EIU Office of Internal Auditing

#108 - Purchasing

Approved: September 27, 2012

Monitor: Vice President for Business Affairs

General

The Director of Procurement, Disbursements and Contract Services is responsible for all purchasing activity at the University including vendor selection, bidding, product testing, purchase orders, contract administration, and the Purchasing Card (P-Card) Program. All purchasing activity, regardless of source of funds, must adhere to this policy.

All purchases must be made in accordance with University policies and procedures, the Illinois Procurement Code (30 ILCS 500 et seq.), and the Joint Committee on Administrative Rules (JCAR) Administrative Code. Other restrictions may be imposed for purchases from certain accounts such as grants.

The University does not assume any responsibility for purchases, charges, or contractual arrangements that have not been made in accordance with established policies and procedures.

Financial managers are responsible for ensuring that purchases are used for University-related purposes and that sufficient funds exist within the account prior to initiating a request for payment (RFP), requisition, or P-Card charge.

Purchase of the following items shall not be permitted without prior approval (see specific policy relating to each):

1. Flowers and gifts
2. Alcoholic beverages
3. Food and beverages
4. Computer equipment and software
5. Printing
6. Motor vehicles

Purchasing Methods

Procedures for the procurement and purchase of goods and services at Eastern Illinois University shall be developed, maintained, and posted by the Director of Procurement, Disbursements and Contract Services.

Approval Requirements

The following administrative approvals shall be required for purchases at the dollar levels indicated:

The Vice Presidents and the President may, in writing, delegate their purchasing approval authority. Other financial managers may delegate their purchasing approval authority with the written approval of their immediate supervisor.

Purchasing Violations

Violations of purchasing policies and procedures, regardless of the source of funds, shall result in the following actions:

1. First Violation
   
   The Director of Procurement, Disbursements and Contract Services shall notify the financial manager in writing that a purchasing policy or procedure has not been followed. The financial manager shall be informed of the correct procedure to follow in the future and the consequences of subsequent violations.
2. Second Violation
   
   The Director of Procurement, Disbursements and Contract Services shall return any initiating and other substantiating documents to the financial manager with a reminder of the prior violation. A copy of the violation notification shall be sent to the financial manager’s supervisor and the Vice President for Business Affairs.
   
   The supervisor shall review University purchasing policies with the financial manager responsible for the violation and return any initiating and other substantiating documents to the Director of Procurement, Disbursements and Contract Services, along with a recommendation as to whether or not to proceed with the requested purchase.
3. Third Violation
   
   The Director of Procurement, Disbursements and Contract Services shall return any initiating and other substantiating documents to the financial manager with a reminder of prior violations. A copy of the memorandum shall be sent to the financial manager’s supervisor, the appropriate Vice President, and the Vice President for Business Affairs.
   
   The appropriate Vice President and the Vice President for Business Affairs shall discuss the violation and determine appropriate action to be taken, including but not limited to a written reprimand to the financial manager responsible for the purchasing violations, revocation of the financial manager’s fiscal authority, or other disciplinary action. The appropriate Vice President shall notify the Director of Procurement, Disbursements and Contract Services and the financial manager of the final disposition of the matter. The appropriate Vice President shall also provide a recommendation to the Director of Procurement, Disbursements and Contract Services as to whether or not to proceed with the requested purchase.