Purchasing Policy | Spalding University Policy Guide

2.9.1: Purchasing Policy

Spalding University’s aim for purchasing is to ensure that all University funds (students’ tuition, donations, government or foundation grants, etc.) are used in a manner that supports the strategic initiatives of the University at the best possible value (best service/product at market price or less).

The University’s Four Guiding Purchasing Principles:
1. Budgetary integrity — demonstrate adherence to the approved budget
2. Operating performance —evaluate service, efforts, or value of purchase
3. Stewardship — show the impact on mission and operations
4. Systems and controls —meet standards of good business practice
Derived from FASAB Concepts: Objectives for Federal Financial Reports

University Responsibilities
1. It shall be the responsibility of Spalding University Deans, Chairs of Schools, Administrative Officers of Departments or Units to train their staff in University Purchasing procedures (including, but not limited to, accurate completion of University forms and proper documentation of planned expenses). Any employee making purchases without following the University Purchasing Policy may be held personally liable for the purchase and may be subject to disciplinary action.

2. All contractual services, goods, equipment, and capital items must be obtained in accordance with the University Purchasing procedures. Competitive bidding and Request for Proposals are required when determined appropriate during the budget process.

3. As part of the zero-based budgeting process, all University departments budget line item detail and provide for each line item the “Rationale for Expenditure and Relation to University Goals or Mission” as is stated on each account’s budget form. Every academic and administrative department submits its budget request forms with line-item detail. The President, Provost, Business Manager, and Chief Financial Officer review each form with the respective Deans, Chairs of Schools, and Administrative Officers of Departments or Units before the budget is passed on to the Finance Committee and Board of Trustees for its approval each May.



4. Approval for Purchasing and Payment
a. All items purchased must be included in the approved operating budget, capital budget, or board designated funds for that fiscal year. Purchases of budgeted items require approval of the Directors, Dean of the College, Chair of the School, CFO, President, Provost, or Executive Committee of the Board of Trustees as detailed in Exhibit A, “Purchasing Acquisition Guidelines.”

b. The only exception to the policy outlined in 4.a. is for an emergency which requires the approval of the Board of Trustees, CFO, the President, the Provost, or a Dean, as detailed in Exhibit A, “Purchasing Acquisition Guidelines.”

c. The Business Manager reviews all purchases, including check requests, expense reports, purchase orders, and invoices, to ensure budgeted funds are available prior to approving for payment.

d. The four approved check signers are the Controller, CFO, President and Provost.

e. After approval of the payment voucher by the Business Manager, any of the four approved check signers can sign checks under $10,000.00. Any check between $10,000.00 and $49,999.99 must be signed by two of the four approved check signers. Any check over $50,000.00 requires two signatures, one of which must be either the President or the Provost.

Conflict of Interest
It is prohibited for any individual engaged in the Purchasing process on behalf of Spalding University to solicit bids or do business with any individual or company in which either the individual or a relative have a direct or indirect interest. The President must approve any exceptions to this policy in writing.

Acceptance of Gratuities
A gratuity is a tangible gift or consideration received from a current or perspective vendor or provider of services to Spalding University that is over $100.00 in value.
The acceptance of gratuities from persons or companies interested in selling items or services to the University is prohibited.

Competitive Bidding/RFP Process
During the budget process, the President, Provost, Business Manager, and CFO will review potential items with the respective Deans, Chairs of Schools, Administrative Officers of Departments or Units that will require competitive bidding.
Items of capital nature over $50,000.00 will have at least three bids.
Minority and Women-Owned Business Enterprise (MWBE)
Women and Minority owned businesses are included in competitive bidding across the University. All of our facility operations and capital budgets are processed through our facilities management partner, who must follow our best practices:
It is the policy and practice of the facilities management partner to promote and increase business opportunities for M/W/DVBEs (Minority, women and disabled veteran business enterprises) to ensure that they receive their fair market share of our clients’ business. In establishing this policy, we recognize our commitment to the communities in which we serve and the marketplaces in which we conduct business. Strengthening the diverse business community economically contributes to the overall economic growth and expansion of our markets.
Therefore, it is our objective to offer M/W/DVBEs equal access to purchasing opportunities. In addition, it is our goal to assist in developing and growing such businesses. The facilities management partner has been an active national member and supporter of two of the leading diversity organizations – National Minority Supplier Development Council (NMSDC) and Women's Business Enterprise National Council (WBENC). See also Exhibit B “Supplier Diversity”

Special Types of Purchases
Fixed Assets
Invoices related to premises and equipment exceeding $2,000.00 are placed on the fixed asset system. At the CFO’s discretion, invoices exceeding $2,000.00 can be expensed if it is determined they do not meet the requirement of the University’s capitalization policy. Assets are depreciated using the straight-line method based on estimated useful life.

Plant and Equipment
All purchases and contracts for renovation or purchase of equipment are facilitated by the facilities manager, currently Jones Lang LaSalle.

Information Technology Equipment & Software
All purchases and contracts for purchase of information technology equipment, software or services are facilitated by the Chief Information Officer.

Real Estate
The purchase or sale of real estate must be approved by the University’s Board of Trustees. If there is an immediate need to acquire real estate (a strategic property that has been identified becomes available for sale), a conference call or email vote of the Executive Committee of the Board of Trustees is required.
The real estate transaction must support the strategic aims of the University and meet the following conditions:
1. The purchase price must be equal to or less than the Property Valuation Administration value or equal to or less than the appraised market value.

2. The property must lie within the strategic areas outlined in the Campus Master Plan or serve some an element of the University Strategic Plan.

Spalding University
Purchasing Acquisition Guidelines
Budgeted Purchase Business Strategic Approval
By Line Forms Evaluation Plan by
Item Required Form Goal Board
These transactions need to be reported and/or approved by the Board of Directors:
Filing of Certificate of Need (CON) X X X X X
Implementation of CON X X X X X
Joint Venture X X X X X
New Entity X X X X X
Real Estate X X X X
Unbudgeted/Emergency Purchases over $100K X X X
Approve budget for Operations/cap ex X X X

All budgeted operational expenses and capital expenditures (facility & IT related) have the following approval requirements:
Director’s Officer/Chair/Dean CFO President/Provost
Signature Signature Signature Signature Required Required Required Required
Less than $1,000 X
From $1,000 to $9,999 X X
From $10,000 to $24,999 X X X
From $25,000 and up X X X X

EXHIBIT B Supplier Diversity

Through our supplier diversity program, we partner with minority, women and disabled veteran businesses across the country to obtain the best products and services for our clients. Strengthening the diverse business community contributes to the overall economic growth and expansion of our markets.
As part of this program, we participate in diversity business fairs across the country to build and develop relationships with several Minority and Women Business Enterprises (MBE/WBE). We are also an active member and participant in national and regional diversity councils wherein direct contact is made with leading suppliers, sharing best practices with peers and clients and increasing visibility within the real estate service industry. These organizations include:
• National Minority Supplier Development Council (NMSDC)
• Women’s Business Enterprise National Council (WBENC)
• Association for Service Disabled Veterans (ASDV)
• Government Agencies (Federal, State, City or County)
What qualifications do we look for in our suppliers?

Companies need to be certified as small, minority, veteran and/or women-owned business enterprises and, above all else, they are chosen for their ability to meet both our clients’ and our own business needs. All suppliers must meet the following criteria:
• Understanding of facilities management partner’s business
• Total cost of ownership
• “Value-added” capabilities
• Solid infrastructure
• Ability to grow and partner with facilities management partner
• Capacity