Purchasing Home

304.05

Northern Arizona University
Purchasing Policy and Procedure

Departmental Purchase Order (PD)


POLICY:

The PD document may be used to procure and pay for transactions that do not require the approval of Purchasing Services, refer to Section I, and as a purchase order for departmental use, limited to $5000, to procure authorized good(s) and service(s) directly from a vendor, refer to Section II.

  1. THE USE OF THE PD DOCUMENTS TO PAY FOR EXPENDITURES WHICH SHALL NOT REQUIRE THE APPROVAL OF PURCHASING SERVICES:

    Purchasing Services imposes no limit to the dollar amount of PD documents for these specific transactions. Departments using the PD document for these purposes shall be subject to University policies governing and limiting these types of expenditures.

    Construction and Real Property Contract Payments (Capital Assets Only)
    Entertainer Fees (Contracted only)
    Game Guarantees - Athletics only
    Game Officials - Athletics only
    Gate Receipts - Flagstaff Public Schools (Athletic Events)
    Grants - bestowed by NAU on outside agencies or individual students
    Guest Lecturer
    Guest Speaker
    Honorariums
    Insurance Claims
    Intergovernmental Agreements
    Interviewee Expenses
    Participant Fees
    Payments legally required from NAU by the Arizona Board of Regents, State and Federal
    Performer
    Government or other governing agency
    Program Review Fees
    2. Recruiting: incl. Candidate Expenses/Hotel Accommodations. This does not include advertising to obtain qualified applicants for a vacant position.
    Refunds
    Registration Fees
    Reimbursements: not to include employee reimbursements for the purchase of goods and/or services in excess of $5000
    Royalties
    Stipends
    Student Program Fees
    Subcontract under Sponsored Project
    Subscriptions and Dues
    Taxes
    Temporary Employment Services
    Traffic School Tuition

    PROCEDURE:

    Prior to placing an order with the vendor, the department enters a PD document in Advantage and obtains necessary approvals. The PD is the purchase order and shall be sent to the vendor so that invoicing reflects the University's order number. The following steps are necessary:

    1. Enter a PD document in Advantage.
    2. Complete the description field on the PD to indicate the purpose of the payment.
    3. Attach applicable documentation: memo, statements, Guest Lecturer Form, Honorarium Form, Speaker Form, Independent Contractor Request Form, etc.
      4.  
    4. Send support documentation to Accounts Payable.  No approvals are required on the paper document since all approval levels are applied through the Advantage system.
  2. THE USE OF THE PD DOCUMENT AS A DEPARTMENTAL PURCHASE ORDER FOR GOODS AND SERVICES UP TO $5000:

    3. POLICY:

    Departments may use the PD document as a purchase order for goods and services, limited to $5000, for all items not specifically listed below as Unacceptable PD Transactions or as prohibited transactions under Comptroller Policy CMP 401-03.  Purchases for services may require the vendor submit a certificate of insurance. Purchases for Commercial Bus Services require verification of safety rating.

    Acceptable use of the PD document as a departmental purchase order is as follows:

    1. The total order, including applicable taxes and freight charges, shall not exceed $5000.


    2. The initial order shall not commit the University to additional future purchases.


    3. The University is NOT purchasing goods or services from a University employee as any purchase from an employee or an employee owned business is a conflict of interest and must be requested and formally bid through Purchasing.

    The department shall ensure the following when using a PD document as a departmental purchase order:

    1. Any contract requiring signature shall be sent to Purchasing Services for signature with a Contract Signature Request Form, referencing the PD number prior to placing the order.


    2. No artificial division of a purchase into components costing less than $5000 has occurred. 

UNACCEPTABLE PD TRANSACTIONS:

The following list of goods and/or services shall not be purchased with the PD document. Purchases of goods and/or services from the following list shall be considered a violation to policies and procedures.

  •  Alcoholic beverages
  •  Animals of any type; dead/alive
  •  Bars/Cocktail-Lounges/Discotheques/Nightclubs/Taverns/Drinking establishments
  •  Capital equipment (items costing more than $5000)
  •  Carpeting - The University has adopted formal standards regulating carpet quality and   installation. Prior to any carpeting purchase, staff, faculty and/or departments are requested to submit to Capital Assets and Services a completed Project Initiation form found at https://www4.nau.edu/cas/CAS_Index.html .  Capital Assets will provide assistance with selections, oversee installation and ensure compliance with technical and environmental standards.
  •  Financial institution/Travelers cheques/Securities/Insurance
  •  Fines/Penalties
  •  Firearms/Ammunition/Explosives
  •  Flowers
  •  Gifts/Contributions
  •  Legal fees - except as processed by the Office of Legal Affairs
  •  Loans
  •  Material prohibited by State or Federal law (i.e.fireworks or controlled substances)
  •  Narcotics/All drugs
  •  Package stores/Beer/Wine/Liquor
  •  Personal purchases
  •  Purchases from University employees or firms owned by University employees.
  •  Purchases in which a University employee has a conflict of interest, and that employee participates in the  purchase process
  •  Radioactive materials
  •  Rare and precious metals
  •  Renovation/Construction/Removal and/or installation services that may impact/disturb Asbestos  Containing Material (ACM) or Presumed Asbestos Containing Material (PACM)
  •  Splitting purchases to circumvent the $5000 Limit

    PROCEDURE:

    1. The department shall check with the appropriate buyer in Purchasing Services to see if insurance is required for any purchase of services.  The buyer can be found on the commodity table.

    2. Prior to placing the order with the vendor, the department shall enter a PD document in Advantage and obtain necessary approvals.  The name and telephone number of the responsible person should be entered on the PD so the vendor has a contact person in the event of a question or problem.

    3. The department shall be responsible for printing its PD documents and sending to the vendor.  Purchasing shall not print PD's for departments.  To print PD's click Print at the bottom of any page on the PD document.

    4. When the department receives and accepts the item(s) or service(s) ordered, a receiving report (RC) shall be entered in Advantage, indicating the items received.

    a. It is particularly important that freight damage (obvious or hidden) is brought to the attention of the supplier immediately.  Inspect deliveries as soon as they are received.

    b. All original vendor invoices shall be sent to the Accounts Payable Department.  Penalties, late fees and interest assessed by vendor(s) for delays in payment processing shall be charged to the department responsible for such delays.

    5. Special Requirements:

    a. Commercial Bus Services
    Prior to issuing a PD for Commercial Bus Services, the department shall verify that the vendor has at least a “Satisfactory” safety rating by searching the vendor name on the US Department of Transportation, Federal Motor Carrier Safety Administration USDT website and work with Purchasing Services to obtain approved insurance. A printed copy of the rating shall be kept with the PD documentation.

    b. Frequent Use Items/Vendors
    If a department intends to use PDs for items which are ordered frequently or multiple orders to the same supplier, the department shall discuss this with the appropriate buyer. Contracts may exist which cover the items required, or it may be cost effective to negotiate a price agreement. There may be easier methods for ordering those items. This type of information will result in better buying.

    c. Problem Resolution
    Departments shall be responsible for resolving problems which arise relating to PD purchase orders such as incorrect shipments, damaged shipments, overcharges, delays, etc., and shall make every effort to resolve these issues. However, if a situation arises which cannot be resolved in a timely manner and which is threatening to damage relations between the University and the vendor, this should be brought to the attention of Purchasing Services. The appropriate commodity buyer will work with the department to resolve the issue.