PURCHASING POLICIES/PROCEDURES
REVISED JULY 2007

Prepared by:
Resources Management
 

The Purchasing Office of Mississippi University for Women is organized and administered as an integral part of the Finance and Administration Division.  The purchasing function promotes the objectives of the University by providing administrators, faculty, and staff necessary supplies, equipment and services.  The Purchasing Office is located in Whitfield Hall and can be reached by called 329-7223.  The fax number is 241-7821.  The campus box number is W-1628. 

The basic objective of the Purchasing office is to obtain supplies, equipment, and services efficiently and effectively - that is, in the right quality and quantity, at the right price, from the right source, and in a timely and organized manner which will provide for essential accountability of University expenditures. 

Completion of the purchasing process involves the joint effort of the Purchasing Office, user departments, and vendors (sellers).  However, the Purchasing Office has the final authority to conduct and conclude agreements concerning prices and conditions of sale.  Institutional commitments are made by the Purchasing Office in accordance with requisitioning and ordering procedures.  The office also provides a control function by acting as the legal agent of all departments within the University in dealing with every firm which supplies or aspires to supply materials, equipment, and services. 

No individual has the authority to enter into any contract or in any way obligate Mississippi University for Women for a procurement indebtedness unless specifically authorized to do so by the Purchasing Agent.  Any such negotiations are considered as unauthorized purchases and the individual may encounter a personal obligation to the vendor.  Firms ordinarily doing business with the University are aware of this policy and are advised that all purchases chargeable to Mississippi University for Women must be received on official Purchase Orders signed by the Purchasing Agent.  The University will not reimburse officers or employees for the cost of any purchases on behalf of the University unless previous arrangements to that end have been made.

Functions

The functions of the Purchasing Office are to: 

          Prepare, with the cooperation of the user departments, the quality and quantity specifications for items and services to be purchased and establish delivery
          schedules. 

          Provide user departments with current information on new products and services, alternative materials, and costs.

          Encourage competition among vendors through competitive bidding and contract buying.

          Ensure that purchase orders and contracts contain all necessary conditions, such as guarantees, warranties, governmental regulations, shipping
          instructions, F. O. B. points, and credit terms and discounts allowed.

          Develop records as needed to determine requirements of the institution for supplies, equipment, and services.

          Maintain adequate records and files of requisitions, purchase orders, vendors, catalogs, product information, and services.

          Maintain a catalog file as extensive as is practicable and files of specialized sources of information such as government publications, technical handbooks,
          and other books and magazines to aid in carrying out the purchasing function. 

          Ensure written detailed justification for accepting a bid other than the lowest bid provided.  It is unlawful for any award to be made on the basis of any item,
          requirement or criteria not specifically stated in the specification.

          Ensure that all purchases over $5,000 but under $25,000 are put out for quotes and those purchases $25,000 and over are put out for competitive bid.

Purchasing Procedures  

The purchasing cycle involves determining requirements by the user department, communicating requirements to the Purchasing Office, processing the orders, conducting competitive bidding and contract buying, and selecting sources of supplies; issuing purchase orders or contracts; and receiving materials.

Determining Requirements

The user department determines its needs and initiates the request for purchase by completing the Purchase Requisition.  Assistance will be provided by the Purchasing Office when needed to ensure that one's needs are being met and the right item is purchased.  The Purchasing Office is responsible for weighing all the factors involved in a purchase by bringing together the experience and judgment of all who are concerned.  This will help ensure achieving the basic objective of obtaining the right quality and quantity, at the right price, from the right source, and at the right time.  The Department Head/Budget Manager approves the purchase requisition online, knowing that departmental funds are available to cover the requested purchases. 

Submitting Requirements

The Purchase Requisition is entered online in Banner. Please see the step by step instructions on the following page.  Be very detailed and specific when preparing the purchase requisition. Be sure to follow the instructions for filling out the requisition completely.

Allow three (3) working days for normal processing time for the Purchase Order to be issued.

Allow sufficient time for the checks to be written to meet imposed deadlines.  Do not promise checks to anyone by a certain date without first speaking with the Accounts Payable Office.  A purchase order and other appropriate documentation must be in the Office of the Comptroller by 12:00 Tuesday of the week a check is needed.  More specifically, the requisition must be submitted to the Purchasing Agent no later than Friday morning before 12:00  to meet the Tuesday morning deadline for Accounts Payable.

Typing a Requisition in Banner

Log on to Banner

Under Direct Access type:  FPAREQN

Type NEXT or hit tab

Either hit Next Block on the Tool Bar or Press Ctrl and Page Down

Tab to Delivery Date and enter date that ordered materials are needed

Tab to Organization Number -Type in the organization number to be charged for purchases

Tab to Ship To -Type in your ship to address

Either hit Next Block on the Tool Bar or Press Ctrl and Page Down

Select your vendor
          - Use the Flashlight Search to look up a vendor
                    If the vendor is not in the system, send an email to the Purchasing Agent with the following information on the vendor: Name, Address, Phone, Fax
                    and Federal Tax Id Number
          - Use the Flashlight Search near the address to select the correct address.

Either hit Next Block on the Tool Bar or Press Ctrl and Page Down

Tab over to Desc (NEVER type anything in the COMM area) -Type in the description of the items needed.  Remember to have one item per line.

For items that must be paid or prepaid- Type PAY or PREPAY at the beginning of the description of the item.  Remember to submit the proper documentation for that order to be paid/prepaid to the Purchasing Office with the requisition number written on the top right hand side of the documentation.

Tab to UM -Select the Unit of Measure (use the flashlight search if necessary)

Enter the Quantity desired

Enter the Unit Price

If more room is needed for clarification of the item, enter the information in Item Text (use the list on the left of the screen under Options).  Once you have accessed that screen, either hit Next Block on the Tool Bar or Press Ctrl and Page Down to enter the information.  To leave that screen, click on the yellow Save disk on the top left hand side of the tool bar and then click on the red exit door on the top right side of the tool bar.

Either hit Next Block on the Tool Bar or Press Ctrl and Page Down

Tab over to the ACCT and type in the Account Code for the items on the requisition.

If you are using more than one account code, you need to UNCHECK the DocAcct on the upper right side of the page.  This must be done before advancing to the accounting section of the requisition.  Once it has been unchecked, you may either hit Next Block on the Tool Bar or Press Ctrl and Page Down to enter the accounting FOR ONE LINE ITEM ONLY.  Then you must press Ctrl and Page UP to add another line item.  This process must be repeated for each item added.

Either hit Next Block on the Tool Bar or Press Ctrl and Page Down

Make sure that you fill in the spreadsheet so that you are able to keep record of what requisition number you used to request your purchase order.

Click on the Green Complete Box

If the order is in excess of $5,000 remit at least two signed, dated quotes from vendors showing that you are using the lowest bidder.  These quotes should also have the requisition number written in the top right hand side of the documentation. 

Online Requisition Approvals

Log on to Banner

In the Direct Access type FOAUAPP

When your name appears in the first section, either hit Next Block on the Tool Bar or Press Ctrl and Page Down.  This will show you all of the requisitions pending your approval.  Please keep in mind that if you typed in the requisition it is automatically approved and will not be seen on this screen.

You can:

          §        Approve sight unseen

          §        Disapprove sight unseen

          §        Click on Detail to see where the requisition is written to and on View Commodities to see what items are to be purchased and then approve or
                    disapprove.

Once the requisition is approved it is immediately sent to Purchasing for Purchase Order Assignment.  If the requisition is disapproved, the person who entered the requisition will get a message saying that the document has been disapproved.  After disapproval, the entering party can enter that requisition number in FPAREQN and make the necessary changes.

Document History Query 

Log on to Banner

In Direct Access, Type FOIDOCH

In Doc Type, type in REQ if you are looking for information and you have a requisition number and PO if you are looking for information and you have a purchase order number.

In Doc Code, type in either the requisition number or the purchase order number.  Remember that the only letter in the doc code is the first character.  That letter will either be a P or an R, depending on whether you are searching based on a purchase order or a requisition number.  Either hit Next Block on the Tool Bar or Press Ctrl and Page Down.  This will give you the entire current history of that document.

Budget Query

Log on to Banner

In Direct Access, type FGIBAVL

Tab over to the Organization space and type in your organization number. 

Tab down to Acct and type in 4000.

Either hit Next Block on the Tool Bar or Press Ctrl and Page Down

This will show you the current balance in the travel, contractual services, and commodities areas.

Ship to Codes

001                              Academic Advising

002                              Academic Computing

003                              Academic Support Services

004                              Admissions

005                              Alumni Relations

006                              Archives and Museum

007                              Bookstore

008                              Communication

009                              Career and Leadership

010                              Carrier Lodge

011                              Comptroller

012                              Computing Services

013                              Continuing Education

014                              Counseling and Testing

015                              Credit Union

016                              Dean of Enrollment

017                              Demonstration

018                              Director of Development

019                              Education and Human Science

020                              Child Parent Development Center

021                              Modeling Squad

022                              Speech and Hearing Center

023                              Speech and Hearing Graduate Program

024                              Resources Management

025                              Financial Aid

026                              Fine and Performing Art

027                              Food Services

028                              Governor's School

029                              Graduate School

030                              Greater Columbus Learning Center

031                              Health Center

032                              Health and Kinesiology

033                              Humanities

034                              Institutional Research

035                              Culinary Arts Institute

036                              International Programs

037                              Library

038                              Meh Lady

039                              MS Fibernet

040                              MSMS

041                              Diversity Education and Programs

042                              Nursing

043                              Paralegal

044                              Human Resources

045                              Physical Plant

046                              Plymouth Bluff

047                              Post Office

048                              President's Office

049                              Print Shop

050                              Public Affairs

051                              MUW Police

052                              Purchasing

053                              Registrar

054                              Residence Life

055                              Science and Math

056                              Spectator

057                              Student Development

058                              Student Government Association

059                              Student Life

060                              Theatre

061                              Academic Affairs

062                              Finance and Administration

063                              Student Affairs

064                              Video/Information

065                              W Angels

066                              WMUW

067                              Tupelo Nursing

068                              Business

069                              Summer Odyssey

070                              MS Teacher Fellowship

071                              Eisenhower Geography Grant

072                              Summer Discovery

073                              Honors

074                              Staff Council

075                              Partnership for a Healthy Mississippi

076                              Recreation & Fitness

077                              Center for Creative Learning

078                              Javits

079                              Math & Science Partnership

080                              Molecular Biology Lab

081                              Southern Women’s Institute

082                              Women’s Center for Entrepreneurship

100                              Receiving

BX                              Box

CEN                           Centimeter

CON                           Container

CSE                           Case

CTN                            Carton

DOZ                            Dozen

EA                              Each

FT                               Foot

GAL                            Gallon

GRM                           Gram

GRO                           Gross

INC                             Inch

KW                             Kilowatt

LB                              Pound

M                               Thousand

MET                           Meter

N/A                            Not Applicable

OZ                             Ounce

PAK                           Package

PC                             Piece

PR                             Pair

ROL                           Roll

SET                           Set

SVC                           Services

THR                           Therms

TON                           Ton

TRP                           Travel Related Services

YD                             Yard

Some Important “Do Nots”

DO NOT type or write special instructions in the description and specifications portion of the requisition form that have no bearing on the goods and/or services being purchased.   The Purchase Requisition does not go to the Business Office that mails the checks.   Examples may be: Need purchase order by noon, 12/31/08; send P.O. to this office to mail; etc.  Put your special requests for checks in writing on a separate sheet (yellow post-it) on the justification sent to Purchasing for pay/prepay purchase orders.  If your department wishes to fax orders frequently, your department may choose to have all white vendor copies sent to the office for mailing or faxing.  To simplify matters, your office will need to receive either all of the white vendor copies or none of the white vendor copies.

Purchase Requisition to Purchase Order

Once the requisition is received by the Purchasing Office, it is assigned a purchase order number.  It is then processed on a first come - first serve basis.  After a purchase order number has been assigned, one of four things happens to it.  It is:

1.  Processed immediately and a purchase order approved if under $5,000 and is in compliance with state contract.  It usually takes three (3) working days to
                 completely process a purchase order.

2.  Placed on hold pending receipt of price quotations ($5,000 up to $25,000).  The law requires two (2) signed, dated quotes on all purchases over $5,00 and
                 under $25,000.  This is the responsibility of the ordering department.

3.  Checked against the State Contract files to ensure compliance with the State Contract regulations, including prices, terms and discounts.

4. If the total is over $25,000 the Purchasing Agent will contact the ordering department to begin the specification and bidding process. This order would have to
                be put out for a public bid.

Purchase Order Distribution 

Purchase Orders are prepared in four (4) copies through the Banner System.  Copies are distributed as follows:

Signed copy to the vendor to place the order.

Accounts Payable copy to the Comptroller’s Office for preparation for payment.

Receiving copy to department for signature upon receipt of goods.  This copy must be sent to the Comptroller’s Office for payment to be made.  If only a portion of the order was received, make a copy of the receiving report and check the place for partial order received, sign it, and send it to the Comptroller’s Office.  When the complete order is received, send the signed, original copy to the Comptroller’s Office for final payment

Department copy to the Requisitioning Department for filing.

Emergency or Rush Orders

Emergency or rush orders for less than $1500 are handled immediately.  Please call the Purchasing Office to notify them of the requisition number of the emergency. 

Keep in mind the definition of Emergency Conditions. 

The term emergency as defined by the Mississippi Code of 1972, Annotated shall mean any circumstances caused by fire, flood, explosion, storm, earthquake, epidemic, riot, insurrection, of caused by any inherent defect due to defective construction, or when immediate preservation of order or public health is necessary by reason of unforeseen emergency.

Mississippi University for Women defines an emergency purchase as a purchase that was unforeseen and cannot wait to be processed through the normal procedures without hindering the learning process or the official functions of the University.

Requisitions Requiring Price Quotations

A requisition for items costing between $5,000 and 25,000 is sent out for price quotations.  The requests for quotations must be sent to at least two prospective vendors.  This is the responsibility of the ordering department.  These firms have between seven and ten days to respond.  However, most will gladly fax a quote within a day or two.  Once quotations are received, the Purchasing Agent, with the assistance of the department requisitioning the items, determines the lowest and best bidder according to specifications and an order is placed.

Requisitions Requiring Bids

If a requisition is received for item(s) totaling $25,000 or more, an advertisement is placed in the news media once a week for two consecutive weeks with sealed bids being opened seven working days following the second advertisement, 10 days for construction bids.

The Purchasing Office maintains a bid list which shows prospective and interested bidders according to company name and product.

Once bids are received, there is a public bid opening.  The Purchasing Agent then sends the department requesting the items a list of all of the bids to ensure the order is placed with the lowest and best bidder according to specifications.  If the department does not accept the low bid, the Department of Purchasing and Travel in Jackson determines if there is sufficient justification to warrant accepting the next lowest bid.

The following transactions as defined in the Mississippi Code do not constitute the purchase of commodities and therefore are exempt for bid requirements, except in the best interest of all concerned:

1.   The transfer, sale or exchange of personal property between state agencies.

2.   Contracts for professional services where there are no commodities purchased.

3.   Utilities.

4.   Transportation of persons or things.

5.   Telephone, Telegraph and Postage.

6.   Insurance (unless specific regulations are promulgated)

7.   Commodities purchased for resale either in original form or processed, manufactured or otherwise changed into another form or condition.

8.   Highway rights-of-way and construction contracts governed by Highway Department and Building Commission.

9.   Food and Lodging.

10. Office machine maintenance contracts.

11. Purchase of Livestock.

12. Textbooks.

These requisitions will be verified for current prices, terms, F.O.B., and quantity discounts.  Those under $2,500 will be immediately typed and processed.  State Contract purchases over $2,500, one-source items, leases, vehicle purchases, trade-in, transfers, and sales of state-owned property are sent to the Bureau of Purchasing in Jackson for approval.

Standing Purchase Orders

User departments requiring standing purchase orders will submit requisitions by the twenty-fifth (25^th) day of the month for such purchase orders to be effective the following month. Standing Purchase Orders may not exceed $500 per month and are available for multiple small purchases of items not exceeding $75.00 per purchase.  These should be closed and reissued every three months.  Do not extend an open purchase order from one fiscal year to another.                                                           

Corresponding with Vendors

If there is a need to contact a vendor pertaining to an order, for example, an unusually long delay before delivery, please notify the Purchasing Office.  All changes and substitutions must be approved by the Purchasing Office.

Cancellation of a Purchase Order

An accepted purchase order becomes a contract and has the same legal standing as a more formal or long-term agreement to which the word Acontract@ generally applies.  The cancellation of such an order is the breaking of an agreement and legally cannot, and ethically should not, be made arbitrarily by either party to the agreement.  Frequently, however, a change in demand, use or conditions dictates the necessity of cancellation of purchase orders.  All requests for cancellations for orders in whole or in part must be made by the department head to the Purchasing Agent B not the vendor.

Price Increases and/or Additional Services 

If a vendor contacts the University regarding a price increase for the items/services ordered the user department should contact the Purchasing Office as soon as possible.  Send an email including the Purchase Order number to be changed and the changes that need to be made to the Purchasing Agent.  A change order will be issued to the vendor.

Handling Maintenance Agreements

A copy of all maintenance agreements are to be attached to the requisition when it is forwarded to Purchasing.

Paying State Sales and Federal Excise Taxes

State sales taxes and federal excise taxes are not paid on purchases for the University.  Tax exemption notation is printed on the Purchase Order.  There is a copy of a letter from the State Tax Commission that may be sent to the Vendor, if needed, on the following page.

Purchasing/Leasing Computers, Calculators, and Word Processing Equipment

The Purchase or lease of all computer and word processing equipment must be approved by the Information Technology (ITS) authority in Jackson.  This includes electronic calculators that cost $1000.00 or more.  For details contact the Purchasing Office.

Other Leased Purchase Transactions

Lease-purchase transactions on any vehicles less than $30,000 and on any furniture or equipment having an acquisition cost of less than $10,000 is prohibited.

Renting or Leasing Equipment

All rental or lease agreements must be signed by the Purchasing Office after written approval has been received from the Bureau of Purchasing in Jackson.

Rush Expenditures Near Termination of a Budget Period

No rush expenditures near the end of a budget period should be requested.  In all cases, requisitions for expenditures against University budgets should reach the Purchasing Office by the deadline given in the memo distributed by the Vice President for Finance and Administration each year.  The deadline will give ample time to obtain bids, if necessary, and give each request the specific attention it needs.

Uniform Policies Regardless of Fund Source

General policies concerning purchasing apply to all funds of the University, regardless of the source.  All funds deposited with the University are University funds and must be handled consistently in accordance with the University and State policies.  This includes agency accounts.

Purchases Requiring Prepayment

Sometimes it is necessary to make advance payment for items.  This is always true for U.S. Government documents from the Office of the Superintendent of Documents and for certain other items, usually of small value.

In such cases, be sure of the accurate and complete description of the items required, its price, catalog number, and the exact name and address of the source of supply.  Prepare a purchase requisition as usual; and begin the description with Apay@ or Aprepay@.  Also, forward a copy of the contract, subscription renewal, a brief explanation as to why the requisition is to be prepaid, etc, to the Purchasing Office with the requisition number written in the top right hand corner of the documentation.

Items Not Purchased by University Policy

University and State policy does not permit the purchase of such items as gifts and flowers for employees who are getting married or who are on maternity leave.  Retirement parties and gifts and Christmas cards are not permitted either.  These are personal items and should be handled on a personal basis.

University letterheads should not be used for ordering personal items to be paid for by the individual.  When letterheads are used, often the vendor will bill the University rather than the individual, resulting in time consuming correspondence.

Intra-University Purchases

Purchases from on-campus University activities will be initiated by the requisition department using Inter-departmental Purchase Order Forms.  These purchases are not processed by the Purchasing Department.  They are processed by the Comptrollers Office.

Honoraria

1099's are to be issued at year end for honoraria and other services provided by individuals.  The social security number (SSN) is the key to obtaining and maintaining the information for which to issue the 1099's.  The SSN will be used as the vendor code when paying these persons.  Therefore, the SSN must be obtained and included on the purchase requisition.  Purchasing will then use the SSN as the vendor code.

The SSN will be required on those requisitions on which the 5700 expenditure object codes are used for individuals.  In addition, departments should ask individuals to complete Form W-9, Request for Taxpayer Identification Number and Certification, and forward the W-9 to the Resources Management Office, Box W-1628.  Blank forms may be requested from the Office of Resources Management.

University employees who are paid through the University's payroll system and who perform additional services for which they are to receive remuneration, will be paid through payroll department by way of a completed Personnel Action Form (PAF).

On the following pages, please find an excerpt from the 1995 PERS handbook.

Internal Revenue Service 20 Point Test

Employee or Independent contractor: workers are either one or the other.  People who are not sure of their work status should find out now.  Those who should be classified as employees, but are not, may be losing out on workers compensation, unemployment benefits and, in many cases, group insurance (including life and health) and retirement benefits.

Many people are misclassified as independent contractors when they are really employees.  They are found in all kinds of occupations.  But no matter how an employer classifies you, it is best to find out for yourself if you are what your employer says you are.

In a nutshell, if the person who employs you sets your work hours, provides you with tools, tells you what to do and how to do it, and can fire you, then chances are you're an employee -- not an independent contractor.

It does not matter if the employer allows you freedom of action in your work.  Just that fact that the employer has the legal fight to control the method and result of your work is enough to show an employer-employee relationship.

At this time, the guidance the Internal Revenue Service (IRS) uses to properly classify workers is a list of 20 factors that question the extent of control in the relationship.  You are most likely an employee if more than a few of these factors apply to you.

- Someone tells you when, where and how to work.  

- The business trains you to perform services in a particular manner.

- Your services are part of the business operations because they are important to the success of the business. 

- Your services are rendered personally.

- The business hires, supervises, and pays workers.

- You have a continuing relationship with the business.

- The business sets your work hours.

- You are required to work or be available full-time.

- You work on the premises of the business, or on a route or at a location designated by the business.

- You perform services in the order or sequence set by the business.

- You submit reports to the business.

- You are paid by the hour, week or month.

- The business pays your travel and business expenses.

- The business provides your tools, materials, and other equipment.

- You have no significant investment in the business.

- You don't make a profit or suffer a loss from the business.

- You normally work for one business at a time.

- You don't offer your services to the general public.

- The business has the right to fire you.

- You have the right to quit without incurring liability.

If you're still not sure whether you're an employee or independent contractor, get Publication 937, Employment Taxes and Information Returns, and Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding.  Both are available FREE by calling 1-800-829-3676.

Employee

If you have an employer-employee relationship, it does not matter whether you're called and employee, partner, independent contractor, co-adventurer ...You're still an employee for tax purposes.

Your employer must withhold income tax on your wages, and must pay social security tax (FICA) as well as withhold your portion of FICA.  Also, your employer is responsible for unemployment tax (FUTA).  Your employer must give you a Form W-2 Wage and Tax Statement, showing the amount of taxes withheld.

If your employer does not withhold or deposit these taxes because you are misclassified, you will not be covered by unemployment or workers compensation.  And you may be hit with a big tax bill at filing time if you have not been credited with paying these taxes during the year through withholding.

Independent Contractor

If someone has the right to control only the result of your work and not the way in which you get that result, then you are probably an independent contractor.  For tax proposes, you may get a Form 1099-MISC Miscellaneous Income, from the business hiring you as an independent contractor.

You are responsible for paying your own income tax and self-employment tax.  You may want to get FREE Publication 533, Self-Employment Tax, and Publication 505, Tax Withholding and Estimated Tax.

As an independent contractor, you may have your own employees or you may hire another independent contractor (subcontractor).  Get Publication 15, Circular E, Employer's Tax Guide, and Publication 937 to find out what your tax responsibilities are.

---- from PERS 1995, Agency Handbook 

Expenditure Account Codes