1.9.0: Purchasing Policy
Spalding 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.
The University’s Four Guiding Purchasing Principles:
- Budgetary integrity — demonstrate adherence to the approved operational and capital budget
- Operating performance —evaluate service, efforts, or value of purchase
- Stewardship — show the impact on mission and operations
- Systems and controls —meet standards of good business practice
- It shall be the responsibility of Spalding University Deans, Chairs of Schools, heads 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 this University Purchasing Policy may be held personally liable for the purchase and may be subject to disciplinary action.
- All contractual services, goods, equipment, and capital items must be obtained in accordance with this University Purchasing policy. Competitive bidding and Request for Proposals are required when determined appropriate by the Chief Operations Officer. See further detail below in Competitive Bidding / RFP section.
- Every academic and administrative department submits its budget request with line-item detail. The President, Provost and Chief Operations Officer review all budgets with the respective Deans, Chairs of Schools, and heads of departments or units before the budget is passed on to the Finance Committee and Board of Trustees for its approval each year.
- Approval for Purchasing and Payment
- All items purchased should 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, Deans, Chair of the School, COO, President, Provost, or Executive Committee of the Board of Trustees as detailed in Exhibit A, “Purchasing Acquisition Guidelines.”
- The only exception to the policy outlined in 4.a. is for an emergency which requires the approval as detailed in Exhibit A, “Purchasing Acquisition Guidelines.”
- The Finance Office reviews all purchases, including check requests, expense reports, purchase orders, and invoices, to ensure compliance with policies and budgeted funds are available prior to approving for payment.
- After approval of the payment voucher by the Controller/Asst. Controller, checks (including paper or electronic) are to be signed as follows:
- $1-$9,999 – Any approved check signer
- $10,000-$49,999 – Two approved signers, one of which is either: Controller, COO, Provost, or President
- $50,000-$99,999 – Two approved signers, one of which is either: COO, Provost, or President
- $100,000 and up – Two approved signers, both of which are either: COO, Provost, President, or General Counsel
- All above apply to paper and electronic payments.
Competitive Bidding/RFP Process
During the budget process, the President, Provost, Controller, and COO will review potential items with the respective Deans, Chairs of Schools, heads of departments or units that will require competitive bidding.
If the cost of the expected goods or services exceeds $150,000, a formal bid process is required. The following guidelines:
- Bids are solicited from 3 or more vendors, unless written support for fewer bids is documented by the President and COO.
- Best value criteria will be used to evaluate bids. Best value criteria may include, but is not limited to:
- installation costs
- life cycle costs
- quality and reliability of the goods and services
- delivery terms
- indicators of probable supplier performance under the contract, such as past supplier performance, the supplier's financial resources and ability to perform, the supplier's experience and demonstrated capability and responsibility, and the supplier's ability to provide reliable maintenance agreements and support
- cost of any employee training associated with the purchase
- effect of a purchase on the university's productivity
- other factors relevant to determining the best value for the university in the context of a particular purchase
- any other factor that a that a private business entity would consider in selecting a supplier
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 and COO 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 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 COO or President.
Special Types of Purchases
Invoices related to premises and equipment exceeding $1,000.00 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.
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.
Purchasing Acquisition Guidelines
These transactions need to be reported and/or approved by the Board of Directors:
Budgeted by Line Item
Purchase Forms Required
Meets Strategic Plan Goal
Approval by Board
All budgeted operational expenses and capital expenditures have the following approval requirements (Any exceptions to this policy are kept on an internal document within the Finance Office and approved by the COO):
Budget Manager/Director’s Approval Required
President/Provost Approval Required
$2,000 or less
From $2,001 to $9,999
From $10,000 to $49,999
From $50,000 and Up
Revised: June 30, 2022