Purchasing Policy and Procedure
Departmental Purchase Order (PD)
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
- 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.
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
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
Payments legally required from NAU by the Arizona Board
of Regents, State and Federal
Government or other governing agency
Program Review Fees
||incl. Candidate Expenses/Hotel Accommodations. This
does not include advertising to obtain qualified applicants
for a vacant position.
||not to include employee reimbursements for the purchase
of goods and/or services in excess of $5000
Student Program Fees
Subcontract under Sponsored Project
Subscriptions and Dues
Temporary Employment Services
Traffic School Tuition
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:
- Enter a PD document in Advantage.
- Complete the description field on the PD to indicate
the purpose of the payment.
- Attach applicable documentation: memo,
statements, Guest Lecturer Form, Honorarium Form, Speaker Form,
Independent Contractor Request Form, etc.
- Send support documentation to Accounts Payable. No approvals
are required on the paper document since all approval
levels are applied through the Advantage system.
- THE USE OF THE PD DOCUMENT AS A DEPARTMENTAL PURCHASE ORDER FOR
GOODS AND SERVICES UP TO $5000:
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
Purchases for services may require the vendor submit a certificate of
insurance. Purchases for Commercial Bus Services require verification of
Acceptable use of the PD document as a departmental purchase order is as
- The total order, including applicable taxes and freight
charges, shall not exceed $5000.
- The initial order shall not commit the University
to additional future purchases.
- 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:
- 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.
- 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
- 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
https://www4.nau.edu/cas/CAS_Index.html . Capital
Assets will provide assistance with selections, oversee
installation and ensure compliance with technical and
- Financial institution/Travelers cheques/Securities/Insurance
- Legal fees - except as processed by the Office
of Legal Affairs
- 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
- Splitting purchases to circumvent the $5000 Limit
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
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
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.