The goal of the purchasing policy for Cabrini College is to procure goods and services that meet community needs, in a timely, efficient, and properly controlled manner. The Administrative Services Department fulfills this responsibility by educating the community about "best procurement practices," managing College purchase orders, and enforcing the policies and procedures of the College. The purchasing policy endeavors to insure that members of the Cabrini College Community adhere to standard business practices and all requirements for the expenditure of government grants. Purchasing Forms Tax Status
Cabrini College is classified as a non-profit educational institution and, as such, is exempt from the Pennsylvania Sales & Use Tax, unless otherwise noted in the tax laws. Most other states allow their merchants to honor this exemption; however, some states may require tax payments for goods and services. Additional information regarding specific situations may be obtained from the Accounts Payable Department. Authority to Requestition
Vice Presidents are responsible for adherence to their departmental budgets. Approving purchase orders is one method for monitoring departments’ expenditures. While it may be delegated, the authority to approve requisitions and requests resides with the Divisional Vice President. Objectives
Administrative Services Department’s Purchasing Objectives: - Serve in an ethical, friendly and professional manner, as an effective liaison between user departments and vendors.
- Help users in obtaining goods and services in an efficient, cost-effective way; generally, customers should handle purchases directly, except when such purchases involve college-wide arrangements, as with office supplies.
- Maintain a current knowledge of manufacturing technology, vendor competence, and competitive market conditions, as they relate to the material, equipment, supply, and service requirements of the College and to act as an information center on sources of supply.
- Cooperate with departments on standardization objectives.
- Refrain from engaging in any activity the primary purpose of which is to financially benefit any individual.
- Review programs and institute changes where necessary.
- Negotiate sole source purchase contracts for college-wide use where such agreements increase value or service.
- Enforce the policies and procedures approved by the Vice President of Finance and Administration regarding the procurement of goods and services.
Requisitioner’s Responsibilities
Effective purchasing requires a joint effort by faculty, staff members, Accounts Payable and Administrative Services. In order to achieve Administrative Services’ goal of providing a high level of service to all departments, the following basic procedures should be followed: - Anticipate requirements sufficiently in advance to allow time for quotes, and to effect timely delivery.
- Be specific when preparing requisitions and requests. Include all details required on the form.
- Only Administrative Services should make commitments to vendors. Because it coordinates the needs of the various Departments, Administrative
Services may obtain better prices than individual units. Also, by standardizing commonly used types of items and combining volumes throughout the College, quality is maintained or upgraded while costs are contained or reduced. - Keep price quotations confidential.
- Inspect all deliveries immediately and carefully for any damage.
- Approve and forward Payment Approval Form promptly when order is received and you are satisfied with the purchase. All invoices are to be routed to the Administrative Services department for payment.
Purchasing Approval Requirements
In order to provide appropriate financial control over the expenditure of College funds, a system of approval levels has been established. Observe the following approval levels in placing orders: Operating budget purchases under $5,000 require only department director approval. Operating budget purchases over $5,000 require Divisional Vice President approval. Operating budget purchases over $25,000 require the approval of the Vice President for Finance & Administration. Budgeted capital acquisitions require the approval of the Divisional Vice President and the Controller’s Office before forwarding to the Administrative Services Department. Capital acquisitions over $25,000 require the approval of the Vice President for Finance & Administration. Purchases over $5,000 require two competitive bids or a letter explaining why competitive bids were not possible or feasible. We encourage competitive bids for items under $5,000 when it is possible to obtain competitive prices and terms. Copies of all unsuccessful bids should accompany purchase requisitions. Computer equipment purchases require the approval of Information Technology prior to their processing. All contracts (equipment lease or rental, services, etc.) require budget approval, and must be processed through the Vice President of Finance and Administration. How to Purchase Materials & Equipment Less than $100 in value:
The College gives you two ways to procure items totaling $100 or less: - Use a College issued purchasing card. If you do not have a card, ask the departmental administrative staff for assistance.
- Use your own cash or credit card. Then, to receive reimbursement, submit the original sales slip with a Check Request to Accounts Payable. A check will be sent to you in about 5 days.
Between $100 and $2,000:
Use a College issued purchasing card $2,000 or more:
A Purchase Order is required for purchases greater than $2,000 that are not listed as a following exception. Exceptions – There are certain acquisitions that should be charged to on a College issued purchasing card. These include but are not limited to: - Airline/Train tickets
- Meals, hotels, travel expenses
- Conference/seminar registrations
- Dues, memberships, licenses, application fees
- All subscriptions/renewals
- Advertisements
- Books, publications, periodicals, newsletters
Direct questions about any of these exceptions (or others not listed) to Administrative Services or Accounts Payable. They will gladly assist you or direct you to the appropriate parties.
Purchase Orders
There are three reasons for using Purchase Orders. One is to control the acquisition of goods and services when price is a primary consideration. Another is to create an "encumbrance" that will help you manage your budget. Finally, when using a Purchase Order, everyone involved in the purchase cycle can track the order by referring to the same number. To use a Purchase Order, fill out a Purchase Requisition (adhering to the "Approval Requirements" noted above) and forward it to the Administrative Services Department. The Administrative Services Department generates the Purchase Order and faxes it to the supplier. Open Purchase Order
By using an Open Purchase Order, you have created an encumbrance in the accounting system that will decrease as invoices are received against the Purchase Order number. Open Purchase orders should only be used for contracts which are being charged to ONE account, such as a monthly fee. Taxes
Cabrini College is exempt from Pennsylvania sales tax. To take advantage of this status, payments must be made directly to the supplier from the supplier's invoice. The College will not reimburse individuals for sales tax in excess of $5. Please contact Accounts Payable for a copy of our tax exempt certificate. Bidding
Cabrini College encourages competitive bidding whenever possible, especially if the value of the purchase exceeds $1,000. Bids or explanations of the reasons bids were not solicited are required for all acquisitions over $5,000. Please give the Administrative Services Department documentation of that bid process. In the case of items over $5,000, if you do not bid, you must provide a document stating the reason you did not bid. |