Financial Policies

CHAPTER 1:

PURCHASING POLICIES AND PROCEDURES

I. GENERAL POLICIES

A. Objectives and Organization

The following policies and procedures have been adopted by AUI to provide for controlled but efficient handling of the purchasing requirements of the University. These policies and procedures assume that various controls and procedures are functioning in related areas such as budgeting, disbursements and management reporting.

The primary objective of the purchasing function is to support the academic, administrative, research and student service programs by providing materials, equipment and services at the lowest total cost consistent with specified quality and delivery requirements.

B. Legal Authority

The purchasing policy of the University provides that no commitment for materials, equipment or services may be made without an approved Purchase Request or written contract by an authorized agent.
The authorized agent for the university is the President or, by delegation, the Vice President of Finance and Administration. No other employee has the authority to incur any obligation or enter into a contract, agreement or purchase on behalf of the University unless authorized in writing.

C. Ethical Conduct

Purchasing and Business Services personnel are expected to exercise sound judgment and maintain the highest ethical and professional standards in the conduct of University business affairs and to discharge their duties in such a manner that the integrity of the department and the University is never in question.

D. Documentation

The purchasing department will maintain complete transaction files by Purchase Request and vendor. The Purchasing Director will prepare a weekly Status Report of Purchase Requests to be distributed to the VPFA and the Director of Business Services.

Library purchases and purchase of school or departmental books require the same documentation as other purchases. After approval of the VPAA, purchase requests go to the purchasing department. They follow the same procedure as other orders.

Purchases of textbooks or other purchases of books and supplies for resale in the Campus Store will also be ordered through the purchasing department.

E. Budget Responsibility

Each department is allocated a budget in accordance with the adopted nomenclature. The budget covers 12 months, from August 1, to July 31, of the following year. The budget is made known to the different departments by July 25, of each year.

Each department is responsible for monitoring the implementation of their budget. It is the responsibility of the budget service to determine that the proposed purchased amount is provided for in approved budgets or that appropriate transfer from other budget lines is required.

To the exception of budgetary lines related to personnel and common expenses, expenditures are not allowed without prior approval of the department head. Authorizations for academic departments are subject to the approval of the VPAA.

F. Basic Supply Requests

Requests for general office supplies will be accepted at any time but will be filled twice weekly on Tuesdays and Thursdays based on requests received by the close of business on Mondays and Wednesdays. The user schools and departments are requested to make someone in their office responsible for managing their needs and making one overall request. They should anticipate and plan for their weekly requirements.

Basic stock supplies and equipment or services should not be included in the same Purchase Request.