CHAPTER 10 - ACCOUNT MANAGEMENT AND PROCUREMENT POLICIES

CHAPTER 10 - ACCOUNT MANAGEMENT AND PROCUREMENT POLICIES

CHAPTER 10 - ACCOUNT MANAGEMENT AND PROCUREMENT POLICIES

SECTION 10.1
OVERVIEW

10.1(1) Overview(2001)

This information is now available from the Policy Library at: http://policy.iastate.edu/policy/business/expenditures/ and http://www.controller.iastate.edu/accounting/homepage.htm

SECTION 10.2
ACCOUNT MANAGEMENT POLICY

10.2(1) Account Management Policy

This policy is now available from the Policy Library at: http://policy.iastate.edu/policy/business/expenditures/

10.2(2) Guidelines on Allowability: General

This policy is now available from the Policy Library at: http://policy.iastate.edu/policy/business/expenditures/

10.2(3) Guidelines on Allowability: Foundation Gift Funds

This policy is now available from the Policy Library at: http://policy.iastate.edu/policy/foundation/

10.2(4) Signature Authority for Financial Transactions

This policy is now available from the Policy Library at: http://policy.iastate.edu/policy/duties/ and http://policy.iastate.edu/policy/signature/

10.2(5) Responsibilities for Cash Balances

This policy is now available from the Policy Library at: http://policy.iastate.edu/policy/business/balances/

10.2(6) Procurement Responsibility(2001)

Department chairs are responsible for ensuring all procurements of supplies, equipment, technical services and professional services are conducted consistent with policies found in this chapter. It is important that all procurements be handled in a fair, open, and ethical manner. Each university employee shares the responsibility for maintaining the public trust in Iowa State University.

10.2(7) Purchasing Department Authority(2001)

The University's Purchasing Department, a division of the Vice President for Business and Finance Office, has been delegated the responsibility for handling all procurement transactions and administering procurement policies and procedures. This authorization to act for the University is in accordance with Board of Regents, State of Iowa, policies and procedures.

10.2(8) Departmental Procurement Authorization(2001)

Departmental staff, chairs, deans, and directors have no inherent authority to make purchases. Any procurement that is beyond the scope of the consuming department's authorization is to be approved by the Purchasing Department before an order is placed, or a commitment is made that binds the University. Departments are to contact the Purchasing Department in advance and make no unauthorized commitments for the University. (2004)

University departments may seek Purchasing Department approval to use Purchasing Cards (Visa credit cards) for University business, with up to $2,000 per transaction and $10,000 monthly limits. These limits may be modified to meet departmental needs.

When procurement authorization is extended to departments, such as the use of Purchasing Cards, it is for the purpose of facilitating daily operations. This authorization is contingent upon the departmental compliance with the specific requirements and limitations of each procurement method utilized.

A proper segregation of procurement-related duties among Department staff shall be maintained to ensure the existence of adequate procurement controls. Adequate segregation of duties shall include the department chair or properly designated individual responsible for authorizing procurements and approving payments, with a second individual responsible for coordinating acquisition and, when possible, a third individual verifying receipt of ordered items.