Purchasing Procedures

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Purchasing Procedures Published by Procurement
Services 307 Tillman Hall Rock Hill, SC
29733 Tel [phone] Fax [phone]
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Purpose

• This training program was developed to allow
  users to become familiar with the basis for
  purchasing at Winthrop.
• For further details or questions, please contact
  your buyer.

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Outline

• General
• Purchasing Card Purchase
• Categories of Purchases
• Types of Purchases
• Competitive Requirements
• Purchasing Planning
• Procedures

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General

• Organization
• Procurement Code
• Certification
• Contracts
• Risk Management

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Procurement Risk Management

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Purchasing ServicesResponsibilities

• Linda Campfield ext. 6025
• Academic Purchases
• Printing
• Information Technology
• Purchasing Cards
• Training
• Barbara Mayes ext. 6029
• Sets up vendors
• Maintains vendor database in FRS
• Processes purchase requisitions
• Keys Change Orders
• Maintains W-9 file

• Terry Sexton ext. 6026
• Facilities
• Operational Purchases
• Athletics
• Dacus
• Risk Management
• Barry Yates ext. 6028
• Thursdays only
• PCS and OLR Training

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General

• Why Use the Procurement Code?
• It is State Law
• It governs the expenditure of all funds
  regardless of source unless specifically
  exempted.
• It includes expenditure from all Grants

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General

• Certification
• Winthrop is certified to make purchases of up to
  200,000 for goods and services, 100,000 for
  printing, and 50,000 for information technology.
  
• Purchases exceeding these limits are forwarded by
  the Purchasing Office to the Materials Management
  Office in Columbia.

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Contracts

• Winthrop has a number of contracts already in
  place as follows
• Car Rental U-Save
• Food Services Aramark
• Bulk Mailing Services Creative Mailing
• Textbooks The Bookworm

• Many goods and/or services are on State Contract.
  To determine if something is on state contract,
  visit the link for state contracts on the
  procurement website or contact your buyer

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Risk Managementhttp//www.winthrop.edu/riskmanage
ment

• All accidents, damages, vandalism, and/or thefts
  should be reported to Campus Police. They will
  instruct you on further procedures.
• Property damages resulting from lightning
  strikes, water damage, power surges should be
  reported to Terry Sexton, ext. 6026.

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Risk Management

• Faculty or Staff who organize an off campus
  educational instructional field trip sponsored by
  the University should contact Teresia Sexton at
  323.2143 ext. 6026 for information regarding
  optional insurance.

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Purchasing Card Purchases

• All Department Heads are delegated
• the authority to use purchasing cards
• for those accounts under their
• respective departments.

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Purchasing Card Purchases

• The purchasing card program provides greater
  flexibility and improved response time for small
  purchases which cost less than 2,500.00.
• The Purchasing Office will be happy to assist
  with these purchases e.g., to obtain better
  pricing. Contact your buyer.

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Purchasing Card Purchases

• Purchasing Card issuance approved by Department
  Head
• Used for small purchases under 2,500.00
• Used for purchase of airline tickets directly
  from the Airlines or on-line travel site (note
  approved travel authorization must be in place
  prior to purchasing tickets)
• Further Informationhttp//www.winthrop.edu/procur
  ement/pcard.htm

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Purchasing Card Purchase

• Prohibitions
• Personal Purchases
• Splitting Orders
• (circumvention of the 2500.00 limit)
• Hotels
• Restaurants
• Computers and/or printers (without prior
  consultation with I/T most are on state
  contract)

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Categories of Purchases

• Goods / Services
• Equipment
• Labor
• Insurance
• Supplies
• Reports
• Construction
• Furniture

• Information Technology
• Computers
• Printers
• Digital Cameras
• Scanners
• Fax Machines
• Software
• Printing

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Types of Purchases

• Small Purchases
• Under 50,000
• Department Enters Purchase Requisition
• Competitive Sealed Bid
• Over 50,000
• Requires Detail Specifications
• Department Enters Purchase Requisition

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Types of Purchases

• Emergency Purchases
• Threat to public health, welfare, critical
  economy and efficiency, or safety by reasons of
  floods, epidemics, riots, failures, fire, or
  other reasons proclaimed by the University.
• Emergency Procurement must be approved by the
  Vice President of Finance.
• Requires written justification

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Types of Purchases

• Sole Source Purchase
• Definition There is only one source from which
  the supply or service is available.
• Requesting department must compete a
  Justification for Sole Source Procurement Request
  (fax to purchasing) Download form from
  http//www.winthrop.edu/procurement/forms.htm
• Department Enters Purchase Requisition
• Upon receipt of purchase requisition and
  completed Justification for Sole Source
  Procurement Request, Purchasing will forward to
  VP of Finance and Business for approval.
• Contact buyer for additional information.

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Type of Purchases

• Consultant Services
• Winthrop has the right of control regarding the
  results to be accomplished but not details and
  means by which that result is to be accomplished.
  
• Requires Bidding
• Department Enters Purchase Requisition
• Contact Buyer

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Types of Purchases

• Professional Services
• Unusual experiences or expertise in a particular
  field
• Requires Bidding
• Contact Buyer
• Employee Services
• Winthrop has control over the results and details
  and means by which the work is accomplished
• Contact Human Resources.

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Types of Purchase

• Purchase from State Agencies
• Meets Competitive Tests
• Contact Buyer
• Complete the Justification for Contract Between
  State Agencies and forward to purchasing.
• Conference Facility
• Special Guidelines
• Contact Buyer

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Types of Purchases

• Reimbursements (contact Accounts Payable)
• Demonstration Units on Loan
• Department Enters Purchase
• Requisition. Contact Buyer for additional
  details.

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Types of Purchases

• Unauthorized Purchase
• Purchases without a PO
• Purchases over 2,500
• Must be Ratified (purchasing willcontact
  department)
• Department must write letter of explanation
  addressed to the president based on instructions
  provided by the purchasing department.
• The president must authorize for payment.

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Competitive Requirements

• Up to 2,500.00
• Competition is optional
• Price must be fair and reasonable
• Use Purchasing Card whenever possible
• From 2,500.01 to 10,000.00
• Department Enters Purchase Requisition
• Buyer will obtain three written quotes

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Competitive Requirements

• From 10,000 to 50,000
• Department Enters Purchase Requisition
• Formal written Request for Quotation
• Must be advertised in SCBO
• Some written specifications.
• Processed by Buyer

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Competitive Requirements

• From 50,000 to 200,000
• Department Enters Purchase Requisition
• Formal Sealed Bid / Proposal
• Detailed written specifications
• Advertised in SCBO
• Bids obtained by Buyer
• Allow 30 days for processing

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Competitive Requirements

• OVER 200,000
• Department Enters Purchase Requisition
• Buyer will process
• Sealed Bid / Proposal
• Detailed written specifications
• Prepared and distributed by the Materials
  Management Office or Information Technology
  Office in Columbia, SC
• Allow 45 Days to process.

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Purchasing Planning

• Departments must properly plan their purchasing
  action.
• Purchase Requisitions are received in Procurement
  Services the day after electronic approval in
  FRS.
• Departments must allow for solicitation of
  competition and PO processing.

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Procedures

• Catering Services
• Winthrops food services contractor, Aramark, is
  the primary source of catering.
• Outside catering is only allowed if Aramark is
  not available.
• Should Aramark not be available, competitive bids
  must be obtained before contracting with an
  outside company. Contact your buyer.

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Procedures

• Travel Payment
• Travel Authorization must be obtained prior to
  travel.
• Reserve and pay hotels, registrations, and
  airlines out of pocket, get reimbursed, OR
• Air travel and registrations can be paid with
  departmental purchasing card with approval OR
• Registrations can be paid via check request
  voucher.
• Hotels can be prepaid on a check request voucher
  (if does not exceed 2500)
• A purchase requisition is necessary for any
  travel procurements which exceed 2500.00
  Contact purchasing for more details.

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Procedures

• Art Purchases
• Paintings, antiques, sculptures or similar
  objects that cost over 1,000.00 require the
  approval of the Art Commission in Columbia.
• Contact buyer.

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Procedures

• Prohibited Purchases
• Items of Personal Benefit
• Coffee Pots, Microwaves, Etc.
• Inappropriate for Individual Offices
• Christmas Trees / Decorations.
• Gifts for Faculty or staff
• Going away Gifts

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Battle of the FormsThese are just a few examples
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Questions

• Please call or email your buyer
• 803 323 2143

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Quick Guide to Accounts Payable
Winthrop University Accounts Payable 20 Tillman
Hall Rock Hill, SC 29733 [phone]
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Accounts Payable Staff
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Travel Authorization

• Must be completed for all employees prior to trip
• Required for students and non-employees when
  items need to be prepaidregistration, lodging,
  etc.
• Completely fill in all sections
• The campus wide ID number can be used in place of
  the social security number.
• Reimbursements are based on the approved amount
  for the trip.
• Include amounts for all expenses even those items
  that will be paid with the procurement card.
• The approved amount is adjusted by the prepaid
  items listed on the form. The remaining amount
  is used to cover all other expenses.

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Travel Reimbursement

• Complete all necessary fields
• Attach original receipts except for meals and
  taxis
• Departure and arrival times must be listed.
• Mileage should be detailed with separate entries
  to and from destination.
• Vicinity miles should be listed separately.
• Prepaid items are deducted from the approved
  amount. The remaining amount is available to
  cover expenses.
• Include copy of conference brochure
• Amount reimbursed is limited to the approved
  amount on the travel authorization.

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Travel Expense Overview

• Employees must be in travel status more than 10
  miles from Winthrop to be reimbursed for meals.
• Employees must be more than 50 miles from
  residence and/or Winthrop for lodging to be paid.
• The current mileage rate is 0.405.
• Receipts for all expenditures, except taxis and
  meals, must be attached.
• Gratuities are not an allowable reimbursement.
• The most economical mode of transportation must
  be usedno first class tickets.

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Travel Expenses Overview cont.

• Meals are reimbursed as follows

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Travel Expenses Overview cont.

• Travel Object Codes
• 5810 Student Travel
• 5820 Non Employee Travel
• 5850 Registration FeesNon Employee Travel
• 5910 Registration Fees In State
• 5911 Registration Fees Out of State
• 5915 Employee In State Travel
• 5916 Employee Out of State Travel
• 5917 MealsNot overnight travel
• 5930 Foreign Travelany travel outside of
  United States, Canada and Puerto Rico

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Check Request Voucher

• It is most frequently used for the following
• Subscriptions
• Reimbursement Expenses to non-Winthrop members
  such as prospective faculty candidates
• Membership Dues
• Registration Fees
• Prepayment of Travel--lodging, airline, etc. if
  less than 2500
• All original documentation is required for
  paymentinvoices, renewal notices, receipts, or
  letter of explanation.
• Complete all sections.

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Contract for Professional Services

• Used to pay individuals--consultants, speakers,
  lecturers, or honorariums
• Complete all sections
• Form must go to HR to verify whether individual
  is a state employee
• If amount to be paid is over 500.00, the form
  needs to be approved by Bob Reid and J.P. McKee.
• These payments are 1099 reportable and will be
  reported to IRS if over 600.

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Purchase Orders

• 3-way Matches
• EO Exempt Order
• PO Print Order
• QO Quote Order
• OR Regular Order
• Central Receiving must be notified that the
  order has been received and is satisfactory
  before the payment will process.

• 2-way Matches
• BO Blanket Order
• ES Exempt Service
• SQ Service Quote
• SR Service Order
• A signature approval on the PO is needed to
  process for payment.

Note CO Check with Order do not require
approval before processing. All original
invoices must be forwarded to Accounts Payable.
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Reminders

• To expedite the processing of forms, please
  provide the following
• Original invoices, receipts, and documentation
• ID Numberscampus wide or SSN
• Account number and object code
• Arrival and departure times on reimbursement form
• Vicinity miles listed separately
• Justifications
• All appropriate signatures
• Checks are printed daily.
• All checks will be mailed to the vendors unless
  the department request that the check be
  forwarded to them for disbursement. In this
  case, the check will be sent through campus mail.

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Reminders, cont.

• If a check needs to be voided, write VOID
  across check and return to A/P.
• If invoice will be paid with by procurement card,
  let us know and we will forward the original
  invoice to you.
• The processing time is 3 to 5 business days
  assuming all necessary documentation is provided.
• Food can not be purchased for staff meetings.
• Gifts are not allowed.
• Gift certificate are limited to 25. Any amount
  more than this becomes taxable income for the
  recipient.
• International transferwe can wire funds in any
  currency to any bank in the world.

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