PURCHASING POLICY

Revised March 11, 2025

This policy document outlines the purchasing policy for all non-capital purchases.

The University’s aim for purchasing is to ensure that all University funds are used in a manner that supports the strategic initiatives of the University at the best possible value.

For the purposes of this policy, ‘purchases’ are defined as; any goods or services purchased for University use; any contract for services entered into on the University’s behalf; any commitment to purchase goods or services on the University’s behalf in the future; rolling-over any previous contracts for the purchase of goods or services on the University’s behalf; and any other activity which commits University resources for any reason.

It is the responsibility of Managers / Heads of Department to train their staff in University Purchasing Policies (including but not limited to, accurate completion of University forms and proper documentation of planned expenses). Any employee making purchases without following this University Purchasing Policy may be held personally liable for the purchase and may be subject to disciplinary action.

All purchases must be aligned with the approved department budget. Purchases will not be authorized if the relevant approved budget limit for the year has been met or exceeded.

Conflict of Interest:

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

Purchasing approval:

It is the University’s intention to centralize purchasing and procurement.

All purchases and/or contracts for purchases of goods and services are subject to the following requirements for approval (based on the combined value if multiple items or services are included in the purchasing commitment):

$2,000 or less: Budget Manager approval required

$2001 to $24,999: Budget Manager approval required, plus CFO approval required.

$25,000+: Budget Manager approval required, plus CFO approval required, plus President approval required.

Approval must be obtained before the purchase is made, and/or before the service-provider is engaged,

and/or before a contract is signed (i.e. before University funds are committed). Approval cannot be

granted at the invoicing stage, or after University funds have been committed.

RFP’s’s / Competing bids:

For any purchase above $5,000, RFP’s or competing bids may be requested at the discretion of the CFO.

Centralized Contracts / Preferred Partners

For purchases of goods and services in certain areas, the University may elect to use a Centralized Contract or a Preferred partner to ensure the best pricing, at the discretion of the CFO. If there is a Centralized Contract, or a Preferred Partner (or Partners), all purchases subject to these arrangements must adhere to the Centralized / Preferred Partner policy.

CREDIT CARD POLICY

University credit cards are issued with approval of the CFO. If a request is denied, an appeal may be made to the University President.

All approved and budgeted department expenses should be settled by the relevant department’s administrative credit card, or submitted to the Business Office to be settled using the central Business Office credit card.

All University expenses must be settled by University credit cards.  The only exceptions are if the vendor / supplier does not accept credit cards, or charges a fee for credit card payments and will not waive the fee for University business. 

Check / ACH payments will not be issued for invoices that can be settled by credit card, and will only be issued for invoices that cannot be settled by credit card for no fee.  Check / ACH payments are issued by the Business Office only, at the discretion of the CFO.

All credit card charges must be accompanied by a fully-itemized receipt or invoice.  The receipt/invoice must show all items in the transaction, and not just the total amount.  Images/PDF’s of a message stating ‘No receipt available’ is not an acceptable alternative.  If a receipt is not available for any reason, the exception must be approved by the Business Office before the expense is submitted.

Only the person named on the credit card can use it.  Credit cards cannot be ‘lent’ to other people to use.  The named person is therefore accountable for all transactions on the relevant credit card, and adherence to the Credit Card Policy (including the requirement for itemized receipts/invoices).  Approved expenses can also be settled by the Business Office credit card directly.

Purchases using personal credit cards will only be reimbursed if prior approval has been given by the CFO.

Please note that any exceptions to the above requirements, and the Credit Card Policies generally, must be approved by the Business Office / CFO directly by email.

TRAVEL & ENTERTAINMENT (See also Travel and Reimbursement Policy)

The following policy applies to all business travel, or other forms of travel, or client/guest entertainment where the costs are to be paid by the University. Including, but not limited to, recruitment travel, client travel, speaking engagements, fairs, conferences and other events. This policy is subject to update and amendment.

The policy applies equally to expenses incurred on a University credit card, or a personal credit card for reimbursement. Any expenses incurred on a personal credit card that are outside of policy will not be reimbursed, and any expenses incurred on a University credit card that are outside of policy will be charged back to the individual.

Business Travel:

For business travel employees much select the most cost-effective mode of transportation.

Travel to and from the ‘home’ airport: If parking at the ‘home’ airport, only the cheaper long-term parking options can be used, short-term parking costs are not reimbursable. If it is more cost-effective to travel by taxi, Uber or other ride-hailing services, only the low-cost options can be used (i.e., ‘comfort’ or ‘large-car’ options are not reimbursable).

Meals or snacks/coffee on the way to the ‘home’ airport are not reimbursable, and meals or snacks/coffee at the ‘home’ airport are not reimbursable.

Flights: Please be stewards of University resources when booking flights, and book for the cheapest flight option to your destination. The University acknowledges that there is balance between extended travel time, and the value of your time lost while traveling – the intention is to find the most cost-effective and time-efficient balance between the two.

Please book flights as far in advance as possible to secure the lowest possible rates.

All flights above a cost of $600 must be approved directly (by email) by the CFO.

Hotel / accommodation: Please be stewards of University resources when booking hotels or other forms of accommodation, and book for the cheapest option that is convenient to your destination.

If you are attending a conference, and the conference organizers have negotiated discounted hotel rates, please take advantage of the discounted rate.

All hotels above a cost of $300 per night (before tax) must be approved directly (by email) by the CFO.

All multi-night or multi-destination trips with a total travel and accommodation cost above $2,000 must be approved directly (by email) by the CFO.

Car hire: When traveling by car: Your own vehicle can be used, and mileage will be reimbursed, for trips of 200 miles of less. For trips of 200 miles or more round trip, rental cars should be used.

For car rentals, Enterprise Rental Car is the car rental agency for the University, and must be used. The University Enterprise account number is H38317. When driving a rental, please ensure that you carry the University insurance policy paperwork.

Rentals should be for a cost-effective vehicle. Luxury car rentals will not be reimbursed (unless a free upgrade).

If it is more cost-effective to travel by taxi, Uber or other ride-hailing services at your destination, only the low-cost options can be expensed (i.e., ‘comfort’ or ‘large-car’ options are not reimbursable). Note that you cannot submit expenses for both car rental and taxi/ride-hailing services at your destination.

Meals while traveling: Per diem/meal allowances are aligned with the US GSA allowances for the State of Kentucky: There is a $80 per day meal budget when travelling ($20 for breakfast, $22 for lunch, $33 for dinner, $5 for incidentals – tips included). Please note that these are spending limits, not spending targets.

If your hotel rate includes breakfast, please take advantage of this option and reduce the per diem spend accordingly. If you are at a Conference, Fair or other event that provides a free meal, please take advantage of this option and reduce the per diem spend accordingly. If you elect to pay for a meal instead of a free meal as outlined above, the cost of this meal will not be reimbursed.

Reimbursement for alcoholic beverages cannot be claimed, unless it is an approved client-event (see below), or sanctioned other event, and only with the prior approval of the relevant Vice President / Manager.  Alcoholic beverages should not be charged to University credit cards, unless it is an approved client-event, or sanctioned other event, and only with the prior approval of the relevant Vice President / Manager.

If traveling with other University colleagues, and guests / clients are not included in a meal, all internal-only ‘group’ meal costs are subject to the same $80 per diem rules as above, and each individual should submit their own reimbursement requests separately.

Client / guest entertainment:

This policy applies to both travel entertainment, and non-travel entertainment.

‘Clients / guests’ are defined as anyone who is not a University employee, and is attending a meal or other event at the University’s expense.

The cost of gatherings of University employees not on an approved business trip are not reimbursable, except with the prior approval of the relevant Vice President / Manager.

All client / guest entertainment, regardless of cost, must be approved in advance by the relevant Vice President / Manager.

All client / guest entertainment with an anticipated cost of more than $250, must be approved directly (by email) by the CFO in addition to the relevant Vice President / Manager approval.

Acceptance of Gratuities

A gratuity is a tangible gift or consideration received from a current or prospective 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, unless prior documented approval is granted from the CFO or President.

Special Types of Purchases

Fixed Assets

Invoices related to premises and equipment exceeding $2,500.00 that meet the Capital Policy are placed on the fixed asset system. Assets are depreciated using the straight-line method based on estimated useful life. see Capitalized Assets Policy #16

Plant and Equipment

All purchases and contracts for renovation or purchase of equipment are facilitated by the facilities manager, currently JLL. This includes any requests for furniture, paint, or any general capital improvement requests.

Information Technology Equipment & Software

All purchases and contracts for purchase of information technology equipment, software or services are facilitated and approved by the Chief Operations Officer. Any requests should be sent through the IT ticketing system.

Real Estate

The purchase or sale of real estate must be approved by the University’s Board of Trustees.

The real estate transaction must support the strategic aims of the University and meet the following conditions:

The purchase price should be equal to or less than the Property Valuation Administration value or equal to or less than the appraised market value. Exceptions must have Board Approval.