Year End Procurement

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307.02

Northern Arizona University
Purchasing Policy and Procedure

Year-end Procurement

POLICY:

Rush expenditures near the fiscal year-end are discouraged. Procurements must comply with established procurement procedures, which, in most instances, require competitive bidding. Requisitions that do not permit the normal processing time may not be completed before the fiscal year-end. The requisitioner must investigate the time involved in procuring the specific goods and/or services requested and make reasonable judgments concerning the length of time that would be considered normal processing time by Purchasing Services. The requisitioner should direct any questions regarding normal processing time to the appropriate Purchasing Services buyer. Goods and services charged to the closing fiscal year must be requisitioned well in advance of the fiscal year-end to ensure receipt and payment from the current year's budget. Goods and services with required delivery prior to year-end, which will have to be bid, require at least six (6) weeks lead-time for processing.

Goods and services charged to the closing fiscal year that are not received before the fiscal year-end cannot be paid from that fiscal year's budget.

PROCEDURE:

Following are general procedures for fiscal year-end close-out:

January - March

- Submit requisitions for goods or services which will have to be bid.

April

- Complete any outstanding requisitions for capital items required by June 30.

- Close unwanted orders.

- Order any items with an anticipated delivery date prior to year-end.

- New year transactions become available in Advantage. Requisitions for recurring needs such as maintenance contracts and blanket orders can be entered into Advantage. Use a 7/1 date for new year orders. No goods or services may be received on new year purchase orders until July 1.

June

- Process any PDs to be paid in the current year in early June.

- Close any open unneeded blanket PDs.

- Access to the PD document is switched off shortly after mid-June.

- Complete all RQSs as early as possible in June.

- Access to the RQS document is switched off shortly after mid-June. Requisitions after this deadline require special handling and are for use in emergencies only. Purchasing must be notified if a RQS must be processed after the mid-June cut-off.

- Complete all releases against blanket orders in early June and finalize the closing of blanket orders. Any blanket order not closed will automatically roll into the next fiscal year, creating new fiscal year encumbrances.

State Accounts: When all University procurement deadlines have been met and for reasons beyond our control an item or invoice is not received by June 30, the encumbrance will be shifted to the new fiscal year. A budget increase will be shown in the department's state account in the new fiscal year covering the encumbered amount from the department's old year account.

Local or Grant Accounts: Orders placed against these accounts will be paid in the fiscal year in which the item/service is received.