter VII.
The mechanical procedures for handling purchases may be outlined as