Policy & Procedure

BID LIMITS

CARPETS

CONSULTANTS

CONTRACTED SUPPLIERS

CONTRACTS - PROCESSING

GIFTS

NAEB CODE OF ETHICS

PURCHASE ORDERS

RETIREMENT GIFTS, PARTIES

SCAMS

TELECOMMUNICATIONS EQUIPMENT

USNH FINANCIAL & ADMINISTRATIVE PROCEDURES MANUAL

VENDOR CODES

Bid Limits

Responsibility for the actual committing of funds for the purchase of goods and services is the sole responsibility of Purchasing as directed and established by Board of Trustee Policy. Anyone committing funds in the name of the University without an approved Purchase Order does so at their own financial risk.  Each faculty and staff member who has budgetary authority to order goods and services should do so with the full knowledge of the responsibility this entails. 

All individuals with budgetary authority are responsible for insuring the good stewardship of our student and state monies. It is the individual's responsibility to reasonably insure that they are receiving competitive pricing and fair value, that there is no conflict of interest in any transaction, and that there is no unnecessary expenditure of student and state monies. 

COMPETITIVE BID LIMIT REQUIREMENTS EFFECTIVE 10/01/01

• Between $3,000 and $4,999.99: Competitive shopping encouraged and formal quotation from the supplier (fax or email OK) required with detailed information on purchase (quantity, item price, total, shipping charges, payment terms). 
• Between $5000 and $9,999.99: Three (3) competitive quotes required (fax or email OK) and sent to Purchasing prior to approval of purchase order. 
• $10,000 and above: Requires a formal competitive bid by Purchasing. In most instances, these bids will be
  "sealed bids" and will be done in writing via mail or courier service. Fax bids will be at the discretion of the
  campus purchasing office.

The staff in Purchasing and Contract Services looks forward to serving you and will assist in requesting quotes or competitive bids at any dollar level. If you have any questions about this policy, please call the Purchasing and Contract Services at 535-2246 or email us. 

Carpet Purchases/Installation 
Any purchases related to construction, renovation, remodeling (any changes to the physical facilities) would first go through Physical Plant! They are most knowledgeable about building codes, fire codes, hooking into existing electrical systems, etc. so purchases of this type should come through the Physical Plant work order system. 

Consultants' and Employee Contracts - Processing

What Is A Consultant? 

• Consultants are self-employed individuals, partnerships or firms which provide professional evaluations, advice or services (purely advisory in nature) to PSU occasionally and for short period of time. 
• Consultants are NOT USNH employees or established vendors handled through regular purchasing procedures. USNH employees may not be considered Consultants and may not be paid for any services other than through normal payroll procedures. 
• The Consultant provides these services independently, without supervision of the individual engaging these services. 
• Consultant's Agreements require special approvals - always contact PSU Purchasing prior to making arrangements. 
• Travel expenses and/or support may be part of the agreement; however, unless specified in the agreement, there is
  generally no obligation on the part of the University to provide a place of performance of these services.

What Is An Employee? (from IRS definition) 

• An individual performing services subject to the control of an employer, both as to what shall be done and how, is an employee. 
• The employer does not have to actually direct or control the way the services are performed; it is enough if he has the right to do so. 

• An employee must be compensated through the personnel/payroll system. 

Contracted Supplier 
Departments should purchase through contracted suppliers where contracts exist - e.g. Boise for office products. This is to ensure we keep our end of the contract to provide an expected volume of purchases. It is that expected volume that determined the contractor's discount. 

If a particular contract is not working for you, please let us know and we will evaluate why and come to the best solution for all involved.

Contracts - Processing

• Honorarium Payments: up to $199: Use the Payment Authorization Information for Honoraria form. Complete this document with all pertinent information and process a Direct Pay. Attach Payment Authorization stamp and return to Accounts Payable (MSC #13). 
• Standard Performance/Presentation Agreement - $200 and up: 
  Standard Performance Presentation Agreements are used for the following: all entertainment (includes speakers, one time presenters, etc.) regardless of the dollar amount. 
• These guidelines will also be required for any contracts that are from external parties (i.e. not using form listed above). Please use the same dollar limits and processing routes for external party contracts. These will require a Contract Indemnification Amendment to be completed and signed. 
  
  NOTE: The Director of the HUB is authorized to sign some contracts up to $8000. 
  This form requires the following signatures: 
  --of the performer 
  --of the hiring department 
  --of Manager of Purchasing 
  
  Process these payments on a Direct Pay, attach Payment Authorization stamp, and send to Purchasing for signatures. Purchasing will forward the signed original to Accounts Payable for processing, and send a copy of the signed contract back to the department. 
  
  A vendor code must be established for these payments. Please follow the vendor code procedure. Please send the completed Supplier Registration form to Christine Gagne to have the vendor code set up. 
• Independent Contractor Agreement -  $200 - $10,000. The Independent Contractor form requires a PURCHASE ORDER to be processed. Complete the four form, obtain appropriate signatures and forward to Purchasing for approval. Purchasing will forward the signed original to Accounts Payable for processing, and send a signed copy back to the department.  Please clearly signify whether there will be multiple payments of BOTH forms--the agreement and Purchase Order. 
  
  *IF THERE ARE ANY CHANGES MADE TO ANY OF THE CONTRACTS PRIOR TO PAYMENT PROCESSING, ALL CHANGES MUST BE INITIALED AND DATED BY BOTH PARTIES AND REAPPROVED BY PURCHASING* 
  
  Also, if there are any changes in the scope of services or amounts to be paid, contact the Purchasing Department.
• Processing payments to Employees: An employee must be compensated through the personnel/payroll system. 
• Consultants Agreement: Consultants Agreements are specifically for engineering and architectural consulting. (If you require further assistance, please contact Purchasing.) This form will be used primarily by the Physical Plant Department.
• Additional Payment Processes - (These require longer processing time) $10,000 - $25,000 - Once the forms have been signed by the performer and the department of hire, forward the form to Purchasing for review. These documents also require the signature/ review of the Vice President for Financial Affairs. 
  
  $25,000 and up - Once the above procedure is complete, forward contracts to Purchasing. They will review, sign, and return to the Vice President for Financial Affairs. Once they have been reviewed, that office will forward documents to the USNH Treasurer's Office for signatures. 

Gifts
As gift activity increases in these lean budget times, there are many issues to consider to ensure donor relations are handled most appropriately, IRS rules are followed and relations solidified among parties. Please contact the Advancement Office as soon as there is contemplation of a gift to the College. They will guide you through the process and that will make life a bit better for all! 

NAEB Code of Ethics

1. Give first consideration to the objectives and policies of my institution. 
2. Strive to obtain the maximum value for each dollar of expenditure. 
3. Decline personal gifts or gratuities. 
4. Grant all competitive suppliers equal consideration insofar as state or federal statute and institutional policy permit. 
5. Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation. 
6. Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the product. 
7. Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes. 
8. Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier; and/or be willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of my institution permit. 
9. Accord a prompt and courteous reception insofar as conditions permit to all who call on legitimate business missions. 
10. Cooperate with trade, industrial and professional associations, and with governmental and private agencies for the purposes of promoting and developing sound business methods. 
11. Foster fair, ethical and legal trade practices. 
12. Counsel and cooperate with NAEB members and promote a spirit of unity and a keen interest in professional growth among them. 

July 1, 1985 

NATIONAL ASSOCIATION OF EDUCATIONAL BUYERS, INC. 

Purchase Orders
All purchases should be approved in advance by making sure there is an approved purchase order (PO) on CUFS. The PO is the official order, therefore it should contain an exact description of the goods or services required and be approved by the Purchasing Department before the supplier ships the order. 

By ensuring there is an approved PO up front, you will be able to monitor your budgets more accurately and suppliers will be paid in a timely manner. As always, if there is an emergency situation, we at Purchasing are here to help you out. 

For additional information regarding the financial responsibility of those making purchases with student/state monies, please see Bidding Limits. For information regarding the 'Confirming' Order policy, please see Confirming Orders. 

Retirement Gifts & Parties/Events
Each department will host its own retirement party according to the retiree's wishes. Departments are responsible for all event planning such as room reservations, decorations, invitations and speakers. Funds for the refreshments will come from the retiree's department funds. The department must give the President's Office one month's advance notice for the reitree to receive a congratulatory letter. 

Retiree gifts are ordered by the department through the PSU Bookstore at least two months in advance of the party. The following gifts are according to years of service at PSU: 


10-15 years PSU watch $ 49.95
16-20 years PSU mirror $175.00
21 + years PSU chair $260.00 ($18 extra if personalized)

The cost of the above gifts is charged to the General Institutional Expense account. Please provide Bill Crangle's office (x2328)
with any purchasing information. 

If there are any questions regarding the above procedures, please don't hesitate to call Human Resources at x2250. 

Scams

We recently had a company (Hanson Publications) try to pull a scam on one of our departments which went like this: 

A person called stating that they were with Hanson Publications and that the PSU department had been listed in their American Business Connections Directory for the past two years. They then asked if the department would like a copy. Department said "yes" but then the person said we will bill you for $259 for the listing. Department then said no thanks even after this person kept pressing for a PO #. Various representatives from this company called repeatedly over several days trying to pressure a sale which may or may not have been for a real 
service (the directory listing). They even reduced the price to $97 for just the listing charge and insisted the University pay. 

Luckily the department checked out this company on the Better Business Bureau web site at http://www.bbb.org/ and found that there had been a "pattern of complaints alleging deceptive selling and billing practices." in reference to Hanson Publications. 

If someone calls and tries to sell you something you don't recall ordering, or you don't recognize the company name take the following steps: 

1) Get company name, address, phone # fax #, and contact person (if they won't give you the information that's the first clue something is wrong) 

2) Ask them to send you information on the company (ask for a web page) stating that you must go through the proper processes before placing an order. 

3) Call Purchasing and we will find out whether they are a valid and reputable company. If so, we'll help you with your order, if not, we'll file a complaint on your behalf. 

The Better Business Bureau web site has information on a variety of schemes you may find helpful to review. Please call if you feel that you have been a target of a scam so we can get the word out. 

Caveat Emptor:) 
Heather Huckins, Manager of Purchasing 

Telecommunications (telephone, fax, pagers, etc.) should go through Telecom - see Steve Burrell, ext. 2262, for
details. 

USNH Financial & Administrative Procedures Manual

Vendor Codes - A vendor code is required on all POA's over $200.00 and
on all PC's.  If you are ordering from a vendor that isn't in our vendor
file, please follow this procedure: 

1. Fax or mail a Supplier Registration Form (SRF) to the
   vendor and ask them to complete both sides ASAP.
2. Explain to the vendor that a check cannot be issued to
   them, or an order placed with them, until this form is
   completed...they will send it back immediately! 
3. Once you receive the completed SRF, fax (2711) or
   mail (MSC #35) it to Chris Cote and the vendor code will
   be set up. 
   
   Note: The code is entered in Purchasing and processed
   overnight in Durham. 
   
   Explanation: The University System has devised the SRF to
   comply with certain IRS requirements. We, as part of the University System, are required to have a completed copy of this form (with the vendor's signature) on file for all vendors/individuals we issue a check to.